Mortgages through savings: Kazakhstan’s commercial banks enter the housing construction savings market
Launch details
Amendments to the law “On Housing Construction Savings in the Republic of Kazakhstan” officially open this segment to commercial players. The exact regulatory requirements for participating banks are still being formed, but major financial institutions have already begun bringing their first products to the market.
Halyk Bank has launched a housing savings program called Shanyraq. The mechanics are classic for the housing construction savings system: a depositor must accumulate at least 50% of the purchased housing’s value over 36 months. After fulfilling these conditions, the client gains the right to take out a housing loan at a reduced rate starting from 5% per annum.
Freedom Bank is also preparing to enter this segment. In April, the bank announced the launch of a mortgage under the housing construction savings system in partnership with the developer BI Group.
Country and market
For Kazakhstan, the housing construction savings system is one of the main drivers of the mortgage market. For a long time, the mechanism operated as a closed ecosystem where the right to accept such deposits was restricted. Expanding the circle of participants to second-tier banks changes the balance of power in retail lending.
Commercial banks gain a legal instrument to attract “long” money. Depositors, in turn, will be able to choose a financial institution based on app convenience, service quality, or additional partnership programs with developers.
Why it matters
Admitting new players solves two tasks at once: it reduces the burden on state mortgage programs and stimulates banks to create more flexible savings products.
Commercial banks gain long-term liquidity, and the mortgage market transitions from dependence on a single operator to direct competition for the depositor.
What’s next
The market awaits the publication of the full text of the amendments and the regulator’s normative acts. The documents should clarify exactly which prudential standards and capital requirements will apply to second-tier banks working with the housing construction savings system. In parallel, the launch of similar savings programs from other major retail banks in Kazakhstan can be expected.