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Energy efficient mortgage loans

Energy efficient mortgage loans

The borrower/co-borrower shall be a citizen of the Republic of Armenia (with registration address in the Republic of Armenia), whose principle source of income is located in the RA.

1. Loans for energy efficient renovation of a residential house/apartment

Loan purpose

 

For energy efficient improvement of the house/apartment conditions. Minimum 40% of the loan amount shall be used for energy efficient improvement of the house/apartment and substitution of old home appliances (purchase of new ones) (the expenses that aren't directly related to energy efficiency, but are close to it, can be included in the calculation of energy efficiency increasing costs for up to 15% of the total loan amount). The specified amount cannot be used only for purchase of home appliances.
Energy efficient improvement includes substitution of old windows, entrance door, and heating system with new ones, thermal insulation of external walls, the roof, and the floor (if the premise on the lower floor isn’t inhabited), installation of solar water heaters and solar photovoltaic panels – electricity generation devices.
The list of the home appliances, which can be substituted (purchased) with the loan funds includes a refrigerator, washing machine (including dish washing machine), boiler, air conditioner, and led lamps meeting the high criteria of energy saving.

 

Currency AMD
Maturity Minimum 5 years, maximum 20 years
Interest rate 11%
Loan amount

Minimum amount - AMD 5 mln.

Maximum amount AMD 25 mln.

 

Loan disbursement fee , is charged once, before disbursement of the loan
0.5 percent of the loan amount, minimum AMD 50,000

Monthly service fee

Isn’t applied
Fee for review of the loan application AMD 3,000, is charged once, at the time of recording the loan application

General provisions and conditions

Security
Pledge of the renovated house/apartment

Loan-to-value (LTV) ratio
Not more than 70% of the evaluated market value of the collateral.

Procedure of repayment of the loan and interest amount

Is repaid monthly, in one of the following manners:

  • Annuity (equal monthly repayment), including variable portions of the principal amount and accrued interest;
  • Spring-like (variable monthly repayment), where repayment of the principal amount is made in equal portions, and the accrued interest – in variable portions.

Obligations to income (OTI)
Up to 45%

Creditworthiness assessment
According to the MQS requirements in force.

Collateral evaluation
By an independent appraiser, according to the requirements set by the NMC.

Geography
Only Yerevan city

Data about the credit history

  • Inquiry to ACRA credit bureau
  • If the borrower has an outstanding loans/s/, then the latter shall be classified as a standard loan, according to the regulation jointly approved by the CBA and the MFE of the RA, and there shall be no outstanding overdue liabilities for the loan/s/
  • during the last twelve months, the total number of overdue days for all loans /outstanding and repaid/ shall not exceed 30 calendar days

Penalty

In case of violation of the repayment terms specified by the agreement, the Borrower pays penalty to the Bank at the rate of 0.13% of the overdue amount for each day of delay.

Insurance

Insurance (proportionate to income) of the collateral, as well as the borrower and co-borrowers from death through an accident, is made every year, for the balance amount of the loan.

Other provisions
A renovation loan can be disbursed in Yerevan only if it is energy efficient.

Other requirements

  • Such mortgage loans for purchase of real estate shall be presented, in case of which:

- the seller and buyer are not members of the same family (according to the RA Law “On Banks and Banking”);
- the requirements of the legislation on prevention of money laundering and terrorism financing are observed;
-target usage of the loan shall be ensured throughout the maturity of the loan;
- construction and renovation works shall be fully completed 1 year after disbursement of the last tranche of the loan;
- the photographs of the property under construction/renovation shall be submitted, both before construction/renovation and after disbursement of each tranche (to get a full view).

  • The remaining requirements - according to the NMC’s "Regulation on Housing Finance, Refinancing of Loans in the 4th Stage of the Project"

Requirements towards guarantor

  • One guarantor (if necessary, also guarantee of other persons);
  • Acceptable guarantor is a private individual /private individuals/ having a steady and proven income. The guarantor:
  • Cannot be a co-borrower at the same time;
  • Shall not have problematic liabilities at the time of disbursement of the loan;
  • Shall not have credit liability/ies/ overdue for total 30 and more days for all loans during the last one year;
  • Availability of a report from ACRA credit bureau regarding the guarantor is mandatory.

2. Loans for purchase of energy efficient residential house/apartment

Loan purpose For purchase of an apartment/residential house meeting the energy efficiency criteria set within the framework of the project. Energy efficiency of the purchased property is assessed by means of the questionnaire on assessment of energy efficiency of the purchased property provided in Annex 3 of the NMC’s “Regulation on Housing Finance, Refinancing of Loans in the 4th Stage of the Project”. If, in the result of assessment, the property isn’t qualified as energy efficient, we can finance the purchase by means of the traditional mortgage loan. Assessment of energy efficiency of the apartment isn’t required, if energy efficiency class of the apartment house, where the apartment is located, is C+ or higher, or if there is energy efficiency assessment done by another method acceptable for the company (e.g. done by international organizations).
Other requirements - according to the NMC’s "Regulation on Housing Finance, Refinancing of Loans in the 4th Stage of the Project"

 

Currency AMD
Maturity Minimum 5 years, maximum 20 years
Interest rate 11%
Loan amount

Maximum amount AMD 25 mln.

 

Loan disbursement fee , is charged once, before disbursement of the loan 
0.5 percent of the loan amount, minimum AMD 50,000

Monthly service fee

Isn’t applied
Fee for review of the loan application AMD 3,000, is charged once, at the time of recording the loan application

General provisions and conditions

Security

Pledge of the purchased apartment/property.

Loan-to-value (LTV) ratio

Not more than 70% of the collateral value. The value shall be either the evaluated market value or the purchase price, whichever is the least.

Procedure of repayment of the loan and interest amount
Is repaid monthly, in one of the following manners:

  • Annuity (equal monthly repayment), including variable portions of the principal amount and accrued interest;
  • Spring-like (variable monthly repayment), where repayment of the principal amount is made in equal portions, and the accrued interest – in variable portions.

Obligations to income (OTI)

Up to 45%

Creditworthiness assessment

According to the MQS requirements in force.

Collateral evaluation

By an independent appraiser, according to the requirements set by the NMC.

Geography

Only Yerevan city

  • Data about the credit history
  • Inquiry to ACRA credit bureau
  • If the borrower has an outstanding loans/s/, then the latter shall be classified as a standard loan, according to the regulation jointly approved by the CBA and the MFE of the RA, and there shall be no outstanding overdue liabilities for the loan/s/
  • during the last twelve months, the total number of overdue days for all loans /outstanding and repaid/ shall not exceed 30 calendar days

Penalty

In case of violation of the repayment terms specified by the agreement, the Borrower pays penalty to the Bank at the rate of 0.13% of the overdue amount for each day of delay.

Insurance
Insurance (proportionate to income) of the collateral, as well as the borrower and co-borrowers from death through an accident, is made every year, for the balance amount of the loan.

Other provisions
A renovation loan can be disbursed in Yerevan only if it is energy efficient.

Other requirements

  • Such mortgage loans for purchase of real estate shall be presented, in case of which:

- the seller and buyer are not members of the same family (according to the RA Law “On Banks and Banking”);
- the requirements of the legislation on prevention of money laundering and terrorism financing are observed;
-target usage of the loan shall be ensured throughout the maturity of the loan;
- construction and renovation works shall be fully completed 1 year after disbursement of the last tranche of the loan;
- the photographs of the property under construction/renovation shall be submitted, both before construction/renovation and after disbursement of each tranche (to get a full view).

  • The remaining requirements - according to the NMC’s "Regulation on Housing Finance, Refinancing of Loans in the 4th Stage of the Project"

Requirements towards guarantor

  • One guarantor (if necessary, also guarantee of other persons);
  • Acceptable guarantor is a private individual /private individuals/ having a steady and proven income. The guarantor:
  • Cannot be a co-borrower at the same time;
  • Shall not have problematic liabilities at the time of disbursement of the loan;
  • Shall not have credit liability/ies/ overdue for total 30 and more days for all loans during the last one year;
  • Availability of a report from ACRA credit bureau regarding the guarantor is mandatory.

3. Loans for construction of an energy efficient residential house

Loan purpose

 

For construction of a residential house meeting the energy efficiency criteria set within the framework of the project. The constructed property is considered energy efficient, if its energy efficiency class is C+ or higher, or if the result of assessment of the constructed residential property, done by means of the questionnaire on assessment of energy efficiency of the constructed property provided in Annex 4 of the NMC’s “Regulation on Housing Finance, Refinancing of Loans in the 4th Stage of the Project” is positive. If, in the result of assessment, the property isn’t qualified as energy efficient, we can finance the construction by means of the traditional mortgage loan for construction.
Other requirements - according to the NMC’s “Regulation on Housing Finance, Refinancing of Loans in the 4th Stage of the Project”
Currency AMD
Maturity Minimum 5 years, maximum 20 years
Interest rate 11%
Loan amount

Maximum amount AMD 25 mln.

 

Loan disbursement fee , is charged once, before disbursement of the loan 
0.5 percent of the loan amount, minimum AMD 50,000

Monthly service fee

Isn’t applied
Fee for review of the loan application AMD 3,000, is charged once, at the time of recording the loan application

General provisions and conditions

Security
Pledge of the existing real estate and the land plot. After construction, pledge of the new house.

Loan-to-value (LTV) ratio
Not more than 70% of the evaluated market value of the collateral.

Procedure of repayment of the loan and interest amount
Is repaid monthly, in one of the following manners:

  • Annuity (equal monthly repayment), including variable portions of the principal amount and accrued interest;
  • Spring-like (variable monthly repayment), where repayment of the principal amount is made in equal portions, and the accrued interest – in variable portions.

Obligations to income (OTI)
Up to 45%

Creditworthiness assessment
According to the MQS requirements in force.

Collateral evaluation
By an independent appraiser, according to the requirements set by the NMC.

Geography
Only Yerevan city

Data about the credit history

  • Inquiry to ACRA credit bureau
  • If the borrower has an outstanding loans/s/, then the latter shall be classified as a standard loan, according to the regulation jointly approved by the CBA and the MFE of the RA, and there shall be no outstanding overdue liabilities for the loan/s/
  • during the last twelve months, the total number of overdue days for all loans /outstanding and repaid/ shall not exceed 30 calendar days

Penalty

In case of violation of the repayment terms specified by the agreement, the Borrower pays penalty to the Bank at the rate of 0.13% of the overdue amount for each day of delay.

Insurance
Insurance (proportionate to income) of the collateral, as well as the borrower and co-borrowers from death through an accident, is made every year, for the balance amount of the loan.

Other provisions
A renovation loan can be disbursed in Yerevan only if it is energy efficient.

Other requirements

  • Such mortgage loans for purchase of real estate shall be presented, in case of which:

- the seller and buyer are not members of the same family (according to the RA Law “On Banks and Banking”);
- the requirements of the legislation on prevention of money laundering and terrorism financing are observed;
-target usage of the loan shall be ensured throughout the maturity of the loan;
- construction and renovation works shall be fully completed 1 year after disbursement of the last tranche of the loan;
- the photographs of the property under construction/renovation shall be submitted, both before construction/renovation and after disbursement of each tranche (to get a full view).

  • The remaining requirements - according to the NMC’s "Regulation on Housing Finance, Refinancing of Loans in the 4th Stage of the Project"

Requirements towards guarantor

  • One guarantor (if necessary, also guarantee of other persons);
  • Acceptable guarantor is a private individual /private individuals/ having a steady and proven income. The guarantor:
  • Cannot be a co-borrower at the same time;
  • Shall not have problematic liabilities at the time of disbursement of the loan;
  • Shall not have credit liability/ies/ overdue for total 30 and more days for all loans during the last one year;
  • Availability of a report from ACRA credit bureau regarding the guarantor is mandatory