header.mobile_app.img.alt.text
Online Banking
Mortgage loans for acquiring residential real estate
Share

Mortgage loans for acquiring residential real estate

Mortgage lending in AMD and USD currencies for residential property acquisition on flexible terms.

  • Currency

    AMD

  • Maximum amount

    AMD 100.000.000

  • Maturity

    60 - 180 months

Conditions
Borrower

RA citizen and resident individual aged 22 

Borrower age shall not exceed 55

Co-borrower RA citizen and resident individual aged 22, who is the member of the Borrower family and whose age shall not exceed 55. 
Guarantor

RA citizen and resident individual aged 22 (twenty), who is the member of the Borrower family and whose age shall not exceed 55.  

Legal entity

Loan purpose Acquisition of residential real estate
Currency AMD
Minimum loan amount AMD 5,000,000
Maximum loan amount AMD 100.000.000
Collateral Property to be acquired, additional property (apartment, residential house, public-purpose area, except for  production areas)
Maximum loan-to-value ratio
  1. Up to 80% of the appraised market value of the property to be acquired  
  2. Up to 100% in case additional property is pledged, however, not more than 80% of the total of the appraised market values of the property to be pledged  
Loan disbursement mode Transferred to the Borrower’s account together with down payment. Transferred to the Seller’s account in non-cash form. 
Loan maturity 60-180 months
Annual interest rate

AMD - 1-5 years – 12.5%, thereafter yield curve interest rate before redemption of ten-year maturity RA Government coupon bonds + 3%

Loan repayments

AMD-Annuity

Principle and interest repayments Monthly 
Insurance

Mandatory, annually

Insurance of the property to be acquired in the amount of outstanding loan

Penalty on past-due principal 0.06% daily
Penalty on past-due interest 0.07% daily
Early repayment charge Not applicable
Requirements to the credit history of the Borrower, Co-borrowers and Guarantors Lack of past-due liabilities (except for repaid guarantees) within 24 months prior to the loan application as well as the total of past-due liabilities shall not exceed 30 days   
Credit rating Cost-to-income maximum ratio – 45% (All loan liabilities of the borrower and co-borrower or guarantor + insurance cost/borrower’s and co-borrower’s or guarantor’s income)
Application processing fee AMD 10.000
Loan service fee Upfront fee in the amount of 0.5% of the loan amount on the loan disbursement date, AMD 50.000 minimum and AMD 200.000 maximum  
Renewable credit facility Up to 50% of the principal amount outstanding during the first 96 months of the loan.

Attention: Loan interest rates shall accrue based on the nominal interest rate, while the effective annual interest rate shall show how much the loan will cost to you in case interests and other mandatory payments with regards to loan disbursement and service are repaid in due amounts and specified timelines.

The effective annual interest rate may change depending on the change of the exchange rate value published on the official website of the Central Bank of the Republic of Armenia.

Where the loan is disbursed in foreign currency, changes in exchange rate may affect the loan repayments.

Fees payable

Appraisal fee AMD 15․000-35,000 
Insurance fee 0,15-0․16%
Notary fee AMD 20․000-25,000 
Cadastre related fee AMD 71․000 
Common reference AMD 10,000

Dear Customer, the ratings and the number of inquiries generated as a result of your loan applications may affect your overall credit rating in the Scoring systems.

 

Required documents

Please follow the Armenian version

Useful information
  • After the loan disbursement decision has been made, the required documents shall be collected and the loan shall be disbursed within 15 days. If the loan is not disbursed within the mentioned period, the decision made by the authorized body shall be deemed as void and shall be submitted to the authorized body for reconsideration, in case the loan application is subject to review.

The loan application will be approved if:

  • the customer has submitted the complete package of documentation and the loan application.
  • the query made to “ACRA Credit Reporting” credit bureau shows that the potential borrower and/or co-borrower and/or potential guarantor did not have classified liabilities and/or on the whole were not at least 30 days past due within the past 24 months prior to the query.
  • the ratio of monthly loan repayments, monthly insurance fees of the borrower’s and co- borrower's property and other long-term monthly expenses of the borrower/co-borrower and guarantor to the net income of the borrower/co-borrower and guarantor does not exceed 45 (forty-five) percent.
  • the appraised value of the Collateral or Collaterals meets the requirements.
  • both the borrower’s, co-borrowers’ and guarantor’s revenues meet the requirements.
  • the body authorized to take loan decisions within the Bank approved the loan application.

The loan application will be rejected if:

  • the customer fails to submit all documents necessary for getting the loan.
  • the query made to “ACRA Credit Reporting” credit bureau shows that the potential borrower/co-borrower and/or potential guarantor had classified liabilities and/or on the whole were at least 30 days past due within past 24 months prior to the query.
  • the appraised value of the Collateral or Collaterals is insufficient.
  • both the borrower/co-borrower and/or guarantor revenues are insufficient.
  • the borrower/co-borrower and/or guarantor submit false documents and/or information.
  • the rejection base of loan application is available in the loan historical database, which is not removed.
  • the body authorized to take loan decisions rejected the loan application.
  • the loan has been approved, but the customer has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents.
Important to know

Your property (house, vehicle, or other) may be confiscated in the manner provided for by law where you fail to repay your interests and principal in time.

Where you fail to perform your loan obligations, the loan security, as well as another property of the borrower if the former is insufficient, may be seized and sold in a court or out-of-court procedure both through direct sale and public auction.

Where you fail to perform your obligations either fully or partially, the Lender shall send those data to the credit bureau within a three-day period, where your credit history is generated. You shall have the right to obtain your credit history from the bureau free of charge. Attention: A bad credit history may hinder lending in the future.  

“Your financial directory” is an electronic system which facilitates the search and comparison of the services offered to individuals, and selection of the best options for you.

You have the right to communicate with a financial institution of your choice by post or e-mail. Receiving information electronically is the most convenient option. It is available 24/7, free from the risks of loss of paper information and ensures privacy.

Loan/leasing amount

...
...

Annual interest rate

...
...
All fields are required to be filled out and must not contain 0.

Term Payable interest Partial repayment of the loan General payment
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
0 0 դր. 0 դր. 0 դր.
General 0 դր. 0 դր. 0 դր.

Page updated 07.03.2024 | 15:02

In case of discrepancy between Armenian and English versions of the information, the priority is given to the Armenian version.