Acquisition

The Company refinances standard loans for the acquisition of single-family houses and apartments in multi-apartment buildings using its own funds.

Acquisition

Acquisition

This loan product is intended for the acquisition of an apartment or a single-family house that complies with the Company’s minimum eligibility criteria.

The terms of a loan for purchasing an apartment or a single-family house are presented in the table below.

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 total 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 35 mln.

Loan term

Minimum of 10 years.

OTI*

Maximum of 45%.

Annual interest rate

Defined by PFI.

Interest rate type

Fixed

Loan currency

AMD

Repayment type

  • Annuity, or
  • Equal payment of loan principal amount.

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 than 30% 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.
  • According to the Company’s “Housing Loan Refinancing Procedure,” which outlines the criteria for loans eligible for the purchase of real estate under construction, the multi-apartment building where the property is located must have an energy passport issued in accordance with the applicable Guideline.

*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.

The Company from its own resources also refinances mortgage loans for acquisition purposes in those cases, when the loan amount does not exceed AMD 60 million and/or OTI is 60% at maximum. The mortgage loans have to comply with all the other requirements for standard mortgage loans in order to be eligible for refinancing. The interest rate is defined by the Company’s PFIs.