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"Estate Investment and Development" CJSC

Mortgage loan offered jointly by Converse Bank and "Estate Investment and Development" CJSC

Special preferential terms offered jointly by Converse Bank and "Estate Investment and Development" CJSC for mortgage loans issued for purchasing apartments in the building under construction at 2/3 Anastas Mikoyan Str., administrative district Shengavit, Yerevan, and for renovation of the purchased apartments.

Loans for Purchase of Real Estate

Loan currency AMD USD Euro
Maximum amount the loan 40,000,000 AMD Without restriction
Maximum maturity of the loan 15 years 20 years
Interest rate of the loan (CBFR*+5.75)%1 (CBFR* + 7)%1 (CBFR* + 8.3)%1
Maximum loan/collateral ratio 85% of the actual purchase price (right of purchase) of the Real Estate, but not more than 85% of the Control Price 2.
In individual cases, depending on high level of the customer’s creditworthiness, namely, if the borrower has a positive credit history, i.e. according to ACRA inquiry made at the time of applying for the Loan and based on other information known to the Bank, the total sum of overdue days of the customer’s credit liabilities does not exceed 10 calendar days, the customer has income evidenced by documents, and the ratio of the total sum of all loans disbursed to the borrower /and co-borrowers, if any/ /including the requested loan/ to the total sum of monthly repayment of their interest and borrower’s /and co-borrowers, if any/ income does not exceed 60%, then, by the Bank’s decision, the maximum loan/collateral ratio may be set at 90% of the actual purchase price of the Real Estate (right of purchase), but not more than 90% of the Control Price 2.
In case of pledging additional real estate, 80% of the total amount of the Control Price of the purchased real estate (right of purchase) and the liquid value of the additional real estate, but not more than 100% of the actual purchase price.
One-off fee for loan disbursement 0.5 percent of the loan amount, minimum AMD 25,000 (is charged before disbursement of the loan)
One-off fee for review of the loan application 5,000 AMD ( is charged at the time of filing the loan application)
Monthly fee for service of the credit account 2,000 AMD

 

Security

  •  Pledge of the right of purchase, and in case of existence of the ownership right for the purchased property - pledge the purchased real estate.
  •  Pledge of the funds or a part of the funds paid by the Purchaser to the construction company’s special account, provided there is an agreement on their pledge in favor of the Bank.
  •  In the absence of advance payment for the purchase property - pledge of additional real estate.
 
Maximum lending amount specified by the framework loan agreement (hereinafter referred to as the FLA) offered to the customers The size of the Control Price of the purchased real estate, and in case of pledging additional property - 90% of the total sum of the purchased real estate and the liquid value of the additional property.

Converse Bank floating rate is defined on a monthly basis and published on the official website of the Bank.

Terms and Conditions

Penalty for early repayment of the loan

The size specified by the RA Law on Housing Mortgage Lending

Penalty

In case of violation of the repayment terms envisaged by the agreement, the Borrower shall pay penalty to the Bank, equal to 0.13% of the overdue principal loan amount and interest, for each day of delay.

Procedure of repayment of the loan and interest amount

Is repaid monthly, in one of the following manners:

  •  Annuity (equal monthly installments), which includes the principal amount and accrued interests with alternating portions;
  •  Spring-like (variable monthly installments), which includes the principal amount in equal portions, and the accrued interest - in variable portions.

Other conditions

Evaluation of the purchased property is not required.

At the time of at the time of submission of the loan application, the advance payment for the purchased property is credited to the construction company’s special account, opened in the name of “Estate Investment and Development” CJSC.

Other conditions - in accordance with the current conditions applied at the Bank for loan type “Noramut” at the time of submission of the loan application.

Renovation of Residential Real Estate**

Loan currency AMD USD Euro
Maximum amount the loan AMD 30 mln or its equivalent in USD/Euro
Maximum maturity of the loan 10 years
Interest rate of the loan (CBFR*+6.75)%1 (CBFR* + 7)%1 (CBFR* + 9.3)%1
Maximum loan/collateral ratio
  •  60% of the liquid value
  •  In case of a FLA specified by this decision - the maximum lending limit, reduced for the outstanding balance of the loan for purchase of real estate issued under the FLA
One-off fee for loan disbursement Is charged before disbursement of the loan
0.5 percent of the loan amount, minimum AMD 25,000
One-off fee for review of the loan application 5,000 AMD ( is charged at the time of filing the loan application)
Monthly fee for service of the credit account 2,000 AMD

Security

The loan shall be secured with pledge of the real estate under renovation or the right of purchase and/or additional real estate or the funds available on the special account

Converse Bank floating rate is defined on a monthly basis and published on the official website of the Bank.

Terms and Conditions

Penalty for early repayment of the loan 

The size specified by the RA Law on Housing Mortgage Lending

Penalty

In case of violation of the repayment terms envisaged by the agreement, the Borrower shall pay penalty to the Bank, equal to 0.13% of the overdue principal loan amount and interest, for each day of delay.

Procedure of repayment of the loan and interest amount 

Is repaid monthly, in one of the following manners: 

  •  Annuity (equal monthly installments), which includes the principal amount and accrued interests with alternating portions;
  •  Spring-like (variable monthly installments), which includes the principal amount in equal portions, and the accrued interest - in variable portions.

Other conditions

Other conditions - in accordance with the current conditions applied at the Bank for loan type “Modern” at the time of submission of the loan application.

** In case of renovation loans, the borrower shall finish the renovation works within the time period set by the agreement, but not later than within 1 /one/ year, after which target use of the loan is subject to monitoring and the results monitoring are subject to documenting and storage in accordance with the internal legal acts of the Bank.

1 If the advance payment is equal to 50% and more, subject to approval by the relevant body of the Bank, the interest rate of the loan disbursed for purchase of real estate might be reduced: for loans in AMD - up to (CBFR + 4.75)%, for loans in USD - up to (CBFR + 6)%, for loans in Euro - up to (CBFR + 7.8)%.

2 The Control Price is set by the Bank for one square meter of residential real estate, which is AMD equivalent of USD 700 for apartments without renovation and USD 800 for renovated apartments (evidenced by the reference to be submitted by the construction company), multiplied by total area of the purchased real estate, expressed in square meters.
In case of lending in other currencies, the loan amount is calculated at the cash selling rate for USD set at the Bank on the date of submission of the loan application.