For the purchase. Own resources

Purpose of the loan

Acquisition of of under-construction or existing residential real estate

Loan currency

AMD

USD*

*-Loans in USD are provided exclusively/solely to physical entities who are not residents of the Republic of Armenia

Minimum loan amount

5,000,000 AMD / 10,000 USD

Maximum loan amount

125,000,000 AMD / 250,000 USD

Rocket Line

Up to AMD 10 000 000

Credit line

Up to 5% of the mortgage loan, not more than AMD 5,000,000

The credit line can be provided through cards types specified by information summary for VISA travel, Idram Rocket and Credit Lines

Minimum loan term

120 months

Maximum loan term

240 months

Nominal annual interest rate

Fixed interest rate: For the first 36 months, Floating interest rate: from 37th up to 240 months

AMD` 12%-14.5% , IBRR + [2.7%-5.2%]

USD` 9%-11.5%, IBRR + [5.1%-7.6%]

Effective annual interest rate

AMD 12.69% - 15.98% / USD 9.39% - 12.85%

Minimum prepayment

Starting from 0% prepayment

Security (pledge)

Real estate property being acquired/right of pledge, if the loan/collateral ratio amounts to up to 90%. In case if the loan/collateral ration exceeds 90%: Real estate property being acquired/right of pledge 2. Other real estate property.

Maximum loan/collateral ratio

90%

Loan disbursement method

One-time non-cash through current account

Method of loan and interest repayment

1. Annuity repayment method - Equal monthly repayments of the sum of loan principal and interest amount

2. Differentiated repayment method equal monthly repayments of loan principal, repayments of interest amount on a monthly basis in case of change of the annual nominal interest rate during the loan period, the method of repayment of the loan and interest amounts can be changed

Loan application revision fee

Not specified

One-time loan disbursement fee

Not specified

Bank account opening

Bank account is opened both for the borrower and the co-borrower in the loan currency according to the tariffs applied in the Bank.

If the loan currency is other than AMD, an account in AMD shall also be opened.

Fees for pledge registration

Implemented by the employee: 1. Pledge assessment fee. 2. Fee for unified reference on restrictions on the subject of pledge 3. Notarization fee for the real estate that is the subject of collateral 4. Fee for registration of the Bank?s right arising from the pledge agreement in the competent state body. * In case of acquisition of residential real estate property from the primary market, the pledge assessment fee will be covered by the Bank.

Commission for encashment of loan amount and prepayment

Not specified

Pledger

In case of real estate property being acquired - the borrower and/or coborrower,

In case of other real estate property (other pledge) - any other physical or legal entity.

Mortgage loans are subject to refinancing by NMC through which the borrowers and co-borrowers who become the owners of real estate are members of the same family.

Relations between the borrower/coborrower and seller of the real estate property

The real estate property cannot be acquired from the physical entity who is the family member of the borrower/coborrower, particularly borrower/coborrower?s father, mother, spouse, spouse?s parent, grandmother, grandfather, sister, brother, child, spouse and child of the sister, brother.

Status of the borrower/coborrower

Physical entity

Age restriction

Borrower - physical entity over 21 years old whose age must not exceed 65 years by the loan maturity. Coborrower - a physical entity over 21 years old whose age must not exceed 65 years at the moment of loan disbursement (the age restriction requirement shall not be applied if based on the information submitted in the application form the financial state of the borrower (other coborrowers) is enough to repay the loan without the given coborrower (coborrowers).

General principle of borrower/coborrower?s creditworthiness assessment

Maximum total debt to income ratio (OTI) must not exceed: Up to 60%

Incomes of the borrower/coborrower

1) Composition of primary incomes - according to Appendix 1. 2) Composition of secondary incomes - according to Appendix 1

Requirements to the borrower?s/coborrower?s credit history

1. Absence of credit history or 2. Absence of overdue liabilities towards the financial-banking system as of the date of acceptance of the loan application (in terms of loans, credit lines, overdrafts, provided guarantee etc.), and 3. Less than 30 total overdue days in terms of loan principal amount and/or interest repayments in terms of loans (credit line, overdraft, guarantee etc.) received within the 12 months preceding the loan application submission date.

Loan rejection factors

1. Non-compliance with the conditions of the loan type

2. Adverse credit history of the client

3. Adverse credit history of the person affiliated with the client

4. Insufficient income

5. Insufficient level of creditworthiness

6. Insufficient level of collateral liquidity from the bank's perspective

7. An undesirable client for the bank

8. Provision of false or unreliable information

9. Availability of information casting doubt on loan repayment

10. Lack of a client email address

11. Other reasons

FINES, PENALTIES

Penalty for overdue principal amount - 0.1% daily. Penalty for overdue interest amount - 0.1% daily. In case of early loan repayment: - 0.6% of early repaid amount for the 1st year of the loan agreement, - 0.4% of early repaid amount for the 2nd year of the loan agreement, - 0.2% of early repaid amount for the 3rd year of the loan agreement, - No early repayment penalty is charged after the 3rd year of the loan agreement. No early repayment penalty is charged for the amount which does not exceed the aggregate sum of principal amount repayments provided by the repayment schedule for the 12 months following the early repayment. In case of non-targeted use of the loan the Bank is entitled to demand: 1) early repayment of the whole loan amount, 2) penalty in the amount of 25% of the misused loan amount, 3) revision of loan interest rate according to the competent body if the Bank.

Insurance

Performed by the Bank. Presented in Appendix 2

Requirements to the subject of pledge

Presented in Appendix 3

Place of acceptance of the application and documents

All branches of the Bank

Loan decision making and notification of the client

Up to 3 business days after submission of a complete package of documents required by the Bank

Loan disbursement term

Maximum 3 business days after submission of complete package of documents and registration of the right of pledge after the decision has been made

Validity of the loan decision

30 business days

The validity period of the decision on the provision of the credit line and the Rocket Line limit provided in parallel with the mortgage loan is set 30 business days, and in other cases, the time period set by the information summaries for credit line and the Rocket Line loan shall apply.

Within three months after the expiration of the validity of the approved loan decision, the decision on granting the loan can be reconfirmed without submitting an additional application, if the credit histories and incomes of the borrower (co-borrower) and family members have not undergone significant changes.

*If necessary, the Bank may request to update the income supporting documents.

Other requirements (applied only within the scope of the Affordable Housing for Young Families program)

1. the sum of the total monthly net income of the spouses and possible coborrowers must not exceed AMD 800,000, 2. spouses must not be owners of other residential real estate property (residential house or apartment) unless the share of territory per each person registered in the given apartment/residential house is less than 18 sq./m., 3. the real estate property must be acquired for the purpose of permanent residence, 4. The acquisition price, in case of acquisition from the secondary market, should be less than AMD 25 million, while the estimated market price should not exceed AMD 26 million, and in the case of acquisition from the primary market (directly from the developer) the acquisition price should be less than AMD 30 million, while the estimated market price should not exceed AMD 31 million.

Chief loan agreement

The Bank concludes a chief loan agreement with the client for a term of up to 240 months and in the amount of up to 100% of the market price of the real estate property.

Loan application revision fee

Not specified

One-time loan disbursement fee

Not specified

Pledge related costs

The pledge related costs incurred by the Bank for loans amounting to AMD 15,000,000 and more are as follows: - collateral appraisal fee (no appraisal is required if the given property is already pledged in the Bank and has been appraised within 12 months preceding the submission of the loan application, or 6 months preceding the submission of the loan application in case if the property is pledged in other banks/credit organizations, by appraisal companies cooperating with the Bank), - Fee for the unified reference provided by the state cadaster committee under the RA Government*, - Notarization fee for the real estate that is the subject of collateral - Fee for registration of the Bank?s right arising from the pledge agreement in the competent state body. *in case if the fees for the unified reference provided by the state cadaster committee under the RA Government and for registration of the Bank?s right arising from the pledge agreement in the competent state body are made through the ARPIS program applied in the Bank, no reference fee shall be charged. In case if the costs are incurred by the Bank the borrower shall reimburse to the Bank the costs incurred by the latter mentioned in this provision in case if the borrower completely repays the loan ahead of time within 24 months following the transfer.

List of documents to be submitted by the client

according to Appendix 4

Information regarding credit history and credit score

You can learn about the importance of credit history and credit score here?

Details via abcfinance.am and acra.am links.