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 ratefrom 8.5%
Maturityup to 240 months
Minimum amountnot specified
Maximum amountAMD 25 000 000
USD 250 000
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||National Mortgage Company||Home for young families|
|1.2. Purpose of the loan||Real estate acquisition||Acquisition of residential real estate||Acquisition of residential real estate (with 80% and higher construction completion status) for permanent residency|
|1.4. Minimum loan amount||Not specified|
|1.5. Maximum loan amount||125 000 000 AMD||250 000 USD||Up to 35 000 000||Up to 17 500 000|
|1.6. Minimum maturity||Not specified||120 months|
|1.7. Maximum maturity||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 240 months
Fixed interest rate for the first 24 months;
Variable interest rate from 25 to 240 months
|Fixed interest rate for the entire period|
10.1% – 14%
+ [0% – 3.9%]
Fixed: 8.5 – 13%
Variable: ABRR + [3.6% – 8.1%]
|10․9 %||In case of acquisition of property from the secondary market: 7.4% ||In case of acquisition of property from the secondary market: 8.4% |
|In case of property acquisition from the primary market: 7.5%|
– In case of property acquisition in Yerevan, the state subsidizes 2%.
– In case of property acquisition in the RA regions, the State subsidizes 4%.
– In case of property acquisition from the primary market, no subsidy is provided.
|1.9. Minimum prepayment*||From 0% of prepayment||
30% (of the lesser amount out of the purchase and the appraised market prices) of the collateral property
As to the price of the property, acquired in Yerevan and the regions of RA,
In case of property acquisition from the secondary market: 30%
In case of property acquisition from the primary market: 20%
10% (of the lesser amount out of the purchase and the appraised market prices) of the collateral property in case of the secondary collateral
7.5% (of the lesser amount out of the purchase and the appraised market prices) if the Borrower is a single, is under 30 years and the acquired property is purchased from the developer.
In case of acquisition of property from the secondary market – 10%, and in case of acquisition of property from the primary market – 7.5% (of the price of the property acquired in Yerevan and RA regions respectively), if
– In addition to the acquired dwelling house or apartment another residential property is also pledged;
– In addition to the pledge of the acquired dwelling house or apartment, a warranty, issued by legal entities, holding from the 1st to the 300th place in the list of the RA largest taxpayers as of the loan application submission date, should be submitted.
– In addition to the pledge of the acquired dwelling house or apartment, the customer insures mortgage repayment, in the amount of the difference between the defined minimum prepayment and the prepayment made.
|1.10. Annual actual interest rate||11.00% – 15.38%||9.25% – 14.24%||12.17% –12.29%||8․49%||9․44% – 9․58%|
|1.11. Security (collateral)||The acquired property, if 20% and more is prepaid||The acquired property, if 30% and more is prepaid||
The acquired property,
If the property is acquired from the secondary market and 30% and more is prepaid.
If the property is acquired from the primary market and 20% and more is prepaid.
If 0 – 19.9% is prepaid:
1. The acquired real estate
2. Other property, depending on customer's creditworthiness 
3. Other (cash, gold items)
If 7.5% –29.9% is prepaid:
The acquired real estate and
– other residential property
If the property is acquired from the secondary market – 10% –29%, and if it is acquired from the primary market – 7.5% –19% prepayment, then:
– the acquired property, and
– another residential property, or
– a warranty, issued by legal entities, holding from 1st to the 300th place in the list of the RA largest taxpayers.
– mortgage repayment assurance in the amount of the difference between the defined minimum prepayment and the prepayment made.
|1.12. Loan to collateral maximum ratio*||100%||
up to 92.5%, if in addition to the acquired property another residential property is pledged
70%, if only the acquired property is pledged;
80%, if the collateral is acquired from the primary market only;
– If, in addition to the acquired dwelling house or apartment, other residential property is pledged, or
– In addition to the acquired dwelling house or apartment pledge, the Client submits
a warranty, issued by legal entities, holding from 1st to the 300th place in the list of the RA largest taxpayers as on the application submission date, or
– In addition to the pledge of the acquired dwelling house or apartment, the customer insures mortgage repayment in the amount of the difference between the defined minimum prepayment and the prepayment made.
|* Maximum loan to collateral ratio is calculated on the basis of the least out of the appraised market and purchase prices, while for the second collateral the appraised market price of the property shall be taken into account.|
|1.13. Loan disbursement method||One-off, non-cash, through the current account|
|1.14. Loan repayment method||
1. annuity method: monthly equal repayments of the principal amount and the interests*
2. differentiated repayment method: monthly repayment of the principal amount by equal parts, and the interest – monthly
* In case annual nominal interest rate changes during the loan period, the loan and interest repayments can be changed.
|1.15. Application processing fee||10,000 AMD|
|1.16. One-off fee for loan disbursement||1%, maximum 150,000 AMD|
|Loan disbursement one-off fee is deducted from the contractual loan amount.|
|1.17. Bank account opening||
Is opened in the loan currency, according to the tariffs applicable by the Bank.
If the loan currency is other than Armenian dram, an AMD denominated account is also opened.
|1.18. Cash withdrawal fee||Not specified|
Borrower and/or Co-Borrower – in case of acquired real estate
Any physical person or legal entity – in case of other real estate (other collateral)
|Borrower/Co-Borrower – in case of acquired and other real estate (other collateral)|
|1.20. Relation between the Borrower/Co-Borrower and the real estate 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.
The real estate cannot be obtained from the physical person, who is a family member of the Borrower/Co-Borrower, in particular – the father, mother, spouse, parent-in-law, grandmother, grandfather, sister, brother, child, sister’s /brother's spouse or child.
|Requirements to the Borrower/Co-Borrower|
|2.1. Status of the Borrower/Co-Borrower||Physical person||RA citizen, physical person||RA citizen physical person, or a physical person RA non-citizen, whose spouse is a RA citizen|
|2.2. Eligible age||The Borrower: physical person above 21, whose age at the maturity should not exceed 65||
1) spouse(s) at the age of 21 and above, whose aggregate age is less than 70, or
2) a single parent, whose age at the loan disbursement moment is from 18 – 35.
|The Co-Borrower: a physical person above 21, whose age should not exceed 65 at the loan disbursement moment (the age limitation shall not be applied if the financial state of the Borrower (other Co-Borrowers), according to the loan application, is enough to repay the loan without the given Co-Borrower (Co-Borrowers) .||The Borrower’s spouse can become Co-Borrower, as any member of their families (family member are: the spouse, the Borrower’s and his/her spouse’s parents, sisters and brothers) whose age should not exceed 63 at the loan disbursement moment.|
|2.3. General principle of Borrower/Co-Borrower creditworthiness evaluation||–||–||Maximum repayment to the net income ratio should not exceed 35%|
|Total debt to net income maximum ratio should not exceed:|
|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, warranty, other), and|
|3. Less than 30 overdue days in total of loan principal and/or interests repayments (credit line, overdraft, warranty, other) within the 12 months preceding the loan application.|
|2.6. Fines and penalties||Penalty for overdue principal repayments – 0.1% daily|
|Penalty for overdue interest repayments – 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 is paid after the 3rd year of the loan agreement.
No early repayment fee is charged for the amount, that doesn’t exceed the aggregate of the principal to be repaid under repayment schedule during the following 12 months.
In case of misuse of the loan, the Bank is entitled to claim:
1) Early repayment of the loan,
2) A fine of 25% of the loan amount used in an improper manner,
3) Revision of the loan interest rate in accordance with the decision of the authorized body of the Bank.
|2.7. Insurance||Given in Annex 1.2|
|2.8. Requirements to the collateral||Given in Annex 1.3|
|2.9. Loan application place||All branches of the Bank|
|2.10. Decision making about the loan provision and informing the customer||Up to 3 business days after the submission of the full package of the documents, requested by the Bank|
|2.11. Term of loan disbursement||Maximum 3 business days after submission of all required documents and registration of the collateral right, following the decision on the loan|
|2.12. Loan disbursement decision validity term||60 calendar days|
|2.13. Other requirements (applicable only for “Affordable housing for young families” program)||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 should be purchased for permanent residency,|
|4. The purchase price, in case of acquisition from the secondary market, should be less than 25 million AMD, while the apprized market price should not exceed 26 million AMD, and in the case of acquisition from the primary market (directly from the developer) the price should be less than 30 million, while the apprized market price should not exceed 31 million AMD.|
1) In addition to the fees specified in this terms and conditions, the Borrower should 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 26 400 AMD
– Property right registration fee: up to 46 100 AM
– Collateral property insurance: 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 should be done by appraisal and insurance companies – partners of the Bank.
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 should be certified by the notary. The title with regard to the apartment, mortgage right and other property rights are subject to state registration.
Conditions for preliminary confirmation of the mortgage loans
|1.||A Client's mortgage loan can be approved by the Bank in advance, before the Client selects a real estate for acquisition.|
|2.||The Client submits all required documents for the provision of mortgages, with the exception of the documents, related to the real estate to be acquired.|
|3.||The Bank examines the submitted documents and determines the amount of the loan and notifies the customer.|
|4.||The Client can receive the loan within 45 calendar days, if he/she submits all the required real estate documents to the Bank.|
1. The maximum loan amount can make up to 60 million AMD, while the interest rate should be 12.5% per annum, and the total liabilities/income ratio can be calculated up to 60%.
2. The “ID Bank” CJSC reference rate (ABRR) and the methodology of calculation are 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 November each year, and the change takes effect after 30 calendar days from their publication. The minimum and maximum threshold of the variable rates can make 7.5% and 16% for USD denominated loans and 9% and 19% for AMD denominated loans respectively.
3. The Bank may revise the loan interest rates depending on the refinancing interest rates of “National Mortgage Company” RCO CJSC.
The Bank may 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 refinance or terminates the refinancing of the loan.
4. The Bank may revise the interest rate of the loan depending on the refinancing interest rates of “Home for youth” RCO CJSC.
The Bank can revise the interest rate of the loan, if “Home for youth” RCO CJSC doesn’t refinance or terminates the refinancing of the loan.
5. In case of property acquisition from the secondary market – 90%.
6. The minimum prepayment rate is 20% for person who is not a citizen of the Republic of Armenia and/or person whose income or interest center is outside the territory of RA.
Interest payment calculation method
The interest rate is applied on a deductible balance of the loan, based on the 365 days' calculation.
ATTENTION: CREDIT INTEREST IS CALCULATED ON THE BASIS OF THE NOMINAL INTEREST RATES. THE ACTUAL ANNUAL INTEREST 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/negative impact on the loan repayment.
Loan request rejection
The Bank may reject loan applications of those Clients, who 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 bank secrecy).
ATTENTION: IN CASE OF FAILURE TO REPAY THE INTEREST AND THE PRINCIPAL AMOUNT OF LOAN YOUR ASSETS CAN BE SEIZED. IF YOU DO NOT MAKE THE INTEREST AND PRINCIPAL PAYMENTS IN TIME THE INFORMATION ABOUT YOUR OVERDUE LIABILITIES WILL BE RECORDED IN THE CREDIT REGISTER.
In case the Borrower fails to fulfill his/her liabilities, they shall be repaid at the expense of the collateral, and if the pledge is insufficient to cover the Borrower's loan obligations, then the liabilities can be fulfilled at the expense of other property, belonging to the Borrower.
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