Mortgage and consumer loans provided within the framework of the housing program for public servants(Griboyedov 48)
"Converse Bank" CJSC (hereinafter referred to as the Bank) within the framework of the "Housing Program for Public Servants" (hereinafter referred to as the Program) of the RA State Committee on Urban Development (hereinafter referred to as the Committee) provides consumer loans secured by real estate to the beneficiaries determined by the Committee, for the purpose of purchasing apartments and parking lots from the multi-apartment building complex under construction at the address of 48 Griboyedov str., Arabkir a/d, Yerevan, (developer - "ORD Development" LLC) under the following conditions:
Mortgage loan for the purchase of an apartment or parking lot with the resources of the bank |
Borrower |
Public servant (candidate) The list of candidates is approved by the Committee by the order of the President, published on the Committee's website, after which it is also approved electronically on the website serviced by ORD Development LLC. |
|||
Co-borrower, co-owner |
At the request of the Borrower/Beneficiary during the mortgage loan service provided under the program and with the consent of the Bank, the co-borrower, including the co-owner, may be changed (or a new co-borrower, co-owner may be added). |
|||
Designation |
Acquisition of newly built residential real estate (right to purchase) for residential purposes , at the same time |
|||
Amount and currency |
1,000,000 - 55,000,000 AMD |
|||
Term |
120 - 240 months, but not beyond the borrower's becoming of 66 years of age |
|||
Annual interest rates |
Nominal |
For the first 24 months, fixed 13% - after which floating (CBFR1 + 5.27)% |
||
Actual 2 |
13.96 - 15.90% |
|||
Prepayment 3 |
Not less than 10% of the property item's reference price 4 Not less than 20% of the value of the parking lot 4 |
|||
Collateral security |
In case of purchasing an existing apartment, the pledge of the acquired residential real estate and/or parking lot. In case of purchasing an apartment under construction, the pledge of the right to purchase of residential real estate under construction and/or a parking lot Acquired real estate(s) should serve as the primary collateral A Master Loan Agreement (hereinafter referred to as MLA) is signed with all borrowers |
|||
Total Debt Ratio to Net Income (OTI)5 |
Up to 75% |
|||
Insurance |
Real estate insurance is provided, moreover the Bank acts as a beneficiary until the mortgage loan is repaid. |
|||
Mortgage loan to purchase an apartment through program resources |
||||
Annual interest rates |
Within the framework of the FMC program |
Nominal |
Refinancing rate + up to 1.5 percentage points, currently up to 9% |
|
Actual2 |
9.69 - 11.41% |
|||
Within the framework of the AY program |
Nominal |
Refinancing rate + up to 3 percentage points, currently up to 7.5% |
||
Actual2 |
8.07 - 9.69% |
|||
Other terms of financing within the framework of " National Mortgage Company" RCO CJSC and "Apartment for Youth" RCO CJSC in accordance with the provisions of the relevant services of the Bank (see the relevant links next to the service descriptions). |
||||
Consumer loan secured by real estate, for the acquisition of a parking lot |
||
Borrower |
Public servant (candidate) obtaining a real estate mortgage loan within the framework of the program |
|
Co-borrower, co-owner |
Co-borrower, co-owner involved in servicing a mortgage loan provided within the framework of the program |
|
Designation |
Acquisition of parking space (right to purchase) |
|
Amount and currency |
300,000 - 2,144,000 AMD (80% of the fixed value) |
|
Term |
60 - 120 months |
|
Annual nominal interest rate |
(CBFR1 + 5.27)%, currently 13% |
|
Annual actual interest rate2 |
14.07 - 19.21% |
|
Prepayment 3 |
Not less than 20% of the value of the parking lot |
|
Total Debt Ratio to Net Income (OTI) |
Not defined |
|
Collateral security |
Collateral for the purchased parking (right to purchase) |
|
General provisions: |
||
In case of lending with the bank's resources, the mortgage loan is provided for the purchase of both apartments and parking lots. The refinanced mortgage loan provided by the "National Mortgage Company" and the "Housing for Youth" RCO CJSC is provided only for the purchase of apartments, and the lending for the purchase of parking lots is provided under the terms of consumer loans secured by real estate. |
||
Loan application review, loan disbursement and service fees |
0 |
|
In case of recognizing the person(s) as creditworthy |
In case of approving the loan, the Bank provides consent to disburse a certain amount of mortgage loan to the public servant and (or) his/her family member in order to participate in the program. |
|
Real estate unit values |
- without interior decoration - AMD 339,000 - with interior decoration -AMD 377,000 - The fixed price for the parking lot is AMD 2,680,000 (in all cases, including value added tax) For 1 sq.m. of 522 apartments envisaged by the second stage - will be published by a relevant RA Government Decree The building will be commissioned in the fourth quarter of 2024 |
|
Loan and interest repayment procedure |
Annuity (Equal monthly repayment), with principal and interest accrued in variable portions. "Spring" (decreasing monthly repayment), in which the principal amount is included in equal portions, and accumulated interest is variable. |
|
Credit history requirements |
At the time of loan application |
|
Fines and penalties |
In case of breach of the repayment terms stipulated in the contract, the Borrower shall pay a fine to the Bank at the rate of 0.13% of the overdue amount for each day of default. Repayments of overdue liabilities are repaid in the following order: fine/penalty, interest, principal amount. No fines or penalties are envsiaged for early repayment of the loan. |
|
Other banking products provided on preferential terms to Public Servant Borrowers |
Issuance of payment cards and credit limits |
"Karas" term deposit in AMD for a period of 1-5 years with an annual interest rate 0.5 percentage points higher than the rate currently effective |
Other terms and tariffs in accordance with the provisions set out for the relevant services of the Bank. |
Notes: |
1 CBFR - Converse Bank Floating Rate It is set twice a year by the Bank on the basis of the primary indicators, and in the event of unavailability of the latter - based on secondary indicators. In case of change, the nominal interest rate of the existing contracts changes no sooner than one month after the borrower is notified. |
Pledged property insurance |
0.13% - 0.15% annually on loan balance |
Notary validation |
20,000 AMD |
Registration of property rights in the RA Cadastre Committee |
45,000 AMD |
Registration of the right of pledge in the RA Cadastre Committee |
27,000 AMD |
Early repayment of the loan
The borrower has the right to repay the loan in whole or in part in advance, including through refinancing.
In case of early repayment of the loan amount or part of it, the Bank will reduce the total cost of lending, including the total interest payable under the loan agreement and service charges.
At the borrower's discretion, the Bank will reduce the amount of monthly payments in proportion to the amount repaid in advance, leaving the loan repayment period unchanged, or reduce the loan repayment period, leaving the amount of monthly payments unchanged.
Consideration time
At least 7 days prior to the conclusion of the loan agreement, the Bank will provide you by hand or by mail a loan agreement proposal and a draft loan agreement. The proposal to conclude a loan agreement is valid for 7 business days from the day following the date of its submission to the borrower.
Example of calculating interest rates
In case of loan with the following terms and conditions:
Loan amount: |
20,000 USD |
Nominal interest rate |
9% |
Repayment period |
10 years |
Repayment type |
Annuity |
Interest composition
Monthly repayment (principal amount+ interest) |
234.315 |
Total interest |
36.235.634 |
Total of repayments |
56.235.634 |
Loan interest is calculated based on the nominal interest rate applied to the deductible balance, and the actual annual interest rate shows how much the loan will cost you when you make timely interest payments and all the related mandatory fees and payments related to loan disbursement. The procedure for calculating the annual actual interest rate can be found at the following address:
Communication with the Bank
You have the right to communicate with Converse Bank CJSC in any format at your discretion - by postal mail or by electronic communication methods. It is most convenient to receive information electronically, as it is available 24/7, free from the risk of loss of paper-based information and ensures confidentiality.
Provision of statements, references and other information (including VAT)
Provision of a statement by the method preferred by the customer, at the frequency defined by the RA legislation and / or by the contract: 0,
Provision of additional statement on mortgage loans (including submission to the RA State Revenue Committee) 4 times a year, for the period specified by the customer: 0
Provision of the statement in addition to the periodicity defined in the previous points1:
-dating back up to 3 years - 1,000 AMD
-Dated back to 3 years and more (in case it is available in the bank ) - 3,000 AMD
Statement1 for submitting to different institutions:
-In case of accounts opened within a month2 5,000 AMD
-In case of accounts opened earlier - 3,000 AMD
Reference based on the application submitted through the Bank's website - 3,000 AMD
References / Letters
On transactions made
-For transactions dated back up to one month - 3,000 AMD
-For transactions dated back more than one month - 5,000 AMD
Notice of agreement on consecutive pledge/alienation of property pledged in the Bank - 6,000 AMD for each pledged property
Transaction support documents and copies of other documents (for each document)
-Dated back up to 1 month - 1,800 AMD
-Dated back up to 1 year - 3,000 AMD
-Dated back more than one year - 12,000 AMD
Tariffs for other services (including VAT)
Mail delivery of statements or other documents
In the Republic of Armenia and Artsakh - 0
International
-Tariff set by the shipping service provider, if established by law and contract.
-In other cases, the fee set by the shipment service provider + 1,500 AMD
Delivery of references or other documents via Ordered mail shipping
-Within Armenia and Artsakh- 3,000 AMD
-International - fee set by the shipment service provider + 3,000 AMD
Provision of Bank consent for registration of family members at the address of pledged real estate (regardless of number of registered persons) - 3,000 AMD
Granting consent for modification of documents on real estate property pledged with the Bank3: 0.5%, minimum 12,000 AMD , maximum 60,000 AMD
Granting consent for the lease of pledged real estate property- AMD 12,000
Partial release of pledged property based on the application of the pledgor or the borrower (except for the pledge of cash as well as unallocated metal accounts) - 20,000 AMD (per property)
Loan terms revision4 - 0.5%, minimum 12,000 AMD
1In case of simultaneous provision of a statement and reference to the same Customer and charge envisaged for the reference, the charge will be collected for reference only.
2In case of more than one active account, the opening date of account which has been opened earlier is taken into consideration irrespective of whether or not included in the statement.
3The tariff shall be calculated on the basis of the estimated initial value of the collateral.
4The tariff is calculated based on the amount of loan provided. The tariffs are set at the time of submission of the application by the customer for revision of the loan terms.
Required documents
1 |
Loan Application Form |
2 |
Preliminary agreement between the Committee and the borrower: |
3 |
Identity documents, public service numbers, or a reference of not having received a Public service number issued by population state registration body (not required, if identification card is presented) |
4 |
A reference to the place of residence with the indication of family members living together. |
5.1. |
Certificate from the workplace, with date of issuance as of the date of submission to the Bank should not date back to more than 20 calendar days (a copy of the annual individual report submitted by the employer may also be required) |
5.2. |
Secondary income (if any) supporting documents. |
6 |
Certificate of ownership of the purchased property, grounds for acquisition |
7 |
Unified reference on the Real Estate Unit provided by the RA Cadastre Committee on any encumbrances of the pledged property (submitted after the loan is approved) |
8 |
Marriage, Divorce Certificates (if available) of Borrower/pledgers |
9 |
Consents to make ACRA Request and ACRA Reports (prior to loan approval) |
10 |
Other documents required by the Bank. |
Attention |
If you fail to fulfill or incompletely fulfill your obligation, within three business days this information will be provided to the credit bureau where your credit history is formed. Having a bad credit history can negatively affect your creditworthiness in the future. You have the right to receive your credit history report for free once a year from the credit bureau. |
In case of insufficient funds to repay your credit liabilities, they may be repaid at the expense of your other property and/or that of the guarantor, as prescribed by the RA legislation. |
In accordance with the RA Law on Combating Money Laundering and Terrorist Financing, on the basis of the Know Your Customer Principle, the Bank may require the Customer to provide additional documents or other information, as well as ask questions during verbal communication, for the purpose of conducting due diligence of the Customer. |
The Bank may collect additional information in accordance with the terms of an agreement with the US Government under the Foreign Account Tax Compliance Act (FATCA) to determine your eligibility for being a US taxpayer. |
The Bank is entitled to modify and supplement the tariffs for additional services provided by notifying the Customers in accordance with the contract, by posting a relevant message on its own website ( www.conversebank.am), by posting announcements on the Bank's premises, by sending a notification by post, and by any other methods proposed by the Bank selected at the Customer's preference, which is considered a due notification of the Customer. |
Factors for positive or negative decision on providing the loan
The Bank is inclined to provide the loan if:
- The applicant complies with the terms and limiting conditions of the loan,
- At the request of the bank, the applicant secures its credit liabilities with collateral,
- The applicant is recognized as creditworthy as a result of the assessment,
- The documents and references submitted by the applicant are reliable and include all necessary information;
- The applicant's credit history is either positive or missing.
Failure to comply with any of the above conditions, as well as other requirements of the Bank's internal regulations, may result in refusal to provide the loan.
Time periods for notifying the customer of the decision to provide the loan and for the loan disbursement.
-The decision-making proces takes a maximum of 10 banking days.
-The customer is informed within one day.
+Loan agreements are concluded within a maximum of 3-5 banking days after the Client submits the complete package of documents to the Bank.
-The actual loan is provided to the client as soon as he/she receives the certificate on the right to pledge from the relevant state bodies.
Venue for loan formalities and method of disbursement
Loan is provided at Head Office and Branches
In case of purchase, the loan amount is transferred directly to the developer's account. In case of renovation, the loan amount is disbursed to the borrower by way of depositing it to the borrower's bank account.
Your financial directory
Your financial directory is an electronic system combining services offered to individuals that makes it easy to search, compare and find the most effective option for you https://www.fininfo.am/compare-mortgage-loan.
Procedure for resolving disputes
Any disputes and disagreements between the Customer and the Bank shall be resolved first by mutual negotiation, and should the agreement not be reached by such methods, the disputes and disagreements shall be resolved in accordance with the procedure prescribed by the RA legislation both per court procedure, and through financial system obmudsman.
Notice on Financial System Mediator
Please be informed that according to the RA Law on Financial System Mediator, in case of property claims arising out of services rendered to you by Converse Bank CJSC, disputes and disagreements for not exceeding million AMD or equivalent foreign currency may be resolved through the Financial System Mediator.
According to an agreement between the Bank and the Office of the Financial System Mediator, the Bank waives the right to challenge the Financial System Mediator's decisions only in relation to property claims not exceeding 250,000 (two hundred and fifty thousand) AMD or equivalent currency, and on transaction amounts not exceeding 500,000 (five hundred thousand) AMD or equivalent foreign currency.
Address: 0010 Yerevan, Khorenatsi str. 15,
"Elite Plaza" business center, 7th floor
Email: [email protected]
Telephone: (+37460) 70-11-11
Fax: (+37410) 58-24-21:
Contact with the Bank
For more details and more information you can:
- visit the Bank's website at https://www.conversebank.am
- visit the Bank's Customer Service at the Head Office or any branch
Call: 374 10 511211
Viber: 374 95 511211
Skype: conversebank-callcenter