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Affordable housing for young families
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Affordable housing for young families

“Affordable Housing for a Young Family” state program is designated for provision of state support to young families who need better housing conditions.

 

  • Currency

    USD

  • Maximum amount

    AMD 27․750.000 In case of acquisition from the primary market

  • Period

    120-240 months

When the family is considered young

Young families may apply to get a mortgage loan if the total age of spouses does not exceed 70.

Lending details
  • If your monthly income is not sufficient to get a mortgage loan, then the co-borrower can assume obligations jointly with you. The Borrower’s family members only (spouses, their parents, sisters and brothers) may act as co-borrowers.
  • The customers, whose (spouses and possible co-borrowers) total monthly net income exceeds AMD 800 000, cannot apply for the loan.
  • If one of the customers (spouses) owns other residential real estate (be it an apartment or a residential house), he/she cannot apply for the loan, except for the cases when less than 18,0 sq.m falls on per capita (only for persons that actually reside (are registered) in the apartment/residential house).
  • The customers, who do not plan to reside permanently in the apartment to be purchased (rent out the house before residence, use it as a summer cottage etc.) cannot apply for the loan
Conditions (primary market)
Borrower

RA citizen and resident individual aged 20 

 

Co-borrower RA citizen and resident individual aged 20, who is the member of the Borrower family (a spouse, parents-in-law, sisters and brothers of the Borrower and the spouse) 
Young family definition A family, where spouses are young with total age not exceeding 70 or a single parent 
Loan purpose Acquisition of the dwelling real estate in Yerevan and RA regions for permanent residence purposes 
Currency AMD
Maximum loan amount

- AMD 24.000.000, however, not exceeding 80% of the value of real estate to be acquired (minimum of the appraisal and acquisition values of the real estate shall be taken as a basis for LTV ratio calculation)

- AMD 27.750.000, however, not exceeding 92․5% of the value of real estate to be acquired, if the Borrower pledges another real estate besides a secured dwelling house or apartment to be acquired. At that, in case of pledging the dwelling real estate to be acquired and other dwelling real estate, the loan amount cannot exceed 80% of the total appraised value of the pledged real estate.    

 

Minimum loan amount AMD 5,000,000 
Maximum value of the dwelling real estate to be acquired

The acquisition value shall not exceed AMD 30.000.000 and the appraised market value shall not exceed AMD 31.000.000 .     

Acquisition and appraised values of the real estate to be acquired shall be compared to the average prices (recently published data) published by RA National Statistical Service, taking into account the apartment floor space and location. Particularly, the average value per square meter of the apartment floor space and the given location shall not exceed AMD 31.000.000 .   

Loan security Property to be acquired
Loan maturity 120-240 months
Annual interest rate 7․2%
Loan repayments Annuity
Principle and interest repayments Monthly
Loan disbursement mode

Non-cash

The loan amount along with the down payment shall be transferred to the seller

Insurance

Mandatory, every year.

Borrower and co-borrowers’ insurance against accidents and property insurance in the amount of outstanding loan

Penalty on past-due principle 0.06% daily
Penalty on past-due interest 0.07% daily
Requirements to the credit history of the Borrower and Co-borrowers  Total of past-due days in terms of all existing and repaid loans shall not exceed 30 calendar days within 12 months prior to loan application, as well as if the borrower or co-borrowers have existing loans, such loans must be classified as standard only.  
Credit rating According to the "Procedure for granting mortgage loans"
Application processing fee AMD 1.000
Loan service fee

1% of the loan amount, at least AMD 40,000 and maximum AMD 100,000


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.

Fees payable

Appraisal fee AMD 15․000-35,000 
Insurance fee 0,15-0․16%
Accident insurance fee 0,15-0․16%
Liability insurance 2%
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.

Conditions ( secondary market)

Please follow the armenian version

Required documents

Please follow the Armenian version

Attention

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.

Useful information
  • The ratio of total monthly principal repayments, Borrower’s and Co-borrowers’ monthly life and property insurance fees to the Borrower’s (Co-borrowers’) net income must not exceed 35 (thirty-five) per cent.
  •  After the loan disbursement decision has been made, the required documents shall be collected and the loan shall be disbursed within 15 days maximum. 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 a second consideration, in case the loan application is subject to review.

The loan application will be approved if 

  1. The customer has submitted the complete package of documentation and the loan application. 
  2. The query to the CBA credit register has shown that the Potential Borrower and/or the Potential Co-borrower did not have any classified liabilities and/or was not 30 days past-due within the last 24 months prior to the query. 
  3. The ratio of total monthly principal repayments, Borrower’s and Co-borrowers’ monthly life and property insurance fees to the Borrower’s (Co-borrowers’) net income does not exceed 35 (thirty-five) per cent. 
  4. The ratio of total payments specified in Point 3 and other long-term monthly expenses (payments on other loans, alimony, tuition fee, leasing charge, utilities etc.) to the Borrower’s (Co-borrowers’) net income does not exceed 45 (forty-five) per cent.
  5. The appraised value of the collateral(s) meets the requirements. 
  6. Borrower’s and Co-borrowers’ income meet the requirements.
  7. The body authorized to take loan decisions approved the customer’s loan application. 
  8. Other 

The loan application will be rejected if 

  1. The customer has failed to submit the complete package of documentation and the loan application. 
  2. The query to the CBA credit register has shown that the Potential Borrower and/or the Potential Co-borrower had classified liabilities and/or was at least 30 days past-due within the last 24 months prior to the query. 
  3. The appraised value of the collateral(s) does not meet the requirements.
  4. Borrower’s and Co-borrowers’ income does not meet the requirements.
  5. Borrower and Co-borrower have submitted false documentation and/or information.
  6. The loan rejection basis, which was not deleted, is available in the historical credit database. 
  7. The body authorized to tale loan decisions within the Bank has not approved the application.
  8. The loan has been approved, but the applicant has failed to present himself/herself within 15 days after approval or has failed to present the necessary documents.
  9. Other

Loan/leasing amount

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Annual interest rate

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Page updated 07.08.2023 | 16:37

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