Real estate purchase mortgage loans are provided to resident individuals who are 18 years or older at the time of undertaking and who will not enter pension age during the term of the loan. Only the spouse, parents (including parents of the spouse), sisters and brothers of the applicant may act as co-borrowers. All co-borrowers must be resident citizens of Armenia. Co-borrowers take joint liability with the borrower in respect of all loan obligations.

• Currency: AMD,
• Minimum maturity: 120 months,
• Maximum maturity: 180 months,
• Minimum amount: 1,000,000 AMD,
• Maximum amount: 25,000,000 AMD,
• Annual interest rate(stable): 13-15%*,
• Loan repayments are specified to be monthly equal installments or equal installments of the loan principal, envisaging for each month repayment of loan interest amounts and partial loan amount,
• Interest accrues on the actual (decreasing) principal of the loan,
• The minimum amount of down payment for real estate purchase mortgage loans is 30% of the value of the purchased real estate. The minimum down payment may be lowered to 10% of the value of the purchased real estate if other residential real estate owned by the borrower (co-borrower(s)) is pledged as additional collateral,
• Residential real estate to be purchased, if required, also by other residential real estate, belonging to the applicant (co-borrower) and/or by guarantee,
• The correlation loan/collateral shall not exceed 70%,
• The borrower (co-borrower) may not have any delinquent obligations in respect of current liabilities; all outstanding credit liabilities of the borrower must be classified as “standard”, and the total number of days of delinquencies in respect of any liabilities within the last 12 months must not exceed 30 days.

• 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,
• Statement from the applicant’s (family member’s/members’) place of employment indicating the salary (income), calculated based on the last 12 months, 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),
• Copies of ownership certificates of the real estate to be purchased and other property pledged as collateral,
• 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.
• Assessment report by a certified independent assessor,
• If the customer does not have a bank account at ACBA-CREDIT AGRICOLE BANK, documents required for opening an account (in original),
• For applicants engaged in entrepreneurial activities,
• Copies of the charter, the state registration certificate (with annexes) or the registry statement, and the taxpayer identification number (upon request), ¹
• License, if applicable,

• Reports submitted electronically to the tax authorities for the last 12 months (financial statements, income statements (for the last 6 months), tax reports) and notifications of their receipt. ²

1 May be requested if information or documents absent / incorrect in the RA MJ state registry database.

2 The reports should be marked as “Verified with original” (dated and signed). If the customer is a legal entity, the reports should also be signed by the executive (director) of the entity or an authorized official and sealed with the official (round) stamp of the entity.

Each co-borrower (if applicable) must provide the same package of documents as the borrower.

• The loan amount is disbursed non-cash,
• Credits can be obtained at the branches of the Bank,
• If the income of the borrower is not sufficient to receive a loan, co-borrowers may be involved. A co-borrower can be the borrower’s husband/wife, the parents, sisters and brothers of the applicant and of the applicant’s husband/wife,
• Evaluation of the purchased/pledged property shall be performed by an independent certified valuator, cooperating with the Bank,
• During the whole period of the mortgage loan for the purchase of real estate, accident insurance for the borrower, as well as insurance for the real estate, to be purchased, being the loan security, shall be performed on annual basis,
• Insurance is made on a residual amount of the loan, through an insurance company acceptable to the borrower and on acceptable terms to the licensee,
• The factor for the positive decision and rejection of the provision of a credit line is the assessment of the solvency of the customer,
• The decision to extend credit is made and communicated to the customer within 15 banking days after the provision of all required documents,
• The decision, made by the Bank, as a result of the review of the credit application of the customer, shall be announced to the customer within 1 working day,
• The loan is provided within 3 banking days upon submission of the full package of required documents by the customer and end of the pledging process,
• In case of delay of loan repayments for more than 90 days and not having annual insurance in due time, the loan shall be considered as non-qualified, and the loan interest rate may be reviewed and specified within the limits of the market interest rate, established at the given moment for mortgage loans,

• Interest is calculated based on nominal interest rates.
• In case of fluctuations of the interest rates of the funds, attracted and placed by the Bank in the financial market and/or change of the financing interest rate and/or availability of such preconditions and/or in case of non purposeful use of the credit by the borrower, the Bank may unilaterally change the interest rates and commission fees, specified by the agreement, by notifying the Borrower 30 calendar days in advance.

• 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

Appropriation of collateral

PROPERTY PLEDGED AS COLLATERAL MAY BE SEIZED / APPROPRIATED IN CASE OF FAILURE BY THE BORROWER TO MAKE TIMELY REPAYMENTS OF LOAN AND INTEREST. WHERE COLLATERAL IS INSUFFICIENT TO MEET ALL RELEVANT OBLIGATIONS, RECOURSE MAY BE MADE TO OTHER PROPERTY OWNED BY THE BORROWER.

Information provided to the credit registry

IN CASE OF FAILURE BY THE BORROWER TO PAY INTEREST ON THE LOAN AND PRINCIPAL THEREOF IN ACCORDANCE WITH THE REPAYMENT SCHEDULE, INFORMATION ABOUT THE BORROWER WILL BE SUBMITTED TO THE CREDIT REGISTRY.

“BAD” CREDIT HISTORY MAY IMPAIR YOUR ABILITY TO OBTAIN LOANS / CREDITS IN THE FUTURE.

Financial assistant