Floating interest mortgage loans for property acquisition purposes

Floating Interest Mortgage Loans

Looking for a new apartment? Financial issues are not a hindrance! At Inecobank we offer you floating interest based mortgage loans with attractive terms.

Acquisition
Personal resources
Loan Amount
3 000 000 - 80 000 000
Interest Type
Floating
Annual nominal interest rate*
AMD
Unchanged first three years 13.5%, then floating

For the customers connected to the "Current" tariff plan of the bank account, who will receive their monthly salary through the accounts opened in the Bank

 Through the accounts opened in the Bank:
  • for property acquistion: fixed 13% for the first 3 years, then floating

USD

Fixed for the first 3 years-10,5%, then floating

For the customers who have joined the bank account "Current" tariff plan, and who will receive their monthly salary



Through the accounts opened in the Bank

  • For property acquisition: fixed for the first 3 years- 10%, then floating

*In case there is an insurance requirement for real estate to be acquired or repaired and/or accident insurance requirement for the borrower and co-borrowers (if any), insurance may be provided by the Bank upon the customer's consent, in which case the annual nominal interest rate of the loan is increased by 0.17 percentage points for each type of insurance.

The Bank ensures the fulfillment of insurance during the entire term of the agreement, except for the first year of the loan term, which is provided by the customer.



Annual percentage rate
  • AMD:  13.95%-18.71%
  • USD:  10.55%-15.55%

THE AVERAGE EXCHANGE RATE PUBLISHED BY THE CBA OF RA ON 25/02/2022 WAS TAKEN AS THE BASIS FOR CALCULATING THE ANNUAL ACTUAL INTEREST RATE OF MORTGAGE LOANS IN USD. THE ANNUAL ACTUAL INTEREST RATE MAY CHANGE DEPENDING ON THE CHANGE IN THE AMOUNT OF THE EXCHANGE RATE PUBLISHED ON THE OFFICIAL WEBSITE OF THE CBA OF RA.
Regardless of the amount of the specified fixed interest rate, it cannot be less than the 6-month USD LIBOR rate available as of the moment plus 6 percentage points.

IN THE CASE OF A FLOATING INTEREST RATE, THE ANNUAL NOMINAL INTEREST RATE OF THE LOAN IS REVISED BY THE BANK AT LEAST 2 TIMES A YEAR. THE MAXIMUM THRESHOLD FOR INCREASING/DECREASING THE ANNUAL NOMINAL INTEREST RATE IS DETERMINED FOR LOANS IN AMD +/- 1.5 PERCENTAGE POINTS, FOR LOANS IN USD +/- 1 PERCENTAGE POINT

Loan maturity period
  • minimum 36 months
  • maximum 360 months
Pledge
For acquisition and construction:
AMD - 80%


USD-70%

In case of renovation: 60%
In case of acquisition, the minimum of the market and purchase values shall be taken as the collateral value. In case of additional mortgaged real estate, the market value of the property is accepted as the collateral value.
Prepayment amount
  • at least 20%, or  
  • 0%, if another property is pledged, along with the acquired one
Amounts payable for lending to the Bank
1. Account opening fee
According to the tariff plan of the relevant bank account

2․Cash withdrawal commission in case of AMD loans:
      •  Withdrawal fee:       0%
      • Loan amount։          in case of acquistion` 0%
      •                                          in case of reperation and construction accordind to the tariff plan of the relevant bank                                                        account

In case of USD loans:
  • Prepayment amount: 0%
  • Loan amount: 3%

3․ Account service additional one-off fee (is charged at the time of loan disbursement)
  • 0.5% of the loan amount, but not less than AMD 60 000
Insurance
Insurance of the property  and insurance against accidents may be required, in the amount equal to the loan balance. 
Guarantee
A guarantee of a family member, physical or legal entity may be required. 

IF THE BORROWER FAILS TO FULFILL ITS OBLIGATIONS, THE GUARANTOR UNDERTAKES TO PAY INSTEAD OF THE BORROWER, AS WELL AS THE GUARANTOR'S CREDIT HISTORY WILL GET WORSE AND THE GUARANTOR MAY LOSE HIS/HER OWN PROPERTY.
Loan provision method
One time or in tranches; non-cash
Repayment method
  • monthly principal is repaid in equal installments

  • monthly equal repayments (annuity)

Repayment of overdue liabilities

For each delayed day, a 0.13%  

  penalty is applied on the overdue amount.

Early repayment fee

  • Mortgage loans provided within the RA Law on Housing Mortgage Lending can be repaid early (in whole or in part) at any time, in which case no penalty is applied for the early repaid amount.
  • In case of mortgage loans provided outside the scope of the RA Law on Housing Mortgage Lending (for commercial/public/industrial and other type of real estate), a penalty of up to 5% of the early repaid amount may be applied.
Deadline of making the loan provision decision and notifying the customer 
2 - 5 business days
Deadline of loan provision 

7 - 10 business days
Commission for loan terms revision
20,000 AMD
ATTENTION:
Loan interest rate is calculated based on the nominal interest rate, whereas the annual percentage rate indicates how much the loan  would cost in case of repayment of interest amount and other payments under the defined timeline and terms. For more information please refer to the "Annual Interest Rate Calculation Guide". 

Updated as of 04.04.2024 11:37