The Central Bank presented the changes implemented in the mortgage lending programs

In 2018, at the initiative of the RA government, in cooperation with the RA Central Bank and the RA Ministry of Finance, a number of improvements were implemented in the socially significant mortgage lending programs implemented in the mortgage market (including the beneficiaries of the “Renaissance” program), as a result of which the access to mortgage lending was significantly increased not only for journalists, IT or financial professionals, but also for all groups of beneficiaries. This is reported by the Central Bureau of Investigation.

1. Phase I changes

State target program “Affordable housing for a young family”.
During the month of September 2018, the RA government approved the new conditions of the state target program “Affordable housing for young families” [1], namely:

1. Changing the total age of spouses from 65 to 70.

2. Changes in the secondary market

The price of the apartment is up to 25 million drams
Maximum percentage: 9.5% instead of 10.5% previously
Down payment: 30% or 10% if there is a mortgage on the second property or insurance in the amount of 20% of the value of the apartment
Subsidy in the amount of 2% points in Yerevan, in the amount of 4% points in marzes

3. Changes in the primary market
The cost of the apartment is up to 30 million drams
Maximum percentage: 7.5%
Advance payment: 20% or 10% if there is a mortgage on the second property or insurance in the amount of 10% of the value of the apartment

Subsidy: None (instead there will be an indirect subsidy in the form of an income tax refund)
Loan term: up to 30 years

Changes in the “National Mortgage Company” program

At the same time, during 2018, improvements were also made in the mortgage lending programs implemented by the National Mortgage Company.
In particular, the implemented changes enabled young professionals under 30 years of age and unmarried persons to obtain mortgage loans in newly constructed buildings under the following conditions:

Կանխավճար՝ 7,5%
Loan term: 35 years

0.5% lower interest rate for mortgages on energy efficient buildings (average interest rate is currently 10.6%)

2. Phase II changes

During the month of November 2018, the Ministry of Sports and Youth circulated the draft amendments to the Government’s decision regulating the “Affordable housing for young families” program, according to which:

1. The age limit of one of the spouses is removed, and the total age of young people remains 70 years.

2. in the presence of certain conditions, it became possible for borrowers to reduce the amount of the advance payment to 7.5% (in the case when there is a collateral of the second property or advance payment insurance is obtained).

The draft of the above-mentioned decision will be posted on the e-drafts.am website for the purpose of collecting public opinions from 07.12.2018 to 27.12.2018. Currently, the project is in the RA Ministry of Justice.

After collecting the opinions of all interested bodies and the public, the draft decision can be discussed in the Government.