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Mortgage Loans under NMC ProgramWe offer mortgage loans under the National Mortgage Company Loan program.
Loans are designed for purchase, construction or renovation of residential real property.
LENDING TERMS AND CONDITIONS
RA citizens aged from 18 to 58, whose main source of income is in the RA and who during the debt service period will not reach 63 years old, otherwise you must have a co-borrower on the loan who complies with the mentioned requirement.
• For purchase or construction of real property- AMD 2,000,000 - 35,000,000
• For renovation – AMD 1,000,000- 10,000,000.
Loan disbursement method
• For real property purchase or construction - 10-20 years,
• For renovation - 5-7 years.
Nominal Interest Rate (per annum)
• For purchase or construction - 10,3 %,
• For renovation of real property - 11,3 %.
Annual Percentage Rate
- For purchase or construction - 11,39 %,
- For renovation of real property - 13,26 %
Down payment (for purchase of real property)
• Starting from 30%; down payment will be made in the Bank;
• In case of purchasing an apartment in a newly built multi-apartment building, the borrower shall submit the receipt issued by the constructor and the down payment contract.
Up to 70% of the appraised market value.
Security for loan repayment
• Real property to be purchased or renovated.
• Construction loans shall be backed by the relevant land lot; besides, in some cases other residential real property may be pledged as well.
• If necessary, as an additional means of security we may require sureties to be issued by individuals and/or legal entities.
• The pledged property is subject to insurance, besides, the borrower and co-borrowers shall buy personal accident insurance (at the amount of outstanding loan balance (required). The insurance shall be bought from duly licensed insurance company in favor of the bank.
• Insurance premium - 0.15%.
• 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 not less than AMD 20,000.
• 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.
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).
- 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).
- Previous employment data: employer's name, position held, length of service with each organization (is required only in cases your present employment does not exceed 12 months), except for cases of first-time employment even if the length of your service does not exceed 12 months.
- 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).
- Report on appraisal of real estate to be purchased.
- In case of renovation – cost estimate.
- Certificate of ownership of the real estate to be sold or renovated.
- Proofs for purchase of real estate.
- Unified encumbrance certificate on the property issued by the regional subdivision of the State Cadastre.
- Passports of real property owners.
- In case of construction:
- Cost estimate,
- Land lot ownership certificate,
- Construction permission (if any),
- Real property layout if needed.
- Other documents as may be requested by the bank.
State Duties and Other Charges
- Appraisal of pledgeable property – AMD 10,000-30,000,
- Notarial certification – AMD 10,000-30,000 (payable in notary’s office),
- Collateral registration – minimum amount - AMD 36,500 (payable in the relevant subdivision of the State Cadastre).
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 collateral agreement or sureties.
Payment of the Loan Principal Amount and Interest
- The loan shall 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 as may be chosen by you:
- ''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 loan 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), you will be obliged to PAY PENALTIES at 0.015% of the overdue principal amount and 0.1% of the overdue interest per day.