Housing mortgages for non-resident individuals

1

Loan purpose

The loan is designed for acquisition of residential real property: apartment, single-family home in primary and secondary markets

2.

Eligibility

Non-resident individuals aged 18 – 63 who during the debt service will not turn 63 or the loan will be shared by a non-resident co-borrower who meets these requirements.

3.

Loan currency

USD, Euro, AMD

4.

Loan amount

AMD 2.000.000- AMD 80.000.000 or foreign currency equivalent

5.

Loan repayment period

 60 - 180 months

6.

Nominal interest rates per annum ^[1]

Currency

Fixed rate

Actual rate

Floating rate

Actual rate

US dollars

9.2% - 11 %

9.8-11.8%

Starting from 9.2% (fixed component: starting from 8.2 % + variable component)

5.5-16.3%

Euro

8.2% - 10 %

8.7-10.7%

Starting from  7.7% (fixed component: starting from 7.7 % + variable component)

4.45-15.2%

AMD

14-15 %

15.2-16.3%

Starting from  13.2% (fixed component: starting from 4.2% + variable component)

9.7–18.4%

Maximum and minimum range of floating rate fluctuations

+4%

The variable component of the floating interest rate will be revised on the forthcoming revision date following the expiration of the 36^th month of the loan origination, thereafter, every 6 months with application of the rate (published on the Bank’s website) effective at the moment of revision.

Floating interest rate calculation procedure

If the borrower's property insurance is bought and paid by the bank (implemented from the second year onwards)

Loan interest rate + 0.2%

7.

Penalty for early loan repayment

Not applicable

8.

Penalty 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 repayments; payments should be made on a monthly basis.

10.

Loan security

Real property to be purchased
Right to buy – in case of purchasing the property from the developer.
Apart from real property collateral, the borrower may be required to provide a surety bond issued by at least one RA-resident individual or legal entity.

11.

Loan-to-value ratio ^[2]

Up to 70% of the appraised value

In case of pledging additional real property, the loan amount should not be more than the appraised value of the real property to be purchased with retention of the ratio of Loan-to-value of all property items at 70%.

12.

Insurance

Real property insurance -  annual property insurance at the amount of the loan balance.

13.

Loan disbursement method

Non-cash: the loan will be transferred to the seller’s bank account

14.

Creditworthiness assessment

The borrower should not have sub-standard loans for the past 1 year, nor should the number of overdue days exceed 30. No income analysis will be conducted by the Bank.

15.

Other terms and conditions

The borrower must make a down payment ^[3], which will be frozen by the Bank until the loan is disbursed.
In case of purchasing property in primary market, the Borrower can submit an invoice confirming the down payment issued by the property developer and/or down payment contracts/agreements.
The Customer should submit necessary information on sources of income.

16.

Timeframe for making decisions on approving or rejecting the loan application

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.