Individual loans provided to individuals by products / Terms and Tariffs /

Housing mortgages for non-resident individuals

Loan purpose

For purchasing of apartment

Eligibility

Non-residents aged 18-63 who during the debt service period will not reach the age of 63, otherwise the potential borrower needs a co-borrower to qualify for the loan.

Loan currency

USD, Euro

Loan amount

AMD 2.000.000-80.000.000 in USD/Euro equivalent amount

Loan repayment period

Up to 180 months

Nominal (fixed) interest rates per annum[1]

USD

9.2% - 12%

Euro

8.2% - 11%

Nominal (floating) interest rates per annum [2]

USD

Starting 9.2% (fixed component: starting 8.2 % + variable component)

Euro

Starting 7.7% (fixed component: starting 7.7 % + variable component)

The maximum and minimum threshold of floating rate fluctuations

+4%

The variable component of the floating interest rate will be revised on the forthcoming revision date following the expiration of the 36th month of the loan agreement (for renovation – 12th month), thereafter, every 6 months with application of the rate (published on the Bank’s website) effective at the moment of revision.

The floating interest rate becomes effective upon the expiration of the 36th month of the loan agreement as a loan interest rate specified in the agreement. The variable component of the floating interest rate is revised twice – on February 1 and August 1 each year. As a variable component the interest rate effective in the Bank (published on the website) is applied starting the forthcoming revision date following the expiration of the 36th month.

The floating interest rate is a nominal interest rate which is calculated according to the following formula: RFl=RV+RFix, where:

        RFl- Floating interest rate,

        RV- Variable component

        RFix – Fixed component.

The variable component of the Floating interest rate (RV) is defined on the basis of the following market rates, depending on the loan currency.
The calculation of the main variable component in AMD is based on the yield to maturity of Armenian 6-month Government (treasury) bills. Information on the yield to maturity of Armenian 6-month Government (treasury) bills can be retrieved from the relevant publications (yield curve) on the official website of the CBA at the following link:https://www.cba.am/am/SitePages/fmofinancialmarkets.aspx:

The variable component is revised on February 1 and August 1 each year. The variable component as of February 1 is equal to the average applicable interest rate effective for the period from June through November of the previous year. The variable component as of August 1 is equal to the average applicable interest rate effective for the period from December of the previous year through May of that specific year.

Whenever the above indicator becomes inaccessible or irretrievable and the definition of the interest rate becomes impossible for the next period, the interest rate for the next period is determined based on the secondary indicator used by the Bank.

The calculation of the secondary variable component in AMD is based on the interest rates of the AMD-denominated deposits (except demand ones) of individuals for a one-year term which are published by the CBA.  Information on the interest rates of the AMD-denominated deposits (except the demand ones) of individuals for a one-year term can be retrieved from the relevant publications on the CBA website using the following link: https://www.cba.am/am/SitePages/statmonetaryfinancial.aspx.

The secondary variable component is revised on February 1 and August 1 each year. The secondary indicator as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The secondary indicator as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year. 

The calculation of the main variable component in USD is based on Overnight secured financing rate for 6-month term (CME Term SOFR USD 6 Month)Information on Overnight secured financing rate for 6-month term can be retrieved from the relevant publications on the Bloomberg terminal at TSFR6M link.

The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year.

The calculation of the secondary variable component in USD is based on the interest rates of the USD-denominated deposits of individuals for up to one-year period which are published by the CBA. Information on the interest rates of USD-denominated deposits of individuals for a period of up to one year can be retrieved from the relevant publications on the CBA website at the following link: https://www.cba.am/am/SitePages/statmonetaryfinancial.aspx.

The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component indicator as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year. Whenever the above indicator becomes inaccessible or irretrievable and the definition of the interest rate becomes impossible for the next period, the interest rate for the next period is determined based on the secondary indicator used by the Bank.

The calculation of the main variable component in Euro is based on the European Interbank Offered 6-month Rate (EMMI EURIBOR 6 Month). Information on the European Interbank Offered 6-month rate can be retrieved from the relevant publications on Bloomberg terminal using the EUR006M link.

The variable component is revised twice a year on February 1 and August 1. The variable component as of February 1 is calculated as an average of the interest rates published from June through November of the previous year. The variable component as of August 1 is calculated as an average of the interest rates published from December of the previous year through May of that specific year.

The calculation of the secondary variable component in Euro is based on the 6-month yield curve of the German government bonds. Information on the interest rate of the 6-month yield curve of the German government bonds can be retrieved from the publications on Bloomberg terminal using the YCGT0016 link.

In case of moving from the primary to the secondary variable component an adjustment factor can be applied.

Penalty charged for loan prepayment

Not applicable

Penalty for overdue loan principal and interest  

For overdue principal - 0.015% per day,

For overdue interest - 0.1% per day.

Loan repayment scheme

Annuity plan or equal principal repayments; payments should be made on a monthly basis.

Loan security

An apartment or single-family home in Yerevan.

Right of first offer – in case of purchasing an apartment from developers cooperating with the Bank.

1.      Apart from pledging real property, the borrower may be required to provide a surety bond as well.

Loan-to-Value ratio[3]

Up to 70% of the appraised value

 

Insurance

Annual insurance of the real property is required to cover the outstanding loan balance.

Loan disbursement method

·     Non-cash (the loan amount is credited to the seller’s account).

Creditworthiness assessment

The borrower should not have classified loans for the last 1 year, nor should the number of overdue days exceed 30.

Other conditions

·     The Borrower should make a down payment[4], which is to be frozen in the Bank until the loan is disbursed.

·     In case of purchasing the real property in the primary housing market,  as a document confirming the down payment the Borrower can submit the developer’s receipt stating the advance payment and/or advance payment agreements/contracts

·     The Pledger and the Borrower should be the same person.

·     The Customer should indicate the income sources.

Timeframe for making decisions on approving or rejecting the loan application

·      The decision on approval or rejection of the loan application is made within 10 (ten) business days upon submission of the full package of preliminary documents required by the Bank.

·      The loan is provided to the Borrower in case of the Bank’s positive decision within 2 (two) business days upon completion of the pledging process.

[1] In case the property insurance is executed by the Bank rather than by the customer (is implemented starting the second year of the loan agreement) , the mentioned interest rate + 0.2%.
[2] In case the property insurance is executed by the Bank rather than by the customer (is implemented starting the second year of the loan agreement), the  mentioned interest rate + 0.2%.
[3] In calculation of the Loan-to-Value ratio, we take into consideration the real property appraisal and acquisition value, whichever is less.
[4] In the amount of difference between the acquisition value and loan amount.