“Affordable Housing for Young Families” Mortgage Program
As of October 1, 2018, the “Young Family” mortgage program offered by all banks in Armenia has changed its rules a bit. The concept itself came to fruition years ago, with amendments made in 2016 as well, increasing amount available and combined age of spouses.
While initially it was up to 17.5mil AMD for a couple whose age combined doesn’t exceed 65 years, to be paid back within 10-12 years, with a 10-30% down payment and 4-9% interest rate (depending on the type of apartment and its location as well as the bank’s competitiveness), the new amendments have changed things for the better:
-Combined age increased from 65 to 70
-Maximum loan for newer homes – 30 million AMD/ for older homes - 25 million AMD
-Interest rates for older homes bought will be a maximum of 7.5% in Yerevan, 5.5% outside – This is expected to be very competitive
-10% down payment instead of 30%, when another piece of real estate (parents’ or otherwise) is placed under collateral. This was changed in 2016 and is expected to be made easier now.
-Mortgage span increased to 30 years for newer homes/ 20 years for older
It is important to note that those who fall into this program and are working taxpayers of Armenia will have their income tax pay off the interest on the loan, making it interest free over a 20-30 year span. Furthermore, this program takes into account all apartment buildings, as well as older homes. Newer homes built by licensed construction companies also fall into its confines, but not those built individually.