Lending Programs
The First Mortgage Company is the first private residential mortgage finance company in Armenia which is licensed and regulated by the Central Bank of Armenia. FMC offers multiple mortgage loan products at the lowest mortgage rates in Armenia. The process of getting a mortgage loan at First Mortgage is fast and simple. We offer mortgage loans under following programs:
FMC Mortgage Loan Program
- Loan amount: From 1,000,000 AMD or from 3,000 USD but not more than 75% of appraised property value.
- Loan term: From 10 to 15 years.
- Interest Rate: Starting from 12% fixed rate per annum.
- Collateral: Pledge of the property financed by the loan
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 75,000 drams, VAT included.
- In case of making full or partial prepayments during the 1st year, the borrower shall pay a penalty equal to 1% of the amount prepaid. Starting from the 2nd year no penalty is imposed for prepayments.
- In case of not making the loan and/or interest payments on time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Mortgage Loan Program/FMC/ OPIC
This program offers the financing or refinancing of the acquisition of an existing or new Residential Home, or renovation of an existing or new Residential Property, or construction of a new Residential Home
- Loan purpose: Financing the acquisition, renovation, reconstruction and refinancing the acquisition of a residential property.
- Loan amount: From 10,000 to 120,000 USD but not more than 75% of appraised property market value.
- Loan term: Up to 15 years.
- Interest Rate: Starting from 12% per annum.
- Collateral: Pledge of the property financed by the loan.
- Insurance: Personal accident and property insurance.
Sufficient and stable income.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 75,000 drams, VAT included.
- In case of making full or partial prepayments during the 1st years the borrower shall pay a penalty equal to 1% of the amount prepaid. Starting from the 2nd year no penalty is imposed for prepayments.
- Late payment penalties: In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Mortgage Loan Program CBA/KFW/FMC
- Loan purpose: Financing the acquisition, renovation of a residential property.
- Loan amount: Up to 12,000,000 AMD but not more than 70% of appraised property market value.
- Loan term: From 10 to 15 years.
- Interest Rate: Starting from 12% per annum.
- Collateral: Pledge of the property financed by the loan.
- Insurance: Personal accident and property insurance.
- Sufficient and stable income.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 75,000 drams, VAT included.
In case of making full or partial prepayments during the 1st year the borrower shall pay a penalty equal to 1% of the amount prepaid. Starting from the 2nd year no penalty is imposed for prepayments.
- Late payment penalties: In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Mortgage Loan Program/FMC/National Mortgage Company
- Loan purpose: Financing the acquisition, renovation, construction of a residential property and refinancing of existing AMD denominated mortgage loans from other lenders which were originated for a period of not less than 10 years.
- Loan amount: Up to 20000000 AMD.
- Loan term: From 10 to 20 years.
- Refinancing loan term: From 5 to 20 yaers.
- Interest Rate: Starting from 12% per annum.
- Collateral: Pledge of the property.
Insurance: Personal accident and property insurance.
- Sufficient and stable income.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 75,000 drams, VAT included.
- In case of making full or partial prepayments during the 1st and 2nd years the borrower shall pay a penalty equal to 1% of the amount prepaid. Starting from the 3rd year no penalty is imposed for prepayments.
- Late payment penalties: In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Mortgage Loan Program with Habitat for Humanity Foundation/FMC
- Loan purpose: Financing the renovation or reconstruction of a residential property for low and middle income groups.
- Renovation loan amount: Up to 10,000 USD or 3,000,000 AMD, but not more than 50% of appraised property market value.
- Reconstruction loan amount: Up to 16,000 USD or 5,000,000 AMD, but not more than 50% of appraised property market value.
- Renovation loan term: Up to 5 years.
- Reconstruction loan term: Up to 9 years.
- Initial interest Rate: 13.5% per annum.
- Collateral: Pledge of the property financed by the loan and/or guarantee.
- Insurance: Requirement of insurance is decided individually.
- Service fee: Fixed 5000 AMD service fee is charged per annum, VAT included.
- Late payment penalties: In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 0.03% of the amount due per day.
Mortgage Loan Program with Habitat for Humanity Foundation/FMC
- Loan purpose: Financing the renovation or reconstruction of a residential property of low income groups.
- Loan amount: Up to 3,000,000 AMD.
- Loan term: Up to 20 years.
- Interest Rate: 4.5% per annum.
- Collateral: Pledge of the property financed by the loan and/or guarantee.
- This program is only available for selected communities outside of Yerevan
Mortgage Loans for Young Families
- Loan purpose: Financing the acquisition of a residential property (an apartment or a house, the purchase price and the appraised value of which does not exceed AMD 16,000,000 and AMD 16,500,000 respectively);
Borrower status: Young family member who is a resident and a citizen of RA;
Young family: A married couple whose ages sum to maximum 60 and one of the spouses is less then 30 (including) years of age and the other is less than 35 (including) years of age, or a single parent less than 30 (including) years of age;
- Loan amount: Up to 70% of the property value but not more than AMD 11,200,000;
Interest Rate: Starting from 8% per annum. The Government subsidizes 2% of the annual interest rate (e.g. in case of 10% loan interest rate, the Government subsidizes 2% and thus the borrower pays 8% to the company);
- At any time during the life of the loan, if any information presented by the borrower is discovered to be false, or if the borrower uses the loan proceeds for purposes other than for acquisition of a property to live in, or if the borrower does not make regular payments (three consecutive payments), the subsidy will be terminated; In case of subsidy termination the loan interest rate will increase to 14% per annum;
- Loan term: 10 years;
- Collateral: Pledge of the property;
- Insurance: Personal accident and property insurance;
- Sufficient and stable income;
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 75,000 drams, VAT included;
- In case of making full or partial prepayments during the 1st year the borrower shall pay a penalty equal to 1% of the amount prepaid. Starting from the 2nd year no penalty is imposed for prepayments;
- Late payment penalties: In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
How to Get a Mortgage Loan?
Step One
- Please fill in the mortgage loan application form. (Click here)
- Provide a letter stating your income. e.g. a letter from your current employer. The letter should state your position, term of the contract and your current salary.
- Pre-screening and pr»-approval of your application will take 3 working days upon receipt of your loan application and the statement of your income.
- 3,000 AMD application fee is charged to the borrower but not included in acquisition.
Please seek professional advice from our loan officer if you have any questions prior filing an application form.
Pre-screening and pre-approval of your application will take 3 working days upon receipt of your loan application and the statement of your income.
Step Two
- Our loan officer will advice you on how to collect all necessary documents which are necessary for processing and registering a mortgage loan in Armenia. All documents required from the Cadastre and the passport agency should be collected by the seller.
- Real Estate Appraisal will be conducted by a licensed appraiser nominated by the Lender when you chose your new home. We work with two independent licensed real estate appraisers who will be happy to visit the property you chose to buy within two working days. They will submit to a Lender an appraiser report. You may retain a copy upon request. Our loan officer will provide you with contact details of the appraiser.
- There is an appraiser’s fee that you are kindly asked to pay directly to the appraiser company. We negotiated a special appraisal fee for our customers. The appraisal fee will be in the range from 20,000 to maximum 30,000 drams depending on the type and the size of the property. Please refer to Supplement II for closing and other fees.
- All mortgage loans are subject to notary verification and registration with the State Cadastre. You will need to obtain a title certificate from the Cadastre which will cost you on average 7,000 drams depending on the size of the apartment.
- Form No.3 from passport agency.
- Additional documents which may or may not apply in your case as described in Supplement 1. Our loan officers will advice you on each item that needs to be collected and how to apply.
Step Three
- Upon receipt of all documents the Notary Public shall verify the mortgage agreement. Trilateral agreement between seller, buyer and the First Mortgage is concluded at the Notary office. The state notary fee is from 15,000 to 25,000 drams paid by home buyer or seller.
- Upon conclusion of the mortgage loan agreement the buyer and the First Mortgage jointly file an application to State Cadastre to obtain a new property deed and the pledge certificate. These documents will be issued within 3 working days. The state fee for obtaining the property deed is 22,000 drams and 12,000 drams is charged for the pledge certificate. The new property deed and the pledge certificate will be deposited with the Lender for the entire life of the loan.
- Home buyer/borrower is required to purchase a comprehensive property and/or personal accident/life insurance for the entire period of the loan. In case the loan is pre-repaid in full before the end of the loan agreement the insurance companies will reimburse you upon request. The fee for the property insurance is estimated by the insurance company considering the size, the value of the property and the size of the loan. The life or/and personal accident insurance fee is estimated based on the age and gender of the insured. Our loan officer will be happy to provide you with approximate fee estimate. Please refer to Supplement II for the cost estimate.
- Upon receipt of the pledge certificate and the copies of the property and life or/and personal accident insurance the First Mortgage will disburse the loan to you or to home seller upon your written instruction to First Mortgage.
Notice: Personal information provided to Lender is protected by Bank Secrecy Laws of Armenia and can not be released by Lender to any third party without written consent of the applicant or/and by the order of the court.
Supplement I
Please find below the list of documents that are required for each mortgage transaction. Please note that some documents listed below may or may not be required in your case. We may or may not require additional documents. Please check with the loan officer which documents are required for closing your loan. Thank you.
- Mortgage Loan Application Form
- Credit Report (if available)
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- Reference Letter from Employer stating your monthly/yearly income, your position, term of employment agreement and date of employment.
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- Applicant Passport or ID
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- Real Estate Appraisal Report
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- Letter stating your address of permanent residence, phone number, fax number, e-mail address, if different from the address indicated in the application form. Please indicate your address and contact details if you are temporarily residing at any other place.
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- If the applicant is a partner/owner of any resident or non-resident company please submit the documents e.g. registration deed or any other document confirming your ownership rights.
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- The copy of the property deed of the home you chose to buy.
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- If the property has co-owners please submit the copies of their passports.
- If the applicant is married please submit the copy of the marriage certificate.
- If the applicant is divorced please submit the copy of divorce certificate.
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- If the applicant has kids less than 16 years old please submit the copies of their birth certificates.
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- If the applicant has any dependant please submit the copy of his/her passport.
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- Please submit title certificate from the State Cadastre. (after the application is pre-approved)
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- Form N3 (after the application is pre-approved)
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- Pledge Certificate (after the pledge agreement is signed and registered)
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- Insurance Policy (after the mortgage and pledge agreement is signed and registered)
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Supplement II
Closing Costs and other Fees
| Cost |
Explanation |
Fee |
Maximum |
1. Application Fee |
Charged to the borrower but not included in acquisition |
3,000 drams |
Actual Application Review Cost |
2. Appraisal Fee |
Real Estate Company |
25,000-30,000 drams |
Actual Cost |
3. Legal Fees |
Included in the closing fee |
|
|
4. Title Certificate |
Charged to the seller/borrower |
7000-15000 |
Actual Cost |
5. Form No.3 |
Charged by passport agency |
Up to 3,000 drams |
Actual Cost |
6. Notary Fees |
Charged to the borrower but not included in acquisition |
15,000-25,000 drams |
Actual Cost |
7. Property Deed |
Charged by Cadastre |
22,000 drams |
Actual Cost |
8. Pledge Certificate |
Charged by Cadastre |
13,000 drams |
Actual Cost |
9. Cash out Fee |
Charged by the Bank |
0,5%from the loan |
Actual Cost |
10. Bank transfer fee |
Charged by the Bank |
Up to 18,000 drams |
Actual Cost |
11. Broker Fee |
None |
None |
None |
12. Credit Report |
Included in the application fee |
1500 drams |
Actual cost |
13. Closing fee |
Charged to the borrower |
Minimum 75,000 drams max 1% from the loan amount. |
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14. Property Insurance |
Charged by the insurance company |
0.25% from the appraised value of the property |
Actual cost |
15. Life/PA Insurance |
Charged by the insurance company |
0.4% from the Loan Amount |
Actual Cost |
Other loan programs
Car loan program
FMC offers car loans on the following conditions.
- Loan amount: Up to 12,000,000 AMD but not more than 70% of appraised market value of the car.
- Interest rate: Starting from 14% per annum.
- Loan term: Up to 5 years for new cars /cars less than 3 years old / and up to 3 years for old cars /more than 3 years old/.
- Collateral: Pledge of the car financed by the loan.
- Sufficient and stable income.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 50,000 drams, VAT included.
- Late payment penalties: In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Personal Loan Program with collateral
FMC offers personal loans on the following conditions.
Loans with collateral
- Loan amount: Up to 5 times of your monthly salary.
- Interest rate: Starting from 24%-26% per annum.
- Loan term: Up to 12 months.
- Collateral is no required for loans up to 1 million AMD.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 20,000 drams, VAT included.
- Late payment penalties:
- In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Personal Loans without collateral
- Loan amount: Up to 1,000,000 AMD.
- Interest rate: Starting from 24%-26% per annum.
- Loan term: Up to 12 months.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 20,000 drams, VAT included.
- Late payment penalties:
- In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Personal Loans without disclosure of income
- Loan amount: Up to 70% of appraised property market value.
- Interest rate: Starting from 18% per annum.
- Loan term: Up to 5 years.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 20,000 drams, VAT included.
- Late payment penalties:
- In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 2% of the amount due per day.
Business Development loans
- Loan amount: Up to 300,000 USD or 90,000,000 AMD.
- Interest rate: Starting from 15% per annum.
- Loan term: Up to 5 years.
- Collateral: 130%.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 100,000 drams, VAT included.
- Late payment penalties:
- In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 0,2% of the amount due per day.
Commercial Mortgage loans
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Loan amount: Up to 70% of the appraised property market value.
- Interest rate: 15% per annum.
- Loan term: Up to 10 years.
- Collateral: Pledge of the property.
- Closing fee: Fixed 1% closing fee is charged from the total loan amount but not less than 100,000 drams, VAT included.
- Late payment penalties:
- In case of not making the loan and/or interest payments in time, the borrower shall pay a late payment fine equal to 0,2% of the amount due per day.
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