ArmInfo. The Central Bank of Armenia announces the second stage of the change in the conditions of the state program of mortgage lending. As ArmInfo explained in the press service of the Central Bank of Armenia, it is a matter of mitigating two requirements for borrowers under the program "Affordable Housing for Young Families".According to the source, the draft amendment to the decision regulating this program provides for: in the requirement for the total age of spouses to remove the age limit for one of them, while retaining the established total 70 years; in the prepayment requirement - a reduction to 7.5% is possible if there are a number of conditions, namely, if other property is used as collateral, or the prepayment is insured.
The project is currently in the Ministry of Justice of the Republic of Armenia.The draft of this decision is posted on e-drafts.am website to collect public opinion. After the opinions of the public and interested departments are collected, a draft of this decision will be discussed in the Government.
The Central Bank reminds that at the first stage, the state program of mortgage lending was modified both in the program "Affordable Housing for Young Families" and on loans refinanced by the National Mortgage Company, which significantly increased the availability of these loans to beneficiaries.In particular, according to the program "Affordable Housing for Young Families", the following requirements were improved: the threshold of the total age of spouses from the previous 65 years was raised to 70 years, and the loan repayment period was set to 30 years. The remaining requirements are also improved with some difference depending on whether housing is purchased on the secondary market or the primary market. So, when buying a home in the secondary market, the following conditions apply: a limit on the cost of an apartment is set to 25 million drams; the maximum interest rate was reduced from the previous 10.5% to 9.5% (with 2% subsidies in Yerevan or 4% in the regions); prepayment from 30% can be reduced to 10% if you have other real estate for collateral or insurance 20% of the cost of housing.
And when buying a home in the primary market, the conditions are different: a limit on the value of the apartment is set to 30 million drams; maximum interest rate- 7.5% (instead of subsidizing the rate, indirect subsidies are provided in the form of income tax refunds); prepayment from 20% can be reduced to 10% if you have other real estate for collateral or insurance of 10% of the cost of housing.At the first stage, the conditions for the loans of the National Mortgage Company were also improved. In particular, young professionals under the age of 30 years and unmarried persons are given the opportunity to buy a home mortgage in new buildings on the following conditions: prepayment - 7.5%; repayment term - 35 years; interest rate reduction by 0.5% when buying a home in an energy-efficient building (in the rare mode, the rate is 10.6%).According to the Ranking of Armenian loan companies on October 1, 2018, prepared by ArmInfo IC, the total mortgage portfolio of the National Mortgage Company and Affordable Housing for Young People amounted to 156.3 billion drams ($ 323.7 million) with an annual growth of 8.1%, and in a three-year cut - by 73.3%.