Regulations Updated for Using Pension Savings for Mortgage Repayment in Kazakhstan

New amendments to the rules governing the use of excess pension savings for mortgage repayment have been introduced in Kazakhstan, according to an announcement by Otbasy Bank. These updated requirements officially come into effect on April 17.

According to the bank's statement, pension funds can now be utilized for the partial or full early repayment of mortgage loans exclusively to cover the principal debt. Interest accrued (royalties) and other associated fees must be settled using the borrower’s own personal funds.

Furthermore, when utilizing pension payments to repay a mortgage, applicants are now required to upload a new standardized certificate to the enpf-otbasy.kz platform. This document must explicitly state the remaining balance of the principal debt on the loan.

Otbasy Bank confirmed that it has issued official notices to second-tier banks regarding the necessity of providing these specific certificates to clients for processing their applications.