Refinancing

Loan type - Refinancing of mortgage loans obtained from other financial institutions for purchase or renovation purposes.

Currency - AMD

Term - Up to 240 months (but not exceeding the remaining term of the mortgage loan plus 36 months)

Interest rate

• With income analysis – 1.5% lower than the customer’s current loan interest rate, but not less than 12.5%
• Without income analysis (only employment is considered) – 1.5% lower than the customer’s current loan interest rate, but not less than 12.75%

Interest rate type - Fixed adjustable¹

¹The fixed (adjustable) interest rate may be revised starting from the 37th month.
The basis for calculation is the procedure for setting and amending the Amio reference rate.

Repayment method

• Annuity payments
• Equal monthly repayment of the loan principal and monthly repayment of accrued interest

Loan amount

• Minimum: - AMD 1,000,000
• Maximum - based on the outstanding balance of the loan being refinanced

Loan disbursement method

The loan is provided in a lump sum, non-cash, to the customer’s account, and an amount equal to the outstanding balance of the loan at another financial institution is applied toward repayment of that loan (repayment by loan code).

Loan-to-collateral ratio

According to the Bank’s standard terms:

• Primary market: 90%
• Secondary market: 80%

Fees

• Monthly loan servicing fee: not applicable
• One-time loan servicing fee: not applicable

Collateral registration costs

Covered by the Bank (via the Post operations department, online) and include:

• Payment for the unified certificate issued by the RA Cadastre Committee
• Notary fee for the collateral agreement
• Fee for registering the Bank’s rights under the collateral agreement with the RA Cadastre Committee

Early repayment penalty

If the loan amount exceeds AMD 15 million, a penalty of 3% of the prepaid amount applies in case of full or partial early repayment during the first 3 years of the loan term.

Additional Credit Line Terms

Additional credit line

Upon customer’s request, a credit line may be provided without additional analysis up to the repaid principal amount of the refinanced mortgage loan.

Interest rate - 15%

Term

• If the mortgage term exceeds 120 months, the credit line term is 60 months
• Otherwise, the term is 36 months

Amount

• Minimum - AMD 100,000
• Maximum - AMD 8,000,000

Type of credit line

Partial repayment (equal monthly reduction of the credit line limit and monthly repayment of accrued interest)

Collateral - Right to receive income

One-time fee - Not applicable

Borrower's Solvency

The total balances/limits of loans/credit lines in the name of the borrower in all banks and credit organizations without collateral, mortgage (factoring) and collateral of rights and newly provided in accordance with these terms and conditions must not exceed 15 times the average monthly salary and equivalent payments received during the last 6 months.

Other conditions

In accordance with the terms of the AMIO-Mortgage product.

Refinancing security

Real estate market value assessment - Conducted by the customer through appraisal companies cooperating with the Bank.

Insurance

• Real estate collateral insurance: mandatory
• Accident insurance: mandator

Insurance is carried out annually, exclusively through insurance companies cooperating with the Bank. Insurance amounts are calculated based on the outstanding loan balance.

Requirements for loans eligible for refinancing

Loan servicing period

• With income analysis: no minimum servicing period required
• Without income analysis (only employment is considered): the existing loan secured by real estate at other banks/financial institutions must have been serviced for at least 24 months

Loan servicing - Over the past 24 months, the number of overdue days on the loan to be refinanced must not exceed 10 days, with total delays in the last 3 months being 0.

Other conditions

• With income analysis: the borrower must remain unchanged

• Without income analysis (only employment is considered): all participants in the transaction must remain unchanged (exception: death of any participant)

Requirements for the customer

Status - Armenian resident with permanent registration or actual place of residence as indicated in the identity document.

Age

• At least 21 years old at the time of loan issuance, and no more than 70 years old at the time of loan repayment.

Requirements for the co-borrower

• With income analysis in accordance with the terms of the standard product
• Without income analysis (only employment is considered) in accordance with the current terms (exception: cases specified under the “Insurance” section)

Credit history requirements - The credit history of the borrower and co-borrower must meet the Bank’s established requirements.

Work experience

• With income analysis – continuous employment of the borrower/co-borrower at the current workplace for the last 3 months
• Without income analysis (only employment is considered) – continuous employment of the borrower at the current workplace for the last 3 monthsմ

Solvency assessment

• With income analysis - according to standard product conditions
• Without income analysis (only the fact of employment is taken into account)
• The solvency analysis of the borrower and co-borrower is not carried out, only the fact of employment is checked,
• A certificate from the place of work is required only in the absence of data in the Nork/Ekeng Information Center
• The borrower's credit burden should not have increased by more than 20% over the last 6 months (the current credit burden is compared with the credit burden 6 months ago)

Other terms

The remaining terms are in accordance with the terms and conditions of the consumer loan secured by real estate provided with the Bank's own resources.