Thursday, August 22 2019 14:11
Alexandr Avanesov

Annually, 500 RA Armed Forces servicemen will be able to take  advantage of new mortgage lending conditions

Annually, 500 RA Armed Forces servicemen will be able to take  advantage of new mortgage lending conditions

ArmInfo.Annually, 500 servicemen of the Armed Forces of Armenia will be able to take advantage of new mortgage lending conditions for the acquisition or  construction of housing. At a meeting on August 22, the RA Government  approved the procedure for providing mortgage loans on concessional  terms to officers, warrant officers and contract servicemen.

According to RA Minister of Defense David Tonoyan, the government's  decision provides descriptions and conditions for the provision of  mortgage loans, the procedure for submitting applications, as well as  relations related to the number of beneficiaries of the program. 

According to the project, the Minister continued, annually 500  servicemen will be able to use the program. At the same time, the  maximum loan amount will be equal to 28.5 million drams. The state in  the form of prepayment pays 10% of these funds.  In addition, when  purchasing housing in the primary market, the mortgage rate will be  7%, of which 3% is subsidized by the state, and the borrower pays the  4%.

On the secondary real estate market, the rules of the National  Mortgage Company will apply, with a maximum interest rate limit of  2%, some of which will be financed by the state, and the rest by the  borrower. There is also a certain reduction in prepayment in the  presence of insurance 20% of the cost of housing. The procedure for  determining the beneficiaries will be carried out by drawing lots. In  the event of the death of a serviceman in the performance of his  duties, the state takes all the mortgage debt, and in case of  disability or retirement age, the state repays most of the mortgage  loan.

Meanwhile, as Chairman of the Central Bank of Armenia Artur Javadyan  noted, the total cost of the program is 11 billion drams. Moreover,  according to the new procedure, in case of purchasing housing in the  primary market, the interest rate for the RA Armed Forces will be  virtually reset, especially since the beneficiaries of the program  are exempt from income tax. The head of the Central Bank added that  the program determined the maximum size of a mortgage loan at 28.5  million drams, but may be to a lesser extent, especially in regions  in which the primary real estate market is not yet very developed.  The average loan size, added Arthur Javadyan, will be 20 million  drams. At the same time, it is possible that the number of  beneficiaries will be increased. This, according to the chief banker,  will depend on the number of applications from the beneficiaries.

According to Chairman of Urban Development Committee of Armenia  Vahagn Vermishyan, in order to develop the primary real estate market  in the country's regions, 30 new apartment buildings will be built  and commissioned next year. Construction will be carried out through  private investment. 

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