Kazakhstan · Money and mortgage
Nine mistakes by mortgage borrowers
Borrowing the maximum approved, forgetting the financial cushion, not comparing banks and signing without reading — a walk-through of the most expensive mortgage mistakes in Kazakhstan.
A mortgage is the largest financial contract in most people's lives, and the price of a mistake is measured in millions of tenge and years of payments. Most mistakes are made not from ignorance but because the person is in a state of emotional elation: 'I've found the flat, I must take it'. Calmly reviewing typical errors is the best insurance.
§ 01
Mistakes before signing
- 01Borrowing the maximum approved amount
The bank approves the loan based on your income and its own risk model — not your comfort. The approved maximum often implies a payment of 45–50% of income. A good rule: the payment should not exceed 30–35% of income, otherwise any setback — illness, a salary cut — puts you in arrears.
- 02Not comparing several banks
The first bank that approves the loan is not necessarily the best. Spend a week submitting applications to 3–4 banks and compare the total cost of credit. A 1–2% gap on a 15-year loan is KZT 3–8 m of overpayment. That time is worth spending.
- 03Ignoring state programmes
Kazakhstan has preferential mortgage schemes: Otbasy bank, 7-20-25, Baspana Hit. Their rates are 3–8% against market rates of 15–20%. Check whether you qualify — it can save tens of millions of tenge in overpayment.
§ 02
Mistakes with the down payment and reserves
- 01Putting all your savings into the down payment
After the down payment and the transaction costs, many buyers are left with zero financial reserve. Critically dangerous: a repair, an appliance failure or a medical bill — and you can no longer pay the mortgage. Rule: at the moment the loan is disbursed you should have at least 3–6 monthly payments in the account.
- 02A small down payment to 'move in sooner'
A minimum down payment (typically 10–15%) lowers the entry threshold but sharply raises the loan size and the overpayment. At 10% instead of 30% you borrow 20% more and pay interest on it for the whole term. Banks often raise the rate at a low down payment as compensation for higher risk.
§ 03
Mistakes at signing
- 01Not reading the contract
A mortgage contract is 30–60 pages. It is rarely read, especially in the emotion after a long search. Critical things to find: the rate-change clause, late-payment penalties, early-repayment terms, grounds for the bank demanding immediate repayment of the whole loan. If anything is unclear, ask for a pause and read it at home.
- 02Agreeing to all 'bundled' products
When the loan is disbursed, banks actively offer cards, insurances, settlement accounts. Some of them reduce the rate — worth considering. The rest are unnecessary expense. Ask directly: 'which of these affects the rate?' — and decline everything else.
- 03Not checking the payment currency
If your income is in tenge and the loan is in dollars, you take on currency risk: when the rate moves, your tenge payment rises automatically. The loan must always be in the currency of your income — that is the basic rule of risk management.
§ 04
Mistakes during repayment
- 01Not using early repayment
Every KZT 100,000 paid into early repayment in the first 3–5 years of the mortgage saves 3–4 times more on interest than the same money later. In the early years most of the payment goes to interest — which is why early repayment is so effective. Save bonuses and one-off income for repayment.
⚠ This material is for informational purposes only and does not replace legal advice. For major transactions always work with a qualified specialist in your country.