BI Group Expands Access to Primary Housing Through Freedom’s Savings-Based Mortgage

Freedom Bank and the investment and construction holding BI Group have signed a memorandum of cooperation. The partners agreed on exclusive terms for the sale of residential real estate to the bank’s clients under a new product - a savings-based housing mortgage.

The new product will provide clients with access to preferential financing using a housing savings mechanism for individuals to purchase primary housing, with a down payment ranging from 30% to 50% and interest rates starting from 5% per annum (APR 5.1%). An additional advantage will be the creation of a digital property showcase and priority access to BI Group sales: during the first three days from the start of sales, clients will be able to apply for a mortgage through the Freedom SuperApp on favorable terms.

How the savings-based mortgage works

Under the terms of the program, clients will be able to obtain a loan with a 30% down payment at an interest rate of 10% per annum (APR 10.5%) for up to 20 years. The preliminary loan rate will start from 10.5% per annum (APR 11%), with the final rate depending on the loan term and the deposit accumulation period.

If the down payment is 50%, the housing loan rate will be 5% per annum (APR 5.1%) for up to 25 years, while the interim loan rate will be 7% per annum (APR 7.2%).

The program also allows the use of excess pension savings both for the initial down payment and for replenishing the deposit linked to the mortgage. The deposit will accrue monthly income in tenge, making the savings process more efficient and beneficial for clients.

Under the agreement with BI Group, Freedom Bank clients will be able to, within the Freedom SuperApp:

• view a digital showcase of new BI Group residential developments;
• purchase primary housing online (including at the excavation stage), with or without mortgage financing;
• lock in apartment prices in BI Group projects for three days without commission when applying for a mortgage;
• purchase apartments in selected BI Group residential complexes on an exclusive basis for three days.

The product launch and implementation of the agreements between the companies are scheduled for June of this year.

“We always look at our products from the customer’s perspective and focus on making the purchasing process as simple and convenient as possible. Our company has already built a system that enables clients to purchase housing using convenient financial tools, and together with Freedom Bank we are offering an additional opportunity - access to affordable mortgages and fully digital application and processing. We are pleased with this partnership and confident that together we will set a new benchmark for technological advancement in the housing market,” said Yernar Zhanadil, Executive Director of BI Group Holding.

“An online savings-based mortgage combined with exclusive access to BI Group properties is a unique offering in the market. As with our classic digital mortgage, we have invested significant effort into developing this concept and have ultimately combined several key advantages: the ability to systematically save for homeownership, highly competitive interest rates, and a convenient online service. I am confident that this product will enable millions of Kazakhstanis to build a transparent, manageable, and economically efficient path to owning their own property,” said Aidos Zhumagulov, Member of the Board of Directors of Freedom Bank.