Funded by the “Housing for Youth” CJSC RCO Mortgage loans

Mortgage 

     Loans funded by the “Housing for Youth” CJSC RCO   

 
 

Loans are disbursed to young families, the aggregate age of the spouses of which doesn’t exceed 65 years, and at the same time the age of one the spouses doesn’t exceed 35 years.  The age of single parent should not exceed 35 years.



  • Interest rate
    9.5%
  • Maturity
    up to 120 months
  • Minimum amount
    Not specified
  • Maximum amount
    17 500 000 AMD


The page was updated 22.11.2017 14:45

Mortgage

Loans funded by the “Housing for Youth” CJSC RCO 
 
     

General terms and conditions

Purpose of the loan Purchase of available real property
Currency Armenian drams
Annual interest rate* 9.5%
Maturity 10 years
Maximum limit 17 500 000 Armenian drams
Minimum upfront payment 1.     30% from the value of the real property to be purchased in Yerevan and marzes
2.    from 10% to 30% from the value of the real property to be purchased in Yerevan and marzes, if:
- other dwelling house or an apartment  is pledged in addition to the purchased dwelling house or an apartment, or
- in addition to the purchased dwelling house or an apartment guarantee of one of legal entities included in the list of large taxpayers of the Republic of Armenia is provided, where such legal entity takes 1-300 place in the abovementioned list as of the date of submitting the loan application.  
Collateral   1. Real property to be purchased – if upfront payment is 30 % and above
2.    For upfront payment  from 10% to 30% -
The real property to be purchased and other residential real property
- guarantee of one of legal entities included in the list of large taxpayers of the Republic of Armenia is provided, where such legal entity takes 1-300 place in the abovementioned list
Maximum loan to value ratio 1. 70%
2. 90% for upfront payment   10-30% , if:
Maximum loan to value ratio - other dwelling house or an apartment  is pledged in addition to the purchased dwelling house or an apartment, or
- in addition to the purchased dwelling house or an apartment guarantee of one of legal entities included in the list of large taxpayers of the Republic of Armenia is provided, where such legal entity takes 1-300 place in the abovementioned list as of the date of submitting the loan application.  
* When calculating maximum loan to value ratio the minimum appraised market value and the cost of purchase shall be taken into consideration
Pledger  Borrower and/or co-borrower
Loan application processing fee 4 000 Armenian drams
Single up-front fee 1% from the amount of the loan, but no less than 15 000 Armenian drams and no more than  50 000 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
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 “Housing for Youth” 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 “Housing for Youth” CJSC RCO, refusal to finance the loan by the mentioned company or termination of refinancing


Requirements to the borrower/co-borrower

Status of the borrower/co-borrower Individual, RA citizen, or individual without RA citizenship, whose spouse is a citizen of RA ,
Eligible age of the borrower Souses above 18, where the age of at least one of them doesn’t exceed 35 (inclusive), and the aggregate age of both spouses doesn’t exceed 65, or
Single parent above 18, no more than 35 at the time of providing the loan
Eligible age of the co-borrower Co-borrowers may be the spouse of the borrower and each of the members of their families (members of the family are spouse, parents of the borrower and his/her spouse, siblings) the age of which doesn’t exceed 63 at the time of providing the loan.
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 35%
Maximum ratio of total repayment on obligations  to net income should not exceed  45%

Income of the borrower/co-borrower
Primary income – the borrower and/or one of the co-borrowers должник must have primary income. Primary incomes are taken into consideration in the amount of 100%. Primary income is:
-               the fixed salary (equal payments, including premiums, bonuses, if reflected in the income proof documents, which received  no less than twice per year, desirably with half-year frequency),  received on the basis of professional skills from the main place of business
-  income (profit) gained as a result of private entrepreneurship, proved on the basis of documents submitted to the tax authorities,
- performance of paid services, which are considered the main employment of the client.
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
2. No more than 30 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

Other requirements
The aggregate amount of total monthly net income of spouses and potential co-borrowers should not exceed AMD 800 000
2. The spouses should not own any other residential real property (residential house or an apartment), unless the area of such residential real property per one person registered at the given house or apartment is less than 18 sq.m.    
3. The spouses are planning to permanently reside in the house /apartment to be purchased.

* members of the family have the same meaning as determined in the RA Law On Banks and Banking.

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 to be made against:
1.             accident death, or disablement, on an annual basis, from the loan balance, according to the rates of the insurance company.
2.             proportionally to the income of the borrower/co-borrower, who take participation in the repayment of the loan 
2. Insurance of collateral 
Insurance of the real property to be purchased (and the second collateral) The insurance is performed:
1. on annual basis, on annual basis, from the appraised market value of the collateral.
 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
Insurance of the borrower/co-borrower for the   entire period of the loan
Insurance against accident death, or disablement, from the loan balance, according to the rates of the insurance companies – partners of the Bank  


Fine, Penalty

For late interest payment (daily) 0,1%
For late loan payment (daily)  0,1%
Early repayment fee (on the full loan amount or a part thereof, to be applied within five years after execution of the agreement) 1% of the repayment made above repayment schedule
For improper use of the loan the Bank may require: 1) early repayment of total amount of the loan
2) penalty in the amount of 25% from the improperly used loan amount
3) restructuring the loan in accordance with the terms of loans financed by the own resources of the Bank.

Requirements to the subject of collateral

Subject of collateral Residential real property to be purchased and other
Location of the collateral Republic of Armenia
Appraisal of the collateral To be appraised by one the appraisal companies – partners of the Bank
Requirements to the residential real property to be purchased The value of the real property to be purchased must not exceed 25 million Armenian drams and at the same time the appraised market value of the given property must not exceed 26 million Armenian drams. The purchase price and the appraised value of the real property is compared with the average costs of real property in the given location, the recent data of which is published by the National Statistical Service of RA (See: www.armstat.am).
Other requirements Subject of collateral
1) The real estate should have masonry, panel or reinforced structure (except for the dividing walls and covers between the floors)
2) The real estate should not be located on the territory occupied by other constructions – hotels or dormitory
3) cadaster value of the land must be paid (where the subject of collateral includes land lot)
4) The real estate must not be located on the territory of exclusive public interest
5) 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 14:50
The following documents should be presented to the Bank for loan financed by the “Housing for Youth” CJSC RCO:

  • Loan application       

  • ID document, Personal Number Service/reference on non-receiving PNS

  • 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 14:57
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.

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