Expert: Demand for mortgages in Armenia is growing significantly

ArmInfo.The demand for mortgages in Armenia is growing significantly. This was stated in the conversation with ArmInfo by the responsible sales department of the  residential quarter "Eras" Karen Ghazaryan on the fields of the  Mortgage Evening, which was held for the first time in Armenia on the  initiative of ARARATBANK.

He stressed that in comparison with the 2008 crisis, more and more  people today are using the services of bank lending in the matter of  purchasing housing. "I think this is due to the improvement in the  conditions for mortgage lending, which our banks are offering today,"  he explained.

However, the biggest problem, in his opinion, is still the credit  rating of the borrower. "The correct assessment of the client's  solvency is hindered by the presence of black bookkeeping, which is a  serious reason for the bank to refuse to lend," K.Kazaryan noted. 

The construction of the residential quarter "Eras" is a business  project of CJSC "Mikmetal", which since 2003 has been engaged in  wholesale sales of fittings and wire ropes and closely cooperates  with the largest construction companies in Armenia. The developer is  OOO Mikshin.

According to the Financial Rating of the Armenian Banks as of July 1,  2018, the volume of mortgage lending amounted to 224.2 billion drams  or $ 464.8 million. The annual growth rate of this indicator  accelerated from 13.3% to 14.8%. In the total loan portfolio of the  banking system, the share of mortgage loans exceeds 7.3%. In addition  to banks, the mortgage companies "First Mortgage Company", "Fidesz",  as well as refinancing "National Mortgage Company" and "Affordable  Housing for Young People", in total provided for July 1, 2018 the  volume of loans to 168.7 billion drams or $ 349.9 million from annual  growth of 10.4%. All 17 banks operate in the mortgage market of  Armenia. ARARATBANK, along with classical mortgage lending, issues  energy-efficient mortgage loans for the purchase / repair of housing,  incl. in the residential quarter "Eraz".