Real estate loan for secondary market | Ameriabank
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Real estate loan for secondary market


With us, your new home is a step closer. If you have already found your ideal home on the secondary market and are looking for financing options, our offer is for you. You can obtain financing directly from us or transfer your house loan from another bank or credit organization to Ameriabank.

ADVANTAGES


Property insurance by the Bank

No loan service fees 

Purchase of real estate for living or lease

Both in Yerevan and regions

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Home Purchase Loan (secondary market)   

 

 Purpose

Purpose

(i) Purchase of residential property 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 the loan agreement will not have exceeded 65, otherwise a co-borrower or guarantor is required. The eligible age of the co-borrower or guarantor is 18-65 provided that at the time of expiry of the 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

For loans in AMD: citizens and non-citizens of Armenia who are resident in Armenia
For loans in foreign currency: non-resident individuals

 

Loan terms

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, property insurance included**

Fixed

Fixed

Fixed

 

14.0%

11.5%

9.0%

 

Annual percentage rate***, property insurance included

Fixed

Fixed

Fixed

 

14.97-17.21%

12.17-15.39%

9.42-12.45%

 

Term (months)

 61-240

 

Nominal annual interest rate, property insurance included**

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 5.5% + variable component (base rate)

Fixed component 9.0% + variable component (base rate)

Fixed component 8% + variable component (base rate)

 

Annual percentage rate***, property insurance included

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)

 

14.94-17.17%

11.03-14.18%

8.85-11.84%

 

Other terms related to the 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) deviate from those approved by the internal regulations of the Bank, the applicable interest rate is increased by 0.25%.

 

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

 

If the client prefers a lending option without the 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 applicable interest rate may be increased by 0.25%.

 

Lump sum disbursement fee

N/a

 

Cashing of loan amount by the borrower or seller


AMD: Free
Other currency: 0.5 % 

 

Minimum down payment

At least 5% of the appraised market value of the 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 collateral


1. The loan is secured by the real estate 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: 80%** (if in Yerevan) and 70% (if in the regions of Armenia) of the lower of the two: appraised market value or purchase price of pledged property,
2. For foreign currency loans: 70%** (if in Yerevan) and 60% (if in the regions of Armenia) of the lower of the two: appraised market value or purchase price of pledged property,
3. up to 100% of the value of cash in Ameriabank or bonds issued by Ameriabank.

 

Location of real estate to be pledged

Yerevan, regional centers of Armenia, towns where Ameriabank has branches, as well as Jrvezh, Arinj, Dzoraghbyur, Kasakh, Tsaghkadzor, Masis and Yeghvard

 

Appraisal of the collateral

Pledged property to be appraised by an appraising partner of the Bank.

 

Additional security

The Bank may request guarantees of individuals and/or companies as additional security.

 

Insurance of the collateral

Insurance of the collateral

The insurance of the pledged real estate is to be obtained only if the market value of the property is above AMD 100 million or the real estate being pledged is an apartment in Yerevan.
Insurance for pledged real estate to be obtained on an annual basis throughout the loan term:
- If by the Bank: to the extent of outstanding loan
- If by the client: at least to the extent of outstanding loan

 

Required documents

Required documents

Required documents filed together with the loan application

 

• Loan application

 

• ID [original]

 

 • Certificate of ownership of property 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)

 

• Geodetic measurement report of land plot to be pledged*****

 

• Initial real estate appraisal report

 

• 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)

 

• Real estate appraisal report (final)

 

• Tax clearance certificate for the real estate

 

• Documentary proof that the down payment was made in a non-cash manner (e.g.: original receipt, or, if paid electronically, a document showing that the electronic payment was confirmed). Such proof is not required if the payment was made from the accounts held with the Bank and the Bank specialist has exported the payment document from the system.

 

• Other documents as the bank's specialist may request

 

Early repayment fee

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

Late payment fines and penalties

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

 

Other fees

Other fees payable by the 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

 

1These terms have been previously known as Retail Lending Terms and Conditions under code 11RBD PL 72-03-01. Some of the Bank documents may contain references to these terms and conditions under the former name and code.

 

**Depending on the creditworthiness of the borrower, term of loan and LTV ratio, a higher or lower interest rate can be applied.

 

***The annual percentage rate (APR) may differ from the above specified values if there is any or a few of the following factors:
- When the property insurance is obtained by the Bank at the customer’s request
- When the borrower selects differentiated or mixed form of loan repayment
- If there are deviations from the creditworthiness criteria approved under the internal regulations of the Bank
- If additional property is pledged as collateral
- If there are other deviations

 

****Attention. The adjustable nominal interest rate may be revised no more than twice a year. Furthermore, depending on the change of the adjustable nominal interest rate, the threshold above or below which the nominal rate cannot change is ±4%.

 

*****Geodetic measurement is required for any land other than fenced plots or grounds attached to house, if:
- Client has applied for a loan above AMD 50 million, and
- Share of credit limit to be secured by such land plot exceeds 30% of total available credit limit. For the purposes of this document total available credit limit means the sum of all loan proceeds made available to client by decision of the bank’s authorized body within acceptable LTV ratio and subject to disbursement at the given moment.

 

 

Purpose

(AMD)

Modification of loan terms and conditions

15,000

Change of real estate pledge (including change of pledge owner)

10,000

Change of vehicle pledge (including change of pledge owner )

5,000

Provision of pledge-related consent/permissions/references

5,000 (VAT inclusive)

Change of due date

5,000

 

These fees apply if changes are initiated by the client. Where several fees are payable due to a single change, only the highest of them shall be charged for one time. These fees do not apply to loans secured by cash, bonds and metal accounts. Where a new collateral or guarantor is added due to the change of pledge, the fee is not charged.

The real estate should be appraised by an appraisal company cooperating with the bank. The company is selected by the client from the offered list. Appraisal fee: AMD 13,000-30,000 depending on the property. On a case-by-case basis, the fee for appraisal of major items of property may be negotiable. The list of appraisal companies cooperating with the Bank may be found at the link below.

Insurance for the pledged property to be obtained on an annual basis throughout the loan term:

  • By the bank to the extent of outstanding loan 
  • By the client at least to the extent of outstanding loan

The Bank doesn’t obtain insurance for the following vehicles:

  • Vehicles transporting hazardous materials (toxic substances, chemicals, radioactive and explosive materials) 
  • Vehicles to be used in races, test drives; vehicles which have three wheels, snow removers, motorcycles, special purpose vehicles
  • Taxis and rental cars

Insurance Companies Cooperating with Ameriabank and Related Fees

The client will pay for the following services:

  • Notary fee: AMD 14,000-16,000 lump-sum (in case of vehicles)
  • Notary fee: AMD 13,000-18,000 lump-sum (in case of real estate)
  • Fee for unified statement from the State Real Estate Cadaster on encumbrance of the property: AMD 10,000
  • Fee for registration of security interest in the real estate: AMD 26,000
  • Certificate of the right to purchase real estate and registration of the security interest: AMD 3,000 and AMD 50,000
  • Certificate of acquisition of the title to the real estate and registration of the security interest: AMD 21,000 and AMD 50,000
  • Certificate of acquisition of the title to the commercial real estate and registration of the security interest: AMD 41,000 (if the area of the premises to be purchased and pledged is above 200 sq. m) and AMD 50,000
  • Fee of the Police of the Republic of Armenia (for lien and pledge of movable property): AMD 5,000 lump sum

Required documents filed together with loan application

  • Loan application
  • ID [original]
  • Certificate of ownership of property to be purchased/pledged [copy]
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]
  • Geodetic measurement report of land plot to be pledged**
  • Initial real estate appraisal report
  • Construction costs estimate
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)
  • Real estate appraisal report (final)
  • Other documents as the bank's specialist may request

    Depending on various circumstances, the bank may request other documents and information. Where required under the Republic of Armenia Law “On Combating Money Laundering and Terrorism Financing”, we may request you to provide additional information and documents to conduct “Know your customer” check, as well as ask further questions during verbal communication.

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