Residential Mortgage Loans

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 market), as well as for construction of a single-family home, residential house.

Approval of the renovation and construction loans will be based on the estimated cost.

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

 AMD 2,000,000 – AMD 80,000,000

Renovation

 AMD 1,000,000 – AMD 10,000,000

5.

Loan repayment period

Real property acquisition, construction

 60 - 180 months

Renovation

 60 - 84 months

6.

Interest rate per annum

14%-17%

Actual 

Maximum 18.74%

If the borrower's property insurance is bought and paid by the bank (implemented started the second year of the loan period)

Mentioned interest rate + 0.2%

7.

Penalty for early loan repayment

Not applicable

8.

Penalty charged for late payment of loan principal and/or 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

1. The property to be purchased, renovated, other property. In case of construction, the land plot to be developed/the property under construction.

2. In case of acquiring real estate from the building under construction, the right to purchase the given real estate of the building under construction.

3. In case of acquiring real estate from the building under construction, if the developer's special account is in another bank, the right to buy the given real estate of the building under construction, as well as other real estate, the market value of which should not be lower than the amount of the provided loan.

11.

Loan-to-value ratio^[1]

Acquisition in primary market (from developer)^[2]

Up to 90% of the appraised value^[3]

Acquisition in secondary market

Up to 85% of the appraised value^[4]

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^[5], 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 of the sum of the appraised market values of all mortgaged properties at 70%.
• 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.