- ServicesRetail bankingLOANSResidential Mortgage Loans
Residential Mortgage LoansWe offer mortgage loans to purchase, build or renovate residential real property.
Loans are extended:
• From our own funds,
• Under the National Mortgage Company Program.
TERMS OF LENDING:
AMD, USD, Euro
RA residents aged 18 years or above
- For purchase or construction – up to AMD 80,000,000 or its foreign currency equivalent,
- For renovation – up to AMD 10,000,000 or its foreign currency equivalent.
Loan disbursement method
- To purchase or build/develop a real property - up to 15 years,
- To renovate a real property – up to 5 years.
Nominal Interest Rate (per annum)
- AMD -13-17%, USD - 9-12%, Euro - 7-10%,
- The loan interest rate will depend on the currency, loan purpose (purchase, renovation, construction/development), loan term, location and condition of the pledgeable real property.
Annual Percentage Rate
AMD -13,83%-18,41%, USD - 9,41%-12,69%, Euro - 7,25% - 10,48%,
Down payment (for purchase of real property)
•Starting from 30%; down payment will be made in the Bank and only in Armenian drams,
• In case of purchasing an apartment in a newly built multi-apartment building, the Customer shall submit the receipt issued by the developer and the down payment contract.
Up to 70% of the appraised market value of the real property.
Security for loan repayment
• Real property to be purchased or renovated*,
• Notably, land development loans must be secured by the relevant land lot; besides, in some cases other real property may be pledged so that the loan-to-value ratio is observed *.
* 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 (in case of the real property to be purchased or constructed (upon construction completion)- mandated, and in case of the real property under renovation - upon the Bank's request). The collateral insurance shall be bought every year from a duly licensed insurance company in favor of the bank at the amount of outstanding loan balance (required).
• 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.
• 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.
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.
- 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.
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),
- Employee salary certificate issued not earlier than 30 calendar days prior to its submission,
- 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 a regional subdivision of the State Cadastre,
- Passports of real property owners,
- In case of construction/land development:
- Cost estimate,
- Land lot ownership certificate,
- Construction/development permission (if any),
- If needed, the layout of the real property under construction/development.
- Other documents as may be requested by the bank.
State Duties and Other Charges
- Appraisal of pledgeable real property – AMD 10.000-AMD 30.000,
- Notarial certification – AMD 10.000-AMD 30.000 (payable in notary’s office),
- Collateral registration – AMD 36.500 – AMD 80.000(payable in the relevant subdivision of the State Cadastre).
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.