Residential property purchase loan in USD

  • Loan terms1
From 24 months up to 2402 months.
Loan amount
From USD 5,000 to up to USD 400,0002.
Loan to Value Ratio

Loan amount cannot exceed:

  • 85%, in case property is located in Yerevan and additional property is pledged, provided total LTV ratio of two properties is maximum 70%. Only one additional property can be taken as a pledge2. Respectively minimum prepayment amount that should be arranged by customer is 15%.
  • 70%, in case property is located in Yerevan, no additional property is pledged, respectively minimum prepayment amount is 30%.
  • 50%, in case located elsewhere in Armenia, in case if additional property in Armenia is pledged, respectively minimum prepayment amount is 50%.
  • 30%, in case located elsewhere in Armenia, no additional property is pledged, respectively minimum prepayment amount is 70%.
  • Loan amount is calculated based on the lower of the current market value as per the property valuation act and property purchase price.
Debt to Income Ratio
  • For customers whose income is 100% in USD, the ratio of overall loan payments to net monthly income cannot exceed 60%, regardless of monthly income
  • For customers whose USD income comprises 50% or more of their monthly income, the following will apply:

- 40%, if net monthly salary / income is < AMD350,000 and

- 50%, if net monthly salary/ income is ≥ AMD350,000

  • For customers whose USD income comprises less than 50% of their total income, USD loan amount and DIR will be calculated so that monthly loan repayment amount in USD is fully matched by the USD share in customer’s total income and the following will apply:

- 40%, if net monthly salary / income is < AMD350,000 and  

- 50%, if net monthly salary/ income is ≥ AMD350,000

Interest rate3

Floating annual interest rate is calculated at Bank's USD base rate minus fixed Interest Rate Margin and it is currently equal to:

9.25% - 0.25% = 9%

9.25% - 1.25% = 8% for PLUS and STATUS customers

Where:
9.25% -  Bank’s USD Base Rate

0.25% -  Fixed interest Rate Margin for purchase loans in USD

1.25% -  Fixed interest Rate Margin for purchase loans in USD for PLUS and STATUS customers

Annual percentage rate starting from 9.41% maximum up to 18.41%
Annual percentage rate starting from 8.31% maximum up to 12.31% for PLUS and STATUS customers


For the calculation of APR, the foreign exchange sale rate set by the Bank shall be applied.


LOAN INTEREST RATE CAN BE CHANGED IN CASE OF BANK’S USD BASE RATE CHANGE.

 

LOAN INTEREST AMOUNT IS BEING CALCULATED BASED ON THE ANNUAL NOMINAL INTEREST RATE, WHEREAS THE ANNUAL PERCENTAGE RATE OR APR INDICATES HOW MUCH WOULD LOAN COST TO BORROWER IN CASE OF REPAYMENT OF INTEREST AMOUNT AND OTHER PAYMENTS UNDER THE DEFINED TIMELINE AND TERMS.

 

 

Loan interest is calculated in the loan currency on a daily basis for 365 days and for 366 days in case of leap year on the loan outstanding balance.

 

Loan account service fee (one off)4
  • AMD 100,000 if the loan amount is less than or equal to USD 75,000
  • AMD 200,000 if the loan amount is more than USD 75,000

Account service fee will be charged from the customer's account on loan provision day.

Residential property purchase loan in USD

  • Loan terms1
Loan amount
From 24 months up to 2402 months.
From USD 5,000 to up to USD 400,0002.
  • Loan terms1
Loan to Value Ratio
From 24 months up to 2402 months.

Loan amount cannot exceed:

  • 85%, in case property is located in Yerevan and additional property is pledged, provided total LTV ratio of two properties is maximum 70%. Only one additional property can be taken as a pledge2. Respectively minimum prepayment amount that should be arranged by customer is 15%.
  • 70%, in case property is located in Yerevan, no additional property is pledged, respectively minimum prepayment amount is 30%.
  • 50%, in case located elsewhere in Armenia, in case if additional property in Armenia is pledged, respectively minimum prepayment amount is 50%.
  • 30%, in case located elsewhere in Armenia, no additional property is pledged, respectively minimum prepayment amount is 70%.
  • Loan amount is calculated based on the lower of the current market value as per the property valuation act and property purchase price.
  • Loan terms1
Debt to Income Ratio
From 24 months up to 2402 months.
  • For customers whose income is 100% in USD, the ratio of overall loan payments to net monthly income cannot exceed 60%, regardless of monthly income
  • For customers whose USD income comprises 50% or more of their monthly income, the following will apply:

- 40%, if net monthly salary / income is < AMD350,000 and

- 50%, if net monthly salary/ income is ≥ AMD350,000

  • For customers whose USD income comprises less than 50% of their total income, USD loan amount and DIR will be calculated so that monthly loan repayment amount in USD is fully matched by the USD share in customer’s total income and the following will apply:

- 40%, if net monthly salary / income is < AMD350,000 and  

- 50%, if net monthly salary/ income is ≥ AMD350,000

  • Loan terms1
Interest rate3
From 24 months up to 2402 months.

Floating annual interest rate is calculated at Bank's USD base rate minus fixed Interest Rate Margin and it is currently equal to:

9.25% - 0.25% = 9%

9.25% - 1.25% = 8% for PLUS and STATUS customers

Where:
9.25% -  Bank’s USD Base Rate

0.25% -  Fixed interest Rate Margin for purchase loans in USD

1.25% -  Fixed interest Rate Margin for purchase loans in USD for PLUS and STATUS customers

Annual percentage rate starting from 9.41% maximum up to 18.41%
Annual percentage rate starting from 8.31% maximum up to 12.31% for PLUS and STATUS customers


For the calculation of APR, the foreign exchange sale rate set by the Bank shall be applied.


LOAN INTEREST RATE CAN BE CHANGED IN CASE OF BANK’S USD BASE RATE CHANGE.

 

LOAN INTEREST AMOUNT IS BEING CALCULATED BASED ON THE ANNUAL NOMINAL INTEREST RATE, WHEREAS THE ANNUAL PERCENTAGE RATE OR APR INDICATES HOW MUCH WOULD LOAN COST TO BORROWER IN CASE OF REPAYMENT OF INTEREST AMOUNT AND OTHER PAYMENTS UNDER THE DEFINED TIMELINE AND TERMS.

 

 

Loan interest is calculated in the loan currency on a daily basis for 365 days and for 366 days in case of leap year on the loan outstanding balance.

 

  • Loan terms1
Loan account service fee (one off)4
From 24 months up to 2402 months.
  • AMD 100,000 if the loan amount is less than or equal to USD 75,000
  • AMD 200,000 if the loan amount is more than USD 75,000

Account service fee will be charged from the customer's account on loan provision day.

Please read loan Terms and Conditions before applying.

1 Customer's minimum age is 18. Customer's age plus the loan term should not exceed 65 years.

2 For facilities with over 180 months term and 70%-85% LTV ratio maximum loan facility is limited to USD 250K.

3 Depending on risk assessment results, loan application may be approved at a higher interest rate.

4 Not applicable for PLUS and STATUS customers

You are eligible to apply for a residential property purchase loan if you meet the below minimum criteria1

Salaried account holders

You are an Armenian national or Armenian resident2

and

  • Have an account with HSBC Bank Armenia CJSC (hereafter the Bank) and at least 3 months employment with a company maintaining satisfactory banking relationship with the Bank, and your net monthly salary is at least AMD 200,000 or USD 500

or

  • Have an account with the Bank and at least 3 months employment with a company maintaining accounts with other banks in RA, and your net monthly salary is at least AMD 200,000 or USD 500. Salary should be transferred to your account with the Bank after loan drawdown (in case if prior salary transfer is not required by the Bank)3

or

  • Have an account with any other bank with at least 3 months employment history and salary being transferred to your account for 3 months, and your net monthly salary is at least AMD 250,000 or USD 600

Non-salaried account holders

  • You are an Armenian national or Armenian resident2

and

  • Have satisfactory account record and banking relationship with the Bank for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least AMD 200,000 or USD 500 (or equivalent in other currency)

or

  • Have satisfactory account record and banking relationship with other local banks for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least AMD 250,000 or USD 600 (or equivalent in other currency)

1Mortgage loans in USD can be provided only to customers who have income in USD (full or partial), or whose income in AMD is linked to USD exchange rate. The Bank may require documents evidencing the income currency, or the income link to USD exchange rate.

2Persons with minimum 1 year of residence in Armenia proven by respective documents are considered as Armenian residents.

3The requirements on salary transfer to your account with the Bank will be communicated to you during the loan approving process.

Loan repayment

The following repayment options are available for the borrowers:

  • Principal is repaid in equal monthly installments, while interest amount decreases with the payment of a principal. Therefore, monthly repayments will decrease over the loan tenor.
  • Repayments are calculated on annuity basis, where both principal and interest monthly repayment amounts change over the loan tenor, while the total monthly repayment amount remains constant.

Note: Fluctuation of foreign currency exchange rate may impact the loan repayment amount (for USD Loans). Interest for the loans with foreign currency can be paid either with the currency of the loan or in Armenian Drams as per customer’s preference and based on the provided respective instruction.

Your property may be repossessed in case you do not properly meet your loan obligations.

If the borrower does not pay the interest and loan principal amounts in time, information about credit history will be submitted to the Central Bank of Armenia and ACRA Credit Reporting CJSC after three business days of credit facility overdue, resulting in negative impact on  borrower’s credit history, should the borrower decide to apply for another loan in the future. In case of existence the reporting is applicable for guarantors and co-borrowers as well.

Interest amount calculation

Interest amount will be calculated on a daily basis by using the following formula:

I = R*L/365, where

I = one day interest amount

R = current interest rate

L = outstanding amount of loan

Representative examples of interest amount calculation

Example 1. House purchase loan in USD with annuity repayment type was provided to the customer.

  • Loan amount - USD 50,000
  • Loan term - 120 months
  • Annual interest rate - 9%
  • Annual percentage rate - 9.60%
  • Days in a year - 365/366
  • Loan provision date - 01/03/2019
  • First repayment date - 01/04/2019
  • Loan full repayment date - 01/03/2029
  • One-off service fee for the loan - AMD 100,000
  • Monthly repayment amount USD 633.38, out of which

Interest amount for the first month - USD 382.19

Interest amount for the second month - USD 368.00

Interest amount for the last month - USD 4.60

Interest amount for the whole period of loan is USD 26,043.05

Example 2. House purchase loan in USD with Reducing repayment type was provided to the customer.

  • Loan amount - USD 50,000
  • Loan term - 120 months
  • Annual interest rate - 9%
  • Annual percentage rate – 9.63%
  • Days in a year – 365/366
  • Loan provision date - 01/03/2019
  • First repayment date - 01/04/2019
  • Loan full repayment date - 01/03/2029
  • One-off service fee for the loan - AMD 100,000
  • Monthly repayments

For the first month - USD 798.86 (out of which interest amount is USD 382.19)

For the second month - USD 783.45 (out of which interest amount is USD 366.78)

For the last month - USD 419.54 (out of which interest amount is USD 2.88)

Interest amount for the whole period of loan is AMD equivalent of USD 22,703.08

Things you should know

In case loan monthly repayments are not processed in line with the loan schedule and loan agreement and in case you do not properly meet your loan obligations, your property may be repossessed and you may be deprived of your rights over it.

Contact us

In branch

By phone

Call us at +347 60 655 000.

Lines are open 24/7.

Last updated on: 22/8/2019 07:05:14