Green acquisition loans

The "Im Taniq" housing energy efficiency loan products were developed and implemented within the framework of a joint project between the National Mortgage Company and the German KfW Bank. The program aims to contribute to the development of the overall mortgage market in the Republic of Armenia, including the financing of housing energy efficiency, as well as to promote the reduction of carbon dioxide emissions and energy savings resulting from energy-efficient investments.

After the completion of the "Im Taniq" program, it continues within the framework of the Green Financing Program. The criteria for compliance with energy efficiency (EE), green standards, and the requirements of the program are presented in the sections describing different loan products.

According to “Housing Loan Refinancing Procedure” of the Company, which states the criteria for Green loans for purchase of real estate which is being constructed, the multi-apartment building, in which the purchased real estate is located, must have an energy passport issued in accordance with the following Guideline.

Green acquisition loans

Green acquisition loans

The loan product is intended for the purchase of an apartment/residential house that meets the energy efficiency (EE) criteria set under the Program.

The acquired residential real estate is considered Green in the following cases:

  • In the primary market, the project (multi-apartment building or residential complex) must have an energy passport issued by a certified body, and the projected EE class must be at least B. This implies at least 20% energy savings based on the established baseline scenario.
  • In the secondary market, the multi-apartment building or residential complex must have an energy passport issued by a certified body, and the EE class must be at least B. This implies at least 20% energy savings based on the established baseline scenario.

In addition to the EE class requirement, a multi-apartment building or project is considered acceptable if the following green renovation measures have been implemented or are planned to be implemented in the project:

  • The building is thermally insulated, and
  • External doors and windows that meet the minimum standards set by Green standards are installed.

Beneficiaries

  • The borrowers must be citizens of the Republic of Armenia
  • The borrowers must have no current delinquent liabilities
  • During the twelve-month period preceding the loan origination date, the overall number of delinquent days for all the liabilities of the borrower must not exceed 30 days.

More detailed information can be found in  Housing Loan Refinancing Procedure.

Loan amount

Up to AMD 45 mln

Loan term

Minimum of 10 years

OTI*

Maximum of 45%

Annual interest rate

Defined by PFIs (average interest rate is 12.67%)

Interest rate type

Fixed

Loan currency

AMD

Insurance

  • Pledged property insurance, whose coverage must be at least equal to the loan amount.
  • Insurance that will pay off the mortgage loan if the borrower dies from a covered event. The coverage must be at least equal to the loan amount.
  • Down payment insurance, if LTV exceeds 70% and an additional property is not pledged as collateral.

Down payment

Minimum 30% (minimum 10% in case of down payment insurance** or additional real estate collateral)

Collateral

Property to be purchased (additional real estate collateral is required if the down payment is less than30% and the borrower does not have down payment insurance)

Other requirements

To limit urbanization and ensure that the programs financed by the Company do not support new projects leading to changes in land use, projects implemented in the primary market (direct acquisition from the developer) must provide evidence that the land use purpose has not changed in the last 12 months.

*OTI calculation includes monthly payments of all the loans that a borrower has, including the mortgage loan.

**In case of down payment insurance no additional collateral is required.

An energy analysis has been conducted for the projects of multi-apartment buildings listed below. If the developer carries out the construction in accordance with the project, upon the completion of construction, these multi-apartment buildings may receive a corresponding energy efficiency (EE) class certificate from an accredited organization. Within the framework of the program, a loan for purchasing an apartment in the multi-apartment buildings listed below is considered a Green loan.

Address Building Organization having conducted an EE study for the project EE study year Developer EE label of the project
2nd drive, 20th street, P.Sevak neighbourhood, v. Arinj, Kotayq region, Armenia Building 1-4 «AE Consulting» LLC Certificate number of the Energy Passport issuing specialist: U003-2022 2022 Domum LLC B+
29/9 Leningradyan street, Malatia-Sebastia district, Yerevan, Armenia   Certificate number of the Energy Passport issuing specialist: U017-2022 2022 SAF Capital LLC B+
29/14 Leningradyan street, Malatia-Sebastia district, Yerevan, Armenia   Certificate number of the Energy Passport issuing specialist: U017-2022 2022 GEVMIK LLC B
19/5 Nork street, Nork-Marash districs, Yerevan, Armenia Building 1B «Energy Lead» LLC Certificate number of the Energy Passport issuing specialist: U017-2022 2022 Vahgarsh & Sons LLC B
19 building, 2nd lane, 30th street Zovuni, Nairi community, Kotayq region, Armenia   Certificate number of the Energy Passport issuing specialist: U017-2022 2022 Mitstart LLC B+
11/5 Gyurjyan street, Yerevan, Armenia Buildings 1, 2 & 3 Certificate number of the Energy Passport issuing specialist: U017-2022 2022 Magas LLC B