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

Mortgage loan (within the framework of the program of National Mortgage Company RCO CJSC Housing Mortgage Financing, 4th Phase)

Loan purpose

Loan is granted:

1. For purchase of energy efficient residential property or residential property located in region, i.e. apartment, private house, residential house (from primary and secondary market)
2. For energy efficient renovation or renovation of a property located in a region
3. For construction of private house, residential house that should be either energy efficient or located in a region

Who can apply

Individual resident of RA between the age of 18-58 whose main source of income is within RA and whose age will not exceed 63 years throughout the loan service period or have a co-borrower meeting the above criteria throughout the loan service period.

Loan currency

AMD

Loan amount

 

Property purchase,
Construction  

AMD 2,000,000- 35,000,000

Construction

AMD 2,000,000- 10,000,000

Loan repayment period

Property purchase,
Construction  

120 –  240 months

Construction

60 – 84 months

Annual nominal interest rate

Property purchase,
Construction  

8.8%

Renovation

9.8%

In case of prepayment by the bank instead of the customer, in case of insurance of the personal accident and  property insurance (implemented from the second year of the loan validity)

Mentioned interest rate + 0.6%

In case of property and accident insurance by the bank instead of the customer (implemented from the second year of the loan)

Mentioned interest rate + 0.4%

Early loan repayment penalty

No early loan repayment fee is applicable

Penalty for loan principal and/or interest overdue

For overdue principal - 0,015 % daily,
For overdue interest - 0,1 % daily

Loan payment schedule

Loan with annuity or with equal principal installments. Payments must be done on monthly basis. 

Loan repayment security measure

The property that is being purchased, renovated, other residential property. In case of construction, the land plot where the property should be constructed/the property under construction and additional residential property. 

Loan to value ratio

1. Not higher than 70% of the residential property value [1]
2. Not higher than 90% of the purchased residential property value if additional residential property is pledged , provided that in case of pledging the purchased as well as additional residential properties, the loan amount cannot exceed 70% of the total value of the pledged properties.
3. In case of property purchase loan (if the purchased property to be pledged only) the loan amount can comprise maximum 90% of the pledged property value, provided  that there is mortgage liability insurance in place for the amount exceeding 70% of LTV ratio.

Insurance

1. Insurance of the pledged property
2. Accidental death insurance policies for the Borrower and co-borrower/s (if applicable). Moreover, in case of presence of co-borrower/s, payment for accidental death insurance is debited from the loan amount in proportion to Borrower’s and co-borrower’s income.
3. Loan amount can comprise maximum 90% of the pledged property value provided that there is a mortgage liability insurance in place for the amount exceeding 70% of LTV ratio.

Mortgage liability insurance should be valid till the moment when the borrower makes loan payment exceeding 70% of LTV ratio.

Loan provision methods

· Non-cash – the amount is transferred to the seller’s account
· Loans for renovation and construction purposes are granted one-off or in phases. It is determined by the Authorized body responsible for loan approval.
· In case if loan is provided in phases, then those phases are defined taking into consideration anticipated cost expenditure provided by the customer, loan term, loan amount, customer’s creditworthiness.

Bank commissions

Loan application review fee – AMD 10,000  

Loan account service fee – 0,5% of the loan’s principal amount but not lower than AMD 20,000

Other terms

· In case of property purchase the Borrower credits prepayment[2] on the Bank’s account, which is being frozen till loan disbursement 
· In case of property purchase from primary market as a document confirming the prepayment, the Customer may present to the Bank payment slip provided by the constructor and/or prepayment agreements/consents.
· When providing loans for construction purposes of residential houses/private houses, the maximum loan amount should not exceed 80% of the initial construction cost estimations provided by the customer.
· Loans for construction purposes are granted in tranches, where the last tranche finances the last phase of the construction works and should not exceed 20% of the loan amount.

Deadlines for approving or rejecting loan provision

· The decision to approve or reject the loan is made within 10 (ten) working days maximum, after fully providing all the initial documents requested by the Bank.
· The loan is disbursed in case of positive decision made by the Bank and within maximum 2 (two) working days after the property is pledged. 

[1] Loan to value ratio is calculated based on the lower value as per property’s  valuation act or purchase price
[2] By the difference of property purchase price and loan amount