Construction

The Company refinances standard mortgage loans for single-family home construction.

Construction

Construction

This loan product is intended for the construction of a single-family house that complies with the Company's minimum eligibility criteria.

Home construction project cost shall be presented in compliance with the Company's requirements. The assessment tool is available here։

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.

Collateral

Land or the building under construction.

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, evidence must be provided that the purpose of land use 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.

The Company from its own resources also refinances mortgage loans for single-family home construction 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.