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Mortgage loans directly from the property developers
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Mortgage loans directly from the property developers

If you have decided to acquire an apartment, ARARATBANK offers to buy it directly from the property developers.  

  • Currency

    AMD, USD

  • Maturity

    60-240 months

Mortgage loans directly from the property developers
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  
Loan purpose Apartment acquisition
Currency AMD, USD
Maximum loan amount AMD 50.000.000, USD 100.000
Minimum loan amount AMD 5.000.000, USD 10.000
Maximum loan-to-value ratio Up to 80% of the market value
Loan security Property to be acquired
Loan maturity 60-180 months
Annual interest rate 1-5 years  10%, thereafter 8% + 6 monthly LIBOR
Down payment
  1. To the AMD account opened in the name of buyer in the bank
  2. Reference on down payment from the construction company  shall be submitted
Loan repayments Annuity, equal amortization
Principle and interest repayments Monthly
Insurance

Mandatory, annually. 
Property insurance only in the amount of outstanding loan

Penalty on past-due principle 0.06% daily
Penalty on past-due interest 0.07% daily
Penalties for early repayment of loan N/A

Requirements to the credit history of the Borrower and Co-borrower

Lack of past-due or classified liabilities within 12 months prior to the loan application as well as the total of past-due liabilities shall not exceed 30 days 
Credit rating In compliance with the Procedure on Mortgage Lending 
Loan processing fee AMD 10.000 
Monitoring In compliance with the procedure effective at the Bank 
Loan processing fee 1% of the loan amount, at least AMD 30,000 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.

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 47,000-60,000 
Cadastre related fee AMD 105,000 
Common reference AMD 30․000 

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.

Purchase of apartments at 32/22 Ulnetsi Street
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, whose age shall not exceed 55. Legal entity.

Loan purpose Apartment acquisition
Currency

AMD

USD

Minimum loan amount 

AMD 5.000.000
USD 10.000

Maximum loan amount

AMD 60.000.000

USD 120.000

Maximum loan-to-value ratio

Up to 70% of the appraised value of additional real estate collateral where an apartment of a building under construction is acquired;

Up to 70% of the appraised market value or up to 95% of the appraised liquidation value where an apartment of a building under construction with 80% and over completion of construction works;  

Loan security

The property to be acquired or the purchasing right to the property to be acquired, additional real estate at the appraised market value.

Loan maturity

120-240 months

Annual interest rate

AMD – up to 60 months – 12.5%, thereafter, from 61st month till 240 months, yield curve interest rate before redemption of ten-year maturity RA Government coupon bonds + 3%, while, where it is impossible to apply yield curve interest rate before redemption of ten-year maturity RA Government coupon bonds, 7% shall be applied + the recent refinancing interest rate set by CBA. 

USD –  up to 60 months - 8.5%, thereafter 7% + six-month LIBOR from 61st month till 240 months, while, where it is impossible to apply LIBOR, 7% shall be applied + upper limit of targeted federal funds rate determined by the US Federal Reserve System. 

Principle and interest repayments Monthly - annuity or flat-rate depreciation (upon borrower request, with maximum six-month grace period for monthly repayment of interests only prior to the completion of construction works, with the possibility of equal monthly repayment of principle and interests thereafter)  
Insurance – mandatory, every year 

Insurance against accidents prior to the completion of the property construction works in the amount of outstanding loan.

Property insurance in the amount of outstanding loan.  
Penalty on past-due principle    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 classified 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 (except for guarantees) 

Credit rating In compliance with the Procedure on Mortgage Lending
Application processing fee AMD 10.000 
Loan service fee 0.5% of the loan amount, AMD 50.000 minimum and AMD 100.000 maximum  
Monitoring  

The bank shall conduct monitoring of construction works at least every 3 months (monitoring shall be also conducted mandatorily prior to the disbursement of the second and third tranches).

After the completion of the construction works, monitoring shall be conducted in compliance with the Procedure in place in the Bank.  
Revolving credit possibility

Lending possibility of up to 50% of the principle repaid within the first 84 months of the loan effective period.  

Additional property in Yerevan. The collateral shall be appraised by one of the independent appraisal companies cooperating with the Bank. At that:

  • The property must be located neither in the territory of a hostel or hotel,
  • The ownership certificate shall not include unauthorized constructions,
  • The real property must not be located in a three-degree and more unsafe building.

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.

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.

Fees payable

Appraisal fee AMD 15,000-35,000 
Insurance fee 0,15-0.16%
Accident insurance fee 0,15-0.16%
Cadastre related fee AMD 105,000 
Notary fee AMD 47,000-60,000 
Common reference AMD 30,000

See information bulletin in «Provided services'» section 

Acquisition of apartments located at 18, Aghbyur Serob

Loans are provided at full service branches of the Bank.

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 member of the Borrower family and whose age shall not exceed 60
Guarantor RA citizen and resident individual aged 22, whose age shall not exceed 60 
Loan purpose Acquisition of apartment
Loan currency AMD, USD
Minimum loan amount AMD 5.000.000
USD 10.000
Maximum loan amount AMD 75.000.000
USD 150.000
Minimum loan maturity 120 months
Maximum loan maturity 240 months
Annual interest rate* (applied to the outstanding loan)

AMD – fixed - up to 60 months – 12%; starting from 61th month, the fixed interest rate shall be subject to adjustment based on the yield curve interest rate before redemption of ten-year maturity RA Government coupon bonds (source: www.cba.am) + 3% (hereinafter the Main Indicator).  In case of non-applicability of the Main Indicator, the secondary indicator shall be the interest rate calculated by the arithmetic average of the last 3 months (preceding the date of fixed interest rate adjustment) of monthly interest rates published by the Central Bank of Armenia (source: www.cba.am) for the deposits attracted by Commercial banks in AMD with maturity of up to 1 year (excluding demand deposits) + 4.5% (hereinafter the Secondary Indicator).

 

AMD – fixed - up to 60 months – 12%; starting from 61th month, the fixed interest rate shall be subject to adjustment based on the yield curve interest rate before redemption of ten-year maturity RA Government coupon bonds (source: www.cba.am) + 3% (hereinafter the Main Indicator).  In case of non-applicability of the Main Indicator, the secondary indicator shall be the interest rate calculated by the arithmetic average of the last 3 months (preceding the date of fixed interest rate adjustment) of monthly interest rates published by the Central Bank of Armenia (source: www.cba.am) for the deposits attracted by Commercial banks in AMD with maturity of up to 1 year (excluding demand deposits) + 4.5% (hereinafter the Secondary Indicator).


 USD – fixed - up to 60 months - 9%; starting from 61th month, the fixed interest rate shall be subject to adjustment based on the interest rate calculated by the arithmetic average of the last 3 months (preceding the date of fixed interest rate adjustment) of monthly interest rates published by the Central Bank of Armenia (source: www.cba.am) for the deposits attracted by Commercial banks in USD with maturity of up to 1 year (excluding demand deposits) + 6% (hereinafter the Main Indicator).

 In case of non-applicability of the Main Indicator, the secondary indicator shall be the interest rate calculated by the arithmetic average of the last 3 months (preceding the date of fixed interest rate adjustment) of the published monthly indicators of ten-year maturity US Treasury Bonds (source: www.treasury.gov) + 7.5% (hereinafter the Secondary Indicator).

Effective annual interest rate **

AMD: 12.8%-13.93% , USD: 9.48%-10.52%

Maximum loan-to-value ratio
  • Up to 90% of the purchase price.
  • 100% in case additional real estate and/or funds are pledged, however, not more than 80% of the total of the appraised market values of the property to be pledged 
Collateral Acquired property or the right to purchase the acquired property, additional real estate at appraised market value or funds***
Prepayment Cash account opened with the bank in the name of the buyer or a reference from the property developer on receipt of prepayment
Loan disbursement mode One-off payment, non-cash
Principle and interest repayments Monthly - Annuity or flat-rate depreciation
Application processing fee AMD 10,000
Loan servicing fee (on-off payment) For loans of up to AMD 25,000,000 or USD 50,000 inclusive - 1% of the loan amount on the day of loan disbursement, and for loans exceeding the mentioned limits - AMD 250,000
Insurance

Accident insurance in the absence of the real estate mortgage certificate -  in the amount of the outstanding loan;

thereafter, the real estate insurance - in the amount of the outstanding loan.
 Mandatory, annually

Monitoring The Bank shall monitor the construction once every 3 months or in stages, upon submission of each performance act.
Penalty on past-due principal 0.13% daily
Penalty on past-due interest 0.13% daily
Early loan repayment Non-applicable

 

* The annual loan interest rate is adjusted on the first working day of the 61st month, while further adjustments are made on the fifth working day of April and October each year. The adjustment of the annual interest rate on the first working day of the 61st month shall be based on the Main Indicator or Secondary Indicator (as applicable) calculated as of the 5th working day of April or October (whichever is earlier) preceding the first working day of the 61st month.

As a result of the adjustment of the annual loan interest rate, the annual loan interest rate may not be less or exceed the first year’s annual loan interest rate by more than 8 percentage points.

** Effective annual interest rate is calculated at October 12, 2020 exchange rate of AMD 500 per 1 USD.

*** Funds = Term deposits, bonds (including RA government bonds), other funds available on current and other accounts with ARARATBANK OJSC, which will serve as collateral and will be deposited until the loan-to-value ratio makes 80%. Where deposit early repayment is required, the appropriate amount of cash generated from the repayment shall be directed to the loan early repayment so that the loan-to-value ratio makes 80%.

The collateral must be appraised by an independent appraisal body cooperating with the Bank and be acceptable to the Bank.

For a list of partner insurance companies and tariffs, see here.

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

Order of calculating the effective annual interest rate

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.

Changes in exchange rate may affect the loan repayments.

Mandatory fees

Appraisal fee AMD 15,000-35,000
Insurance fee 0,15-0,16%
Borrower accident insurance fee 0,15-0,16%
Notary fee AMD 47,000-60,000
Cadastral fee AMD 105,000
Property clearance reference fee AMD 30,000

Tariffs for provision of statements, references and other information

Tariffs for services provided within the framework of credit operations

 

Acquisition of apartments at G. Hasratyan 19
Please follow in Armenian version
Required documents

Preliminary documents

Buyer

  • Originals and copies of passport and social security card;
  • Copy of marriage certificate (divorce certificate, spouse's death certificate);
  • Copies of passports, social security cards, birth certificates of family members and potential co-borrowers;
  • Reference from workplace;
  • Reference on source of additional income;
  • Reference on actual place of residence;
  • Reference on personal tax account*;
  • Copy(s) of certificate(s) of ownership (if any) of private property of the Buyer and potential co-borrowers;
  • Other documents upon credit officer’s request.

Seller

Legal entity

  • Copies of founding documents - Charter with all amendments and supplements thereto, State registration certificate with its inserts, including the insert on the information about the company director, tax code;
  • Statement issued by State registry on the amendments to the Charter and shareholders, including a statement issued by Central Depository for open joint stock companies and a statement issued by shareholder registry keeper for closed joint stock companies;
  • Permissions (licenses, certificates, etc.);
  • Copies of passports of the company director and owners;
  • Decision of the competent body on alienation of property;
  • Real estate certificate and the grounds stated therein;
  • Other documents upon credit officer’s request.

Private entrepreneur

  • Copies of founding documents: State registration certificate, tax code;
  • Permissions (licenses, certificates, etc.);
  • Copies of passport and social security card;
  • Real estate certificate and the grounds stated therein;
  • Other documents upon credit officer’s request.

List of documents required for loan issuance upon approval 

Buyer

  • Accident insurance contracts for the property, the Buyer and potential co-borrowers;
  • Real estate appraisal report;
  • Other documents upon credit officer’s request.

Seller

Legal entity

  • Limited liability companies shall be required to submit a reference on net assets, and joint stock companies – a reference on balance value of assets;
  • Property clearance reference;
  • Other documents upon credit officer’s request.

Private entrepreneur

  • Property clearance reference
  • Other documents upon credit officer’s request

* The document shall be submitted as necessary and requested by the credit officer.

In case of loan disbursement, the credit officer may request to update each of the documents listed at any time during the entire loan term.

Useful information

The loan application will be approved if:

  1. the customer has submitted the complete package of documentation and the loan application.
  2. 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.
  3. 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.
  4. the appraised value of the Collateral or Collaterals meets the requirements.
  5. both the borrower’s, co-borrowers’ and guarantor’s revenues meet the requirements.
  6. the body authorized to take loan decisions within the Bank approved the loan application.

 

The loan application will be rejected if:

  1. the customer fails to submit all documents necessary for getting the loan.
  2. 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.
  3. the appraised value of the Collateral or Collaterals is insufficient.
  4. both the borrower/co-borrower and/or guarantor revenues are insufficient.
  5. the borrower/co-borrower and/or guarantor submit false documents and/or information.
  6. the rejection base of loan application is available in the loan historical database, which is not removed.
  7. the body authorized to take loan decisions rejected the loan application.
  8. 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.
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.

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Page updated 19.09.2022 | 10:45

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