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Individual loans provided to individuals by products / Terms and Tariffs /

Housing mortgages with floating interest rate

1.	Loan purpose	Loans will be provided for acquisition or renovation of residential property, including apartment, single-family home, residential house (both in primary and secondary markets), as well as for construction of a single-family home, residential house.
2.	Eligibility	RA residents aged 18– 63 who during the loan period will not turn 63 or the loan will be shared by a co-borrower who meets these requirements.
3.	Loan currency	AMD
4.	Loan amount	Real property acquisition, construction	2,000,000 - 80,000,000
		Renovation	1,000,000 - 10,000,000
5.	Loan repayment period	Real property acquisition, construction	60 - 240 months
		Renovation	60 - 84 months
6.	Nominal interest rate per year ^[1]	Real property acquisition, construction
		Started at 13.2% (fixed component: started at 4.2% + variable component)
		Renovation
		Started at 14.2% (fixed component: started at 5.2% + variable component)
		Maximum and minimum range of fluctuation of floating interest rate			+4%
		The variable component of the floating interest rate will be revised starting the first due date following the 36-month period (for renovation loans – 12-month period) after the loan origination and every 6 months afterwards using the interest rate applicable in the Bank at the time of revision. You can get acquainted with the procedure for calculating the floating interest rate here.
7.	Penalty for early loan repayment	Not applicable
8.	Penalty charged for late payment of loan principal and interest	For past due principal - 0,015 % per day, For past due interest - 0,1 % per day.
9.	Loan repayment method	Annuity or equal principal payments to be made on a monthly basis.
10.	Loan security	The property to be purchased, renovated, other property. In case of construction, the land plot to be developed/the property under construction. The right to purchase real estate can be used as a means of securing a loan. In case of acquiring a property in a residential house under construction and the developer's special account opened with another bank, the right to purchase the property in the building as well as another real property, whose market value should not be less than the expected loan amount.
11.	Loan-to-value ratio^[2]	Acquisition in primary market (from developer)^[3]		Up to 90% of the appraised value^[4]
		Acquisition in secondary market		Up to 85% of the appraised value ^[5]
		Construction and renovation		Up to 70% of the appraised value
12.	Insurance	Real property insurance is to be implemented every year at the amount of the loan balance.
13.	Loan disbursement method	Non-cash: the loan amount will be transferred to the seller's bank account, Loans for renovation and construction will be disbursed in a lump-sum or in several tranches which will be determined by a competent body. A decision on tranche loan will be made with consideration of the customer’s cost estimate, loan period, loan amount and customer's creditworthiness.
14.	Other conditions	In case of acquisition of real property, the borrower will make a down payment ^[6], which will be frozen until the date of the loan disbursement. The borrower may refrain from making a down payment, instead pledging additional real property, in which case the loan amount should not exceed the appraised value of the real property, with retention of the loan-to-value ratio at 70% of the sum of the appraised market values of all mortgaged properties. In case of acquiring the real property in the primary market, the borrower can submit an invoice confirming the down payment issued by the property developer and/or contracts/agreements on down payment.
15.	Timeline for making decision on loan application approval or rejection	The decision on approving or declining the loan application will be made within 10 (Ten) business days upon submission of the entire package of required preliminary documents, The loan will be provided within 2 (two) business days after the approval of the loan application and completion of property pledging procedure.

[1] If the insurance of the customer’s property is implemented by the Bank rather than the customer (will be implemented started the second year of the loan period) – mentioned interest rate + 0.2%.

[2] In calculating the Loan-to-value ratio, we take into consideration either the real property appraisal or acquisition value, whichever is less.

[3] In case of unfinished construction (buying from a property developer) the collateral value is the purchase price indicated in the statement by the property developer and thereafter mentioned in real property purchase agreement.

[4] If the customer has a foreign currency loan, then up to 70% of the appraised value.

[5] If the customer has a foreign currency loan, then up to 70% of the appraised value.

[6] At the amount of difference between the property acquisition value and loan amount.