Mortgage Loans: FAQ 

 

Question 1: Can I get a mortgage loan to purchase an apartment in a new building without an ownership certificate?

Answer: In this case you can get a mortgage loan by pledging other property acceptable for the Bank.

Question 2: Is it necessary to make the down payment for mortgage loan through the Bank?

Answer: The buyer can make the down payment to the seller in any way. Bank’s participation in this process is not required.

Question 3: If a mortgage loan is issued in foreign currency, for instance, in US dollars, can I (the buyer) make the payment to the seller in the same currency?

Answer: Notaries require that transactions in the Republic of Armenia are executed in Armenian drams. The loan is provided to the client in foreign currency, then converted to Armenian drams and transferred to the seller, the purpose of payment specified in the details field. The Bank defines favorable rates for those sellers who wish to convert the amount into foreign currency.

Question 4: What additional documents are required to get a renovation loan?

Answer: For a renovation loan you should provide cost estimates for repairs.

Question 5: Can I let the apartment purchased by a loan?

AnswerYes, according to the Bank’s Retail Lending Terms, you can get a mortgage loan and use it to purchase real estate for residential, lease or investment purposes. The Bank will only require that the tenant acknowledges the Bank’s lawful rights to the property.

Question 6: Should I notify the Bank about my intention to renovate or reconstruct the pledged property?

Answer: You are not required to notify the Bank about your intention to renovate the pledged property, but if you are planning to reconstruct it, the Bank’s prior consent is required.

Question 7: Is it true that until full repayment of the loan the pledged apartment is considered the Bank’s property?

Answer: No, it isn’t so. You are the owner of the real estate, but remember that until fully repaid the loan is secured against the pledged real estate. When you fulfil your liabilities under the loan agreement, you can request the Bank to terminate the security interest and release the property from lien.

Question 8: Is it true that if the client fails to repay the loan, the apartment becomes the Bank’s property?

Answer: Normally, this does not happen. If the client fails to meet their credit liabilities, the apartment is sold and the proceeds are used firstly for repaying the outstanding loan and other charges. The remaining part of the amount is then returned to the client.
Updated 09.08.2017, 11:20

Services offered by the Bank

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HEAD OFFICE

2 Vazgen Sargsyan Street, Yerevan 0010,RA

Tel.: +37410 56 11 11

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+1 888 802 5352

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+448000903191

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