---
description: Let's begin by defining the roles of the borrower and co-borrower. The borrower is the person who applies for a mortgage loan and secures the loan by entering…
title: Who can act as a co-borrower when applying for a mortgage, and why is a co-borrower required? -Ipoteka.birbank.az
image: https://ipoteka.birbank.az/api/articles/photo/2766ee93-44e1-488d-9a61-a36c26cece27.png
---

Who can act as a co-borrower when applying for a mortgage, and why is a co-borrower required?

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## Let's begin by defining the roles of the borrower and co-borrower.

The borrower is the person who applies for a mortgage loan and secures the loan by entering into an agreement with the Bank. On the other hand, the co-borrower is a first-degree relative of the borrower (the person receiving the mortgage) who has official or other verifiable income and possesses the same rights and obligations as the borrower under the mortgage agreement. A co-borrower with other sources of income is eligible for an internal mortgage, excluding social mortgages available in specific regions.

  

Even though the loan agreement is drafted in the borrower's name, co-borrowers share equal responsibility for the obligations outlined in the loan agreement.

## When is a co-borrower required?

A co-borrower may be required in the following cases:

  

When the loan amount granted to the borrower needs to be increased: If the loan amount calculated by the bank for the borrower is insufficient to purchase a house or apartment, the borrower can apply for an increased loan amount by including a co-borrower. For instance, if the cost of a house is AZN 100,000 and the Bank is ready to provide a loan of only AZN 50,000 based on the borrower's income, which falls short of the total cost, a co-borrower can be added to increase the loan amount. The co-borrower must have a verifiable income. When assessing the loan application, the Bank will consider the combined income and liabilities of both the borrower and the co-borrower. 

  

If the loan amount calculated based on the borrower's income does not meet the loan requirements:

  

The loan amount determined based on the borrower's income may not meet the minimum loan amount set by the bank. For instance, to purchase a house with a deed of ownership, the bank may allocate a loan amount of AZN 20,000, but the amount calculated based on the borrower's income is only AZN 15,000. In such situations, the loan amount can be increased by involving a co-borrower.

## Who can act as a co-borrower?

A co-borrower can only be a first-degree relative, including a father, mother, sister, brother, child, or spouse. In the case of receiving a social mortgage in the regions, only a spouse with an official income is eligible to be a co-borrower. During the application process, a maximum of two co-borrowers can be accepted.

  

Worth noting that a borrower (citizen of the Republic of Azerbaijan) can also apply for a mortgage loan with a citizen of a foreign state as a co-borrower, provided that the co-borrower has an official income and a valid permanent or temporary residence permit in the country. When applying for a mortgage loan with a co-borrower, the Bank requires not only the borrower's documents but also documents related to the co-borrower.

  

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