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.