Provision of credit

• to both residents and non-residents,
• without analyzing the client's income, in case of making an advance payment of 50% or more (freezing the amount), if the property is purchased from the primary market,
• without additional property collateral if the property is purchased from a cooperating developer;
• without advance payment in case of mortgage of additional immovable property,
• without the Borrower/co-Borrower's life insurance requirement,
• without monthly loan service commission and loan application review fee

Duration

• Minimum duration - 12 months
• Maximum duration - 240 months.

For a period of more than 180 months, the loan is only provided if the property is acquired directly from the constructor.

Annual interest rate (fixed - untill 60 months)

Annual interest rate (floating)

If the loan / collateral ratio exceeds 80%, the nominal interest rate of the loan will be added, and in case of a floating interest rate, 0.2% will be added to the fixed component. *

* This calculation does not include funds pledged by the Developer.

Attention: The nominal interest rate of mortgage loans with a floating rate can be changed by the financial institution no more than twice annually.

The maximum rate of nominal interest rate of mortgage loans with a floating rate is set at higher/lower +/- 4% from the fixed interest rate.

• Loan repayments – at monthly installments or at installments of the loan principal, envisaging partial repayments of the interest amounts and loan for each month.

Other repayment schedule of interest amount and loan principal may be set, if necessary.

• Prepayment – Minimum prepayment is set at the minimum of 10% of the value of the purchased real estate.

The prepayment may not be required, if additional real estate property is pledge.

• Collateral - purchased real estate, if necessary collateral can also be other real estate, movable property, cash, guarantees, etc.
• Fee - 1% of the loan amount
• Interest calculation - daily on the loan reducing balance;
• Loan-collateral ratio - 100%.

More information:

Changing component of floating interest rate of mortgage loans
Possible additional payments: Loan tariffs

Previous terms of loan tariffs

The state support programs are:

1. Regional mortgage assistance program
2. Mortgage Repayment Assistance Program

How to receive a refund for paid interest amounts for the mortgage loan for purchase of real estate from the income tax

This information is of an advisory nature

We will help you, in accordance with the RA Tax Code, receive compensation for interest payments on your mortgage loan from your income tax.

Income tax of individuals who are hired employees is refunded in the amount of paid interest amounts of the mortgage loan, if:

The mortgage loan was provided for the purpose of an apartment or a private residential house or for building of an individual residential house in the territory of the Republic of Armenia and was actually directed towards the fulfillment of the above mentioned goals.

• Apartment shall be acquired:

Immediately from the constructor in the multi-apartment building, built or under construction, in the Republic of Armenia;

From the state or community, within the framework of the state and/or community housing program, implemented by the state or community; in this case, a parking lot may also be purchased in conjunction with the apartment, if it is attached to the apartment in accordance with the procedure, established by the Government of the Republic of Armenia.

• Private residential house shall be acquired:.

Directly from the constructor, being an organization or individual entrepreneur, in residential districts or complexes in the Republic of Armenia.

What are the restrictions for receiving a refund?

• The contractual value of the transaction to acquire an apartment shall not exceed 55 mln AMD (this provision does not apply to loans provided for the purpose of building a private residential house),
• The total amount of income tax, subject to refund, for each quarter may not exceed 1.5 mln AMD (from 01.01.25: AMD 750,000),
• After January 1, 2018, the borrowers and co-borrowers can only make use of the option of refund of the income tax only for one mortgage loan of their choice.

What is required to receive a refund:

• Submit the following documents to the territorial subdivision of the Tax Office of a built or under construction multi-apartment residential building or private house:
  • Loan package (original copy of sale and mortgage loan, of property, being an additional collateral (if any), main loan agreement, appendixes to the main loan agreement, or copies of these agreements, verified by the notary, and ownership certificates of the pledged property and property, being the additional collateral, or certificate of state registration of the right to purchase real estate from the building under construction),
  • Certificate, provided by the constructor, on the acquisition of the apartment or private residential house directly from the constructor, or permission to build a private residential house to the borrower (within the timeframe established by the legislation of the Republic of Armenia);
  • Identification document of the borrower/co-borrower;
  • Public service number or certificate on not having a public service number.
    
    
• To compensate for the interest paid every quarter, please submit an electronic application on the official website of the State Revenue of the Republic of Armenia. Include the bank account number of the individual receiving the compensation.

Attention: The application may be rejected, if at the moment of its submission, the tax liabilities, declared on the salary and other payments, equaled to it, based on a monthly (simplified) calculation of income tax and social payments, presented for the months of the reporting quarter, are not fully fulfilled.

These terms apply in case of mortgage loans, issued after January 1, 2018.

Required documents

• Identification document of the applicant;
• Public service number or a license of non-receipt of public service number
• Certificate of ownership of the real estate to be purchased (copy);
• Identification document (copy) of the co-owners of the real estate to be purchased and copies of their marriage certificates (if married);
• Reference from the passport department on the persons registered in the purchased apartment, residential house, cottage;
• Reference from the applicant's employer about the average monthly income received by the applicant (calculated over the last 12 months);
• Document(s) proving ownership of the property offered as a collateral (copy).

The issue date of the documents at the time of acceptance shall not exceed 15 days.

Depending on the circumstances, additional documents and information may be required.

* Reference shall include the customer's monthly net salary/income after taxes, work address, phone numbers, signature and stamp of the referring organization manager, outgoing date of issue.

• The decision on the loan application is made and the customer is notified within maximum 6 banking days after the customer submits the required documents;
• In case of a positive decision on loan provision, it is registered within maximum 2 banking days after the end of the pledging process;
• Loan account statement (including copy) and other information during the agreement validity is provided free of charge.