Loans funded by the “National Mortgage Company” CJSC RCO Mortgage loan

Mortgage loan 

Loans funded by the “National Mortgage Company” CJSC RCO   

 
 
 

Buy the apartment of your dream with our help! Loans are disbursed to individuals to buy or renovate the property.       



  • Interest rate
    12.5%
  • Maturity
    up to 300 months
  • Minimum amount
    Not specified
  • Maximum amount
    25 000 000 AMD


The page was updated 22.11.2017 12:51

Mortgage

Loans are financed by the “National Mortgage Company” CJSC RCO 
 
     

General terms and conditions

Purpose of the loan Purchase of real property Renovation of real property
Currency Armenian drams
Annual interest rate* 12.5% 14%
Maximum maturity 25 years
Minimum maturity 10 years 5 years
Maximum limit 25 000 000 Armenian drams
Minimum upfront payment 1. 30% from the value of the real property
2. 10%, if other property is pledged in addition to the purchased property (second collateral)
N/A
Collateral 1. Real property to be purchased – if upfront payment is 30 % and above
2. Real property to be purchased +  other real property – if the upfront payment is less than  30%
Renovated real property
Maximum loan to value ratio 70%,
When calculating maximum loan to value ratio the minimum appraised market value and the cost of purchase shall be taken into consideration; for the second collateral the appraised liquid cost of the real property   in the amount of 100 % shall be considered. If other residential property in addition to the purchased one is pledged, the loan to value ratio may not exceed 70% of the appraised cost of both properties  and at the same time  90% of the lower value of appraised cost of the real property to be purchased.
70%,

from the appraised liquid cost of the collateral
Pledger   Borrower or co-borrower, and if property other than to be purchased one is pledged in addition (the second collateral) it may belong to other individual or legal entity. Borrower and/or co-borrower
Loan application processing fee 10 000 Armenian drams
Single up-front fee 1% from the amount of the loan, but no less than 30 000 Armenian drams and no more than  100 000 Armenian drams
Cashing fee (loan and upfront payment) N/A
Principal and interest repayment Annuity method (equal amount payments)
Method of providing the loan One-time, in non-cash form 1. For loans up to 3 000 000 Armenian drams inclusive – one time  **,

2. For loans above 3 000 001 Armenian drams – in 3 tranches maximum, according to the decision of the Bank, (the full loan amount should be provided within maximum 120 days from the due date of the agreement), moreover, the next tranche is extended on the basis of proper use of the loan amount extended by the previous tranche.  
Opening/closing bank account According to the rates of the Bank
Place of accepting the loan application Head office and all branches of the Bank
Place of accepting the documents Head office and all branches of the Bank
Relations between the borrower/co-borrower and the seller of the real property   The real property may not be purchased at an individual, who is the member of the family of the borrower/co-borrower, particularly the borrower’s/co-borrower’s father, mother, spouse, parent – law, grandparents, siblings, children, sibling’s children. -

The Bank may review the interest rate for the loan to comply with the interest rate of refinancing of the “National Mortgage Company” CJSC RCO. Moreover, the new interest rate should be changed in the size of the difference of the old and new refinancing interest rates. The Bank shall review the interest rate of the loan in case of incompliance with the requirements, specified by the “National Mortgage Company” CJSC RCO, refusal to finance the loan by the mentioned company or termination of refinancing.
**renovation should be completed at least within 2 months after execution of the loan agreement. 

Requirements to the borrower/co-borrower

Status of the borrower/co-borrower Individual, RA citizen
Eligible age of the borrower Eligible age of the borrower as of the date of accepting the loan application should not be less than 21 and not have exceed 65 at the loan maturity   
Eligible age of the co-borrower Eligible age of the co-borrower as of the date of accepting the loan application should not be less than 21 and not have exceed 65 at the loan maturity   (the requirement to the eligible age is not applicable provided that on the basis of the data filed in the application form the financial status of the borrower (other borrowers) without the data of the given co-borrower (s) is satisfactory to repay the mortgage.
General principle of evaluation of the creditworthiness of the borrower/co-borrower Maximum ratio of total payment on obligations to net income should not exceed 45%
Income of the borrower/co-borrower 1.    Primary income, which is taken into account in the amount of 100%. The primary income is the fixed salary (equal payments), received on the basis of professional skills from the main place of business and the income (profit) gained as a result of private entrepreneurship, proved on the basis of documents submitted to the tax authorities.
2. Secondary income  
Requirements to the credit history of the borrower/co-borrower 1. No credit history, or
2.    No overdue obligations (loan, credit line, overdraft, guarantee, etc) to the banking system as of the date of submitting loan application, and
3.    No more than 10 days of late payment of principal and /or interest in aggregate, on different loans (credit lines, overdrafts, guarantees) over the 12 month preceding the date of submitting loan application.

Insurance

Insurance to be made by one of the insurance companies – partners of the Bank only.

1. insurance of the borrower/co-borrower

Insurance of the borrower/co-borrower

Insurance is carried out from the balance amount of the loan:

1. on annual basis, annually

2.for the last year of the effective period of the loan - for the term remaining for repayment of the loan  

3. accident death, or disablement, according to the rates of the insurance company

  4. proportionally to the income of the borrower/co-borrower, who take participation in the repayment of the loan  

2. Insurance of collateral  – residential real property

Insurance of the real property to be purchased (and the second collateral)

The insurance is performed from the loan balance:

1. on annual basis, annually

2.for the last year of the effective period of the loan - for the term remaining till the maturity

Minimum cases covered by insurance policy  

1. earthquake,

2. fire or explosion,

3. storm, flood, shower rain,

4. tornado, strong wind,

5. Heating, water or drainage  system fault,

6. malicious actions committed by the third parties

If the loan to value ratio is less than 20%, the real property to be pledged may be insured in the amount less that the full value. In this case the insurance amount is calculated on the basis of the following principles:

1. The insurance amount should not be less than average purchase price of the apartment, available for the given family.

2. Loan balance to average price of the purchase ratio of the Available apartment should not exceed 70%.

3. Insurance amount must be equal to the highest value of the cost of the Available apartment and the loan balance amount.
The cost of the Available apartment is (total area of the Available apartment) * (average price for 1 sq.m of the Available apartment), where:

total area of the available apartment equals to the lower of the values of total area of the pledged property and calculated total area of the available apartment, where the calculated total area of the available apartment is (number of members of the family) * 18sq.m.

Average price of one sq.m of the Available apartment equals to average price of 1 sq.m od apartments in the location where the pledged property is located, for the given period, according to monthly reports, published by the Real estate Cadastre of the RA Government (www.cadastre.am)

Fine, penalty

For late loan payment (daily)  

0.1%

For late interest payment (daily)

0.1%

Early repayment fee

Not specified

For improper use of the loan the Bank may require:

1)   early repayment of total amount of the loan
2) in the amount of 25% from the improperly used loan amount,

For execution of purchased or pledged property as a subsequent collateral at other banks or financial institutions

According to the decision of the credit committee


Requirements to the property to be purchased

Subject of collateral

Residential real property

Location of the collateral

Republic of Armenia

Appraisal of the collateral

To be appraised by one the appraisal companies – partners of the Bank

Other requirements

Subject of collateral

The real estate should have masonry, panel or reinforced structure (except for the dividing walls and covers between the floors)

The real estate should not be located on the territory occupied by other constructions – hotels or dormitory

All supplementary constructions must be taken into account and fixed in the state registration certificate, or a related mark should be made in the certificate on state registration of title.

The real estate must not be located on the territory of exclusive public interest

For dwelling house – the property should not have general use yard area with other owners; no general use land plot to be included; the dwelling house should not be burdened with land lease or free use.

Method of calculation of interest amount 

Interest amount is applied to the reduced balance with the account of 365 days a year. 

ATTENTION: THE INTEREST ACCRUED TO THE CREDIT AMOUNT IS CALCULATED ON THE BASIS OF NOMINAL INTEREST RATE. THE ACTUAL ANNUAL PERCENTAGE RATE SHOWS THE COST OF THE LOAN IF YOU PAY THE INTEREST AND OTHER DUE PAYMENTS WITHIN THE DEFINED TERMS AND AMOUNTS.

Early repayment of the loan
No early repayment fee is charged

Exchange rate effect 
Taking into account the fact that the Bank provides loans in both Armenian drams and foreign currency, the borrower should understand that foreign currency fluctuations can have either positive or negative impact on the loan repayment.

  Loan request rejection  

The Bank may reject loan applications of those clients, which fail to meet the program requirements or where the Bank is not sure of the solvency of clients; the Bank can provide written notice on rejection upon request of the client.   The Bank is liable to provide such information on rejecting the loan to other banks of RA and credit organizations (according to the RA Law on banking secrecy).

ATTENTION: IN CASE OF FAILURE TO REPAY THE LOAN INTEREST AND/OR PRINCIPAL WHEN DUE YOUR ASSETS CAN BE SEIZED. THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES SHALL BE RECORDED IN THE CREDIT REGISTER.

If the funds received as a result of disposal of pledged property are not enough to cover the borrower's liabilities under the loan, such liabilities shall be paid on the account of other equivalent assets of the borrower.

The page was updated 23.01.2018 14:49
The following documents should be presented to the Bank for loan financed by the “National Mortgage Company” CJSC RCO:

  • Loan application       

  • Social card (reference on non-receiving social card)

  • Documents with regard to the spouse (marriage certificate, ID document, ID for children, etc).

  • Income statement (for the borrower/co-borrower)

  • Preliminary appraisal reference, issued by the independent appraisal company,

  • Other documents, as required.  

The page was updated 22.11.2017 14:29
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.