Young Family Mortgage Loans

Young Family Mortgage Loans

Are you a young family and are looking for mortgage loans to acquire a real estate in the regions of Armenia? At Inecobank, within the framework of "Mortgage Loans for Young Families" program, we provide mortgage loans for purchase of residential real estate.

Acquisition
Young Family


Primary market
Secondary market
Borrower's description
Project beneficiaries may be:
Individuals who have RA citizenship or who do not have RA citizenship, but one of the spouses is an RA citizen, including: 
  • Young families, where the aggregate age of the couple does not exceed 70
  • Single parent, whose age does not exceed 35 (included). 
Loan amount
up to 27 750 000 ֏
up to 22 500 000 ֏
Maximum value of the acquired real estate
  • 25,000,000 AMD in case of acquisition from the secondary market (not immediately from the developer) (at the same time, the estimated market and cadastral values of the property cannot exceed 26,000,000 AMD)
  • 30,000,000 AMD in case of acquisition from the primary market (immediately from the developer) (at the same time, the estimated market and cadastral values of the property cannot exceed 31,000,000 AMD)
Interest type 
Fixed
Annual nominal interest rate
7.5%
3.8 - 4.3%

* Accident insurance of the acquired real estate and borrower and co-borrowers (if any) can be provided by the Bank with the consent of the customer, in which case the annual nominal interest rate of the loan is increased by 0․34 percentage points.

In case of mortgage loans provided on condition of prepayment insurance:
  • In case of loans for acquisition of real estate from the secondary market, the Bank shall provide personal accident insurance of the borrower and co-borrowers (if any), as well as the insurance of the unpaid part of the prepayment, in case of which the annual nominal interest rate of the loan increases by 0.5 percentage point, and
  • In case of loans for acquisition of real estate from the primary market (immediately from the developer), the Bank shall provide the insurance of the unpaid part of the prepayment, in case of which an additional one-time account service fee of 0.15% of the contract amount of loan is defined.

The Bank shall ensure the implementation of the above-mentioned insurances during the whole validity term of the contract, except for the first year of the loan term, which is provided by the customer.
Annual percentage rate
8.3%-10.01%
4.38%-7.16%
Loan maturity period
- minimum 120 months
- maximum 144 months
Down payment amount
at least 20%
at least 30%

The prepayment may be(Primary market):

  • 7.5% in case of acquiring property/right of purchase from the primary market (directly from the developer), if apart from the property pledged/right of purchase other residential property is also pledged
  • 10 % in case of acquiring property/right of purchase from the primary market (directly from the developer), if apart from the acquired property pledged/right of purchase when submitting a mortgage loan application a guarantee of a legal entity included in the 1-300 places of the RA major taxpayers is also provided
  • 10% for acquisition of real estate/right to purchase from the primary market (immediately from the developer) and 10% for acquisition of real estate from the secondary market, if the mortgage loan is provided on condition of prepayment insurance. Moreover, for acquisition from the secondary market, the insurance will be in the amount of the difference of 30% of the real estate value and a minimum of 10% prepayment made by the borrower, and for acquisition from the primary market (immediately from the developer), in the amount of the difference of 20% of the real estate value and a minimum of 10% prepayment made by the borrower.

The prepayment may be(Secondary market):

  • 10% for acquisition of real estate from the secondary market, if in addition to the collateral of the acquired real estate/right to purchase, other residential real estate is also pledged
  • 10% for acquisition of real estate from the secondary market, if in addition to the collateral of the acquired real estate/right to purchase, at the time of the loan application submission, a guarantee of a legal entity included in the list of major taxpayers of the Republic of Armenia occupying positions 1-300 is also provided
  • 10% for acquisition of real estate/right to purchase from the primary market (immediately from the developer) and 10% for acquisition of real estate from the secondary market, if the mortgage loan is provided on condition of prepayment insurance. Moreover, for acquisition from the secondary market, the insurance will be in the amount of the difference of 30 % of the real estate value and a minimum of 10% prepayment made by the borrower, and for acquisition from the primary market (immediately from the developer), in the amount of the difference of 20% of the real estate value and a minimum of 10% prepayment made by the borrower.

Pledge
LTV is 80%
LTV is 70%

*When calculating LTV ratio, the minimum of the market and purchase values of the property is taken as a basis, and in case of real estate pledged as an additional collateral - the  market value of the property.

Account service additional one-off fee
0.5% of the loan amount, but not less than AMD 60 000
Loan withdrawal fee
0%
Security/Collateral
  • Acquired real estate, other residential real estate
  • Acquired right to purchase
Insurance
  • Acquired real estate insurance - in the amount of the loan balance
  • Accident insurance of the borrower and co-borrowers (if any) in the amount of the loan balance 
  • Prepayment insurance in the amount of the balance of the unpaid part of the prepayment (for loans provided on condition of prepayment insurance). The amount of the unpaid prepayment may be in the amount of the difference of maximum 30% of the residential real estate value and minimum 10% of the prepayment made by the borrower for acquisition from the secondary market, and in the amount of the difference of 20% of the residential real estate value and minimum 10% of the prepayment made by the borrower for acquisition from the primary market.
Guarantees
A guarantee of a family member, physical or legal entity
Loan provision method
Non-cash
Loan repayment method
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
Not applied
Deadline of making the loan provision decision and notifying the customer
2-5 business days
Loan provision duration

10 business days

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