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CONTACT USMortgage Loans for Young Families
- Loan purpose: Financing the acquisition of a residential property (an apartment or a house, the purchase price and the appraised value of which does not exceed AMD 25,000,000 and AMD 26,000,000 respectively).
- Borrower status: Young family member who is a resident and a citizen of RA.
- Young family: A married couple whose ages sum to maximum 65 and one of the spouses is less then 30 (including) years of age and the other is less than 35 (including) years of age, or a single parent less than 35 (including) years of age.
- Loan amount: Up to 70% of the property value but not more than AMD 17,500,000.
- Interest Rate: Starting from 9% per annum. The Government subsidizes 2% of the annum
- interest rate (e.g. in case of 9% loan interest rate, the Government subsidizes 2% and thus the borrower pays 7% to the company in Yerevan).In case of regions 9% loan interest rate, the Government subsidizes 4% and thus the borrower pays 5%
- At any time during the life of the loan, if any information presented by the borrower is discovered to be false, or if the borrower uses the loan proceeds for purposes other than for acquisition of a property to live in, or if the borrower does not make regular payments (three consecutive payments), the subsidy will be terminated. In case of subsidy termination the loan interest rate will increase to 14% per annum
- Loan term: 10-20 years.
- Sufficient and stable income.
- Collateral/Security: Pledge of a residential property.
- Income: Sufficient and stable income.
- Insurance: Personal accident and property insurance coverage is required.
- Closing Fee: 1% closing fee is charged from originated loan amount but not less than 75,000 dram.
- Prepayment Penalty: Full or partial loan prepayments are permitted during the 1st and 2nd years of loan servicing, subject to 1% penalty of the amount prepaid. No prepayment penalty will be imposed effective from the 3rd year of the loan servicing
- Default Payment Rates: The Borrower shall pay a late payment fine equal to 2% of the amount due per day when the Borrower defaults on any consecutive loan and/or interest payments .
