- ServicesRetail bankingLOANSHomes for Young Families
Homes for Young FamiliesWe offer mortgage loans under Affordable Housing for Young Families program.
TERMS OF LENDING:
An RA citizen or person without RA citizenship whose spouse is an Armenian citizen. At least one the spouses should be young, while the other should not be over 35.
The aggregate age of the spouses should not exceed 70.
A single young parent can also be a borrower, under the terms that s/he is not over 35 (inclusive).
Borrower’s spouse and members of their families: parents, sisters and brothers.
Loan amount and loan-to-value ratio
1) In Yerevan and marzes (regions) - AMD 17,500,000, but no more than 70% of the appraised value of the real property.
2) In Yerevan and marzes – AMD 17,500,000, but no more than 90% of the appraised value of the real property to be purchased, under the terms that at least one of the following requirements is met:
• Apart from the pledgeable residential house or an apartment to be purchased, other residential real property should be pledged and the loan amount should not exceed 70% of the total value of pledgeable property.
• Apart from the pledgeable residential house or an apartment to be purchased, you should submit a surety issued by one of the top 300 largest Armenian taxpayers.
Loan disbursement method
Interest rate (per annum)
6,8 %, of which 2% is subsidized provided that the residential real property is purchased in Yerevan, and 4% - subsidized provided that residential real property is purchased in the regions.
Residential real property to be purchased.
Maximum value of the real property to be acquired
The acquisition value shall not exceed AMD 25.000.000 and the appraised market value shall not exceed AMD 26.000.000.
Acquisition and appraised values of the real property to be acquired shall be compared to the average prices most recently published by RA National Statistical Service, taking into account the apartment floor space and location. Particularly, the average value per square meter of the given location times the apartment space shall not exceed AMD 26.000.000.
Licensed insurance companies must conduct general insurance of the pledgeable property and life insurance of the borrower and co-borrowers. Insurance must be bought in favor of the bank:
• The pledgeable property must be insured at its appraised market value (it is required that insurance be bought each year),
• Every year (mandatory) you and co-borrowers must purchase life insurance at the outstanding loan balance.
• Insurance premium -0.2%.
• The fee for a loan application review is AMD 10.000. The fee once paid is not refundable regardless of the decision on the loan application.
• A lump-sum fee will be charged for loan account service. It makes 0.5% of the loan principal amount but no less than AMD 20.000 and no more than AMD 50.000.
• In case of cash loans, a cash withdrawal fee will be charged according to Bank's tariff rates.
Timeline for making a decision on loan application, customer notification on the relevant decision and advancing the loan
• The decision will be made within 10 (Ten) business days upon submission of necessary documents. The loan will be extended within 2 (Two) business days upon completion of the pledging process.
• We will notify you on the decision within 1 (One) business day orally or also in writing, at your request.
Deadlines for making decisions on the loan disbursement
- Decision on the loan approval or denial is made by the authorized body of the Bank during 10 (ten) working days after the submission of the documents needed (required) for the loan to the Bank. Loan disbursement is made during 2 (two) working days after the completion of pledging process of the collateral.
- The results of the decision of the Bank on the Loan application (positive or the reasons of application denial) are reported to the Customer during 1 (one) banking day orally or in a written form as well, at the customer's will.
List of Required Documents
- Loan application,
- Passport and social card or statement on its absence or ID card only,
- Certificate of actual residence, form #3 (indicating the apartment to be purchased and pledged),
- Income information:
- Employer's reference indicating the position held, length of service with the organization and monthly income (gross and net income is to be specified); The reference should be issued no earlier than 30 calendar days in advance.
- Previous employment data (copy of employment record book).
- Card account statement if your salary is transferred to your card account.
- Bank card statement of the borrower/co-borrower to indicate monthly salary (if any).
- If you are self-employed, the following documents should be submitted:
- Taxpayer's identification number (TIN),
- Registration certificate, charter (if any),
- Permission to carry out specific activities, if those activities require permission to be issued by relevant bodies,
- Financial statements and tax returns for the last year verified by tax inspection. Income statements/records for the last 6 months (if any).
- Marriage certificate (if any).
- Birth certificates of minor children (if any).
- Real property appraisal report.
- Certificate of ownership of the real estate to be sold.
- Documents supporting the acquisition of real property ownership.
- Documents necessary for conclusion of relevant collateral agreement.
- Passports of real property owners.
- Reference issued by the Cadastre on real property owned by you and your spouse.
- Other documents as may be required by the bank.
Criteria for Taking Decisions on Loan Application
Criteria for Positive Decision-Making:
- Acceptable for the Bank pledgeable property and relevant sureties,
- Permanent residence,
- Steady income source,
- Positive or neutral credit history,
- Full package of trustworthy documents.
Criteria for Declining a Loan Application:
- Submission of unreliable documents,
- Negative credit history,
- High-risk income source (unstable and irregular incomes),
- Failure to submit documents necessary for conclusion of a collateral or surety agreements.
Payment of Loan Principal Amount and Interest
- The loan will be repaid on a monthly basis as scheduled in the loan agreement;
- The loan principal amount and interest shall be paid under one of the below mentioned options:
- “Annuity” plan (equal monthly payments), including variable portions of the principal amount and accrued interest,
- “Springy” plan (variable monthly payments), including the payment of fixed principal amounts and variable interest.
- Interest calculation is based on a 365-day year. If the due date is not a business day, this date will be extended to the next business day.
- Failure to promptly pay the loan principal amount and interest may entail a collateral foreclosure, while information on your default will be recorded in the Credit Registry.
- If the collateral value is not sufficient to repay the liabilities arising from failure to duly fulfill your debt service obligations, we will be entitled to recover the debt by selling your other property (if any) (as stipulated in the current legislation).
- In case of a failure to duly fulfill your payment obligations (loan principal amount and interest), the borrower shall be obliged to PAY PENALTIES at 0.015% of the overdue principal amount and 0.1% of the overdue interest per day.