AFS to take measures on curbing the bubble in mortgage market

State agency on financial supervision (AFS) is undertaking measures for subduing the overheating in mortgage market.

‘As a regulating body we are making arrangements not to admit the reiteration of what happened in mortgage market. Thus we propose toughening standards to be introduced later’, E.Bakhmutova told reporters in Astana on Thursday.

The AFS Chairman says ‘the best way to prevent the future crisis is taking tough restricting measures now in pickup stage when the crisis is still fresh in our memory’.

She considers it necessary to increase the requirements for borrowers that must spend less than 50 % of available income for loan service.

Besides, AFS chairman believes the loan to value ratio must be lower than 70%. 

Mortgage should be available for middle class, she assumes, and those with low salary should rely on housing resources.

Interfax