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Acquisition of apartments in the World of Gold residential district directly from the developer

Acquisition of apartments in the World of Gold residential district directly from the developer

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Apply to ARARATBANK and get an opportunity to acquire an apartment in a multistory building at 25 Pushkin St.   

  • Currency

    AMD, USD

  • Maximum amount

    AMD 60.000.000, USD 120,000

  • Maturity

    120-240 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, 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 

Required documents

Please follow the Armenian version

Useful information
  • 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.
  • Fines and penalties are not applied in case of early repayment of the loan.

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.
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.  

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Page updated 23.05.2020 | 15:50

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