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MORTGAGE LOANS For the purchase

MORTGAGE LOANS

Through “Home for young families” RCC CJSC program, “National Mortgage Company” RCC CJSC program, own resources of the Bank


loans are provided to physical persons for the purchase of residential real estate



  • Interest rate
    from 8.5%
  • Maturity
    up to 240 months
  • Minimum amount
    not specified
  • Maximum amount
    AMD 25 000 000
    or
    USD 250 000


The page was updated 07.03.2019 09:59

MORTGAGE LOANS


Through  “Home for young families” RCC CJSC program, “National Mortgage Company” RCC CJSC program, own resources of the Bank 



General terms and conditions

1.1. Program
Own resources Own resources Home for young families
1.2. Purpose of the loan Purchase of residential real estate
(under construction/completed)
Purchase of residential real estate (completed construction) Purchase of residential real estate (construction completed for 80 % and more) for permanent residency
1.3. Currency
Armenian dram US dollar Armenian dram
1.4. Minimum amount Not specified
1.5. Maximum amount 125 000 000 AMD 250 000 USD Up to 25 000 000 Up to 17 500 000
1.6. Minimum maturity Not specified 120 months
1.7. Maximum maturity 120 months 240 months 180 months 120 months 121 - 180 months
1.8. Annual nominal interest Fixed interest rate for the first 12 months
variable interest rate from 13 to 120 months
Fixed interest rate for the first 24 months
Variable interest rate from 25 to 240 months
Fixed interest rate for the first 60 months
Variable interest rate from 61 to 240 months
Fixed interest rate for the whole period
Fixed
10%
Variable
up to ABRR [1]+4%
Fixed from 8.5%
Variable ABRR1՝ + from 3.6%
Fixed from9.5%
VariableABRR1 + from 4.6%
Fixed from 10.5%
Variable ABRR1 + սկսած 5.6%
10․9 %2 In Yerevan  
5.4%
Other marzes of RA`
3.4%
Interest rate established by the Bank `
7.4%
3

In Yerevan 6.4%
Other marzes of RA`
4.4%
Interest rate established by the Bank
8.4 %
3
  • For real property purchased in Yerevan 2% shall be subsidized by the state
  • For real property purchased in RA marzes 4% shall be subsidized by the state
1.9. Minimum prepayment  30% (of the minimum from the purchase price of the real estate and the appraised market value) in case of pledging the property to be purchased 
From  0% of prepayment 

30% (of the minimum from the purchase price of the real estate and the appraised market value) in case of pledging the property to be purchased

30% of the value of real estate purchased in Yerevan city and RA marzes 
0% (of the minimum from the purchase price of the real estate and the appraised market value) in case of pledging the property to be purchased and other real estate (secondary collateral) 
10% (of the minimum from the purchase price of the real estate and the appraised market value) in case of pledging the property to be purchased and other real estate (secondary collateral)
10% (of the minimum from the purchase price of the real estate and the appraised market value) in case of pledging the property to be purchased and other real estate (secondary collateral)
1. The reference rate of “ID Bank” CJSC (the ABRR) and the methodology of calculation thereof is available at https://www.idbank.am/retail/IDBank-reference-rate-ibrr/. The ABRR for this kind of loans may be changed twice a year, in May and in November each year, moreover, the change takes effect in 30 calendar days after being published. Minimum and maximum threshold of the variable rates for the loan may be 7.5% and 16% for USD denominated loans and 9% and 19 % for AMD denominated loans, respectively.  
2. The Bank may revise the loan interest rates depending on the refinancing interest rates of “National Mortgage Company” RCO CJSC. The Bank shall revise the interest rate of the loan, if requirements of the “National Mortgage Company” RCO CJSC are not met, or when the Company doesn’t re-finance or terminates refinancing of the loan.
3. The Bank may revise the interest rate of the loan depending on the refinancing interest rates of “Home for young families” RCO CJSC. The Bank shall revise the interest rate of the loan, if “Home for young families” RCO CJSC doesn’t re-finance or terminates refinancing of the loan.
1.10. Annual Actual interest rate  10.95% - 14.45% from 9.26% from 10.35% from 11.44% 12.17%-12.29%
8․49% 9․44% - 9․58%
1.11. Security  (collateral) in case 30% and more of the real estate value is prepaid 
Purchased real estate in case 20% and more is prepaid
Purchased real estate in case 30% and more is prepaid
the purchased real estate and other real estate (the second collateral) in case of 0%-29% is prepaid

In case of making prepayment in the amount of 0-19% the second collateral in the form of real estate (residential/public) shall be pledged in addition to the purchased real estate

For prepayment in the amount of 10%-29% the purchased real estate and other residential real estate  

In case of 10%-29% prepayment – the purchased real estate and  

- other residential real estate, or
- guarantee of one of any legal entity included in the top 1-300 of the list of large taxpayers
1.12. Loan to collateral maximum ratio*  70% 60% 80% 70% 70%, if only the purchased property is pledged 
In case of 10-30% prepayment:
- 70%, if in addition to the purchased dwelling house or an apartment other residential real estate is pledged, or
- 90%, if in addition to the purchased dwelling house or an apartment the customer presents guarantee of one of any legal entity included in the top 1-300 of the list of large taxpayers, as of the date of loan application 
* Maximum loan to collateral ratio is calculated on the basis of minimum of the appraised market value and the purchase value, and for the second collateral the appraised market value of the real estate shall be taken into account. 
1.13. How the loan is extended  One-time, in non-cash form through current account 
1.14. How to repay the loan 

Annuity method

Monthly equal payments of the principal and interests *

 

*In case of changing the annual nominal interest rate during the loan period the repayment method can be also changed 
1.15. Application processing fee  10 000 AMD
1.16. Up front fee  1%, maximum 250 000 AMD
The upfront fee shall be withdrawn from the contractual loan amount 
1.17. Opening bank account  In the loan currency according to the fees applicable by the Bank.
In case the loan is in the currency other than Armenian dram, AMD denominated account shall be also opened.  
1.18. Cash withdrawal fee  Not specified 
1.19. Pledger
  • Borrower and/or co-borrower in case of purchased real property
  • Any physical person or legal entity in case of other real property (other collateral) 
Borrower and/or co-borrower for purchased and other real estate (other collateral) 
1.20. Relation between the borrower/co-borrower and the real property seller  The real property may not be purchased from the physical person, who is a member of the family of the borrower/co-borrower, particularly, father, mother, spouse, parent in law, grandparents, sibling, children, brother or sister in law, their children.
Requirements to the borrower/co-borrower 
2.1. Status of the borrower/co-borrower  RA citizen, physical person 
RA citizen physical person, or a physical person not being RA citizen, whose spouse is a RA citizen 
2.2. Eligible age

The borrower – physical person above 21, the age of which at the maturity will not exceed 65

1) spouse(s) of 21 age and above, at least one of which is not above 35 (inclusive), and the aggregate age of the spouses – 65, or  

2) single parent, who at the time of extending the loan is from 18-35. 

The co-borrower, a physical person above 21, the age of which should not exceed 65 at the time of extending the loan (age eligibility shall not be applied if the financial state of the borrower (other co-borrowers) on the basis of the application without the given co-borrower (co-borrowers) is enough to repay the loan. 

The borrower’s spouse can become the co-borrower and any member of their families (family member is considered the spouse, parents of the borrower and his/her spouse, sisters, brothers) whose age must not exceed 63 at the time of extending the loan.
2.3. General principle of solvency appraisal of the borrower/co-borrower  - - Maximum repayment to net income ratio must not exceed 35% 
Total debt to net income maximum ratio must not exceed:
55% 45% 45%
2.4. Income of the borrower /co-borrower 1) Structure of primary income according to Annex 1.1 
2) Structure of secondary income according to Annex 1.1 
2.5. Requirements to the credit history of the borrower/co-borrower    
1. No credit history or 
2. No overdue obligations with regard to the financial banking system, as of the date of loan application (loan, credit line, overdraft, guarantee, other), and 
3. 30 overdue days in aggregate for repayment of principal and /or interests on loans (credit line, overdraft, guarantee, other) received over 12 months preceding the loan application 
2.6. Fine and penalties  Late principal repayment fine in the amount of 0.1 % daily
Late interest repayment fine in the amount of 0.1 % daily  

For early repayment:  

- 0.6% of the early repaid amount for the 1st year of loan agreement

- 0.4%, of the early repaid amount for the 2nd  year of loan agreement

- 0.2%, of the early repaid amount for the 3rd   year of loan agreement

- No early repayment fee shall be paid after the 3rd year of the loan agreement

No early repayment fee shall be charged if the amount doesn’t exceed the aggregate of the principal to be repaid under repayment schedule during the following 12 months 
If the loan is used improperly the Bank may require:

1) Early repayment of the loan

2) Payment of penalty in the amount of 25% of the improperly used loan amount,

Revision of the loan interest rate, according to the decision of the competent authority of the Bank 
2.7. Security  Given in Annex 1.2
2.8. Requirements to the collateral  Given in Annex 1.3 
2.9. Where to apply  All branches of the Bank 
2.10. Making decision on the loan and giving notice to the client  Up to 3 business days after providing full pack of required documents
2.11. Term of providing loan 

Maximum 3 business days after submitting all required documents and registration of the collateral right, following the decision on the loan 

2.12. Validity term of the loan decision  60 calendar days 
2.13. Other requirements (applicable only for the program on providing accessible housing to young families)  1. Total monthly net income of the spouses and co-borrowers should not exceed AMD 800.000
2. The spouses should not be owners of other real property (dwelling house or apartment), unless the share of the given apartment/dwelling house per capita is less than 18 sq/m. 
3. The real property must be purchased for permanent residency 
4. the purchase price should not exceed 25 million AMD, and at the same time the appraised market value should not exceed 26 million AMD
Notice:
1)In addition to the fees specified in this terms and conditions the borrower must pay (for 1 collateral):
- Property appraisal fee up to 25.000 AMD,
- Unified reference – up to 10.300 AMD,
- Information inquiry – 1300 AMD
- Notarization fees – up to 20.000 AMD,
- Collateral right registration fee – up to 26400 AMD, 

- Title registration fee – up to 46100 AMD 

- Insurance of the property to be pledged – 0.16% of the loan balance amount 

- borrower insurance – 0.16% of the loan balance amount 
* irrespective of the rates specified by the Bank herein the fees for services provided by the third parties can be changed by the third parties.

2) Insurance and real estate appraisal within the scope of this terms and conditions must be done by appraisal and insurance companies – partners of the Bank (for details follow the link below). 

3) The borrower has the right to repay his/her obligations under the agreement whether in full or partially before the maturity.
4) Mortgage agreement must be certified by the notary public. Title with regard to the apartment, mortgage right and other property rights are subject for state registration.  

Interest amount is applied to the reduced balance with the account of 365 days a year. 


ATTENTION: THE INTEREST ACCRUED TO THE CREDIT AMOUNT IS CALCULATED ON THE BASIS OF NOMINAL INTEREST RATE. THE ACTUAL ANNUAL PERCENTAGE RATE SHOWS THE COST OF THE LOAN IF YOU PAY THE INTEREST AND OTHER DUE PAYMENTS WITHIN THE DEFINED TERMS AND AMOUNTS.

Exchange rate effect 
Taking into account the fact that the Bank provides loans in both Armenian drams and foreign currency, the borrower should understand that foreign currency fluctuations can have either positive or negative impact on the loan repayment. 

The Bank may reject loan applications of those clients, which fail to meet the program requirements or where the Bank is not sure of the solvency of clients; the Bank can provide written notice on rejection upon request of the client.   The Bank is liable to provide such information on rejecting the loan to other banks of RA and credit organizations (according to the RA Law on banking secrecy).


ATTENTION: IN CASE OF FAILURE TO REPAY THE LOAN INTEREST AND/OR PRINCIPAL WHEN DUE YOUR ASSETS CAN BE SEIZED. THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES SHALL BE RECORDED IN THE CREDIT REGISTER.. 

If the funds received as a result of disposal of pledged property are not enough to cover the borrower's liabilities under the loan, such liabilities shall be paid on the account of other equivalent assets of the borrower. 

The page was updated 02.10.2018 15:49
The following documents should be presented to the Bank for mortgage loans:

  • Loan application

  • Passport, ID card or other identification document of the borrow/co-borrower

  • SSN /reference on non availability of SSV of the borrower /co borrower

  • Documents containing information on spouses

  • Income proof for the borrower /co borrower *

  • Other documents as required  

The page was updated 02.10.2018 16:06
Attention: The Bank does not bear any responsibility for the inaccuracy of information on the linked web sites, nor does it accept any responsibility for the advertisements therein or possible consequences arising out of use of information provided on the linked web-sites. In case of any discrepancies in the website materials in Armenian, Russian and English languages, the Armenian version is prevailing.