Loan for purchase of residential real estate from primary market   

Purpose

Purpose

     (i) Purchase of residential property (including parking space) for residential, lease or investment purposes, or (ii) transfer of a loan for purchase of property for residential, lease or investment purposes from another bank/credit organization to Ameriabank CJSC       

Client's personal details

Eligible age of client/co-borrower/guarantor

18-65 years old, provided that the borrower's age at the time of expiry of loan agreement will not have exceeded 65, otherwise a co-borrower or guarantor is required. The eligible age of co-borrower or guarantor is 18-65 provided that at the time of expiry of agreement it will not have exceeded 65.
  If involvement of a co-borrower or guarantor is a required condition under loan terms (except where co-borrowers or guarantors possess at least 70% of income included in OTI calculation), the eligible age is 18-65 provided that at the time of expiry of agreement it will not have exceeded 65.

Residency

Citizens and non-citizens of Armenia who are resident in Armenia

Terms of loan

Currency

AMD

USD

EUR

Minimum and maximum loan limit

AMD 3,000,000 - AMD 150,000,000

USD 5,000 - USD 300,000

EUR 5,000 - EUR 300,000

Term (months)

60

Nominal annual interest rate (including property insurance)¹

Fixed

Fixed

Fixed

13.5%

11.0%

8.5%

Annual percentage rate (including property insurance)

Fixed

Fixed

Fixed

14.39-15.76%

11.6-13.56%

8.86-10.71%

Term (months)

61-240

Nominal annual interest rate (including property insurance)¹

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

Fixed component 5.0% + variable component (base rate)

Fixed component 8.5% + variable component (base rate)

Fixed component 7.5% + variable component (base rate)

Annual percentage rate (including property insurance)

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

Adjustable fixed (rate can be changed starting from the 37th month)

14.37-15.74%

10.47-12.39%

8.3-10.12%

Other terms related to interest rate

If repayment schedule is differentiated or mixed, the applicable interest rate is increased by 0.5%.

If the collateral related ratios (loan-to-value ratio) differ from those approved by the internal regulations of the Bank, the applicable interest rate is increased by 0.25%.

If the creditworthiness criteria differ from those approved by the internal regulations of the Bank (any or some of the declared income related criteria, OTI and OSM), the applicable interest rate is increased by 0.25%.

If the client prefers a lending scheme without early repayment fee, the applicable interest rate is increased by 0.5% (not applicable to loans secured by cash or bonds).

Where insurance is obtained by the client, the interest rate is decreased by 0.05%.

In case of other deviations, the interest rate may be increased by 0.25%.

Loan disbursement upfront fee

N/a

Cashing of loan amount by the borrower or seller

AMD: Free
Other currency: 1%

Minimum advance payment

 At least 10% of purchase price of property

Forms of loan repayment

Repayment

Annuity (equal monthly installments consisting of a portion of loan and a portion of interest)

Differentiated (monthly repayment of equal portions of principal amount while interest accrues to outstanding loan and decreases each month)

Mixed (client may choose an individual repayment schedule based on seasonality of cash flows, provided that at least 5% of contractual loan amount is repaid each year; interest payable on monthly basis)

Security

Eligible security

1. The loan is secured by the property being purchased. The bank may consider as additional security pledge of other real estate to the reasonable satisfaction of the bank, as well as cash in Ameriabank or bonds issued by Ameriabank.
2. If the borrower wishes to purchase property under construction without registered certificate of title, the loan will be secured by other Armenia-based real estate to the reasonable satisfaction of the bank.
3. If the borrower wishes to purchase property abroad, the loan will be secured by Armenia-based real estate to the reasonable satisfaction of the bank.

Loan-to-value (LTV) ratio

Maximum loan amount is:

1. For AMD loans: up to 90% of the (i) lesser of the two: appraised market value of the property and purchase price, or (ii) value specified in the developer's** reference provided to the client, unless otherwise determined by the Bank,

2. For foreign currency loans: up to 70% of the (i) lesser of the two: appraised market value of the property and purchase price, or (ii) value specified in the developer's** reference provided to the client, unless otherwise determined by the Bank,

3. up to 100% of the value of cash in Ameriabank or bonds issued by Ameriabank.

Location of real estate to be pledged

Capital cities and regional centers of Armenia and Artsakh, as well as the towns of Abovyan, Etchmiadzin, Jrvezh, Arinj, Dzoraghbyur, Tsaghkadzor, Dilijan, Qajaran and Jermuk

Appraisal of pledge

No appraisal is required for property purchased from primary market.  Pledge value is considered the price specified in the developer's reference, unless otherwise determined by the bank.

Additional security

The bank may request guarantee of individuals and/or companies as additional security.

Insurance of pledged property

Insurance of pledged property

Insurance for pledged real estate to be obtained on an annual basis throughout loan term:
- By the bank to the extent of outstanding loan
- By the client at least to the extent of outstanding loan

Required documents

Required documents

Required documents filed together with loan application

• Loan application

• ID [original]

 • Certificate of ownership/purchase right of real estate to be purchased/pledged [copy]

• Other documents as the bank's specialist may request

Documents required after initial approval

 • Proof of employment and/or other income

 • Marriage (divorce, spouse death), birth certificate [original]

• Certificate of title to real estate to be pledged [original]

• Other documents as the bank's specialist may request

Documents required after loan approval

• Copies of bases of title to real estate (to be submitted upon request)

• IDs of owners of property to be purchased/pledged [originals]

• Copies of marriage (divorce, spouse death) certificates of owners of property to be pledged

• Statement from the State Committee of Real Estate Cadaster on encumbrance of real estate (unified statement)

• Tax clearance certificate

• Real estate insurance policy

• A proper document certifying the fact that the advance payment for the property to be acquired was paid in cash (for example, an original receipt, and in the case of payment by e-mail, a document certifying the fact that the e-payment was approved), which is not required from the Client if the payment was made at the Bank existing account/s and the Bank's specialist exported the given payment document programmatically.

• Other documents as the bank's specialist may request

Early repayment fee

At any time during a contractual year the borrower can make an early repayment to the extent of outstanding principal amount of loan for that contractual year. A contractual year is each period of 12 months following the date of execution of credit agreement.
Where the amount of early repayment exceeds the specified limit, the following fees are charged:
• Max 0.6% of early repayment, if made during the first year of agreement
• Max 0.4% of early repayment, if made during the second year of agreement
• Max 0.2% of early repayment, if made during the third year of agreement

Late payment fines and penalties

The interest rate specified in the loan agreement shall continue to be applied to overdue loans.
Fine in the amount of 0.13 % of overdue loan/interest for each day beyond terms

Other fees

Other fees payable by client

• Fee for unified statement from the State Committee of Real Estate Cadaster of the Government of the Republic of Armenia
• Fees for notarization of pledge (real estate) and filing of the bank’s security interest under pledge agreement