Tuesday, February 20 2018 17:46

ArmInfo. In Armenia, against  the background of a fall in property prices, the mortgage is gaining  momentum. According to the Financial Rating of the Armenian Banks  prepared by IC ArmInfo, parallel to this, the volume of bank mortgage  lending came out of the 1.5% decline by 14.4%, to 215.2 billion drams  or $ 444.5 million, which was accompanied by a decrease in mortgage  rates loans for 2017 from 12.2% to 10.6% on average. Meanwhile, over  the past year the average market value of housing has decreased by  2.8% (against growth of 0.6% in 2016).

All 17 Armenian banks operate in the mortgage market, 10 of which,  along with the classical mortgage, also provide energy-efficient  loans for the purchase / construction / repair of housing. These are  Ardshinbank, Converse Bank, ARARATBANK, Armbusinessbank, ACBA-Credit  Agricole Bank, INECOBANK, Armswissbank, Anelik Bank, Armeconombank  and Unibank. Refinancing of these loans is carried out by the  National Mortgage Company and within the framework of the Affordable  Housing for Young Program. The annual interest rate on  energy-efficient mortgage loans fluctuates between 11-13%, and the  repayment term is 10-20 years.

The German bank KfW, working on the mortgage market of Armenia for 10  years, provided in 2017 20 million euros for the implementation of  the fourth stage of the mortgage program, which is different in its  focus - the benchmark is taken to improve energy efficiency and  increase the purchase of housing in the regions. Within the framework  of the 4th stage, 2/3 of the funds were intended to be used to  finance energy efficiency improvements (replacement of windows,  doors, thermal insulation of walls, installation of solar and  photovoltaic panels, etc.). At the same time, it was planned to  provide an opportunity to purchase housing, where work has already  been carried out to improve energy efficiency.

In order to stimulate mortgage lending in the regions, interest rates  for regional residents under the program have been reduced by 1 pp.  from the current average market. In addition, for residents of the  regions there are certain privileges: the schedule for repayment of  the loan is coordinated with the seasonal profit period, and in case  of acquisition or construction of housing, the cost of which does not  exceed 2 million drams, there is no provision for collateral.