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Mortgage loans for acquiring residential real estate

Mortgage loans for acquiring residential real estate

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ARARATBANK offers flexible terms of mortgage lending in AMD and USD for the purpose of acquiring residential real estate. Go to this link for more information on loan terms.

  • Interest rate

    AMD - 12.5%, USD-8.99% AMD - 1-5 years – 12.5%, thereafter yield curve interest rate before redemption of ten-year maturity RA Government coupon bonds + 3%, USD – 1-5 years - 8.99%, thereafter 7% + six-month LIBOR

  • Period

    60-180 months

  • Maximum amount

    AMD 100.000.000, USD 300.000

  • Currency

    AMD, USD

Conditions
Borrower

RA citizen and resident individual aged 20 

Borrower age shall not exceed 55

Co-borrower RA citizen and resident individual aged 20, who is the member of the Borrower family and whose age shall not exceed 55. 
Guarantor

RA citizen and resident individual aged 20 (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, USD
Minimum loan amount AMD 5,000,000, USD 10,000 
Maximum loan amount AMD 100.000.000, USD 300,000 
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%

USD –  1-5 years - 8.99%, thereafter 7%  + six-month LIBOR

Loan repayments

AMD-Annuity

USD- Flat-rate depreciation of the principal amount

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.
Required documents

Please follow the Armenian version

Important to know
  • The collateral appraisal shall be made by independent licensed appraisal companies cooperating with the Bank at the rates set by appraisal companies. Please refer here for the list and rates of appraisal companies.
  • Annual actual interest rate shows how much the loan will cost to the customer in case interests and other payments are repaid in due amounts and specified timelines. Go to this link for calculation of the annual actual interest rate.
  • After the authorized body has made a loan decision, the borrower shall be notified about it within one day. 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.
Useful information

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.

Loan amount

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Annual interest rate

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Page updated 29.01.2019 | 16:56

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