Kazakhstan is among the top 11 countries in mortgage digitalization
NUR-SULTAN – Kazakhstan ranked first among the world’s top 11 countries in mortgage digitization, with Freedom Finance Bank Kazakhstan digitizing mortgages at an astonishing 90% rate according to the Department of Economic Affairs and Social Affairs of the United Nations.
Kazakhstan ranked 29th in the overall list and first among CIS countries. Among the top countries with the highest level of digitalization are Denmark, South Korea, Estonia, Finland, Australia, Sweden, UK, New Zealand, USA and the Netherlands.
United Nations research examined the e-government development index of 193 countries for 2020. The index includes three average indicators: the range and quality of online services, the level of development of telecommunications infrastructure and the quantity of human capital.
During the study, the researchers examined and tested the following steps in acquiring a mortgage loan: application – pre-approval – housing evaluation – decision – processing of the transaction – signing of the documents – registration of the deposit – granting of the mortgage loan – after-sales maintenance.
All stages of the mortgage loan except the latter are digitized in Kazakhstan. The last, which involves the signing of a sales contract at a notary, cannot be carried out remotely due to the national legislation in force.
Paper documents are not needed as the system collects them itself from government databases, while real estate is appraised online and the deposit is recorded remotely, with the electronic digital signature being released later in the process.
In comparison, the level of digitization of mortgage products in Finland, South Korea, Sweden and the United States stands at just over 30%, in Great Britain at 55%.