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, US Dollars

Minimum loan amount per borrower

AMD 1,500,000 (or an equivalent amount in US Dollars)

Maximum loan amount per borrower

AMD 100,000,000 (or an equivalent amount in US Dollars)

Period for loan application review

Within 10 business days, upon the availability of all required documentation and duly completion of the loan application.

Loan period

From 3 to 120 months

Interest rate

for loans in Armenian Drams 

• 15 % per annum  - for real estate purchase
• 16 % per annum  - for real estate renovation and maintenance

for loans in Armenian Drams 

• 12 % per annum  - for real estate purchase
• 13 % per annum  - for real estate renovation and maintenance

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 amount prepaid.

Fee for loan extension and credit account servicing

• 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 (or an equivalent amount in other currency),
• AMD 20,000 -  for loans from AMD 4,000,001 to AMD  8,000,000 (or an equivalent amount in other currency),
• AMD 25,000 -  for loans from AMD 8,000,001 to AMD  12,000,000 (or an equivalent amount in other currency),
• AMD 35,000 -  for loans above AMD 12.000.001  (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.

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 schedule of monthly annuity payments for the entire 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

The property is insured at the full loan amount.

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

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

2.  Identity card of an RA citizen (for persons other than RA citizens, an identity card with indication of permanent residence place in the RA territory (in this case, a guarantee of an RA citizen is required) for borrower/co-borrower and seller,

3.  Social card copy (if any),

4.  Passports (birth certificates) of owners and registered persons,

5.  A document certifying marital status (certificate of marriage, bill of divorce, certificate of spouse's death, etc.) (if any),

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

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

8.   Work-book copy (if any),

9.  Employer's statement on salary or documents certifying the incomes of a potential borrower,

10.    In case the borrower is married, a reference on spouse's incomes (if appropriate),

11.    Information and evidence on secondary incomes, if any,

12.   Seller's title registration certificate,

13.    A document certifying the acquisition of ownership right (if appropriate),

14.    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, neither is arrested nor pledged (is submitted as soon as the loan application is approved by the Credit Committee),

15.    Insurance policy acceptable to the Bank (is submitted as soon as the loan application is approved by the credit committee),

16.     Appraisal statement prepared by the person cooperating with the bank and licensed by the State Committee of Real Estate Title Registry,

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

    17.    In case the person applying for mortgage loan engages in individual business, he/she should submit additional documents including:

• Taxpayer identification number,
• Certificate of state registration of individual entrepreneur,
• Documents stating the permission to engage in a given type of activities (if any),
• Financial statements for the last 3 months (at Bank's request, for a longer period) approved by tax authorities,
• Information on incomes, expenses (records),
• If the applicant is a founder or participant (shareholder) of any company (companies), he/she should submit additional documents, including:
• Organization's charter (in case of limited liability companies),
• Certificate of state registration (for limited liability companies),
• Reference of state registry on stockholders (for limited liability companies),
• Reference from tax authorities on amounts due to the state budget (for LTD),
• List of accounts payable and receivable (if appropriate),
• Dividends received (if any)

Other documents as may be required by the Bank.