Acquisition

National Mortgage Company also refinances standard mortgage loans for acquisition.

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.

Acquisition

Acquisition

The terms of a loan for purchasing an apartment or 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 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 35 mln

Loan term

Minimum of 10 years

OTI*

Maximum of 45%

Annual interest rate

Defined by PFI (on average it is 13.02%)

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.
  • In the case of acquisition from the primary market (directly from the developer), the building or project must have an Energy Passport.

*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.