Mortgage Loans for Purchase of Real Estate are provided from the funds of the “NATIONAL MORTGAGE COMPANY” RCO CJSC for the purchase of residential real estate on the territory of RA.
Pledge of the residential real estate being purchased; if necessary, pledge of other residential real estate owned by the borrower (co-borrower) and/or guarantor(s).
For non-energy-efficient loans
Annual nominal interest rate (fixed): 13.3–14.5%,
Annual effective interest rate (fixed): 14.89–16.40%
For energy-efficient loans
Annual nominal interest rate (fixed): 12.8–14.0%
Annual effective interest rate (fixed): 14.32–15.82%
Loan repayments: either in equal monthly instalments or in equal portions of the loan principal, with monthly payments covering partial interest and loan repayments.
If necessary, a different repayment schedule for interest and principal may be set.
Prepayment – the minimum prepayment is set at at least 30% of the purchase price of the property.
The minimum down payment may be set at 10% of the residential real estate being purchased, provided that at least one of the following requirements is met:
In addition to the residential real estate being purchased, other residential real estate is also pledged as collateral,
the borrower takes out insurance for a portion of the required prepayment. Prepayment insurance may be taken out for up to 20% of the value of the residential real estate.
Security: the residential real estate being purchased; if necessary, other residential real estate owned by the applicant (co-borrower) and/or guarantor(s).
Service fee: 1% of the loan amount, or 0% in which case 0.5% will be added to the nominal interest rate.
Interest calculation: daily, on the decreasing outstanding balance of the loan.
Loan-to-collateral ratio: the loan amount relative to the collateral value must not exceed 90%.
The borrower (co-borrower) must have no current overdue obligations; all active credit obligations must be classified as standard, and over the last 12 months the total number of overdue days across all loans must not exceed 30 calendar days.
Learn more:
More about the amount of possible additional fees: Loan Tariffs.
Previous terms of the loan tariffs
Required documents:
Identification documents of the applicant and the co-owners of the residential real estate being purchased/pledged as collateral,
Social services number or a certificate confirming the absence of a social services number,
Marriage certificates (copies) of the applicant and the co-owners of the residential real estate being purchased/pledged as collateral, if they are married.
Birth certificate(s) (copies) for children (if any),
A certificate from the applicant’s (or another member of the applicant’s family) employer stating the amount of salary (income) (calculated over the last 12 months), the position held, and length of service. The certificate must at minimum include the employer’s address, name, tax identification number (TIN), phone numbers, and the signature of the head of the issuing organization and the seal (if any),
Documents confirming the applicant’s other income (rental payments, interest income from investments made, etc.), as well as information on other expenses (e.g., alimony or other care/maintenance expenses),
If the applicant has been employed for less than 12 months, details of previous employment (employer, position held, and length of service at each organization),
Ownership certificate (copy) for the property being purchased and/or other property offered as collateral,
A certificate from the passport office regarding persons registered at the residential real estate being purchased,
The same documents relating to the applicant must also be submitted by the co-borrower (if any),
A document confirming the seller’s acquisition of ownership rights to the real estate,
A property valuation report prepared by a certified independent appraiser,
If the applicant is engaged in entrepreneurial activity, then:
A copy of the charter, a copy of the state registration certificate of the legal entity (with attachments) or a copy of the reference certificate, a copy of the tax identification number (TIN) (as necessary),1
License (in case of licensed activity).
The latest reports submitted electronically to the Tax Inspectorate for the last 12 months (financial statements, income and expense reports (for the last 6 months), tax reports), and the notice confirming that the reports have been accepted.
1․ The documents are required if the data or documents are missing or incorrect in the database of the RA Ministry of Justice State Register. If the applicant does not have an account with the Bank, it is also necessary to submit the documents required to open an account at “ACBA Bank” OJSC (originals).
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. Only the applicant’s spouse, the applicant’s and the spouse’s parents, and their sisters and brothers may act as co-borrowers. The co-borrower must be a resident citizen of the Republic of
Armenia. Within the scope of the loan obligations, co-borrowers bear the same responsibilities as the borrower.
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,
If the borrower’s income is insufficient to obtain the loan, co-borrowers may be involved,
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,
If loan repayments are overdue by more than 90 days and the annual insurance is not arranged on time, the loan is considered non-qualified, and the interest rate may be reviewed and set within the range of the market interest rates for mortgage loans at that time,
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 registratio
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.
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.
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 for the loan arrangement:
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.
Prepayment insurance fee: 2% or 3% of the outstanding amount of the prepayment being insured.
Fees related to pledging other properties: 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:
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.
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.
