Mortgage Loans under the National Mortgage Company program

1.       

Loan purpose

Acquisition of existing residential property or property under construction for personal use

2.      

Eligibility

RA citizens aged 18–65 who earn their income primarily in the Republic of Armenia and will not turn 65 during the entire loan term, otherwise the loan will be shared by a co-borrower who meets these requirements.

3.       

Loan types

Standard acquisition loans

Green acquisition loans

4.       

Loan currency

Armenian drams

5.         

Loan amount

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

AMD 2,000,000- AMD 45,000,000

6.        

Loan period

120 –  240 months

7.         

Nominal interest rate per annum

12.5-13%

12-12.5%

If the Bank makes a down payment for the borrower, and pays for the borrower’s life insurance and property insurance, (starting the second year of the loan period)

Mentioned interest rate + 0.6%

If the Bank pays for the borrower’s life insurance and property insurance, (starting the second year of the loan period)

Mentioned interest rate + 0.4%

8.        

Penalty  for early loan repayment

Not applicable

9.        

Penalty for late payment of principal and interest

• For past due principal - 0,015 % per day,
• For past due interest - 0,1 % per day

10.    

Loan repayment method

Annuity or equal principal payments to be made on a monthly basis.

11.    

Loan security

The loans designated for acquisition of existing residential property will be secured by the mentioned property; while the loans advanced for purchasing real property under construction will be backed by the right of first offer and the funds available in the developer’s special account until the title to the real property is registered. Upon the registration of the title to the real property, the loan will be secured by the mentioned property.

12.    

Maximum acquisition and appraisal value of the real property

AMD 55,000,000

13.    

Loan-to-value ratio

1. Up to 70% of value of the residential property^[1]
2. Up to 90% of the value of the real property to be purchased, if additional residential property is pledged, too. If the loan is secured by the property in question together with another residential asset, the loan amount cannot exceed 70% of the total value of the pledged property.
3. For acquisition loans (secured only by the property to be purchased), the loan amount may equal 90% of the collateral value at most, if the mortgage loan is insured at the amount exceeding 70% of the Loan-to-value ratio.

14.    

Insurance

1. Insurance of the pledged property.
2. Borrower’s and co-borrower(s)’ (if any) life insurance policies. If the loan is shared by co-borrower(s), life insurance will be paid from the loan amount in proportion to the borrower’s and co-borrower(s)’ income.
3. The loan amount may equal 90% of the collateral value at most, if the mortgage loan is insured at the amount exceeding 70% of the Loan-to-value ratio. The mortgage loan insurance should be effective until the borrower makes a payment equal at least to the amount exceeding 70% of the Loan-to-value ratio.

15.     

Loan disbursement method

Non-cash

16.     

Other provisions

• The Borrower will make a down payment^[2], which will be frozen in the relevant account until the loan disbursement moment.
• For all mortgage acquisition loans, if the residential property is acquired from the developer, the building should have at leats class B energy passport.

17.     

Timeline for making decision on loan application approval or rejection

• The decision on approving or declining the loan application will be made within 10 (Ten) business days upon submission of the entire package of required preliminary documents,
• The loan will be provided within 2 (two) business days after the approval of the loan application and completion of property pledging process.