Residential Mortgage Loans

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Residential Mortgage Loans

1.	Loan purpose	Loans will be granted for acquisition or renovation of residential property, including apartment, single-family home, residential house (both in primary and secondary markets), as well as for construction of a single-family home, residential house.
2.	Eligibility	RA residents aged 18 – 63 who during the loan period will not turn 63 or the loan will be shared by a co-borrower who meets these requirements.
3.	Loan currency	AMD
4.	Loan amount	Real property acquisition, construction			AMD2,000,000 - AMD 80,000,000
		Acquisition of real property; without income analysis			AMD2,000,000 – AMD 50,000,000
		Renovation			AMD1,000,000 - AMD 10,000,000
5.	Loan repayment period	Acquisition, construction of real property			60 - 180 months
		Real property acquisition, construction, floating interest rate			60 - 240 months
		Renovation			60 - 84 months
6.	Nominal (fixed) interest rate per annum	Acquisition, construction of real property			14-15%
		Acquisition of real property; without income analysis			15-16%
		Renovation			15-17%
		If the borrower's property insurance is bought and paid by the bank (implemented from the second year onwards)	Loan interest rate + 0.2%
7.	Actual (fixed) interest rate per annum	15.2 – 18.7 %
8.	Nominal (floating) interest rate per annum	Acquisition, construction of real property	Starting from 13.2% (fixed component: starting from 4.2% + variable component)
		Acquisition of real property; without income analysis	Stating from 14.2% (fixed component: starting from 5.2% + variable component)
		Renovation	Starting from 14.2% (fixed component: starting from 5.2% + variable component)
		Minimum and maximum range of floating rate fluctuation	+4%
		The variable component of the floating interest rate will be revised starting the first due date following the 36-month period (for renovation loans – 12-month period) after the loan origination and every 6 months afterwards using the interest rate applicable in the Bank at the time of revision (published on the website). Floating interest rate calculation procedure
		If the borrower's property insurance is bought and paid by the bank (implemented from the second year onwards)		Loan interest rate + 0.2%
9.	Actual (floating) interest rate per annum	9.7 – 18.4 %
10.	Penalty for early loan repayment	Not applicable
11.	Penalty for late payment of loan principal and interest	For past due principal - 0,015 % per day, For past due interest - 0,1 % per day.
12.	Loan repayment method	Annuity or equal principal repayments; payments should be made on a monthly basis
13.	Loan security	1. The property to be purchased, renovated, other property. For construction loans: the land plot to be developed/property under construction. 2. In case of purchasing a property item in under-construction building, the right to purchase the mentioned property. 3. In case of purchasing a property item in under-construction building and the developer’s special account opened with another bank: the right to buy the given property in the under-construction building as well as other real property whose market value is not be less than the loan amount. 4. Apart from the real property, the borrower may be asked to provide a surety bond of an individual or a legal entity.
14.	Loan-to-value ratio ^[1]	Acquisition in primary market (from the property developer)^[2]			Up to 90% of the appraised value
		Acquisition in secondary market			Up to 85% of the appraised value
		Without income analysis			Up to 70% of the appraised value
		Construction and renovation			Up to 70% of the appraised value
		In case of pledging additional real property, the loan amount should not be more than the appraised value of the real property to be purchased with retention of the ratio of Loan -to- value of all property items at 70%.
Insurance		Real property insurance - annual property insurance at the amount of the loan balance.
15.	Loan disbursement method	Non-cash: the loan will be transferred to the seller’s bank account, Loans for renovation and construction will be disbursed in a lump-sum or in several tranches to be determined by a competent body. In case of a tranche loan, the tranches will be based on the cost estimate, loan repayment period, loan amount, and Customer’s creditworthiness.
16.	Other terms and conditions	For acquisition loans, the Borrower will make a down payment ^[3], which will be frozen until the loan is actually disbursed. In case of purchasing property in primary market, the Borrower can submit an invoice confirming the down payment issued by the property developer and/or down payment contracts/agreements.
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 procedure.

[1] In calculating the Loan-to-value ratio, we take into consideration either the real property appraisal or acquisition value, whichever is less.

[2] In case of unfinished construction (buying from a property developer) the collateral value is the purchase price indicated in the statement by the property developer and thereafter mentioned in real property purchase agreement.

[3] At the amount of difference between the property acquisition value and loan amount.