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Mortgage

Loans within the framework of “National Mortgage Company” RCO CJSC project, Bank’s own funds


Loans are provided to physical entities for renovation of residential real estate property



  • Annual nominal interest rate
    from 9.5%
  • Maturity
    up to 180 months
  • Minimum amount
    N/A
  • Maximum amount
    125 000 000 AMD
    or
    250 000 USD


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The page was updated 23.12.2019 17:28

Mortgage

Loans within the framework of “National Mortgage Company” RCO CJSC project, Bank’s own funds

Approved
by decision N383 -L of
“IDBank” CJSC Management Board
dated September 6, 2019
Applicable starting September 19, 2019

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 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 010 593333 or 060 273333.

Information bulletin for mortgage loans extended for the purpose of real estate renovation

1.

General terms and conditions

1.1

Project

Own resources

National mortgage company1

1.2

Loan purpose

Renovation of real estate property

Renovation of residential real estate property

1.3

Loan currency

AMD

USD

AMD

1.4

Minimum loan amount

Not specified

1.5

Maximum loan amount

125 000 000 AMD

Up to 250,000 USD

Up to 35,000,000

1.6

Minimum loan term

Not specified

60 months

1.7

Maximum loan term

120 months

120 months

180 months

1.8

Nominal annual interest rate

Fixed rate – for the first 12 months, floating rate – starting from 13th till 120 months

Fixed rate – for the first 24 months, floating rate – starting from 25th till 120 months

Fixed rate for the whole term

Fixed – 11%-15%

Floating – IBRR+(0.9%-4.9%)

Fixed –9.5%-12.5%

Floating – IBRR+ (4.6%- 7.6%)

10.9% - 12.9%3

1.9

Actual annual interest rate

12․30%-16.87%

10.49%-13.86%

12.57% - 14.40%

1.10

Security (pledge)

1) real estate property subject to renovation or

real estate property subject to renovation

2) real estate property subject to renovation and other real estate property (residential/public)

1.11

Maximum loan/pledge ratio*

70%

80%

70%

* The loan/pledge maximum ratio calculation is based on the estimated market value of the real estate property subject to renovation.

1.12

Loan allocation method

o non-cash – through a current account

o one-time or stage by stage – according to the decision of the competent body of the Bank

1.13

Loan and interest amount payment method

EMI – equal monthly payments of sum of principal and interest amounts of the loan*

*In case of change of nominal annual interest rate during the term of the loan the method of payment of principal and interest amounts of the loan can be changed.

1.14

Loan application review fee

10,000 AMD

1.15

One-time commission for loan provision

1%, minimum 30,000 AMD, maximum 150,000 AMD

The one-time loan allocation commission is charged from the contractual amount of the loan

1.16

Opening/closing of bank account

Opened in the loan currency according to tariffs applied by the Bank. If the loan currency differs from AMD, an AMD account shall be opened a well.

1.17

Commission for cashing the loan amount

Not specified

1.18

Pledger

Borrower and/or co-borrower, and in case of another real estate property (other pledge) – any physical or legal entity

2.

Borrower/Co-borrower requirements

2.1

Status of the Borrower/Co-borrower

RA resident physical entity

2.2

Age restriction

- Borrower – physical entity aged 21 and over, whose age shall not exceed 65 years by the time of loan maturity,

- Co-borrower – physical entity aged 21 and over, whose age shall not exceed 65 years by the time of loan maturity (the age restriction requirement shall not be applied if, based on the information contained in the loan application, the financial situation of the borrower (other co-borrowers) without the given co-borrower (co-borrowers) is satisfying for repayment of the mortgage loan)

2.3

General principle of borrower / co-borrower creditworthiness assessment

Maximum ratio of total debt payments and net income (OTI) must not exceed:

55%

45%

2.4

Borrower’s/Co-borrower’s income

1) Primary income composition – according to Appendix 2.1

2) Secondary income composition – according to Appendix 2.1

2.5

Requirements in terms of the borrower’s/co-borrower’s credit history

1.Absence of credit history or

2. absence of overdue loan liabilities (in terms of loans, credit lines, overdrafts, provided guarantees etc.)

3. sum of overdue principal and interest amount payments not exceeding 30 days in terms of loans (credit line, overdraft, provided guarantee etc.) previously received for the period of 12 months preceding the date of loan application submission  

2.6

FINES, PENALTIES

Penalty on overdue loan amount - 0.1% daily

Penalty on overdue interest amount - 0.1% daily

In case of early loan amount repayment:

- for the first year of loan agreement – 0.6% of the early repaid amount,

- for the second year of loan agreement – 0.4% of the early repaid amount,

- for the third year of loan agreement – 0.2% of the early repaid amount

- no penalty shall be charged for the early repaid amount after the end of the 3rd year of loan agreement.

No early repayment penalty is charged for the amount not exceeding the sum of principal loan amounts defined by the payment schedule for the 12 months following the early repayment.

In case of non-purposeful 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 improperly used loan amount

3) loan interest rate revision according to the decision of the competent body of the Bank.

2.7

Insurance

Presented in Appendix 2.2

2.8

Pledge requirements

Presented in Appendix 2.3

2.9

Decision on provision of the loan and client notification

The Bank can notify the client on the decision on provision of the loan on the territory of the Bank, through a phone call or e-mail within up to 3 business days after submission of the complete package of documents required by the Bank.

2.10

Loan provision term

Maximum 3 business days after complete submission of required documents and registration of right of pledge after the decision on loan provision is passed

2.11

Validity of decision on loan provision

60 calendar days

2.12

Place of acceptance, processing and provision of the loan

All branches of the Bank

3.

Refinancing terms and conditions

Refinancing of real estate property renovation loan is implemented according to paragraphs 1 and 2 of this bulletin except for the following conditions:

3․1

Loan application revision fee

Not specified

3․2

One-time commission for loan provision

Not specified

3․3

Pledge related costs

The collateral related costs of the Bank for loans amounting to 15,000,000 AMD and over are as follows:


- Pledge appraisal fee (no appraisal is needed if the given property is already pledged in the Bank and was appraised within 12 months preceding the application submission, or within 6 months in case if the pledge is pledged in other banks/credit organizations, by appraisal companies cooperating with the Bank), 
- fee for the joint reference provided by State Committee of Real Estate Cadaster of the RA Government*,
- Pledged real estate property notarization fee,
- Fee for state registration of the Bank’s right of pledge arising from the pledge agreement*

* no reference provision fee is charged in case of processing of the fees for joint reference provided by State Committee of Real Estate Cadaster of the RA Government and state registration of the Bank’s right of pledge arising from the pledge agreement through the ARPIS program operating in the Bank.

The abovementioned pledge related costs can be born either by the client or the Bank. Moreover, in case if the costs are born by Bank, the client shall reimburse the costs borne by the Bank defined in this paragraph if the client makes a complete repayment of the loan within 24 months following the transfer.

4.

List of documents to be submitted by the client

According to Appendix 1.4



Appendix 2.1

Income composition and maximum weights of participation in the OTI rate

1.

Primary incomes:

1.1

Salary/income received by the borrower/co-borrower within the main worktime based on his/her professional skills and abilities

100%

1.2

Income (profit) received as a result of private entrepreneurship proved by corresponding documents

2.

Secondary incomes:

2.1

For cases of lending within the framework of National Mortgage Company program:

Income from renting received for a period of at least 12 months preceding the date of acceptance of the loan application and certified by rental agreement(s) signed in an order defined by legislation.

100%

For cases of lending within the framework of Bank’s own funds:

- Income from renting received for a period of at least 3 months preceding the date of acceptance of the loan application and certified by rental agreement(s) signed in an order defined by legislation4,

2.2

Incomes received from investments in state treasury bonds, RA Central Bank securities and other securities for at least one year preceding the date of acceptance of the loan application.

60%

2.3

Income received from paid employment or rendering services for a period of at least one year in case of lending through the National Mortgage Company program

50%

Income received for paid employment or rendering services certified by corresponding agreements in case of lending through Bank’s own resources

Up to 100%

2.4

Transfers received for a period of one year preceding the date of acceptance of the loan application, if those have been received at least 6 times (in this case transfers shall be deemed as regular if made within the past 12 months on a monthly basis or once every two months)

50%

2.5

Pension for long-term service (employees of RA Police, RA Ministry of Defense, penitentiaries and other relevant bodies, teachers, judges etc.), survivor’s pension and other (except for retirement pension)

60%

2.6

Profit/income received from entrepreneurship certified by internal accounting documents (in case of the income is received from a business not registered in the tax field, it can be considered in case if not exceeding 200,000 AMD monthly)

60%

2.7

Bonuses if received on a regular basis (at least quarterly), which have been paid during the past one year and are not conditioned by employer activity results

100%

2.8

Bonuses if received on a regular basis, which have been paid during the past one year and are not conditioned by employer activity results

60%

2.9

Dividends if received on a regular basis and payment of which has been made from announced profit

100%

2.10

Other incomes acceptable for the corresponding competent body of the Bank

Up to 100%

1Renovation works must be completed within maximum 12 months after provision of the loan/portion.
2“IDBank” CJSC reference rate (IBRR) and its calculation methodology can be found at the following link: https://www.idbank.am/retail/IDBank-reference-rate-ibrr/. For loans extended at the abovementioned terms and conditions the IBRR can change twice a year in May and November, moreover, the change becomes effective in 30 calendar days after it being published. The minimum and maximum ranges of the floating interest rate of a loan in USD can be 7.5% and 16% respectively, and 9% and 19% for loans in AMD.


3The Bank may revise the loan interest rate depending on the change of the refinancing rate of the “National Mortgage Company” RCO CJSC. The Bank revises the loan interest rate in case of failure to meet the requirements defined by “National Mortgage Company” RCO CJSC, failure to refinance or termination of refinancing of the loan by the latter.
THE INTEREST AMOUNTS OF THE LOAN ARE CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE INTEREST AMOUNT OF THE LOAN IS CALCULATED ON THE ACTUAL LOAN BALANCE AND THE ACTUAL ANNUAL INTEREST RATE INDICATES HOW MUCH THE LOAN WOULD COST THE CLIENT IN CASE OF MAKING ALL THE INTEREST AMOUNT AND OTHER FEE PAYMENTS AT DEFINED PERIODS AND AMOUNTS.
4If the payment defined by the rental agreement differs from the actually paid amount, the rent payment evaluated by the independent appraisal company shall be considered.

 

Appendix 2.2

 

1. Borrower’s/Co-borrower’s insurance

Borrower’s/Co-borrower’s insurance

Insurance is provided in the event of loss of life as a result of an accident and loss of permanent disability in the amount of the loan balance:
1. On an annual basis, every year,
2. For the last year of loan term for the period remaining before the loan maturity,
3. In proportion to the incomes of the borrower/co-borrower participating in the loan repayment

2. Pledge insurance

Real estate property subject to renovations

Insurance is provided in the amount of loan balance:
1) On an annual basis, every year,

2) For the last year of loan term for the period remaining before the loan maturity.

Minimal cases covered by the insurance contract

1. earthquake,

2. fire or explosion,

3. hail, flood or heavy rain,

4. storm or strong wind,

5. Heating, water supply or drainage system accident,

6. Malicious acts committed by third parties.

 

Appendix 2.3

 

Pledge requirements

1.

Subject of pledge

Real estate property subject to renovation, other residential/public real estate property

2.

Pledge location

Territory of the Republic of Armenia

3.

Pledge appraisal

The pledge must be evaluated by one of the specialized organizations cooperating with the Bank.

4.

Pledge insurance

According to Appendix 2.2

5.

Other requirements

The subject of pledge must:

1) not be located on the territory of another building, e.g. dormitory

2) not be located in an area of supreme public interest

3) not have a mutual backyard area with another owner in case of residential houses or must not contain a land area in its composition, which is owned mutually with another owner or if the residential house is burdened with land area rental or uncompensated use

 

Appendix 1.4

 

List of documents required for provision of mortgage loans at the expense of the Bank’s own funds

 

List of documents required from the borrower/co-borrower and information necessary for application review

Acquisition

Renovation

Form of submission and validity term before submission of the given document in each stage

Form of maintenance at the Bank

I stage: (information and documents necessary for application review (analysis) and approval)

1

Loan application

v

v

Original

Original

2

Borrower’s/co-borrower’s identification document – passport, ID or another substitute document

v

v

Original

copy (scanned)

3

Borrower’s/co-borrower’s social security number/reference on not having a social security number

v

v

Original or electronic

copy (scanned)

4

Documents on information about the spouse

4.1

Marriage certificate

v

v

Original

copy (scanned)

4.2

Identification document of the borrower’s/co-borrower’s spouse (if the borrower/co-borrower is married)

v

v

Original

copy (scanned)

4.3

Death certificate of the spouse (if the spouse is deceased

v

v

Original

copy (scanned)

4.4

Divorce certificate in case of being divorced

v

v

Original

copy (scanned)

5

Identification documents of children (if any)

v

v

Original

copy (scanned)

6

Real estate(s) ownership certificate(s)

v

v

Original

copy (scanned)

7

Grounds for issuing the ownership certificate (decisions on privatization, purchase, donation agreement, certificate of inheritance, count verdicts etc.) (if needed)

v

v

Copy (electronic or paper)

copy (scanned)

8

Estimates of renovation works

v

Original

copy (scanned)

9

Certificate of preliminary real estate appraisal provided by an independent appraiser

v

v

original, 3 months
(except for cases with properties already pledged at the Bank, the term for which is defined for 12 months. Yet, if the Bank no longer cooperates with the company which previously appraised the property, or if the loan/pledge ratio, including the new loan, is 80% and over (calculated from the liquid value of the real estate property), it is necessary to appraise it once again)

Original

10

Borrower’s/co-borrower’s income proof documentation *

10.1

Reference(s) from employer

v

v

Original, 30 days

Original

10.2

Rental agreement signed in an order defined by law

v

v

Original

copy (scanned)

10.3

Reference from the financial institution on regular transfers received for a period of at least 12 months preceding the date of loan application submission, bank account statement

v

v

Original, 30 days

Original

10.4

Document certifying performance of paid work or provision of services (Service Agreements, reference, declarations issued by physical entities)

v

v

Original

Copies of contracts (scanned), originals of the rest of documents

10.5

Reference on receiving pension for long-term service (employees of RA Police, RA Ministry of Defense, penitentiaries and other relevant bodies, teachers, judges etc.), survivor’s pension and other (except for retirement pension) (except on receiving retirement pension)

v

v

Original

Original

10.6

List of documents for clients engaged in entrepreneurship or agricultural activity

II Stage (documents required from client for processing of the loan)

11

Reference from State Committee of Real Estate Cadaster of the RA Government on the fact that the real estate property is neither pledged nor placed under any other type of seizure (Joint reference)

v

v

Original

copy (scanned)

12

Real estate property appraisal act provided by independent appraiser cooperating with the Bank

v

v

original, 3 months
(except for cases with properties already pledged at the Bank, the term for which is defined for 12 months. Yet, if the Bank no longer cooperates with the company which previously appraised the property, or if the loan/pledge ratio, including the new loan, is 80% and over (calculated from the liquid value of the real estate property), it is necessary to appraise it once again)

Original

13

Identification documents of owners of real estate property(ies)

v

v

Original

copy (scanned)

14

In case if the seller is a legal entity the decision of the competent body on alienation of the property the passport of the executor of the transaction, the TIN, state registration certificate and charter

v

Copy (electronic or paper)

copy (scanned)

Refinancing of loans extended by other banks and credit organizations

15

Current loan and pledge agreements (if needed)

v

v

Copy (electronic or paper)

copy (scanned)

Other documents may be required by the Bank if necessary.
*Documents defined in paragraph 10 of this list are submitted according to the type of incomes received by the client (at least one or several or all at a time).

**If the pledged real estate property is pledged in another organization, the following information shall also be required:

1.    Permission for subsequent pledge provided by the organization in cases defined by RA legislation,

2.    Information on the balance of liabilities in terms of the loan secured by the given pledge and the account number to which the loan amount shall be transferred (the mentioned information shall be submitted to the Bank in a method preferred by the client)

*** In case if the owner of the pledged property is a minor, the following information shall also be required:
1. Birth certificate or identification document,

2. identification document of legal representatives (parents, adopters, guardians, trustees), as well as consent of the latter on selling and (or) pledging the property (share) of the ward and applying seizure towards the pledged property (share) without applying to the court (in case of kids aged 14-18),
3. Permission from the guardianship authorities for selling and (or) pledging the property (share) of the ward and applying seizure towards the pledged property (share) without applying to the court or for approval such transaction on behalf of the legal representative of the ward.
****If an authorized person acts on behalf of one of parties of the transaction, the list of required documents shall also include the power of attorney certified by notary (or equal) acceptable for the Bank and identification documents of the authorized person.
ATTENTION: In case of acquisition of real estate property owned by the Bank, the latter might not require from the client documents that are already at the Bank’s disposition (documents listed in paragraphs 6,7,8,9,11,13,14).

 

List of documents required for provision of mortgage loans at the expense of “National Mortgage Company” RCO CJSC funds

 

List of documents required from the borrower/co-borrower and information necessary for application review

Acquisition

Renovation

Form of submission and validity term before submission of the given document in each stage

Form of maintenance at the Bank

I stage: (information and documents necessary for application review (analysis) and approval)

1

Loan application

v

v

Original

Original

2

Borrower’s/co-borrower’s identification document – passport, ID or another substitute document

v

v

Original

copy (scanned)

3

Borrower’s/co-borrower’s social security number/reference on not having a social security number

v

v

Original or electronic

copy (scanned)

4

Documents on information about the spouse

4.1

Marriage certificate

v

v

Original

copy (scanned)

4.2

Identification document of the borrower’s/co-borrower’s spouse (if the borrower/co-borrower is married)

v

v

Original

copy (scanned)

4.3

Death certificate of the spouse (if the spouse is deceased

v

v

Original

copy (scanned)

4.4

Divorce certificate in case of being divorced

v

v

Original

copy (scanned)

5

Identification documents of children (if any)

v

v

Original

copy (scanned)

6

Real estate(s) ownership certificate(s)

v

v

Original

copy (scanned)

7

Grounds for issuing the ownership certificate (decisions on privatization, purchase, donation agreement, certificate of inheritance, count verdicts etc.) (if needed)

v

v

Copy (Electronic or paper)

copy (scanned)

8

Estimates of renovation works

v

Original

Original

9

Certificate of preliminary real estate appraisal provided by an independent appraiser

v

v

original, 3 months
(except for cases with properties already pledged at the Bank, the term for which is defined for 12 months. Yet, if the Bank no longer cooperates with the company which previously appraised the property, or if the loan/pledge ratio, including the new loan, is 80% and over (calculated from the liquid value of the real estate property), it is necessary to appraise it once again)

Original

10

Borrower’s/co-borrower’s income proof documentation *

10.1

Reference(s) from employer. The reference(s) must contain information on the salary (gross or net, moreover, in case of net salary there must be a corresponding note on that), position occupied by the borrower/co-borrower and the length of employment. If the length of employment at the given institution is less than 12 months, information on previous employment must also be submitted (except for cases when the given employer is the borrower’s/co-borrower’s first employer and his/her employment length is less than 12 months. The Bank may also require other documents certifying receipt of salary (e.g. bank account statement, SRC individual account statement, labor contract etc.

v

v

Original, 30 days

Original

10.2

Rental agreement signed in an order defined by law

v

v

Original

copy (scanned)

10.3

Reference from the financial institution on regular transfers received for a period of at least 12 months preceding the date of loan application submission, banks account statement

v

v

Original, 30 days

Original

10.4

Document proving performance of paid work or provision of services (Service Agreements, reference, declarations issued by physical entities)

v

v

Original

Copies of contracts (scanned), originals of the rest of documents

10.5

Reference on receiving pension for long-term service (employees of RA Police, RA Ministry of Defense, penitentiaries and other relevant bodies, teachers, judges etc.), survivor’s pension and other (except for retirement pension) (except on receiving retirement pension)

v

v

Original

Original

10.6

List of documents for clients engaged in entrepreneurship or agricultural activity

II Stage (documents required from client for processing of the loan)

11

Reference from State Committee of Real Estate Cadaster of the RA Government on the fact that the real estate property is neither pledged nor placed under any other type of seizure (Joint reference)

v

v

Original

copy (scanned)

12

Real estate property appraisal act provided by independent appraiser cooperating with the Bank

v

v

original, 3 months
(except for cases with properties already pledged at the Bank, the term for which is defined for 12 months. Yet, if the Bank no longer cooperates with the company which previously appraised the property, or if the loan/pledge ratio, including the new loan, is 80% and over (calculated from the liquid value of the real estate property), it is necessary to appraise it once again)

Original

13

Identification documents of owners of real estate property(ies)

v

v

Original

copy (scanned)

14

In case if the seller is a legal entity the decision of the competent body on alienation of the property the passport of the executor of the transaction, the TIN, state registration certificate and charter

v

Copy (Electronic or paper)

copy (scanned)

Other documents may be required by the Bank if necessary.
*Documents defined in paragraph 10 of this list are submitted according to the type of incomes received by the client (at least one or several or all at a time).

**If the pledged real estate property is pledged in another organization, the following information shall also be required:

1.    Permission for subsequent pledge provided by the organization in cases defined by RA legislation,

2.    Information on the balance of liabilities in terms of the loan secured by the given pledge and the account number to which the loan amount shall be transferred (the mentioned information shall be submitted to the Bank in a method preferred by the client)

*** In case if the owner of the pledged property is a minor, the following information shall also be required:
1. Birth certificate or identification document,

2. identification document of legal representatives (parents, adopters, guardians, trustees), as well as consent of the latter on selling and (or) pledging the property (share) of the ward and applying seizure towards the pledged property (share) without applying to the court (in case of kids aged 14-18),
3. Permission from the guardianship authorities for selling and (or) pledging the property (share) of the ward and applying seizure towards the pledged property (share) without applying to the court or for approval such transaction on behalf of the legal representative of the ward.
****If an authorized person acts on behalf of one of parties of the transaction, the list of required documents shall also include the power of attorney certified by notary (or equal) acceptable for the Bank and identification documents of the authorized person.
ATTENTION: In case of acquisition of real estate property owned by the Bank, the latter might not require from the client documents that are already at the Bank’s disposition (documents listed in paragraphs 6,7,8,9,11,13,14).

 

 

List of documents required for provision of mortgage loans in the framework of “Affordable housing for young families” program

 

List of documents required from the borrower/co-borrower and information necessary for application review

Acquisition

Form of submission and validity term before submission of the given document in each stage

Form of maintenance at the Bank

I stage: (information and documents necessary for application review (analysis) and approval)

1

Loan application

v

Original

Original

2

Borrower’s/co-borrower’s identification document – passport, ID or another substitute document

v

Original

copy (scanned)

3

Borrower’s/co-borrower’s social security number/reference on not having a social security number

v

Original or electronic

copy (scanned)

4

Documents on information about the spouse

4.1

Birth certificates of the borrower/ his/her spouse and children (if any)

v

Original

copy (scanned)

4.2

Marriage certificate

v

Original

copy (scanned)

4.3

Identification document of the borrower’s/co-borrower’s spouse (if the borrower/co-borrower is married)

v

Original

copy (scanned)

4.4

Death certificate of the spouse (if the spouse is deceased

v

Original

copy (scanned)

4.5

Divorce certificate in case of being divorced

v

Original

copy (scanned)

5

Reference from RA Police Passport and Visa Department (form 3)

v

Original, 30 days

copy (scanned)

6

Identification documents of children (if any)

v

Original

copy (scanned)

7

Preliminary real estate appraisal reference provided by an independent appraisal company

v

original, 3 months
(except for cases with properties already pledged at the Bank, the term for which is defined for 12 months. Yet, if the Bank no longer cooperates with the company which previously appraised the property, or if the loan/pledge ratio, including the new loan, is 80% and over (calculated from the liquid value of the real estate property), it is necessary to appraise it once again)

Original

8

Reference from the RA SCC on the real estate property/ies owned by the borrower and his/her spouse

v

Original

Original

9

Grounds for issuing the ownership certificate (decisions on privatization, purchase, donation agreement, certificate of inheritance, count verdicts etc.) (if needed)

v

Copy (Electronic or paper)

copy (scanned)

10

Documents certifying the borrower’s/co-borrower's incomes *

10.1

Reference(s) from employer. The reference(s) must contain information on the salary (gross or net, moreover, in case of net salary there must be a corresponding note on that), position occupied by the borrower/co-borrower and the length of employment. If the length of employment at the given institution is less than 12 months, information on previous employment must also be submitted (except for cases when the given employer is the borrower’s/co-borrower’s first employer and his/her employment length is less than 12 months. The Bank may also require other documents certifying receipt of salary (e.g. bank account statement, SRC individual account statement, labor contract etc.

v

Original, 30 days

copy (scanned)

10.2

Bank account statements of the borrower and his/her spouse/co-borrower for the past one year (provided by the tax authority)

v

Original

Original

10.3

Rental agreement signed in an order defined by law

v

Original

copy (scanned)

10.4

Reference from the financial institution on regular transfers received for a period of at least 12 months preceding the date of loan application submission, banks account statement

v

Original, 30 days

Original

10.5

Document certifying performance of paid work or provision of services (Service Agreements, reference, declarations issued by physical entities)

v

Original

Copies of contracts (scanned), originals of the rest of documents

10.6

Reference on receiving pension for long-term service (employees of RA Police, RA Ministry of Defense, penitentiaries and other relevant bodies, teachers, judges etc.), survivor’s pension and other (except for retirement pension) (except on receiving retirement pension)

v

Original

Original

10.7

List of documents for clients engaged in entrepreneurship or agricultural activity

v

copy (scanned)

II Stage (documents required from client for processing of the loan)

11

Reference from State Committee of Real Estate Cadaster of the RA Government on the fact that the real estate property is neither pledged nor placed under any other type of seizure (Joint reference)

v

Original

copy (scanned)

12

Real estate property appraisal act provided by independent appraiser cooperating with the Bank

v

original, 3 months
(except for cases with properties already pledged at the Bank, the term for which is defined for 12 months. Yet, if the Bank no longer cooperates with the company which previously appraised the property, or if the loan/pledge ratio, including the new loan, is 80% and over (calculated from the liquid value of the real estate property), it is necessary to appraise it once again)

Original

13

Real estate property ownership certificate(s)

v

Original

copy (scanned)

14

Identification documents of owners of real estate property(ies)

v

Original

copy (scanned)

15

In case if the seller is a legal entity the decision of the competent body on alienation of the property the passport of the executor of the transaction, the TIN, state registration certificate and charter

v

Copy (electronic or paper)

copy (scanned)

16

Consent on provision of client related information

v

Original

Original

 

Other documents may be required by the Bank if necessary.
*Documents defined in paragraph 10 of this list are submitted according to the type of incomes received by the client (at least one or several or all at a time).

**If the pledged real estate property is pledged in another organization, the following information shall also be required:

1.    Permission for subsequent pledge provided by the organization in cases defined by RA legislation,

2.    Information on the balance of liabilities in terms of the loan secured by the given pledge and the account number to which the loan amount shall be transferred (the mentioned information shall be submitted to the Bank in a method preferred by the client)

*** In case if the owner of the pledged property is a minor, the following information shall also be required:
1. Birth certificate or identification document,

2. identification document of legal representatives (parents, adopters, guardians, trustees), as well as consent of the latter on selling and (or) pledging the property (share) of the ward and applying seizure on the pledged property (share) without applying to the court (in case of kids aged 14-18),
3. Permission from the guardianship authorities for selling and (or) pledging the property (share) of the ward and applying seizure on the pledged property (share) without applying to the court or for approval such transaction on behalf of the legal representative of the ward.
****If an authorized person acts on behalf of one of parties of the transaction, the list of required documents shall also include the power of attorney certified by notary (or equal) acceptable for the Bank and identification documents of the authorized person.
ATTENTION: In case of acquisition of real estate property owned by the Bank, the latter might not require from the client documents that are already at the Bank’s disposition (documents listed in paragraphs 6,7,8,9,11,13,14).

 

 

List of documents required for provision of refinancing mortgage loans at the expense of the Bank’s own funds

 

List of documents required from the borrower/co-borrower and information necessary for application review

Acquisition

Renovation

Form of submission and validity term before submission of the given document in each stage

Form of maintenance at the Bank

I stage: (information and documents necessary for application review (analysis) and approval)

1

Loan application

v

v

Original

Original

2

Borrower’s/co-borrower’s identification document – passport, ID or another substitute document

v

v

Original

copy (scanned)

3

Borrower’s/co-borrower’s social security number/reference on not having a social security number

v

v

Original

copy (scanned)

4

Documents on information about the spouse

4.1

Marriage certificate

v

v

Original

copy (scanned)

4.2

Identification document of the borrower’s/co-borrower’s spouse (if the borrower/co-borrower is married)

v

v

Original

copy (scanned)

4.3

Death certificate of the spouse (if the spouse is deceased

v

v

Original

copy (scanned)

4.4

Divorce certificate in case of being divorced

v

v

Original

copy (scanned)

5

Identification documents of children (if any)

v

v

Original

copy (scanned)

6

Real estate(s) ownership certificate(s)

v

v

original/copy

copy (scanned)

In case of submission of the copy of ownership certificate, the client is required to submit the original ownership certificate within 30 days after receipt of the loan.

7

Grounds for issuing the ownership certificate (decisions on privatization, purchase, donation agreement, certificate of inheritance, count verdicts etc.) (if needed)

v

v

Copy (electronic or paper)

copy (scanned)

8

Loan agreement of the loan subject to refinancing, real estate sales and mortgage agreement

v

v

Original

copy (scanned)

9

Preliminary real estate appraisal reference provided by an independent appraisal company

v

v

Original, 90 days

Original

10

Documentary proof of incomes of the borrower/co-borrower *

10

Reference(s) from employer. The reference(s) must contain information on the salary, position occupied by the borrower/co-borrower and the length of employment.

v

v

Original, 30 days

Original

10

Rental agreement signed in accordance with the order defined by law.

v

v

Original

copy (scanned)

10

Reference from the financial institution on regular transfers received for a period of at least 12 months preceding the date of loan application submission, bank account statement

v

v

Original, 30 days

Original

10

Document certifying performance of paid work or provision of services (Service Agreements, reference, declarations issued by physical entities)

v

v

Original

Copies of contracts (scanned), originals of the rest of documents

11

Reference on receiving pension for long-term service (employees of RA Police, RA Ministry of Defense, penitentiaries and other relevant bodies, teachers, judges etc.), survivor’s pension and other (except for retirement pension) (except on receiving retirement pension)

v

v

Original

Original

11

List of documents for clients engaged in entrepreneurship or agricultural activity

II Stage (documents required from client for processing of the loan)

11

Reference from State Committee of Real Estate Cadaster of the RA Government on the fact that the real estate property is neither pledged nor placed under any other type of seizure (Joint reference)

v

v

Original

copy (scanned)

12

Real estate property appraisal act provided by independent appraiser cooperating with the Bank

v

v

Original, 90 days

Original

13

Identification documents of owners of real estate property(ies)

v

v

Original

copy (scanned)

14

In case if the seller is a legal entity the decision of the competent body on alienation of the property the passport of the executor of the transaction, the TIN, state registration certificate and charter

v

Copy (electronic or paper)

copy (scanned)

Refinancing of loans extended by other banks and credit organizations

15

Current loan and pledge agreements (if needed)

v

v

Copy (electronic or paper)

copy (scanned)

 

Other documents may be required by the Bank if necessary.
*Documents defined in paragraph 10 of this list are submitted according to the type of incomes received by the client (at least one or several or all at a time).

**If the pledged real estate property is pledged in another organization, the following information shall also be required:

1.    Permission for subsequent pledge provided by the organization in cases defined by RA legislation,

2.    Information on the balance of liabilities in terms of the loan secured by the given pledge and the account number to which the loan amount shall be transferred (the mentioned information shall be submitted to the Bank in a method preferred by the client)

*** In case if the owner of the pledged property is a minor, the following information shall also be required:
1. Birth certificate or identification document,

2. identification document of legal representatives (parents, adopters, guardians, trustees), as well as consent of the latter on selling and (or) pledging the property (share) of the ward and applying seizure towards the pledged property (share) without applying to the court (in case of kids aged 14-18),
3. Permission from the guardianship authorities for selling and (or) pledging the property (share) of the ward and applying seizure towards the pledged property (share) without applying to the court or for approval such transaction on behalf of the legal representative of the ward.
****If an authorized person acts on behalf of one of parties of the transaction, the list of required documents shall also include the power of attorney certified by notary (or equal) acceptable for the Bank and identification documents of the authorized person.
ATTENTION: In case of acquisition of real estate property owned by the Bank, the latter might not require from the client documents that are already at the Bank’s disposition (documents listed in paragraphs 6,7,8,9,11,13,14).

 

Appendix 1.4.1

 

List of documents for clients engaged in entrepreneurship (including PE) or agricultural activity

 

1

Taxpayer identification number (TIN) and state registration certificate

Copy (electronic or in paper)

2

Charter (if applicable)

3

Permission to engage in this type of activity (license) if a special permission for engagement in the mentioned activity from relevant authorities is provided according to RA legislation.

4

Financial and tax statements for the past 1 year approved by the tax authority

5

ա) incomes and expenses statement/notes for the past 6 months

բ) In case of lending in the framework of “Affordable housing for young families” program – incomes and expenses statement/notes for the past 6 months

6

Internal accounting documents justifying the organization’s incomes (if necessary)

7

Reference on receiving dividends (if any) and cash order, bank account statement (if necessary)

Original



Estimate of construction works

#

Type of construction work

Measurement unit

Price in AMD

Quantity

Amount

Periods including the start and end dates of construction works

1.

2.

3.

Total amount of construction works

#

Name of construction material

Measurement unit

Price in AMD

Quantity

Amount

1

2

3

Total amount of construction material

Total price of construction works and materials

`

 

GENERAL PROVISIONS

 

1.    Before conclusion of the loan agreement the Bank provides the client with the individual sheet of essential loan terms with presentation of the individual terms and condition of the loan to be provided to the client.
2. The Bank shall provide the client with a mortgage loan offer at least seven days prior to the conclusion of the Contract and provide the Client with an opportunity to think and make a final decision.
3. The borrower has the right to fulfil his/her obligations under the loan agreement ahead of schedule in full or partially by paying the provided penalty if applicable.
4. In case of early repayment of the loan the payments generating the Bank’s income, included in the total expense of lending, are reduced proportionally.
5. The client has the right to fulfil his/her obligations under the loan agreement (repay) ahead of schedule regardless of whether such a right is provided by the loan agreement or not.
6. The real estate mortgage agreement must be ratified by a notary. The property ownership right, the mortgage right and other property rights are subject to state registration.
7. Loan interest amounts are calculated based on the nominal interest rate. The loan interest amount is calculated on the actual loan balance.

8. Actual annual interest rate indicates how much the loan would cost the client in case of making all the interest amount and other fee payments at defined periods and amounts. 
9. The order of calculation of actual annual interest rate is presented at the following link: Instruction on calculation of actual annual interest rate.

10. In case of foreign currency loans the calculation on the actual annual interest rate is based on the exchange rate published on the RA Central Bank’s official website at the moment of loan provision. The Actual interest rate may change depending on the change of the exchange rate published on the RA Central Bank’s official website.
11. In case of foreign currency loans, the interest amounts calculated on the principal amount of the loan can also be paid in the loan currency per client’s request.
12. In case of foreign currency loans changes of foreign currency exchange rates can affect loan payments.

13. In case of failure to make interest amount and principal amount payments on time the pledged property and/or funds can be confiscated in an order defined by law, and the Bank shall send the information about the client to the credit bureau not later that within three business days where the client’s credit history is generated. The client has the right to receive his/her credit history from the credit bureau free of charge once a year.
14. A poor credit history can prevent the client from receiving loans in the future.
15. The borrower can be deprived of his/her property rights (apartment or house) if he/she fails to fulfil or improperly fulfills his obligations under the credit agreement.
16. In case if the subject of pledge is insufficient to cover the obligations while repaying liabilities at the expense of the pledge in case if the borrower fails to fulfil his/her obligations, the liabilities may be repaid at the expense of the client’s other properties.
17. Repayment of overdue liabilities is performed in the following order: expenses related to confiscation of funds, including judicial expenses (if applicable), interest amount fines, loan amount fines, interest, servicing fee and commission (if any) and loan amount. The lender has the right to change the sequence of payments mentioned in this paragraph at any time.
18. Disputes arising between the parties can be resolved in a judicial order or through the Financial System Mediator (in accordance with the RA law “On Financial System Mediator”), located at 15 M. Khorenatsi St, “Elite Plaza” business center, 7th floor, Yerevan 0010, RA, email – info@fsm.am, telephone – (+37460) 70-11-11, fax – (+37410) 58 24 21. Moreover, in case if the amount of the property claim does not exceed 500,000 (five hundred thousand) AMD or equivalent in foreign currency, the decisions of the financial system 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 of 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 on providing statements, their copies and references throughout the term 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 of physical entity clients by the Bank is provided thought the IDBanking.am online system. The order and tariffs on rendering remote servicing are presented in “Public terms on remote banking services”.

 

ATTENTION! THE BANK IS CONTROLLED BY THE RA CENTRAL BANK

The page was updated 23.12.2019 17:06
Following is the list of documents required for submission to the Bank for the purpose of receiving a loan for renovation mortgage loans

  • Loan application

  • Identification document of the borrower/co-borrower – passport, ID or another substitute document

  • Borrower’s/co-borrower’s social security number/reference on not having a social security number

  • Documents on information about the spouse

  • Borrower’s/co-borrower’s proof of income *

  • Other necessary documents

The page was updated 23.12.2019 16:49
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.