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