A family starts with a home. Find the apartment of your dreams with Acba. Affordable Housing state program allows young families to obtain a mortgage loan at a lower interest rate and with a simple procedure, giving your newly formed family its own cozy place to call home.
If purchasing on the primary market (directly from the developer): 7.5%, with no subsidy provided.
If purchasing on the secondary market: 7.5–8.5%. In this case, the loan interest is subsidized by the state by 2 percentage points if the apartment or residential house being purchased is located in Yerevan, and by 4 percentage points if it is located outside Yerevan.
in the case of acquisition of real estate from the primary market (directly from the developer)
in the case of acquisition of real estate from the secondary market
Mortgage loans for young families
By obtaining the loan through Acba bank, you have the opportunity to benefit from the most favorable lending terms:
for purchasing an apartment or residential house located in Yerevan, starting from an annual interest rate of 5.5%,
for purchasing an apartment or residential house located in the regions, starting from an annual interest rate of 3.5%.
Low interest rate,
fixed-rate lending for a term of 180 months,
state subsidization of the interest rate when purchasing property on the secondary market.
Loan issuance with a 10% prepayment if additional residential real estate is pledged as collateral or if a guarantee is provided by any of the first 300 large taxpayer organizations,
no monthly loan commission fee and no loan application review fee.
Minimum amount: AMD 1,000,000,
Maximum amount:
AMD 27,750,000 when purchasing real estate on the primary market (directly from the developer)
AMD 22,500,000 when purchasing real estate on the secondary market
| Real estate purchase market | Annual nominal interest rate | Annual effective interest rate | Subsidy | Maximum value of the purchased property | Maximum appraised value of the purchased real estate |
| Primary (from developer) | 7.50% | 8.02-8.51% | - | AMD 30 mln | AMD 31 mln |
| Secondary | 7.5-8.5% | 8.02-9.11% | 2% when purchasing in Yerevan, | AMD 25 mln | AMD 26 mln |
| 4% when purchasing in regions |
Loan repayments: either in equal monthly instalments or in equal portions of the loan principal, with monthly payments covering interest amounts and partial loan repayments.
Prepayment: the prepayment is set at a minimum of 20% of the purchase price of the residential real estate being acquired (when purchasing on the primary market directly from the developer) and 30% (when purchasing on the secondary market).
The minimum prepayment may be set at 7.5% of the residential real estate being purchased when acquiring it on the primary market (directly from the developer), and 10% when acquiring it on the secondary market, regardless of whether the property is located in Yerevan or in the regions of the Republic of Armenia, 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,
in addition to the residential real estate being purchased, the borrower also provides a guarantee from a legal entity ranked 1–300 in the Republic of Armenia’s list of large taxpayers at the time the loan application is submitted,
The borrower takes out insurance for a portion of the required prepayment.
Prepayment insurance may be arranged for the residential real estate:
up to a maximum of 12.5% if the property is purchased on the primary market (directly from the developer),
up to a maximum of 20% if the property is purchased on the secondary market.
Security: the residential real estate being purchased; if necessary, other residential real estate owned by the applicant (co-borrower) and/or guarantor(s).
Commission fee: 1% of the loan amount, or 0% in which case 0.5% will be added to the nominal interest rate.
Interest calculation – daily, based on the declining outstanding balance of the loan.
Loan-to-collateral ratio: the loan amount relative to the collateral value must not exceed 90%.
A young family may apply for the loan if the spouses are resident citizens of the Republic of Armenia and their combined age does not exceed 70, or a single parent who is a resident citizen of the Republic of Armenia aged 18–35 (inclusive).
Clients are not eligible for lending if the total net monthly income of the applicant and any potential co-borrowers exceeds AMD 800,000, or if either spouse owns other residential real estate, except in cases where the living space per person for those actually residing (registered) in that apartment/residential house is less than 18.0 sq.m.
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:
Variable component of the floating interest rate for mortgage loans
More about the amount of possible additional fees: Loan Tariffs.
Social services number or a certificate confirming the absence of a social services number,
Marriage certificate(s) (copies) of the applicant and the co-owners of the real estate being purchased/pledged as collateral, if they are married,
Birth certificate(s) (copies) for children (if any),
An official statement stating the number of persons living with the applicant and under the applicant’s care (a certificate from the place of actual residence or from the passport office).
A statement 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),
A certificate from the RA Cadastre Committee of the Real Estate Cadastre regarding properties owned by the applicant under ownership or joint ownership rights.
A certificate from the passport office in case the applicant and/or the applicant’s spouse owns property under ownership rights.
Details of all accounts (of any type) held with other banks and their transaction history, for example the average monthly balance, average monthly inflows, and outflows.
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 real estate being purchased.
The same documents relating to the applicant must also be submitted by the co-borrower (if any).
Document confirming the seller's acquisition of ownership rights to the real estate, which may be, for example, one of the following:
Certificate of inheritance rights issued by a notary,
Certificate of acquisition of property via public auction issued by a notary,
Sale and purchase agreement or other contracts for alienation of the property,
Property appraisal report by a certified independent appraiser,
If the applicant carries out entrepreneurial activity, then
Copy of the charter, copy of the state registration certificate of legal entities (with appendices) or a copy of the statement, and copy of the taxpayer identification number (as required)*
License (for licensed activity),
Tax report for the last 1 year, confirmed by the tax authority,
Income and expense statements (records) for the last 1 year.
If the applicant does not have an account with the Bank, it is also necessary to submit the documents (originals) required to open an account at “ACBA Bank” OJSC.
Bank card statement of the borrower/co-borrower indicating the monthly salary amount (if available).
The decision on the loan application is made and communicated to the customer within a maximum of 6 banking days after the required documents are submitted,
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.
Example of loan interest calculation
If you wish to purchase an apartment on the secondary market costing AMD 17,400,000 and make a prepayment of AMD 5,220,000, then over 180 months your monthly payment will be AMD 118,346, from which the subsidy amount provided by the contract will be deducted.
Annual interest rate: 8.3%.
*The repayment amount may vary depending on the number of days in a given month
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.
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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 within the "Affordable housing for young families" program are provided for purchasing residential real estate located in the Republic of Armenia for housing purposes.
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. Co-borrowers may be the borrower's spouse, the parents of the applicant and their spouse, sisters and brothers. If the spouse is employed, they must be a co-borrower. Co-borrowers bear the same liabilities as the borrower within the scope of credit obligations,
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 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, statements of the loan account and other information that are required by RA legislation are provided free of charge. Information and statements that are not required by RA legislation, as well as duplicate statements, are provided:
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
THE PLEDGED PROPERTY MAY BE SEIZED IF THE BORROWER FAILS TO MAKE INTEREST AND LOAN REPAYMENTS ON TIME. IF THE COLLATERAL VALUE 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
ATTENTION: "YOUR FINANCIAL INFORMANT" IS AN ELECTRONIC SYSTEM THAT MAKES IT EASY TO SEARCH FOR, COMPARE, AND CHOOSE THE MOST EFFECTIVE OPTION FOR INDIVIDUALS.
