Mortgage

Loans financed by the Bank 

 
 

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



  • Interest rate
    from 11%
  • Maturity
    up to 300 months
  • Minimum limit
    Not specified
  • Maximum limit
    250 000 US dollars

The page was updated 22.11.2017 14:33

Mortgage

Loans financed by the Bank 

 
     

General terms and conditions

Purpose of the loan

Purchase of real property

Renovation of real property 

Currency

US dollar

Annual interest rate

from 11%

from 13%

Maximum maturity

25 years

Minimum maturity

-

Maximum limit

250 000

Minimum upfront payment

1. 20% from the value of the real property


2. 0%, if other property is pledged in addition to the purchased property (second collateral)

N/A

Minimum upfront payment

1. Real property to be purchased – if upfront payment is 20 % and above
2. Real property to be purchased and  other real property – if the upfront payment is less than  20%

Renovated real property

Maximum loan to value ratio

80%,

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.

70%,


от оцененной ликвидной стоимости залога

Pledger  

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  300 000 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

In 3 tranches maximum, according to the decision of the Bank, (the full loan amount should be provided within maximum 180 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


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% 

Incomes 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, 

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 for repayment of the loan  

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 
 

Fine, penalty

Fine, penalty

0.1%

For late interest payment (daily)

0.1%

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 (including the second collateral)

1

Subject of collateral
Real property

2

Location of the collateral

Republic of Armenia

3

Appraisal of the collateral

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

4

Insurance of the collateral

According to annex  2.2

5

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.



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.

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 14:50

The following documents should be presented to the Bank for loan financed by the own resources of the Bank: 


  • Loan application       

  • ·      Public service number /reference on non-receiving the PSN 


  • 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 14:40
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.