Chat with us, powered by IDBank
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 7.4%%
  • Maturity
    up to 240 months
  • Minimum amount
    AMD 5 000 000
    or
    USD 10 000
  • Maximum amount
    AMD 125 000 000
    or
    USD 250 000


Apply for mortgage online
Name Required field
Surname Required field
Phone
Required field
E-mail Required field Wrong E-mail
I give my consent to IDBank to process and provide my personal data to third parties, if necessary, in accordance with the RA Law on Protection of Personal Data.
The page was updated 30.09.2021 15:45

MORTGAGE LOANS


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

Approved by resolution N 412-Լ of the
Management Board of “IDBank” CJSC
dated November 11, 2021
Applied starting from November 22, 2021

The terms mentioned in the bulletin can have be amended.
If you are reading the bulletin on the website of the Bank, please pay attention to the action date of the information bulletin.
If you are reading the bulletin on the territory of the Bank or in a paper form, please visit the Bank’s website at www.idbank.am for detailed information (paying attention at the action date of the information bulletin), apply to any branch of the Bank or call the Bank’s Call Center at (+37410) 59 33 33, (+37460) 27 33 33. 

Information bulletin of mortgage loans provided for the purpose of purchase of real estate
1. Main conditions
1.1 Program Own resources National mortgage company Affordable housing for young families
1.2 Purpose of the loan Acquisition of real estate under construction or existing Acquisition of residential real estate under construction or existing Acquisition of existing residential real estate (with 80% and higher percentage of construction completion) for the purpose of permanent residency
1.3 Loan currency AMD USD AMD
1.4 Minimum loan amount 5,000,000 10,000 5,000,000
1.5 Maximum loan amount 125,000,000 250,000 Up to 60,000,000 In case of acquisition of property from the secondary market – up to 22,500,000
In case of acquisition of property from the secondary market – up to 27,750,000
1.6 Rocket Line1 Up to 10% of the mortgage loan, not more than AMD 10 000 000
1.7 Credit line1 Up to 5% of the mortgage loan, not more than AMD 5 000 000
1.8 Minimum loan term 120 months
1.9 Maximum loan term 240 months 240 months 120 months 121 - 180 months
1.10 Nominal annual interest rate Fixed interest rate: Fixed interest rate for the whole period
For up to first 24 months For up to first 24 months
Floating interest rate:
From 25 to 240 months From 25 to 240 months
Fixed:
11%-13.55%
/according to Table 1/
Floating:
IBRR[1]+ [0.9%-2.9%]
Fixed:
 8%-11.55%
/according to Table 1/
Floating:
IBRR1 + [4.4%-7.4%]
9.25%-12%  /according to Table 2/ In case of acquisition of property from the secondary market:
7.4% 8.4 %
In case of acquisition of property from the primary market: 7.5%
1.11 Effective annual interest rate3 12.60% - 14.32% 9.26% - 12.15% 10.64% - 13.17% 8.25% - 9.10% 9.25% - 10.1%
1.12 Minimum prepayment* Starting from 0% prepayment 30% (of the least value between the acquisition value and the estimated market value of the property) in case of pledging the acquired property/right of pledge In case of acquisition of property from the secondary market – 30%,
In case of acquisition of property from the primary market – 20%
Of the value of the real estate property being acquired in Yerevan and RA regions.
10% (of the least value between the acquisition value and the estimated market value of the property) in case of pledging the acquired property/right of pledge and other residential real estate property (second pledge),
7.5% (of the least value between the acquisition value and the estimated market value of the property) if the borrower is unmarried and under 30 years of age and the real estate property is being acquired from the real estate developer and another residential real estate property is being pledged (second pledge).
In case of the abovementioned, the prepayment must be insured in the amount of the difference between the defined minimum prepayment amount and prepayment made unless another real estate property is pledged.
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 value of the real estate property being acquired in Yerevan and RA regions), in case if:
-  another residential real estate property is being pledged besides pledging the residential house or apartment being acquired, or
-  guarantee provided by a legal entity occupying from 1st to 300th  place among the list of RA large taxpayers as of the date of submission of the loan application is being provided besides pledging the residential house or apartment being acquired
- in addition to the pledge of the residential house or apartment being acquired the client also insures the prepayment in the amount of the difference between the defined minimum prepayment amount and prepayment made.
1.13 Security (pledge) Real estate property being acquired/right of pledge, if the loan/collateral ratio amounts to up to 90% Real estate property being acquired in case of a prepayment in the amount of 30% and more Real estate property being acquired:
In case of prepayment in the amount of 30% and more in case of acquisition from the secondary market
In case of prepayment in the amount of 20% and more in case of acquisition from the primary market
In case if the loan/collateral ration exceeds 90%:
1. Real estate property being acquired/right of pledge
2. Other real estate property depending on the client’s creditworthiness
In case of making a prepayment in the amount of 7.5%-29.9% real estate property being acquired/right of pledge
 and
- other residential real estate property or
- insurance of prepayment
in the amount of the difference between the defined minimum prepayment amount and prepayment made
In case of 10%-29% prepayment for acquisition of property from the secondary market, and 7.5%-19% prepayment for acquisition of property from the primary market – real estate property being acquired and
-  other residential real estate property, or
- guarantee provided by a legal entity occupying from 1st to 300th  place among the list of RA large taxpayers
- insurance of prepayment in the amount of the difference between the defined minimum prepayment amount and prepayment made
1.14 Maximum loan/collateral ratio* 90% (can increase up to 100%, if internal guideline requirements are met)
70%,
or

up to 92.5% if along with the real estate property being acquired/right of pledge another residential real estate property is being pledged or the client implements insurance of the prepayment in the amount of the difference between the defined minimum prepayment amount and prepayment made

70% if a real estate property being acquired from the secondary market is being pledged
80% if a real estate property being acquired from the primary market is being pledged
92.5%[2]
- in case if along with the residential house or apartment being acquired another residential real estate property is being pledged, or
- in case if along with the pledge of residential house or apartment being acquired the client submits the guarantee provided by a legal entity occupying from 1st to 300th  place among the list of RA large taxpayers as of the date of submission of the loan application or
- in case if along with the pledge of residential house or apartment being acquired the client implements insurance of the prepayment in the amount of the difference between the defined minimum prepayment amount and prepayment made
* in case of acquisition of real estate property from the primary market with the own resource the loan/collateral ratio calculation is based on the acquisition value of the property being acquired, otherwise the least value between the acquisition value and the estimated market value of the property, and in case of a second pledge the calculation is based on the estimated liquid value of the property.
1.15 Loan disbursement method One-time non-cash through current account
1.16 Method of loan and interest repayment 1. Annuity repayment method – Equal monthly repayments of the sum of loan principal and interest amount*
2. Differentiated repayment method equal monthly repayments of loan principal, repayments of interest amount on a monthly basis
* in case of change of the annual nominal interest rate during the loan period, the method of repayment of the loan and interest amounts can be changed
1.17 Loan application revision fee Not specified
1.18 One-time loan disbursement fee 1%, maximum AMD 200,000
One-time loan disbursement commission fee is being charged from contractual loan amount
1.19 Bank account opening Opened in the loan currency according to the tariffs applied in the Bank.
If the loan currency is other than AMD, an account in AMD shall also be opened.
1.20 Fees for pledge registration Implemented by the employee:
  • Pledge assessment fee*
  • Fee for unified reference on restrictions on the subject of pledge
  • Notarization fee for the real estate that is the subject of collateral
  • Fee for registration of the Bank’s right arising from the pledge agreement in the competent state body
* In case of acquisition of residential real estate property from the primary market, the pledge assessment fee will be  covered by the Bank.
1.21 Commission for encashment of loan amount and prepayment Not specified
1.22 Pledger
  • In case of real estate property being acquired – the borrower and/or coborrower,
  • In case of other real estate property  (other pledge) – any other physical or legal entity
In case of real estate property being acquired and other real estate property – borrower/coborrower
1.23 Relations between the borrower/coborrower and seller of the real estate property The real estate property cannot be acquired from the physical entity who is the family member of the borrower/coborrower, particularly borrower/coborrower’s father, mother, spouse, spouse’s parent, grandmother, grandfather, sister, brother, child, spouse and child of the sister, brother.
2. Requirements to borrower/coborrower
2.1 Status of the borrower/coborrower Physical entity4 RA citizen physical entity RA citizen physical entity or non-RA citizen physical entity whose spouse is a RA citizen
2.2 Age restriction Borrower – physical entity over 21 years old whose age must not exceed 65 years by the loan maturity,
1) spouse(s) over 21 years old whose aggregate ages does not exceed 70 years, or
2) a single parent whose age is between 18–35 at the time of loan disbursement
Coborrower – a physical entity over 21 years old whose age must not exceed 65 years at the moment of loan disbursement (the age restriction requirement shall not be applied if based on the information submitted in the application form the financial state of the borrower (other coborrowers) is enough to repay the loan without the given coborrower (coborrowers). The borrower’s spouse can become a coborrower, and any member of their families (family members are: the spouse, the borrower’s and his/her spouse’s parents, sisters and brothers) whose age should not exceed 63 years at the moment of loan disbursement.
2.3 General principle of borrower/coborrower’s creditworthiness assessment - - Maximum ratio of repayments and net incomes must not exceed 35%
Maximum total debt to income ratio (OTI) must not exceed:
 Up to 60%* Up to 60% 45%
2.4 Incomes of the borrower/coborrower 1) Composition of primary incomes – according to Appendix 1
2) Composition of secondary incomes – according to Appendix 1
2.5 Requirements to the borrower’s/coborrower’s credit history 1. Absence of credit history or
2. Absence of overdue liabilities towards the financial-banking system as of the date of acceptance of the loan application (in terms of loans, credit lines, overdrafts, provided guarantee etc.), and
3. Less than 30 total overdue days in terms of loan principal amount and/or interest repayments in terms of loans (credit line, overdraft, guarantee etc.) received within the 12 months preceding the loan application submission date.
In case of the Affordable Housing for Young Families program the given requirement to the credit history also applies to the borrower’s spouse
2.6 FINES, PENALTIES Penalty for overdue principal amount – 0.1% daily
Penalty for overdue interest amount – 0.1% daily
In case of early loan repayment:
- 0.6% of early repaid amount for the 1st year of the loan agreement,
- 0.4% of early repaid amount for the 2nd year of the loan agreement,
- 0.2% of early repaid amount for the 3rd year of the loan agreement,
- No early repayment penalty is charged after the 3rd year of the loan agreement.
No early repayment penalty is charged for the amount which does not exceed the aggregate sum of principal amount repayments provided by the repayment schedule for the 12 months following the early repayment.
In case of non-targeted use of the loan the Bank is entitled to demand:
1) early repayment of the whole loan amount,
2) penalty in the amount of 25% of the misused loan amount,
3) revision of loan interest rate according to the competent body if the Bank.
2.7 Insurance Performed by the Bank
Presented in Appendix 2
2.8 Requirements to the subject of pledge Presented in Appendix 3
2.9 Place of acceptance of the application and documents All branches of the Bank
2.10 Loan decision making and notification of the client Up to 3 business days after submission of a complete package of documents required by the Bank
2.11 Loan disbursement term Maximum 3 business days after submission of complete package of documents and registration of the right of pledge after the decision has been made
2.12  Validity of the loan decision 30 business days
2.13 Other requirements (applied only within the scope of the Affordable Housing for Young Families program) 1. the sum of the total monthly net income of the spouses and possible coborrowers must not exceed AMD 800,000
2. The primary income is mandatory for the borrower and co-borrower
3. spouses must not be owners of other residential real estate property (residential house or apartment) unless the share of territory per each person registered in the given apartment/residential house is less than 18 sq./m.
4. the real estate property must be acquired for the purpose of permanent residence
5. The acquisition price, in case of acquisition from the secondary market, should be less than AMD 25 million, while the estimated market price should not exceed AMD 26 million, and in the case of acquisition from the primary market (directly from the developer) the acquisition price should be less than AMD 30 million, while the estimated market price should not exceed AMD 31 million.
2.14 Chief loan agreement The Bank can conclude a chief loan agreement with the client for a term of up to 240 months and in the amount of up to 100% of the market price of the real estate property.
3.    Refinancing terms
Refinancing of mortgage loan for acquisition re renovation of real estate property is implemented according to paragraphs 1 and 2 of Own resources of these terms with the exception of the following terms:
3.1 Loan application revision fee Not specified
3.2 One-time loan disbursement fee Not specified
3.3 Pledge related costs The pledge related costs incurred by the Bank for loans amounting to AMD 15,000,000 and more are as follows:
- collateral appraisal fee (no appraisal is required if the given property is already pledged in the Bank and has been appraised within 12 months preceding the submission of the loan application, or 6 months preceding the submission of the loan application in case if the property is pledged in other banks/credit organizations, by appraisal companies cooperating with the Bank),
- Fee for the unified reference provided by the state cadaster committee under the RA Government*,
- Notarization fee for the real estate that is the subject of collateral
- Fee for registration of the Bank’s right arising from the pledge agreement in the competent state body*
*in case if the fees for the unified reference provided by the state cadaster committee under the RA Government and for registration of the Bank’s right arising from the pledge agreement in the competent state body are made through the ARPIS program applied in the Bank, no reference fee shall be charged.
In case if the costs are incurred by the Bank the borrower shall reimburse to the Bank the costs incurred by the latter mentioned in this provision in case if the borrower completely repays the loan ahead of time within 24 months following the transfer.
4. List of documents to be submitted by the client according to Appendix 4
Note:
In addition to the commission fees mentioned in these terms, the borrower shall also bear the following expenses (in case of 1 collateral)*:
  • Property appraisal fee in the amount of up to AMD 25,000. The list and tariffs of appraisal companies cooperating with the Bank are presented at the following link: List of appraisal companies
  • Unified reference – up to AMD 10,300
  • Inquiry of information – AMD 1,300
  • Notarization fee – up to AMD 20,000
  • Registration of right of pledge – up to AMD 26,400
  • Registration of ownership right – up to AMD 46,100
  • Insurance of the property being pledged – in the amount of 0,16% of the loan balance
  • Borrower’s insurance - in the amount of 0,16% of the loan balance
The list and tariffs of insurance companies cooperating with the Bank are presented at the following link: List of insurance companies
Irrespective of the rates of the Bank stated in these terms, the fees for services rendered by third parties can be changed by the third parties.
Attention:
In order to receive a loan, the borrower/coborrower must provide the Bank with his/her e-mail address, otherwise the loan shall be rejected.

Table 1

Source of financing Own resources
Loan currency AMD USD
Prepayment amount/loan term 120 180 240 120 180 240
Up to 10% 12.00% 12.25% 13% 9.5% 10% 11%
10%-30% 11.75% 12.00% 12.75% 9% 9.5% 10.25%
30% and more*
*also, in case of an additional pledge
11.5% 11.75% 12.5% 8.5% 9% 9.75%
Cases of interest rate reduction:
  • In case if the insurance of the real estate property being acquired and/or life of the borrower/coborrower from accidents is performed by the client the nominal annual interest rate of the loan is reduced by 0.25%
  • In case of joining the IDsalary and IDsalary+ salary packages the nominal annual interest rate of the loan is reduced by 0.25%
  • In case of prepayment insurance by the Bank, the annual nominal interest rate of the loan increases by 0․55
Rates increase by 0.25% in case of purchase of real estate from the secondary market, as well as due to the terms of cooperation between the Bank and the construction company

Table 2

Source of financing National mortgage company
Prepayment amount/loan term 120 180 240
7.5%-30% 10.25% 10.75% 12%
30% and more*
*also, in case of an additional pledge
9․75% 10.25% 11.5%
Cases of interest rate reduction:
· In case if the insurance of the real estate property being acquired and/or life of the borrower/coborrower from accidents is performed by the client the nominal annual interest rate of the loan is reduced by 0.25%
· In case of joining the IDsalary and IDsalary+ salary packages the nominal annual interest rate of the loan is reduced by 0.25%
· In case if the loan amount exceeds AMD 35 mln the loan interest rate increases by 1.5% annually
 

Appendix 1

Income composition and maximum weights to participate in the OTI ratio
1.Primary income
1.1      Salary/income received for the main work hours, based on the professional skills and abilities of the borrower/coborrower 60%
1.2 Income (profit) received as a result of own business activities, and grounded by appropriate documents*
* the business must be registered in the corresponding state body and operate for at least 6 consecutive months
In case of lending with the own resource of the Bank
 In case of lending within the scopes of the National Mortgage Company program
Income (profit) received as a result of own business activities** and grounded by tax reports, except for the following cases:  
1.       If it operates for less than a year,
2.       The turnover (revenue) during the last year was zero for 2 month or longer,
3.       There are accounts receivable in terms of taxes,
4.       Full information required for business analysis was not submitted.
**tutoring by physical entities who are not private entrepreneurs is also considered as own business activity
In case of lending within the scopes of the Affordable Housing for Young Families program
Military pension as well as compensation payments monthly received from the foundation for compensation of damages caused to the life or health of soldiers 100%
2.Secondary income
2.1 Income received from rental which is grounded by documents.
Moreover, the real estate property must have been rented for at least 270 days within the 12 months preceding the loan application acceptance date, which is grounded by documents.
 In case of lending within the scopes of the National Mortgage Company program Up to 100%
Income received from rental of real estate property which has been received at least 12 months prior to the loan application acceptance date, in accordance with the rental agreement concluded in the order defined by law. In case of lending within the scopes of the Affordable Housing for Young Families program 60%
Income received from rental which has been received during at least 3 months preceding the loan application acceptance date, which is grounded by rental agreement(s) concluded in the order defined by law*․
*if the fee defined by the rental agreement differs from the actual rental fee, the rental fee estimated by the independent appraisal company shall be counted.
 Only in case of lending within the scopes of the own resource of the Bank 100%
2.2 Income from investments into state treasury bonds, CBA securities, other securities, received during at least one year prior to the date of loan application. 60%
2.3 Income received for paid works or rendered services over at least one year grounded by corresponding agreements In case of lending with the own resource of the Bank Up to 100%
 In case of lending within the scopes of the National Mortgage Company program 50%
In case of lending within the scopes of the Affordable Housing for Young Families program * 60%
* the mentioned types of income shall be considered if the latter have also been submitted to the tax authority.
2.4 Transfers received over a year preceding the date of loan application given that they have been received for at least 6 times (in this case transfers made over the past 12 months on a monthly basis or once every two months shall be considered as periodic). In case of lending with the own resource of the Bank 50%
In case of lending within the scopes of the Affordable Housing for Young Families program 60%
Transfers received for at least eight months over a year preceding the date of loan application if these transfers have been received from family members
(family members are the father, mother, spouse’s parents, grandfather, grandmother, sister, brother, children, spouse and children of sister/brother)
 In case of lending within the scopes of the National Mortgage Company program 60%
2.5 Pension for long term service (employees of the Police of the Government of RA, RA Ministry of Defense, penitentiaries and other appropriate institutions, pedagogues, judges, etc.), pension for the death of breadwinner, etc. (except for retirement pension) In case of lending within the scopes of the National Mortgage Company program and in case of lending with the own resource of the Bank
 
60%
Military pension for long term service according to the RA law “On state pensions” In case of lending within the scopes of the Affordable Housing for Young Families program 100%
2.6 1)     In case of lending with the own resource of the Bank:
Income received from borrower’s own business activity for the past reporting year which are not grounded by documents defined by RA legislation but which are grounded by internal accounting documents in case if the analyses of the business activity has been performed by the corresponding subdivision of the Bank and if the loan/collateral ratio does not exceed 70%.
100%
In case of the loan/collateral ratio exceeds 70% 90%
2) In case of lending within the scopes of the National Mortgage Company program:
Profit/income received from business activity which is grounded by internal accounting documents (in case, if the income is being received from a business which has never been registered in the tax field)
3) the mentioned income is not being considered in case of lending within the scopes of the Affordable Housing for Young Families program
60%
2.7 In case of lending with the own resource of the Bank and within the scopes of the National Mortgage Company program:
Bonuses if the latter bear a regular nature (at least semi-annually) and have been paid within the past one year
100%
2.8 Bonuses if the latter bear a regular nature (at least semi-annually), have been paid within the past one year except for: 
Cases of lending within the scopes of the Affordable Housing for Young Families program
60%
2.9 Dividends, which bear a permanent nature, and the payment of which has been made from the declared profit In case of lending within the scopes of the National Mortgage Company program and in case of lending with the own resource of the Bank
100%
In case of lending within the scopes of the Affordable Housing for Young Families program 60%
2.10 Other income acceptable for the Bank’s competent body
(the mentioned income is not being considered in case of lending within the scopes of the Affordable Housing for Young Families program if they have not been registered with the tax authority)
Up to 100%

Appendix 2 

1. Insurance of borrower/coborrower
Insurance of borrower/coborrower Insurance is provided against loss of life as a result of accident and loss of permanent ability to work in the amount of the loan balance:
1. Each year on an annual basis,
2. For the last year of the loan for the period left before the loan repayment,
3. In proportion to the income of the borrower/coborrower participating in the loan repayment.
2. Insurance of the subject of pledge
Insurance of the real estate property being acquired * Insurance is performed in the amount of the loan balance:
1) each year on an annual basis,
2) for the last year of the loan for the period left before the loan repayment
* Insurance is performed upon existence of ownership certificate confirming 100% completeness of the real estate property being acquired. In case if a second property is being pledged the latter should be insured before the existence of ownership certificate confirming 100% completeness of the real estate property.
Minimal cases covered by the insurance agreement 1. earthquake,
2. fire or explosion,
3. hail, flood or heavy rain,
4. storm or strong wind,
5. Heating, water supply or drainage system failure,
6. malicious acts committed by third parties

Appendix 3

Requirements to the subject of pledge
1 Subject of pledge Real estate property being acquired, right to acquire the real estate property, other residential/public real estate property
2 Location of the subject of pledge RA territory
3 Appraisal of the subject of pledge The subject of pledge must be appraised by one of the specialized organizations cooperating with the Bank
4 Insurance of the subject of pledge according to Appendix 2
5 Other requirements The subject of pledge should:
1) not be located on the territory of another building, dormitory
2) not be located on the territory of overriding public interest,
3) not have a common yard area with another owner if it’s a residential house or it should not include a land area which is mutually owned by another owner or the residential house is overburdened with land rental or free use.

Mortgage loans preapproval guide

1. A client can apply to the Bank for mortgage loan preapproval.
2. The client shall submit all the documents necessary for provision of mortgage loans except for documents related to the real estate property being acquired (certificate of ownership, document on right of acquisition of the real estate property under construction, collateral appraisal act etc.), fills in the required application form and provides a consent to perform ACRA inquiry.
3. The client manager studies the submitted documents, calculated the possible loan amount to be provided to the client or the price of the real estate property being acquired, which the client would be able to acquire according to the submitted information.
4. If the client is satisfied with the offered variant, the client manager prepares a loan approval request according to the requirements of the “Procedure of providing mortgage loans to physical entities”, except for the documents related to the collateral, and sends it to the CRMD.
5. In case of a positive decision on the loan, the loan can be provided (double decision is made) if the client submits all the documents on the real estate property to be acquired which have not been submitted before within 30 business days, if the loan amount approved for the client is not going to change. In case if the loan amount is going to differ from the approved amount the Client manager sends the client’s package for double approval.

GENERAL PROVISIONS

1. Prior to conclusion of a loan agreement the Bank shall provide the client with the individual sheet of essential conditions of the loan which contains the individual conditions of the loan to be provided to the client.
2. The Bank is obliged to provide the client with the mortgage loan offer 7 days prior to the agreement signing date and provide the client with the opportunity to think over before making a final decision.
3. The borrower has the right to completely or partially perform his/her contractual obligations ahead of time, paying a penalty if provided.
4. In case of early repayment, the payments, generating the Bank’s income, included in the total cost of crediting the borrower, shall be proportionally reduced.
5. The client is entitled to fulfil (repay) his/her contractual obligations ahead of time irrespective of the fact of such right being prescribed by the loan agreement or not.
6. The real estate mortgage agreement must be notarized. The property ownership right, mortgage right and other property rights are subject to state registration.
7. Loan interest amounts shall be calculated based on the effective interest rate. Loan interest amount shall be calculated against actual loan balance.
8. The effective annual interest rate indicates the cost of the loan for the client given all the interest amounts and fees are repaid in the defined terms and amounts․
9. The order of effective annual interest rate calculation is presented at the following link: Guideline on effective annual interest rate calculation.
10. In case of foreign currency loans, the effective interest rate calculation is based on the exchange rate published on the official website of the RA Central Bank at the moment of provision of loan. The effective interest rate can change depending on the change of the exchange rate published on the official website of the RA Central Bank.
11. In case of foreign currency loans, the interest amounts calculated towards the principal loan amount can also be paid in the loan currency upon the client’s request.
12. In case of foreign currency loans, the changes of foreign currency exchange rates can impact the loan repayments․
13. In case of failure to perform interest and loan repayments on time the pledged property and/or monetary funds can be confiscated in an order prescribed by law, and the Bank shall send the information on the client to the credit bureau within a maximum of three business days, where the client’s credit history is being shaped. The client has the right to receive his/her credit history free of charge once a year from the credit bureau.
14. A bad credit history can prevent a client from receiving loans in the future.
15. The borrower may be deprived of his/her property rights if he/she does not fulfill or improperly fulfills his obligations under the loan agreement.
16. In case if the collateral is not sufficient to fulfil a client’s obligations at the expense of the collateral in the event of failure to fulfil obligations by the clients, the obligations can be repaid at the expense of other property of the client․
17. While performing overdue obligations, the repayments shall be implemented in the following order: cost of confiscation, including litigation expenses (if applicable), interest penalty, penalty for principal loan amount, interest, service fee and commissions /if applicable/ and principal loan amount. The Lender is entitled to unilaterally change the order of repayments mentioned in this provision at any time․
18. Disputes arising between the parties can be settled in a court proceeding or by the Financial system mediator (in the order prescribed by the RA law on “Financial system mediator”), located at 0010, Yerevan, 15 M. Khorenatsi St, “Elite Plaza” business center, 7th floor, e-mail – info@fsm.am, telephone – (+37460) 701111, fax –(+37410) 582421. Moreover, if the property claim does not exceed 500 000 (five hundred thousand) AMD or equivalent in foreign currency, the decisions of the Financial System Mediator cannot be challenged by the Bank․
19. For the purpose of proper study of the client as defined by RA law on “Combating money laundering and terrorism financing”, the Bank may require additional documents or information based on “Know Your Client” principle.
20 According to the agreement with the USA based on the Foreign Account Tax Compliance Act (FATCA) the Bank may collect additional information for the purpose of identification of the fact of the client being a US taxpayer.
21. The Client has the right to communicate with the Bank through a preferred means of communication: e-mail or regular post. The electronic means of communication is the most comfortable. It is available 24/7 and is free of the risk of losing information in paper as well as ensures confidentiality․
22. The conditions of providing statements, their copies, references during the validity of the loan agreement can be found at the following link: Tariffs.
23. The list of branches and ATMs of the Bank, information on their locations and working hours can be found at the following link: Branches and ATMs.
24. Remote servicing by the Bank is provided thought the IDBanking.am online system. The order and tariffs on rendering remote services are presented in “Public terms on rendering remote banking services”.

ATTENTION! THE BANK IS CONTROLLED BY THE RA CENTRAL BANK

The page was updated 23.11.2021 11:05
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 17.03.2021 11:09
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.