Real estate requirements

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

Loan currency

Armenian dram

Minimum loan amount per borrower

AMD 1,500,000

Maximum loan amount per borrower

The maximum amount of a loan granted to a single borrower is defined on the basis of analysis of incomes and expenses of the borrower and co-borrowers, with consideration of the appraised value of the real estate to be acquired; nevertheless, the loan amount should not exceed AMD 20,000,000.

Period for loan application review

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 acquisition of apartments and private houses:

• 14 % per annum

For renovation of apartments, private houses:

• 15 % per annum

For employees of "Areximbank-Gazprombank Group" CJSC, "ArmRusgazprom" CJSC and companies affiliated with them:

• 13 % per annum

Interest is accrued on the loan balance, based on a 365-day year.

Loan pre-payment

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

Loan amount to appraised collateral value ratio

• In the case of acquiring real estate located in Yerevan, the loan is granted at a maximum of 70% of the real estate appraised value and minimum trading price.

The loan amount for real estate renovation should not exceed 50% of the appraised value of the apartment to be renovated.

• The loan amount for acquisition of real estate in marzes (regions) of Armenia is within 60% of the appraised value and minimum trading price of the real estate to be purchased.

Commission fee for loan documentation

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

Security

The loan amount is secured by the real estate to be purchased 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 Title Registry at the RA Government, who has signed a relevant agreement with the Bank.  

In the event of a failure of the borrower to duly repay the principal amount or interest accrued on it, the pledged property will be subject to seizure.

Borrower eligibility

1. RA resident-citizens,
2. The age of the borrower at the time of making a loan should not be under 21, while the final repayment should be due before his/her retirement age.

Loan repayment

Under equal installment schedule throughout the entire loan period.

Loan extension

The loan amount is extended upon signing of a collateral (mortgage) agreement and tripartite trade agreement and receipt of the certificate of registration of the title to the apartment and pledged collateral. In the case of real estate renovation, the loan amount is advanced upon signing of the real estate collateral (mortgage) agreement and receipt of the certificate of registration of title to the collateral.

Insurance

Is executed:

• In the form of property insurance at its market value,

• In the form of life insurance of the borrower (co-borrowers) (with consideration of the share of everyone in the total incomes)

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

1.     A loan application,

2.     Copies of identity cards of the borrower (co-borrowers), as well as the seller,

3.     The copies 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 family 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,

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. Proofs of secondary incomes of the borrower (co-borrower) (if any). (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 to the real estate owned by the seller,  

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

14. Pictures of the property to be purchased,

15. Evidence of utilities and property tax payments,

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

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 of the potential borrower is approved by the Credit Committee). 

List of documents submitted by borrowers (co-borrowers)

20.  Insurance policy acceptable to the Bank (is submitted upon approval of the potential borrower's 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 at the RA Government,
22. In cases the person(s) applying for a mortgage loan is engaged in business activities, the Bank requires additional documents, including:

• Tax payer identification number,
• Certificate of individual entrepreneur's state registration,
• Documented permission to be engaged in the given type of activities (if any),
• Financial statements for the last quarter and/or the past 1 year, if needed, approved by tax authorities,
• Statements (records) on incomes and expenses for the last 6 months,

• Tax returns (records) for the last 1 year

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

• The charter of the organization (for limited liability companies),
• A  copy of certificate of state registration with director's insert (for LTDs),
• Reference of state registry on stockholders (for LTDs),
• Tax inspectorate reference on amounts due to the state budget (for LTDs),
• List of accounts receivable and payable (for LTDs)

Other documents as may be requested by the Bank.