Conditions
Loan purpose
Residential real estate acquisition
    
Loan type
Mortgage loan
    
Loan currency 
AMD, USD , EUR
   
Loan amount
1)In case of AMD loan from AMD 1.000.000 to AMD 60 mln.
In case of USD/EUR  loan  minimum USD/EUR 2.000
Customer creditworthiness;
Securing the loan offered by the client,
Credit risk assessment;
The requirements of the regulatory framework set by the Central Bank of Armenia and international agreements.
       
 Annual interest rate
Fixed adjusted interest rate /
In case of mortgage loans in USD
Annual interest rate
Fixed interest rate for the first 36 months 9%
36 months after interest rate adjustment AIR=8+VP VP- variable component AIR- Adjusted interest rate
The minimum and maximum interest rate adjustment thresholds are set as follows: `4% at the time of loan disbursement.
Loan interest rate is adjusted (after 36 months) on the adjustment date (first business day of October) each year (once).You can find the methodology of the Fixed Adjusted Interest Rate (AIR) and the adjustment procedure by following the link https://www.aeb.am/hy/917/ Fixed interest rate for the whole loan period
In case of mortgage loans in USD and EUR:
Loan to pledge value  ratio USD EUR
Up to 50% included 10.5% 9.5%
50-90% included 11% 10%
In case of mortgage loans in AMD
Loan amount Loan to pledge value ratio Annual interest rate Annual interest rate in case of purchasing residential real estate Annual interest rate (degressive) ²՝ in case of acquiring the right of purchase
In amount of AMD 1.000.000 up to AMD 35.000.000 Up to 50% included 9.5% 9.5% 11%
50-90% included 10% 10% 11.5%
From 3,000,000 Armenian drams to 35,000,000 Armenian drams for purchasing real estate in residential buildings in RA regions or energy-efficient multi-apartment building in Yerevan within the frameworks of 4th stage of Housing Finance, Refinanced by "National Mortgage Company" RCO CJSC The mortgage interest rate can be set at 1% lower interest rate. Up to 50% included 10.5% 10.5% 12.5%
50-90% included 11% 11% 13%
 
   
Annual actual interest rate
AMD 12.44-14.74%
(Fixed interest rate) USD/EUR 10.62-15.05% 
(Fixed adjusted interest rate) USD 7.17-14.53%
 
Loan term/months/
  USD USD EUR
Fixed interest rate 120-240 120-144 120-144
Fixed adjusted interest rate - 120-240 -
 
Grant way
Cashless
   
Redemption frequency
Monthly- equally  (annuitant), or
Non-equally (differential)  
   
Security
Acquired Real Estate (if necessary other residential real estate)
   
Prepayment
In case of crediting with own resources (USD, EUR) In case of crediting with project resources (AMD)
30% 30%
0% If, in addition to the pledged residential real estate, the borrower pledges other residential real estate, and the loan amount may not exceed 70% of the total market value of the pledged real estate 10% a) if in addition to the pledged residential real estate, the borrower pledges other residential real estate, and the loan amount may not exceed 70% of the total market value of the pledged real estate; or: b) there is unpaid prepayment insurance in the amount exceeding 70% of the loan / collateral ratio.
   
 
Loan to pledge value ratio
Maximum 70% of the liquidation value of the acquired real estate .
In case of AMD mortgages, the maximum loan amount can be at least 90% of the market and acquisition value of the acquired residential property if the borrower is pledged as well as other residential property purchased real estate, in the case of collateral acquired and other residential real estate, the loan amount can not exceed 70% of the total market value of the pledged real estate or the sum exceeding 70% Advance insurance coverage.
In case of granting mortgages in US dollars / Euro for residential real estate, the maximum loan amount can be at least 100% of the market and acquisition value of the residential property acquired, except for the collateral obtained from the purchased residential house or flat the mortgager is also pledged to other residential real estate, in the case of pledging the acquired and other residential real estate, the amount of the loan can not exceed the total amount of pledged real estate Today 70% of market value  
   
Commission fee
AMD 5000 for the study of the loan application which is non- refundable. 
Account service fee per month- 0.03% of loan amount but not more than AMD 5.000 per month. In case of loans in USD, the account service fee is calculated in AMD at the average exchange rate of the Central Bank on the issuing day.  Account service fee is rounded up to hundredfold.  
   
Withdrawal fee
0.5%  
 
Real estate apprasial
Assessment is realized by any assessment organization licensed by RA legislation and cooperating with the Bank, according to the tariff determined by the latter -starting from AMD 20.000
   
Expenses related to the collateral arrangement
  All the expenses related to the arrangement of the collateral (notarization, registration of the real estate in subdivisions of Cadastral territory) are made by the borrower
Notary fee - AMD 15.000-25.000
Unified reference (on restrictions against real estate) - AMD 10.000 
Certificate on the registration of right to real estate- AMD 27.000-75.000 
 
Acquired real estate
Residential real estate (apartment, residence house) located in RA territory
     
Loan arrangement is realized
“ARMECONOMBANK” OJSC head office and branches.
The loan is presented to the competent body if the applicant credited minimum 80% of the assessed liquidation value of the real estate to the account opened with ARMECONOMBANK OJSC. The credited amount is kept in the account as long as the competent body makes a decision on the loan provision or rejection.  
   
Decision  period
Up to 20 business day (in case of  mortgage the loan is provided within 5 business days following the receipt of collateral registration right)
 
Penalties
For each overdue day a penalty in the amount of  0.13% of the outstanding  amount  is imposed  against the amounts (loan, interest, other fees) not paid within the term set forth by the agreement.  
Guarantee
  Real estate security is made by the customer at the insurance company licensed by RA CB, according to the tariff determined by the latter. The tariffs may vary from 0.16-0.18% of the loan balance. 
Insurance for accidents of the Borrower and Co-borrowers is realized by the customer (except the co-borrowers having no income) in the insurance company licensed by RA CB, according to the tariff determined by the latter.  The tariffs vary from 0.16-0.18% of the loan balance.
The annual insurance premium is calculated at the rate of 2.7% of the insurance amount (this rate applies if the client seals and reinsurance certificates with the insurance company "Sil Insurance" ICJSC, insurance against accidents of the acquired real estate and borrower / co-borrower otherwise the tariff will be set at 3%), but not less than AMD 72,000. The minimum insurance premium is valid only for the first year of insurance.  
   
Statement provision
Free of charge  
  1. These interest rates are valid in case of purchasing residential real estate from the secondary and primary market (developer). 
2. These interest rates are valid for loans provided for the purpose of acquiring the right to residential real estate from the primary market: as of today, the Bank has added 0.5 percentage points to the interest rate for the purchase of residential real estate within the framework of the relevant program.
Attention!
Changes in foreign exchange rates may have an effect on loan repayments.
The USD (1USD=523.76 AMD) and Euro (1EUR=636.84 AMD) exchange rates issued by the CBA as of 21.01.2021 are the basis for the calculation of the actual annual interest rate. The actual annual interest rate may change depending on the rate of exchange published on the CBA official website.
A Co-borrower can be one or more member of the Borrower’s family. 
Early loan repayment is allowed for which no penalties and fees are charged.
Proportionally reduces the amount of monthly payments by keeping the amount repaid in advance, leaving the loan repayment period unchanged, or
Reduces the loan repayment period, leaving the amount of monthly payments unchanged.
In case of non-fulfillment or improper fulfillment of the obligations set forth by the Mortgage agreement, the property pledged by the borrower may be confiscated.
The mortgage agreement shall be verified by notary.
The monthly commission fee may not be charged, if the annual interest rate of the loan is 0.5 percentage point higher than the set interest rate.
During the last 12 months, the total number of days for all loans / current and repayable / delinquent / delinquent loans should not exceed 30 calendar days.
Interest is calculated on the loan balance.
When applying for a loan, the Bank provides you with an individual sheet of the essential terms of the consumer loan, which sets out the individual terms of the loan to be provided to you.
"Your financial directory" is an electronic system that makes it easier for you to compare the services offered to individuals and find the most effective option for you. https://www.fininfo.am/compare-mortgage-loan
The bank provides the borrower with an offer to sign a loan agreement seven days before the loan agreement is signed.
The offer to sign a loan agreement is valid for seven working days (while considering), unless the offer provides for a longer term.
Floating nominal interest rate can be changed no more than twice a year.
To get acquainted with the tariffs of the services rendered within the implementation of loan operations please visit the link- www.aeb.am/media/2019/10/3044.pdf
Demands
Requirements to Borrower
Resident individual over 18 years
Registered and living in the Republic of Armenia
Has a constant income source acceptable by the Bank
The age of the borrower cannot exceed 65 years.
Positive decision grounds
Positive loan history (if any),
Reliability of the submitted documents,
Source of stable and sufficient income.
Availability of a pledge acceptable by the Bank
Negative decision grounds
Negative assessment of customers' financial state
Non-credibility of the presented documents
Customer’s negative loan history
Other reasons that will hamper the loan repayments according to the Bank assessment.
General Information
Documents to be presented by individuals
PunctPassport copies, as well as those of the family
PunctMarriage certificate copy(if any)
PunctStatement from the workplace (if necessary, information about the paid net salary, income, size of social payments during the last 12 months, and copies of work books).
PunctDocument containing public services number:
PunctCopy of property certificate (of the acquired apartment) if necessary, copy of the document serving as a basis for certificate provision.
PunctStatement that the present apartment is not under barrage (the original and 1 copy), to be presented after loan confirmation
PunctPassport copy of the vendor (proprietors),
PunctStatement from the residence on sale about the registered persons (3rd form)
PunctCopy of Diploma (if any).
PunctOther documents, if necessary.
Updated:
Conditions


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Updated: 31/01/2023 16:14