Considering the unstable political situation and the fact that our compatriots have some concerns especially about buying an apartment and having loan obligations, today we will talk to Arthur Kocharyan, the head of Sales division of IDBank.
-The main question that we hear from those who want to purchase an apartment, is how can we be sure that the projects will be implemented and we will not have unfinished buildings and loss of money, as there are many cases when the buyers wait for their apartments for years?
Of course, it would not be right to deny that there are such risks, but they are manageable. Let me explain how: the entire amount of the provided mortgage loan is frozen in a special account opened in our Bank in accordance with the law, prior to receiving the final act of the building and issuing the final ownership certificate of the apartment to the buyer. This means that if the developer does not build the building on time or builds it with violations, and the buyer does not receive a 100% completion certificate, then the mortgage borrower has the right to repay the frozen amount in full repayment of the loan and take back the rest, thus having no other obligation to the bank.
I think the option of freezing mortgage loans by 100% is the most important factor that the client should pay attention to when buying an apartment. This insures him against the main risk and in case the construction works are not completed on time, he does not have to repay the mortgage loan, in fact not receiving an apartment in return. Moreover, it is important that the amount be frozen by 100%, so that in case the developer does not comply with the provisions stipulated in the contract, the buyer will be able to repay his entire loan.
-That’s a good solution, I’d say it’s perfect. But will there be developers in the Armenian market who will agree to sell the apartment on the condition of receiving the money after completion?
We prefer that developers. They construct the buildings by their means, at their risk, and not the buyers. This also speaks about the responsibility of the developer: in general, if the developer is ready to work under this condition, then the probability that he will not finish the building or resort to fraud is close to zero. Anyway, if we consider the risk of the business and many other factors that can lead to that worst result, the buyer in this case, as I have already mentioned, does not lose the loan amount, he just repays his loan.
By the way, there is a tendency of buyers to be careful, to spend their funds more wisely, and the developers adapting to the market to ensure the continuity of their business, are happy to cooperate with us even on the condition of freezing money. If we pay attention, we can see that the list of developers cooperating with us is constantly replenished. IDBank offers its borrowers apartments in the best new buildings in the city: this is also a very important condition when buying real estate.
-Interest rates have recently risen in the mortgage market. Is there such a tendency in IDBank?
The tendency in IDBank is the opposite - it is decreasing (smiling, - ed.). When purchasing apartments from some developers, a very low interest rate operates in the Bank for certain terms, starting from 4,99% annually in AMD. This is an unprecedented interest rate in the Armenian market. Besides, we have privileged mortgage conditions with different developers, and for those who purchase from the secondary market we have lowered the interest rates. To tell more, the purchasers who get their salaries in our Bank, will get more profitable conditions. Moreover, IDBank now offers salary packages - IDsalary and IDsalary+ that everyone can join, regardless of which bank his employer works with. These are individual packages, in the frames of which the client gets a number of advantages for using IDBank services.
In addition, we also have package offers, in the frames of which a lower interest rate is applied, Rocket Line limit is provided to the customer in the amount of 10% of the loan amount and a credit line in the amount of 5% of the credit, as well as a more profitable interest rate for the saving account. Thus, our offers are flexible, adapted to the customer's requirements and wishes.
-When purchasing an apartment, the down payment amount is also important to the buyers, especially when there is a tendency of rising of the down payment in the market.
This tendency is conditioned by the events taking place in our country and in the world in 2020. Mortgage down payments have risen in the market since the outbreak of the war due to some risks, but to the delight of IDBank customers, the same conditions continue to apply in our bank - down payment starting from 10%, in case of a second pledge - 0%. This is a part of IDBank’s policy of not creating additional problems for its clients and even to solve some problems. Due to its flexibility, the Bank considers all mortgage applications separately and if there is a small opportunity, the credit terms are approved in favor of the client. We try to offer our clients convenient and profitable conditions, making the process of buying an apartment as easy as possible. This refers to the paperwork, the drafting process, etc.
-Our last question is about the process of provision: how much time does it take from the client.
The process is as simple as possible, we accept applications and consult not only in the branches: we have launched a new service now. In Yerevan, many of our citizens are unable to visit branches due to workload, traffic jams and lack of parking lots, and as the mortgage loan requires consultation, our clients can contact the Bank and our staff will visit the client's apartment or workplace to take the mortgage loan application and other documents. The next process is also carried out considering the customer's occupation, convenience, etc.