• Copies of personal identification documents of the applicant and co-owners of the real estate to be purchased (pledged as collateral),
• Social services number,
• Copies of marriage certificates of the applicant and co-owners of the real estate to be purchased (pledged as collateral), if applicable,
• Copies of birth certificates of children, if applicable,
• Official statement (from the place of residence or the relevant Passport Department) about the number of dependents and co-habitants of the applicant,
• Statement from the applicant’s (family member’s/members’) place of employment indicating the salary (income), the position and the work experience. The statement must at least contain the name, address and phone numbers of the employer, the taxpayer identification number, and must be signed and sealed (if available) by the head of the organization,
• Documents verifying other incomes of the applicant (lease payments, investment income, etc.), as well as other expenses (e.g. subsistence payments to third persons),
• Information about previous employers, if the applicant’s employment with the current employer is for a period shorter than 12 months (employer, position, work experience),
• Statement from the Real Estate Cadaster Commission of Armenia about property owned by the applicant (including joint ownership),
• Statement from the Department of Passports and Visas in case there is real estate owned by the applicant and/or his or her husband/wife with the right of ownership.
• Information about accounts at other banks (all types of accounts) and their turnover, e.g. average monthly balance, average monthly inflows and outflows, etc.
• Ownership certificates (copies) of the real estate to be purchased and other property pledged as collateral,
• The same documents, required for the applicant, shall be also submitted by the co-borrower /if a co-borrower is available/.
• Statement(s) from the Department of Passports and Visas about persons registered at the address of the real estate to be purchased,
• Proof of ownership of the real estate by the seller, e.g.:
• Inheritance certificate issued by the notary,
• Certificate of purchase of the real estate through public auction issued by the notary,
• Purchase contract or other agreements,
• Real estate evaluation report from a certified, independent appraiser.

• Assessment report by a certified independent assessor,
• For applicants engaged in entrepreneurial activities:
  • Copy of the charter, copy of the legal entities’ state registry certificate (with its inserts) or reference copy, copy of the TIN (if necessary)*,
  • License, if applicable,
  • Tax reports for the last 1 year approved by a tax authority
  • Income and expenses reports (notes) for the last 1 year.
• Bank card statement of the borrower/co-borrower, where the amount of the monthly salary (if applicable) is mentioned.

• Procedure of daily interest rate calculation
• Penalties applicable in case of delinquencies against obligations of borrowers
• Expenses for other services by a third party
• Independent appraisal companies cooperating with the Bank

Within the framework of the "Affordable Housing for Young Families" program, real estate mortgage loans are provided for the purchase or residence of residential real estate in the territory of the Republic of Armenia:

• The loan amount is provided via transfer;
• The factors of a positive decision to provide a loan are the assessment of the customer's creditworthiness;
• Loan rejection factors include unsatisfying financial indicators as a result of a performance analysis, poor customer credit history, insufficiency / lack of necessary collateral, professional opinion of a business advisor, credit committee's professional opinion;
• The loan is registered in the Bank's branches;
• If the borrower's income is not enough to receive the loan, co-borrowers may be involved. The co-borrower can be the borrower's spouse, parents of the applicant and their spouse, siblings. In case the spouse works, the latter must be a co-borrower. The co-borrowers bear the same responsibilities of the borrower within under the loan obligations;
• During the entire duration of the loan, there is annual accident insurance of the borrower (co-borrower(s)), as well as the purchased real estate insurance, which is the collateral for the loan. The insurance is provided in the amount of the loan balance through an insurance company acceptable to the borrower and on terms acceptable to the creditor;
• The appraisal of the acquired / pledged real estate is carried out by a qualified independent appraisal company cooperating with the Bank.
• In case of overdue repayment of the loan for more than 90 days and if the annual insurance is not paid on time, the loan is considered unqualified, the interest rate is no longer subsidized, and the loan interest rate can be revised to the current mortgage market interest rate;
• Property pledge agreements that are a means of securing a mortgage loan are notarized, and the right of pledge arising from the mentioned agreements is subject to state registration;
• The bank is obliged to provide the contract offer to the consumer 7 days in advance and to provide 7 days for consideration;
• During the validity of the contract, the statements are provided 20 working days before each repayment defined by the schedule, through the communication method preferred by the customer;
• Credit account statement subject to mandatory provision during the validity of the contract and other information is provided free of charge. The statement subject to non-mandatory provision by the RA legislation, the copy of the statement is provided:

• For the period of up to 6 months (inclusive) - free of charge,
• For the period of 6 to 12 months (inclusive) - 2,000 AMD (including VAT),
• For the period of more than 1 year - 3,000 AMD (including VAT).
• Providing information on the loan as needed during the working day of submitting the application in the form of a reference - 5000 AMD, during the following working days of submitting the application - 3000 AMD.

YOU HAVE THE RIGHT TO COMMUNICATE WITH YOUR FINANCIAL ORGANIZATION IN YOUR PREFERRED METHOD - BY MAIL OR EMAIL. RECEIPT OF INFORMATION ELECTRONICALY IS THE MOST CONVENIENT. IT IS AVAILABLE 24/7, FREE OF THE RISK OF LOSS OF PAPER INFORMATION AND PROVIDES CONFIDENTIALITY.

ATTENTION: APPLYING FOR A LOAN, THE BANK WILL PROVIDE YOU, YOUR GUARANTORS (IF AVAILABLE) WITH AN INDIVIDUAL SHEET OF SIGNIFICANT TERMS OF MORTGAGE LOAN, WHERE THE INDIVIDUAL TERMS OF LOAN, PROVIDED TO YOU, WILL BE PRESENTED.

For lending, the following payments may be made by the consumer:

• Real estate valuation fee – 5,000 AMD or more, depending on the property surface and type
• Notary service fee - 3,000 - 15,000 AMD
• Fee for registration of certificate of real estate collateral right - 2,000-25,000 AMD
• Joint reference (on real estate restrictions) fee - 10,000 AMD
• Property and accident insurance payments - 0.15% or 0.16% of loan residual value.

The evaluated amount of purchased property is the insurance amount of the real estate, being the collateral.

• Prepayment insurance fee - 2% or 3% of the residual value of the insured prepayment;
• Fees, related to pledge of other property - 2,000-10,000 AM.

All payments are included in the actual interest rate calculation.

The loan can be repaid (fully or partially) earlier than the contract term, in which case the customer pays the interest amount, calculated for the actual loan term, as well as a lump sum penalty in the following size.

• In case of early repayment during the first year - 0.6% of the loan amount, repaid in excess for the loan principal, subject to repayment, over the specified contractual year;
• In case of early repayment during the second year - 0.4% of the loan amount, repaid in excess for the loan principal, subject to repayment, over the specified contractual year;
• • In case of early repayment during the third year - 0.2% of the loan amount, repaid in excess for the loan principal, subject to repayment, over the specified contractual year, and in case of early repayment during the remaining period of the contract, no penalty will be charged.

Contractual year is considered to be each period of 12 months, following the agreement date.

Confiscation of collateral

THE PLEDGED PROPERTY CAN BE CONFISCATED, IF THE BORROWER DOES NOT DULY REPAY THE INTEREST AMOUNTS AND LOAN AMOUNT. IF THE COLLATERAL VALUE IS INSUFFICIENT, THE BORROWER’S LIABILITIES WILL BE REPAID AT THE EXPENSE OF OTHER PROPERTY OF THE BORROWER.

Information, provided to the Credit Registry

INFORMATION ABOUT THE LOAN WILL BE REGISTERED IN THE CREDIT REGISTRY, IF THE BORROWER FAILS TO DULY REPAY THE INTERST AMOUNT AND LOAN AMOUNT.

HAVING A NEGATIVE CREDIT HISTORY MAY BE AN OBSTACLE FOR YOU TO RECEIVE ANOTHER LOAN IN THE FUTURE.

FOR GUARANTORS

Please be informed that:

• If the borrower fails to perform their liabilities, you will pay for it instead, your credit history will be impaired, and your property will be confiscated.
• You will be provided with the copies of the loan agreement, guarantee agreement and repayment schedule.
• The communication will be performed in the way, preferred by you.
• You will be notified 7 days in advance of a change in the terms of the contract.
• A reminder of the current liability will be sent to you 1 day in advance.
• In case of delay of loan repayment, you will be notified at the latest one day later.

THE GUARANTOR HAS THE RIGHT TO:

• Request from the creditor the information on the loan balance at any time.
• Receive the money, paid by you for the loan, from the borrower, as well as other losses incurred by you instead of the borrower.

Financial Assistant

www.fininfo.am:

ATTENTION: "YOUR FINANCIAL INFORMATION" CHOOSE THE MOST EFFECTIVE CHOICE FOR SEARCHING, COMPARING THE SERVICES OF THE INDIVIDUALS.