Don’t just delay life’s big and important decisions. If you’ve been thinking about buying an apartment for a long time, Acba’s mortgage loan will help make your dream come true. Favorable terms, convenient repayment periods, zero service fee, and a reliable partner throughout the entire process.
with no income analysis, no additional collateral, and no life insurance
prepayment possible from 0%, no service fees, and the opportunity to benefit from an income tax refund instead
both resident and non-resident individuals.
the purchased real estate; if necessary, other real estate, movable property, funds, guarantees, etc.
or the equivalent in foreign currency Interest rate
Refinancing of a Mortgage Loan for Real Estate Purchase
Interest rate: 11.9% per annum (floating)
Fixed period: 3 years
Service fee: 0%
Actual interest rate: 12.35%
Currency: AMD
Term:
minimum term: 12 months
maximum term: 240 months
A term longer than 180 months is provided only if the property is purchased directly from the developer.
Annual interest rate (fixed for a term of up to 60 months):
| Currency* | Nominal interest rate |
| AMD | 13.75-14.5% |
| USD | 10.5-11.5% |
| Euro | 9-10% |
Annual interest rate (floating)
| Number of fixed years | Currency | Nominal interest rate |
| 3 years | AMD | 13-13.5% |
| USD | 9․5-10% | |
| Euro | 8.50% | |
| 5 years | AMD | 13.5-13.9% |
| USD | 10․5-11․5% | |
| Euro | 9-10% |
* The loan may be granted in foreign currency if the borrower and all co-borrowers are non-resident individuals.
If the loan-to-collateral ratio exceeds 80%, 0.2% will be added to the loan’s nominal interest rate, and in the case of a floating rate, also to the fixed component.
*The funds pledged by the Developer are not included in this calculation.
NOTE: The nominal interest rate on mortgage loans with a floating interest rate may be changed by the financial organization no more than twice per year.
The maximum cap for the nominal interest rate on a mortgage loan with a floating interest rate is set at a rate that is +/- 4 percentage points higher/lower than the fixed rate.
Loan repayments – equal monthly installments or equal principal installments, with monthly payments including interest and principal partial repayments.
If necessary, a different repayment schedule for interest and principal may be set.
Prepayment – the minimum prepayment is set at at least 10% of the purchase price of the property.
A prepayment may not be required if additional real estate is pledged as collateral.
Collateral – the purchased real estate; if necessary, collateral may also include other real estate, movable property, funds, guarantees, etc.
Service fee – 0.5% of the loan amount, or it may be set at 0%; in that case, 0.5% will be added to the loan’s nominal interest rate, and in the case of a floating rate, also to the fixed component.
Interest calculation – daily, based on the declining outstanding balance of the loan.
Loan-collateral ratio – 90%.
Learn more:
Variable component of the floating interest rate for mortgage loans
More about the amount of possible additional fees: Loan Tariffs.
How to receive an income tax refund of the interest paid on a mortgage loan for purchasing real estate
This information is advisory
We will help you, in accordance with the RA Tax Code, receive reimbursement of the interest paid on your mortgage loan from your income tax.
The income tax of individuals who are salaried employees is refunded in the amount of the interest paid for servicing the mortgage loan, if:
The mortgage loan has been granted for the purpose of purchasing an apartment or an individual residential house, or for the purpose of constructing an individual residential house in the territory of the Republic of Armenia, and has in fact been used for the stated purposes, provided that:
The apartment must be purchased:
directly from the developer in a multi-apartment residential building constructed or under construction in the territory of the RA from the state or community within the framework of a housing provision program implemented by the state and/or community, in which case a parking space may also be purchased together with the apartment, if it is attached to the apartment in accordance with the procedure established by the Government of the RA
The individual residential house must be purchased:
directly from a developer that is an organization or an individual entrepreneur in residential neighborhoods or complexes in the territory of the RA
What limitations are there for receiving the reimbursement։
The contractual value of the apartment purchase transaction must not exceed AMD 55 million (this provision does not apply to loans granted for the purpose of constructing a residential house),
The total amount of income tax subject to refund for each quarter may not exceed AMD 1.5 million (from 01.01.25 — AMD 750,000),
After January 1, 2018, borrower and co-borrower individuals may, at their discretion, benefit from the income tax refund option under only one mortgage loan agreement.
What is required to receive the reimbursement։
Submit the following documents to the territorial division of the tax authority at the location of the constructed or under-construction multi-apartment residential building or the individual residential house:
The loan package (the original or notarized copies of the purchase and sale and mortgage loan agreements, the main loan agreement, credit agreements that are appendices to the main loan agreement, the agreements for the property/properties serving as additional collateral (if any), and the ownership certificates of the pledged property acquired under the mortgage agreement and the property/properties serving as additional collateral, or the certificate of state registration of the right to purchase real estate in a building under construction),
A certificate issued by the developer confirming that the apartment or individual residential house has been (is being) purchased directly from the developer, or the construction permit for the individual residential house issued to the person considered the borrower (valid within the time limits established by the legislation of the Republic of Armenia).
The borrower’s/co-borrower’s identity document
Social services number or a certificate confirming the absence of a social services number.
To receive reimbursement of the interest paid each quarter, submit an electronic application on the official website of the State Revenue Committee of the Republic of Armenia, also indicating the bank account number of the individual receiving the reimbursement.
NOTE: The application may be rejected if, at the time of submission, the tax obligations declared for salaries and equivalent payments in the monthly (simplified) calculation of income tax and social payment for the months of the reporting quarter have not been fully fulfilled.
These conditions apply to mortgage loans granted after January 1, 2018.
During the loan term (if the loan has been active with the Bank for 6 months already), the customer may visit a branch and apply to use a loan holiday.
A loan holiday is offered in the following cases:
The customer (borrower/co-borrower) is on maternity leave, or
The customer (borrower/co-borrower) is on childcare leave
Only once during the loan term
For a period of up to 6 months
During the holiday, only the accrued interest is repaid
The customer may use a loan holiday if payments under the given loan have been made properly.
Required documents:
The applicant’s identity document,
Social services number or a certificate confirming the absence of a social services number (if required),
Ownership certificate of the purchased real estate (copy),
Identity documents of the co-owners of the purchased real estate (copies) and copies of their marriage certificates (if married),
A certificate from the passport department regarding the persons registered in the purchased apartment, residential house, or private house,
A certificate from the applicant’s workplace regarding their average monthly income (calculated over the last 12 months),
Document(s) certifying ownership of the property offered as collateral (copy).
The validity of the documents at the time of submission must not exceed 15 days.
Depending on various circumstances, additional documents and information may be required.
*The reference must contain the client's net monthly salary/income after paying taxes, the address of the place of work, phone numbers, the signature and seal of the head of the organization issuing the reference, an outgoing reference number, and the month and date of issuance.
A decision on the loan application and notification of the customer are made in 6 banking days after the required documents are submitted.
In case of a positive decision on loan disbursement, the loan is provided within a maximum of 2 banking days.
Loan interest calculation example:
Loan amount – AMD 20,000,000
Loan interest rate – 13.5% (floating)
Loan term – 240 months
Commission – 0.5%
In this example, the monthly loan repayment amount will be AMD 241,475.
Annual effective interest rate will be 14.74%
The daily interest amount will be: Loan amount (outstanding balance) × Loan interest rate ÷ 365 = (20,000,000 × 13.5% ÷ 365) = AMD 7,394.26.
*The effective interest rate has been calculated including the fees for real estate appraisal services, notary services, the fee for issuance of the certificate of registration of the real estate mortgage right, the unified statement fee, and the property insurance.
**The repayment amount may vary depending on the number of days in the given month.
In the case of foreign currency loans, the basis for calculating the annual effective interest rate is the exchange rate published on the official website of the Central Bank of the Republic of Armenia as of the date of loan disbursement, and the annual effective interest rate may change depending on changes in the exchange rate published on the official website of the Central Bank of the Republic of Armenia.
NOTE: LOAN INTEREST IS CALCULATED BASED ON THE NOMINAL INTEREST RATE, WHILE THE ANNUAL EFFECTIVE INTEREST RATE SHOWS HOW MUCH THE LOAN WILL ACTUALLY COST YOU, PROVIDED THAT ALL INTEREST PAYMENTS AND ALL MANDATORY PAYMENTS RELATED TO LOAN DISBURSEMENT AND SERVICING ARE MADE WITHIN THE SPECIFIED TIMEFRAMES AND AMOUNTS. YOU CAN FIND THE CALCULATION OF THE EFFECTIVE INTEREST RATE HERE.
Learn more։
In case the borrower fails to fulfill their obligations on time, a penalty of 0.13% is charged for each overdue day (applicable penalties).
Loan repayments are made in the following order (when settling overdue obligations):
Penalty/fine
Interest
Principal amount.
Insurance companies cooperating with the Bank:
Rosgosstrakh-Armenia (address: Yerevan, Northern Av., Bld 1, tel.: (374) 10 59 10 10)
Ingo Armenia (address: Yerevan, Republic str, 51, 53, premises 47, 48, 50; tel.: (374) 10 59 21 21)
Nairi Insurance (address: Yerevan, Vazgen Sargsyan 10 Building, premise No. 110, tel.: (374) 60 50 00 60)
Qualified independent appraisal companies cooperating with the Bank
Information summary of a mortgage loan for the acquisition (purchase) of real estate
Mortgage loans for the purchase of real estate are granted to resident or non-resident individuals aged 18 and above who will not reach retirement age + 4 years during the entire loan term.
Mortgage loans for the purchase of real estate are provided for the purpose of acquiring residential or other real estate from the primary or secondary market.
The credit line amount is provided in non-cash form,
Factors for a positive loan approval decision include the assessment of the customer’s creditworthiness,
Factors for loan rejection include insufficient financial indicators identified through analysis, the customer’s poor credit history, insufficient or absence of required collateral, the professional opinion of the business consultant, the professional opinion of the Credit committee.
The loan is arranged at the Bank’s branches,
Throughout the entire loan term, annual insurance is provided for the borrower against accidents, as well as for the purchased real estate serving as collateral for the loan. Insurance is provided in the amount of the outstanding loan balance through an insurance company acceptable to the borrower and under terms acceptable to the lender.
The appraisal of the mortgaged real estate is carried out by a qualified independent appraisal company cooperating with the Bank,
In the case of loans disbursed in foreign currency, changes in the foreign exchange rate may affect loan repayments,
Pledge agreements for the property serving as collateral for the mortgage loan are notarized, and the pledge right arising from these agreements is subject to state registration.
The Bank undertakes to provide the consumer with the contract offer 7 days in advance and grant 7 days for consideration.
During the term of the agreement, statements are provided 20 business days prior to each repayment specified in the schedule, via the customer’s preferred method of communication.
During the term of the agreement, the loan account statement and other information that are subject to mandatory disclosure under the legislation of the RA are provided free of charge. Statements not subject to mandatory disclosure under the legislation of the RA, as well as duplicate statements, are provided as follows:
For statements with a period of up to 6 months (inclusive) – free of charge
For statements with a period of 6 to 12 months (inclusive) – AMD 2,000 (including VAT)
For statements with a period of more than 1 year – AMD 3,000 (including VAT).
If required, provision of loan-related information in the form of a reference statement: AMD 5,000 on the business day of submitting the application, and AMD 3,000 on the subsequent business days after submission of the application.
The appraisal of the mortgaged real estate is carried out by a qualified independent appraisal company cooperating with the Bank.
The loan may be provided in foreign currency if the borrower and all co-borrowers are non-resident individuals.
YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL INSTITUTION IN YOUR PREFERRED WAY, EITHER BY POSTAL MAIL OR THROUGH DIGITAL CHANNELS. RECEIVING INFORMATION DIGITALLY IS THE MOST CONVENIENT OPTION. IT IS AVAILABLE 24/7, ELIMINATES THE RISK OF LOSS OF PAPER DOCUMENTS, AND ENSURES CONFIDENTIALITY.
The Bank may unilaterally change the interest rate specified in the agreement by notifying the Borrower at least 7 calendar days in advance in the event of misuse of the loan, as well as failure to fulfill the obligations set out in the loan agreement.
NOTE: WHEN APPLYING FOR A MORTGAGE LOAN, THE BANK WILL PROVIDE YOU AND THE GUARANTOR(S) (if any) WITH AN INDIVIDUAL INFORMATION SHEET ON THE ESSENTIAL TERMS OF THE CONSUMER LOAN.
The consumer may make the following payments in relation to the loan:
Real estate appraisal service fee – AMD 5,000 and above, depending on the property’s area and type
Notary service fee – AMD 3,000-15,000
Fee for issuance of the certificate of registration of the real estate mortgage right – AMD 2,000-25,000
Fee for the unified statement (on encumbrances/restrictions on real estate) – AMD 10,000
Property and personal accident insurance premiums – 0.15% or 0.16% of the outstanding loan balance
The insured amount for the real estate serving as collateral is the appraised value of the acquired property.
Fees related to pledging other property – AMD 2,000-10,000.
All fees are included in the calculation of the effective interest rate.
The loan may be repaid (in full or in part) ahead of the contractual term, in which case the customer pays the interest accrued for the actual loan period, as well as a one-time penalty in the following amounts:
If early repayment is made during the first year, 0.6% of the amount paid in excess of the principal amount due for repayment for the respective contractual year,
if early repayment is made during the second year, 0.4% of the amount paid in excess of the principal amount due for repayment for the respective contractual year,
if early repayment is made during the third year, 0.2% of the amount paid in excess of the principal amount due for repayment for the respective contractual year, and if early repayment is made during the remaining term of the agreement, no penalty is charged.
In this context, a contractual year is each 12-month period following the agreement signing date.
Foreclosure of collateral.
THE PLEDGED PROPERTY MAY BE FORECLOSED IF THE BORROWER FAILS TO MAKE TIMELY PAYMENTS OF INTEREST AND LOAN PRINCIPAL. IN CASE THE VALUE OF THE COLLATERAL IS INSUFFICIENT, THE BORROWER’S OBLIGATIONS WILL BE SETTLED AT THE EXPENSE OF THE BORROWER’S OTHER PROPERTY.
Information provided to the Credit register:
NOTE: IN CASE OF YOUR FAILURE OR IMPROPER PERFORMANCE OF YOUR OBLIGATIONS, THE LENDER WILL, AFTER 3 BUSINESS DAYS, SUBMIT SUCH INFORMATION TO THE CREDIT BUREAU, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM THE CREDIT BUREAU FREE OF CHARGE ONCE A YEAR.
FOR GUARANTORS:
Please, be informed:
If the borrower fails to fulfill their obligations, you will be required to pay on their behalf, with a negative impact on your credit history, and the possibility to lose your property.
You will be provided with copies of the loan and the guarantee agreement, and the repayment schedule.
Communication will be carried out using the method chosen by you.
You will be notified 7 days in advance of any changes to the terms of the agreement.
A reminder will be sent 1 day in advance regarding the existing obligation.
In case of delayed loan repayment, you will be informed no later than one day after the delay occurs.
THE GUARANTOR HAS THE RIGHT TO:
Request information from the lender at any time regarding the outstanding loan balance.
Recover from the borrower the amounts paid by you on the loan, as well as any other losses incurred on behalf of the borrower.
You can learn more about the importance of credit history and the use of credit scoring here.
Your financial informant
NOTE: "YOUR FINANCIAL INFORMANT" IS AN ELECTRONIC SYSTEM THAT MAKES IT EASY TO SEARCH FOR, COMPARE, AND CHOOSE THE MOST EFFECTIVE OPTION FOR INDIVIDUALS.
