Renovation

The Company refinances standard mortgage loans for renovation.

Renovation

Renovation

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

 

The cost of the home improvement project must be presented in accordance 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 5 years.

OTI*

Maximum of 45%.

Annual interest rate

Defined by PFIs.

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

Property to be renovated.

*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 renovation 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.