Mortgage F.A.Q.

We provide residential property purchase, house renovation and refinancing of existing mortgage loans in Armenian drams and US dollars.

When loan is approved and the documents are with the Bank, Bank representatives prepare loan agreement draft, agreements, other required documents and contact the customer to schedule the upcoming actions. Customer is provided with 7 days to read and accept the credit offer and credit agreement draft, unless he/she accepts it earlier. If customer accepts the offer the Bank representatives arrange the appointment with Notary. The loan is provided to the customer after all appropriate documents (insurance certificate, mortgage/ownership registration certificate, valuation report/certificate, combined certificate issued by the respective department of the State Committee of the Real Estate Cadastre on restrictions in respect of the residential property) are with the Bank.

Customer can only pledge another residential property when applying to buy a property from primary market, in this case the property that is being bought may not have a proper ownership certificate. Once the legal documents (ownership certificate) is obtained for the new property (maximum term 12 months of receiving the loan), the pledge should be changed.

No, currently HSBC Bank Armenia does not provide mortgage loans for purchasing a land for building residential property on it.

Customer has up to 1 month, to find a house or an apartment, after loan preliminary approval.

It is still ok if the property amount in the S&P agreement differs from the amount stated in the valuation certificate. The smaller of these two figures (mentioned in S&P and Valuation Certificate) is taken into consideration, and should not be less than the defined LTV (Loan to Vale Ratio) for already approved Loan amount.

For each principal early repayment made before the set repayment schedule during the first 3 years of loan term, the Bank may apply an overpayment fee:

• calculated at 0.6% of the amount overpaid during the first year
• calculated at 0.4% of amount overpaid during the second year
• calculated at 0.2% of amount overpaid during the third year. 

At any point in a year no overpayment fee is applicable for the amount overpaid for the amount equal to the sum of principal payments for the contractual year according to the schedule. In this term contractual year is considered the 12 month period starting from the next day of the loan agreement date.

• The maximum period for informing the applicant about the decision - within 5 working days after the submission of all other necessary documentation as requested by the Bank.
• The maximum period for loan provision/drawdown - within 2 working days after the signing of loan agreement, proper verification and registration of the security agreement, submission of security insurance and necessary payments stipulated in the loan agreement.

Yes, in case if the house is still in construction process and proper ownership certificate is not issued yet, customer can pledge another property subject to eligibility (Loan to Value Ratio). Within 12 months after receiving the ownership certificate, change in pledge should be arranged.

For renovation loans, a report from an independent authorized valuator in evidence to the renovation done should be provided after 6 months from the date of the loan drawdown.