Real estate requirements

Mortgage loans are granted for acquisition (development) and renovation in the RA territory of residential houses and apartments in multi-apartment houses (irrespective of type, age and renovation state of building, except for unsafe buildings subject to demolition).

Loan currency

Armenian Drams

Minimum loan amount per borrower

AMD 1,500,000

Maximum loan amount per borrower

The maximum loan amount per borrower is defined on the basis of analysis of incomes and expenses of the borrower and co-borrowers, and the value of the real estate to be purchased or renovated, however, it should not exceed AMD 12,000,000.

Time period for review of loan application

The loan application is reviewed within 10 business days, upon the availability of all required documentation and duly completion of the loan application.   

Loan period

120 months

Interest rate

For the real estate to be acquired:

• 14 % per annum,

For the real estate to be renovated and developed:

• 15 % per annum.

Loan amount to appraised collateral value ratio

Loan is granted at a maximum of 70% of the value of the real estate subject to purchase (development) in Yerevan, while the maximum size of loan amount is 60% for the real estate to be purchased (developed) in marzes (regions) of Armenia.

The size of a mortgage loan for renovation of real estate should not exceed 50% of the appraised value of the real estate to be renovated.

Loan pre-payment

In case of pre-payment, the bank imposes a penalty at 0.5% of the  prepaid amount.

Fee for loan extension and servicing of credit account

• AMD 10,000 - for loans under AMD 2,500,000 (or an equivalent amount in other currency),
• AMD 15,000 - for loans from AMD 2,500,001 to AMD  4,000,000 000 (or an equivalent amount in other currency),
• AMD 20,000 -  for loans from AMD 4,000,001 to AMD  8,000,000 000 (or an equivalent amount in other currency),
• AMD 25,000 - for loans from AMD 8,000,001 to AMD 12,000,000 000 (or an equivalent amount in other currency).

Security

The loan amount is secured by the real estate subject to purchase (development) and renovation on condition that title registration certificate is deposited with the Bank and/or the Bank is provided with a relevant guarantee.

Appraisal of pledged collateral is performed by persons (both individuals and legal entities) licensed by the State Committee of Real Estate Real Estate Title Registry at the RA Government, who has signed a relevant agreement with the Bank.

• All costs associated with execution and state registration of collateral documents are covered by the Borrower (Pledger).
• If the borrower delays the loan repayment or fails to repay the amount when due and payable, the pledged property shall be subject to seizure in the manner set out under the collateral agreement.

Borrower eligibility requirements

1. RA citizens, as well as persons other than RA citizens who have a permanent place of residence in the RA territory (in this case, a guarantee of an RA citizen is required),

2.   The age of a borrower at the moment of making a loan should not be under 21, while the final repayment should be due before his/her retirement age.

Repayment of credit liabilities

Under monthly annuity payment schedule throughout the loan period

Loan extension

Loan amount is extended upon signing of the collateral (mortgage) agreement and tripartite trade agreement and registration of Borrower's ownership right to real estate and as a Pledgee, Bank's right to the real estate.

Insurance

Is executed:  

• In the form of real estate insurance at its full value,
• In the form of life insurance of borrower (co-borrower) at the amount of the loan.

List of documents to be submitted by borrowers (including future co-borrowers)

1.    A loan application in the form acceptable to the Bank,

2.    Copies of identity card of the borrower (co-borrowers), as well as identity card of person(s) selling the real estate,

3.    Copy of social cards (if any),

4.    Reference on persons registered in the dwelling facilities (including minors) (form #3),

5.    Information on borrower's (co-borrower's) family status and members,

6.    Copy of work-book of borrower (co-borrowers) (if any),

7.   Main employer's reference with indication of current position, length of work with the given organization, actual income for the recent 12 months, paid income tax, social contributions and other payments of the borrower (co-borrowers),

8.    Information on previous employment if the current employment of the applicant(s) is less than 12 months,

9.    In case the borrower (co-borrower) is married, reference on incomes of his/her spouse,

10. Evidence of secondary incomes of the borrower (co-borrower) (it is desirable to submit a document clearly showing that the borrower's incomes were duly declared in the tax return),

11. Copies of certificates of title registration for property individually owned by the borrower (co-borrowers),

12. Certificate of registration of title of renovated real estate,

13. A document certifying the obtaining of title (if appropriate),

14. Pictures of the property to be purchased or renovated,

List of documents to be submitted by borrowers (including future co-borrowers)

15. Evidence of utilities and property tax payments,

16. Data on dynamics of all bank accounts (for the past 1 one),

17. A document certifying the borrower's (co-borrowers') marital status (certificate of marriage, bill of divorce, certificate of spouse's death, etc.) (if any),

18. Children's birth certificates (if any),

19. A unified statement issued by a relevant territorial subdivision of the State Committee of Real Estate Title Registry at the RA Government on registered rights to the real estate and imposed  limitations on it certifying that the proposed collateral is free of lien, is neither arrested nor pledged (is submitted as soon as the loan application is approved by the Credit Committee).

20. Insurance policy acceptable to the Bank (is submitted upon approval of the loan application by the credit committee),

21. Appraisal statement prepared by a person cooperating with the Bank and licensed by the State Committee of Real Estate Title Registry,

22. In cases person(s) applying for mortgage loans engage in business activities, the Bank requires additional documents, including:

• Tax payer identification number,
• Certificate of individual entrepreneur's state registration,
• Permission to engage in the given type of activities (if any),

• Financial statements for the past 3 months (for a longer period, as may be requested by the Bank) approved by tax authorities,
• Information on incomes and expenses (records),
• Tax returns (records) for the past 1 one year,

If the applicant is a founder, participant (shareholder) of a company(s), he/she is required to submit additional documents, including the following:

• A copy of the organization's charter,
• A copy of certificate of state registration,
• Reference of state registry on stockholders,
• Tax inspectorate reference on amounts due to the state budget,
• List of accounts receivable and payable (if needed),
• Dividends received (if any)

23. Other documents, as may be requested by the Bank.