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Details of special offer for purchasing properties from Nork Residential Complex

Residential property purchase loan
Loan terms¹	Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months
Loan amount	Property purchase loan - 5 - 200 million Property renovation loan - 3 - 35 million
Loan currency	AMD, loans in USD can be provided only in case the customer meets applicable all requirements against lending in foreign currency. Explore details.
Interest rate²	Annual nominal interest rate – floating Important: The nominal interest rate may be changed by the bank in case of bank retail base rate changes. Floating nominal interest rate can be changed during the loan lifecycle no more than 2 times in a year. Maximum and minimum thresholds are set for the nominal interest rate of the loan, which cannot be exceeded during the lifecycle of the loan. In case of floating interest, the maximum increase and decrease of the threshold of the nominal interest rate is defined as +/-7 interest point. For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to: 9% + 3.5% = 12.5% Where: 9% - Bank’s AMD Retail Base Rate 3.5% - Constant margin Annual percentage rate - 13.48% – 16.86% for property purchase and 13.63% - 17.72% for renovation loans. Loan interest amount is calculated based on the annual nominal interest rate, whereas the annual percentage rate or APR indicates how much the loan would cost to the 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 to Value Ratio	Loan amount cannot exceed: 90%, in case property is located in Yerevan and no additional property is pledged* The minimum prepayment amount that should be arranged by the customer is 10%. 90% of the purchased property value, in case if property is located in Yerevan and additional property in Armenia is pledged, provided total LTV ratio of two properties is maximum 75%. Respectively minimum prepayment amount that should be arranged by customer is 10%. Bank accepts only one additional property as a pledge. 75% of the purchased property value, in case if property is located in Yerevan, no additional property is pledged, respectively minimum prepayment amount is 25%.
*Required criterias	Residential property subject to purchase was constructed since Y2003 and is located in Yerevan and prospective suburbs. Borrower meets PLUS or STATUS customer profile criteria and minimum net monthly income is AMD 500,000. In case the loan is provided with existence of co-borrower monthly minimum combined net income cannot be less than AMD 600,000. Max 50% debt to income ratio will apply, irrespective of net monthly income.
Debt to Income Ratio	The ratio of overall loan payments to net monthly income cannot exceed 60% if net monthly income is less than AMD 700,000 and 70%, if net monthly income is greater than or equal to AMD 700,000.
Loan provision fee (one-off)	1% of loan amount (0.5% for PLUS և STATUS customers), maximum AMD 200,000 for property purchase and AMD 100,000 for renovation loans. Loan provision fee will be charged to the customer’s account on loan provision day.

Residential property purchase loan
Loan terms¹	Loan amount
Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months	Property purchase loan - 5 - 200 million Property renovation loan - 3 - 35 million

Loan terms¹	Loan currency
Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months	AMD, loans in USD can be provided only in case the customer meets applicable all requirements against lending in foreign currency. Explore details.

Loan terms¹	Interest rate²
Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months	Annual nominal interest rate – floating Important: The nominal interest rate may be changed by the bank in case of bank retail base rate changes. Floating nominal interest rate can be changed during the loan lifecycle no more than 2 times in a year. Maximum and minimum thresholds are set for the nominal interest rate of the loan, which cannot be exceeded during the lifecycle of the loan. In case of floating interest, the maximum increase and decrease of the threshold of the nominal interest rate is defined as +/-7 interest point. For AMD loans, this is calculated at the Bank’s AMD retail base rate plus constant margin and is currently equal to: 9% + 3.5% = 12.5% Where: 9% - Bank’s AMD Retail Base Rate 3.5% - Constant margin Annual percentage rate - 13.48% – 16.86% for property purchase and 13.63% - 17.72% for renovation loans. Loan interest amount is calculated based on the annual nominal interest rate, whereas the annual percentage rate or APR indicates how much the loan would cost to the 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 to Value Ratio
Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months	Loan amount cannot exceed: 90%, in case property is located in Yerevan and no additional property is pledged* The minimum prepayment amount that should be arranged by the customer is 10%. 90% of the purchased property value, in case if property is located in Yerevan and additional property in Armenia is pledged, provided total LTV ratio of two properties is maximum 75%. Respectively minimum prepayment amount that should be arranged by customer is 10%. Bank accepts only one additional property as a pledge. 75% of the purchased property value, in case if property is located in Yerevan, no additional property is pledged, respectively minimum prepayment amount is 25%.

Loan terms¹	*Required criterias
Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months	Residential property subject to purchase was constructed since Y2003 and is located in Yerevan and prospective suburbs. Borrower meets PLUS or STATUS customer profile criteria and minimum net monthly income is AMD 500,000. In case the loan is provided with existence of co-borrower monthly minimum combined net income cannot be less than AMD 600,000. Max 50% debt to income ratio will apply, irrespective of net monthly income.

Loan terms¹	Debt to Income Ratio
Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months	The ratio of overall loan payments to net monthly income cannot exceed 60% if net monthly income is less than AMD 700,000 and 70%, if net monthly income is greater than or equal to AMD 700,000.

Loan terms¹	Loan provision fee (one-off)
Property purchase loan - 24 -240 months Property renovation loan - 24 -120 months	1% of loan amount (0.5% for PLUS և STATUS customers), maximum AMD 200,000 for property purchase and AMD 100,000 for renovation loans. Loan provision fee will be charged to the customer’s account on loan provision day.

Please read loan Terms and Conditions before applying.

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

²Depending on risk assessment results, loan application may be approved at a higher interest rate.

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

Salaried account holders

You are an Armenian national or Armenian resident³

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

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. 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)⁴

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

Non-salaried account holders

You are an Armenian national or Armenian resident³

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 equivalent in other currency)

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 equivalent in other currency)

³Persons with minimum 1 year of residence in Armenia proven by respective documents are considered as Armenian residents.

⁴The 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 instalments, while interest amount decreases with the repayment 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

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 within 3 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.

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.

Interest amount calculation

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

I = R*L/365 (or 366 in case of leap year), where

I = one day interest amount

R = current interest rate

L = outstanding amount of loan

Representative example of interest amount calculation
Representative examples of interest amount calculation

House purchase loan in AMD with reducing repayment type was provided to the customer.

loan amount: AMD 50,000,000
loan term: 240 months
annual interest rate: 11.5% (reducing)
annual percentage rate: 12.55%
days in a year: 365/366
loan provision date: 01/09/2022
first repayment date: 05/10/2022
loan full repayment date: 05/09/2042
loan provision one-off fee: AMD 200,000
monthly repayments

repayment for the first month - AMD 743,949.77 (out of which - interest amount AMD 535,616.44)

repayment for the second month - AMD 694,654.68 (out of which - interest amount AMD 486,321.35)

repayment for the last month - AMD 210,368.15 (out of which - interest amount AMD 2,034.82)

Interest amount for the whole period of loan is AMD 57,798,699.92.

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Last updated on: 23.01.24, 05:37

Details of special offer for purchasing and renovating properties from Nork Residential Complex

Residential property purchase loan