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.

• 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.

Mortgage loans for real estate renovation

Required documents:

• Applicant's identity document,

• Social services number or a certificate confirming the absence of a social services number,

• Ownership certificate of the property being renovated (copy),

• Identification documents of co-owners of the property being renovated (copy),

• Document(s) confirming ownership of the property offered as collateral (copy),

• Identity documents of co-owners of the property offered as collateral (copy),

• Copies of marriage certificates of the co-owners of the property offered as collateral (if married),

• Certificate from the applicant's workplace* regarding the applicant's average monthly income received (calculated over the last 12 months),

• Cost estimate of the necessary current and/or capital renovation works and expenses, completed by the customer,

• If necessary, other documents may be required.

At the time of submission, documents must not be older than 15 days.

Depending on various circumstances, additional documents and information may be required.

*The statement must include the amount of the customer's net monthly salary/income after taxes, the workplace address, phone numbers, signature and stamp of the head of the issuing organization, outgoing number, month and date of issuance.

• The decision on the loan application is made and communicated to the customer within a maximum of 6 banking days after submitting the required documents,

• In case of a positive decision on loan issuance, it is formalized within a maximum of 2 banking days after completion of the pledge process,

• Loan amount - AMD 25,000,000

• Loan interest rate - 18%

• Loan term - 120 months

• In this example, the monthly payment amount* will be AMD 450,463

• The annual effective interest rate will be 19.55%

• The daily interest amount will be Loan amount (balance) x Loan interest rate / 365 = (25,000,000 x 18% / 365) = AMD 12,328.77

*The repayment amount may vary depending on the number of days in a given month

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Mortgage loan calculator

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.

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 real estate renovations are granted to resident individuals aged 18 and above who will not reach retirement age + 4 years during the entire loan term.

Real estate renovation (reconstruction) mortgage loans are provided for the purpose of renovating/reconstructing real estate.

• The loan 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,

• If the loan is provided based on a real estate pledge and the property is appraised at AMD 30 million or more, then the appraisal must also be conducted by a qualified independent appraiser cooperating with the Bank,

• Pledge agreements for the property serving as collateral for the mortgage loan are notarized, and the pledge right arising from those 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).

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 following payments may require 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

• Fees related to pledging other property – AMD 2,000-10,000.

  
  

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.

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.

IF THE BORROWER FAILS TO PAY INTEREST AND LOAN REPAYMENTS ON TIME, INFORMATION ABOUT THE BORROWER WILL BE RECORDED IN THE CREDIT REGISTER. 

HAVING A BAD CREDIT HISTORY MAY LATER BE AN OBSTACLE FOR YOU WHEN OBTAINING OTHER LOANS.

• 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.

• 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.

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