While looking for a home, you will encounter the terms "Primary Market" and "Secondary Market."

• A home is considered on the primary market when it is being sold for the first time directly from the developer. This is known in the West as a "new-build property."
• A home is considered on the secondary market when it is already in an operated building and is not being sold for the first time.

Why is this important?

• The prices of homes in the primary and secondary markets can vary, with those in the secondary market often being lower.

• A home purchased in the primary market is usually under construction, and you have to wait until the construction is completed (construction takes 2-4 years).

If you purchase a home in the secondary market with a mortgage loan, you cannot take advantage of the income tax refund.

A home on the primary market is a newly built and never previously inhabited unit that the buyer purchases directly from the developer.

A home on the secondary market is a previously occupied unit that has had one or more owners. It is sold directly by the previous owner or through a real estate agency.

When buying a home in a newly constructed building (primary market), the choice of the development company is important. Key factors to consider include:

• How many buildings has the company completed?
• How quickly is the project progressing?

When choosing a building, you should find out from the development company:

• When the construction work is scheduled to be completed.
• Whether the company has the necessary permits.
• Whether the urban planning and state registration documents for the building are available for review.
• In what condition will the apartment be handed over (e.g., interior decoration, type of windows, presence of an entrance door, availability of utilities, etc.)?
• Which banks does the development company cooperate with?
• Under what mortgage lending programs are the apartments sold?
• Whether the development company is involved in any legal proceedings.

When buying a home in an already-operated building (secondary market), you should take precautions to avoid fraud. To do so:

• Choose reliable real estate agents.
• Verify that all owners of the home agree to the sale.
• Inquire about any existing problems with the home.

A mortgage is a long-term loan, typically for up to 20 years, used to finance the purchase or construction of a home (such as an apartment or private house).

In most cases, banks in Armenia provide mortgages to residents with a social security number (SSN) who are registered at an address in Armenia and have jobs. In some cases, a guarantor and collateral may also be required if the applicant's income is insufficient for mortgage approval. It all depends on the bank's policy. 

Foreign citizens may also receive a loan in foreign currency if an RA resident co-borrower is not involved.

You can apply to banks operating in Armenia that will finance the purchase of your home.

RA and foreign citizens over 18 years of age (foreign citizens must be RA residents and have an RA citizen guarantor) are eligible for this loan.

Foreign citizens may also receive a loan in foreign currency if an RA resident co-borrower is not involved.

• In all cases, a lump-sum down payment of 10-30% of the home's purchase cost is necessary when obtaining a mortgage loan.

• A mortgage loan is provided against collateral, typically the property being purchased.

• In almost all cases, the collateral must be insured for the entire term of the loan agreement. Sometimes, the bank providing the loan services also includes property insurance.

• In some cases, lending institutions also require insurance of borrowers and/or co-borrowers (for example, spouses) against the risks of accident, death, and/or permanent disability.

At different stages of purchasing a home with a mortgage loan, you will make the following payments:

• Loan application examination fee: 5,000 AMD (to the bank)
• Loan disbursement fee, starting from 50,000 AMD (to the bank)
• Collateral valuation costs: 18,000-25,000 AMD (to the appraisal company)
• Property and accident insurance fees: at least 1,000 AMD (to the bank)
• Single reference fee: 10,000 AMD (to the Cadastre Committee)
• Notary certification fee: 20,000 AMD (to the notary)
• Registration of ownership rights in the Cadastre Committee: 45,000 AMD (to the Cadastre Committee)
• Registration of real estate mortgage rights in the Cadastre Committee: 27,000 AMD (to the Cadastre Committee)

• Loan application form, which is provided on-site

• Identification documents (originals)

• Copy of the certificate of ownership (right to purchase) of the property being purchased/mortgaged (provided by the development company)

• Other documents at the request of the bank specialist

The loan disbursement deadlines are:

• The decision to provide the loan takes a maximum of 10 days.
• The client is notified within one day.
• Loan agreements are approved within 3-5 days after the client submits the complete documents.
• The actual disbursement of the loan to the client is made upon receipt of the certificate of the right to purchase real estate from the relevant state bodies.

You can make monthly loan payments in the following options:

• Equal Monthly Repayments (Annuity): The principal and accrued interest are included in variable parts.
• Variable Monthly Repayments (Spring-type): The principal is included in equal amounts, and accrued interest is variable.
• Mixed Repayments: In this case, you can choose a preferred repayment schedule. The principal paid annually must be equal to at least 5% of the loan's contractual value.

Within 10 business days after applying, the bank employee will notify you of the loan approval and invite you to the bank to submit your documents for the next stage of lending, as follows:

• Salary certificate
  • Other documents confirming income may be required (income certificate, in case of income from abroad, also documents confirming such income).
• Marriage certificate (divorce, death certificate of spouse)
• Birth certificate
• Certificate of ownership of the mortgaged real estate
  • The certificate pertains to the property being purchased (mortgaged property) and is provided by the construction company.
  • Companies cooperating with the bank typically submit the certificate to the bank's email address.
• The bank employee may also request other documents
  • For example, if your actual address of residence differs from the address registered in your passport, you will be required to submit a certificate of your actual address of residence.

Please note:
You must submit the originals of the required documents; references are valid for 15-30 days.

You have 7 business days to accept or reject an offer to sign the loan agreement.

During this period:

• The bank will provide you with a written offer to sign a mortgage loan agreement (the "Offer") in person or by mail. This Offer will include:
  • A copy of the loan agreement
  • An approximate payment schedule
• You may review the Offer and express any objections to the bank.
• To accept the Offer, you must physically appear at the bank and sign a written acceptance.

• Copies of the grounds for the ownership right to own real estate (submitted upon bank request)

• Identification documents (originals) of the owners of the property being acquired/pledge

• Copies of the marriage, divorce, and death certificates of the owners of the property

• Unified certificate (issued by the State Committee for Real Estate Cadastre) on the burden of property obligations

• Real estate insurance contract

• A certificate on tax obligations for real estate

• Other documents at the request of the bank specialist

Yes, but keep in mind that in such cases, the bank may impose penalties. This should be stated in the loan agreement, and the bank employee should also inform you.

It is important to remember: If you want to pay more to reduce the principal amount of the loan, you must definitely indicate this in both cash and online payments.

When purchasing a home with a mortgage loan, a contract is typically concluded not for the sale of an apartment but for the acquisition of the right to purchase a home (it may have different names). This contract serves as the basis for the future registration of real estate ownership.

Key characteristics of this contract:

• Is tripartite, signed between the buyer of the property, the bank, and the developer
• Is legally equivalent to the home purchase contract
• Determines the developer's obligation to transfer the real estate with the right of ownership after the completion of the construction of the building. In the event of contract termination, the form of refund of the advance payment by the developer.

Citizens of the Republic of Armenia and other countries aged 18-70 (foreign citizens must be residents of the Republic of Armenia) are eligible for loans.

• The borrower's age at the end of the loan agreement must not exceed 70 years.
• If the borrower's age will exceed 70 years by the end of the loan agreement:
  • A co-borrower or guarantor aged 18-70 years is required.
  • The co-borrower or guarantor's age must also not exceed 70 years by the end of the agreement.

Before visiting the bank:

• Obtain income certificates for yourself and all co-borrowers.
• Present these certificates to the loan officer.
• Inquire about the loan amount the bank can provide.

Based on the approved loan amount and your available personal funds:

• Determine your overall budget for a home.
• Choose a home that falls within this price range.

For a mortgage loan, original documents are submitted in several stages.

Documents required when filling out a loan application:

• Loan application
• Identification documents
• Ownership certificate of the property being purchased/mortgaged
• Other documents at the request of the bank specialist.

Documents required after initial approval:

• Salary certificate and/or other documents confirming income
• Birth, marriage, divorce, and death certificates of the spouse
• Ownership certificate of the real estate being mortgaged
• Other documents at the request of the bank specialist

Documents required after loan approval:

• The basis of the right of ownership of real estate (upon the bank's request)
• Identity documents of the owners of the acquired/mortgaged property
• Marriage, divorce, and death certificates of the owners of the mortgaged property
• Unified certificate (issued by the State Committee for Real Estate Cadastre)
• Real estate insurance contract (issued by the bank)
• Certificate on tax liabilities for real estate (issued by the relevant community administration)
• Other documents at the request of the bank's specialist

The pledged property is subject to mandatory valuation by one of the companies cooperating with the bank of your choice. A bank employee will inform you about this and provide a list of cooperating valuation companies.

• The cost of property valuation ranges from 13,000 to 30,000 AMD, depending on the type of property.
• In some cases, the valuation fee for large properties may be determined on a contractual basis.

In case of purchasing a home on the secondary market with a mortgage loan, you will make the following payments:

• Loan application examination fee: 5,000 AMD (to the bank)
• Loan disbursement fee: starts from 50,000 AMD (to the bank)
• Collateral valuation costs: 18,000-25,000 AMD (to the appraisal company)
• Insurance fee (to the bank)
• Single reference fee: 10,000 AMD (to the Cadastre Committee)
• Notary certification fee: 20,000 AMD (to the notary)
• Registration of ownership rights in the State Committee of the RA Cadastre: 45,000 AMD (to the Cadastre Committee)
• Registration of the right of pledge in the RA Cadastre Committee: 27,000 AMD (to the Cadastre Committee)

You will pay a down payment of 5 to 30 percent of the home's value. An account is opened in the selected bank, into which the down payment is deposited. This account is then frozen until the loan is disbursed.

After approving the loan agreement, the bank employee prepares a tripartite agreement for the right to purchase the home, which is signed and notarized by a notary public between you, the seller, and the bank.

An ownership certificate is a document that confirms your rights as the owner of the residential space built at a given address. 

The State Cadastre in Armenia issues digital property ownership certificates. When your certificate is ready, you will be notified via SMS with a link and password for downloading.

After receiving the certificate, you can:

• Register at the given address based on ownership, indicating it as a place of residence, or allow other persons to register at the given address.
• Apply to the relevant utility services offices to become a subscriber, after which you can make utility payments.
• Sell the apartment, rent it out, or perform other actions arising from ownership.

If you purchase a home with a lump-sum payment, you can immediately apply for ownership registration after signing the sales contract. You can do this at the Cadastre Committee or a notary's office.

• Please note that if you apply to a notary's office, the process may take longer than the time limit set by law (3 business days).
• Please note that some notaries charge a small fee for submitting the request to the State Cadastre on your behalf.

If you purchase a home on the primary market with a mortgage loan, you must wait until the developer completes the construction of the building, receives the completion certificate (permit to operate) from the relevant authority, and provides it to you.

Only then should you apply to the Cadastre Committee or a notary office for the state registration of the home's ownership.

The contract for transferring ownership of a home purchased on the secondary market with a mortgage loan must be signed and ratified at a notary's office and registered with the Cadastre Committee.

Please note that some notaries charge a small fee for submitting the request to the State Cadastre on your behalf.

• Find the list of State Cadastre offices here.
• Find the list of notary offices here.

Within the framework of the program, mortgage loans are provided:

• For the primary market at a maximum of 7.5% without subsidy
• For the secondary market at a maximum of 9.5% of which the state (the Ministry of Education, Science and Technology of the Republic of Armenia) subsidizes 2% in Yerevan, at a maximum of 7.5 %, and in the regions of the Republic of Armenia - at 4%, at a maximum of 5.5%.

The minimum repayment period for a mortgage loan under this program is 10 years.

To participate in the program, you must apply to one of the following banks and credit organizations (use the browser's translation tool to view the English version if it's not available) for a mortgage loan, find out if support can be provided, and submit the required documents.

The decision to grant or deny a loan is made within a maximum of 10 business days after submitting all required documents.

List of required documents:

• ID of the borrower (co-borrower)
• ID of the borrower's spouse
• Birth certificates of the borrower and his/her spouse
• Social cards of the borrower and his/her spouse
• Marriage certificate of the borrower and birth certificates of children (if any)

If the borrower is an employee, then submit:

• An income certificate from the employer, which must indicate the position of the borrower (co-borrower), length of service, and actual income.
• Individual account statements of the borrower, his/her spouse, and co-borrower (for the last year, provided by the tax authority).
• Data on previous employment (employer, position held, length of service in each organization) if the applicant has been employed at a given workplace for less than 12 months.
• The bank card statement of the borrower/co-borrower, which will indicate the amount of the monthly salary (if necessary).

If the borrower is self-employed, then submit:

• Taxpayer's identification number (TIN), state registration certificate, organization's charter (if any), and documents permitting the activity, if any.
• Tax reports for the last 1 year and information on expenses (if necessary).
• Self-employed income assessment report.
• Other documents at the request of the bank.

Property documents:

• Registration certificate of ownership of the pledged real estate (as well as the grounds for the certificate, if necessary).
• Unified certificate issued by the Cadastre Committee.
• Valuation report of the pledged real estate.

Other documents:

• Certificate on real estate owned by the borrower and his/her spouse (issued by the Cadastre Committee).
• Accident insurance certificates for the pledged real estate and the borrower (co-borrower).
• Loan receipt or statement.

A lump-sum financial assistance is provided, which is directed towards the repayment of the principal amount of the mortgage loan. The amount of the childbirth assistance as of the date of application is:

• In the case of the first or second child of the beneficiary in one of the Armenian regions, 10% of the remaining principal amount of the loan
  • In the city of Yerevan, 5%, with a maximum of 500,000 AMD
• In the case of the third and subsequent children in one of the Armenian regions, 50% of the remaining principal amount of the loan
  • In the city of Yerevan, 25%, with a maximum of 2,000,000 AMD

If the residential real estate is acquired or constructed in a border settlement or rural settlement where schools or kindergartens are being built, the assistance is increased by 50%.

In the case of the birth of more than 1 child at a time, the amount of assistance is calculated according to the number of children born.

A citizen can apply for the program if:

• A citizen of the Republic of Armenia and has received a mortgage loan
• Applied before the child turns 1 year old (inclusive).

The support is provided if:

• The maximum market or estimated price of the acquired real estate or the right to purchase an apartment in a building under construction is 35 million AMD.
  • In the case of the birth of the 3rd and each subsequent child, this amount increases by 5 million AMD.
• The given real estate is the only residential real estate owned by the beneficiary or, in the case of a registered marriage, also by his/her spouse under the right of personal, common joint, or common ownership.
• As of the date of application, the beneficiary has made mortgage loan repayments for at least 12 months, and the total number of days of delay on the repaid mortgage loan during the last 12 months does not exceed 30 calendar days.

The steps below must be completed after clicking the "Continue" button:

• Go to the e-request.am website, which will take you to the unified electronic request platform.
• Select the "Send a Request or Complaint" section.
• Identify yourself on the preferred "YesEm" identification platform or register on the website.
• Fill out the application form, attach the relevant documents, and apply.

This service can be applied for online in cases where the organization providing the loan is not a party to the support agreement.

When sending a letter to the Ministry of Labor and Social Affairs, you must submit the relevant reference issued by the financial organization and the following documents:

• ID document
• Birth certificate of the child(ren)
• Public Service Number (PSN)
• Extract of payments for the last 12 months
• Certificate of ownership of real estate
• In the case of a registered marriage, a marriage certificate

Reference to Legislation

• Resolution of the Government of the Republic of Armenia No. 968-L of May 14, 2020
• The decision can be found on the website arlis.am

Within the framework of the program, one-time financial assistance is provided to families with children to purchase an apartment with a mortgage loan in regional settlements or to build an individual residential house.

• One-time financial support is provided in the amount of 5% of the cost of the apartment being purchased, but cannot exceed 1 million drams.

• The support is increased by 5% of the cost of the apartment for the 3rd and each subsequent child, but not more than 500,000 drams.

• The maximum amount of support is 2 million drams.

• If the beneficiary acquires residential real estate with a mortgage loan or builds an individual residential house in a border or rural settlement where schools or kindergartens are being built, then the assistance is increased by 50%.

Support is provided if:

• The real estate located in a regional settlement was acquired, or the mortgage loan was provided on or after January 1, 2024.
• The maximum market or estimated price for acquiring the right to purchase real estate or an apartment is 35 million AMD. In the case of the birth of the 3rd and each subsequent child, this amount increases by 5 million AMD.
• A minimum down payment is made, which is 10% of the value of property purchased on the secondary market and 7.5% on the primary market.
  • Except for the case when support is provided to a beneficiary who has received a mortgage loan for constructing a residential house.
• The ownership right to the property is registered in the name of the beneficiary or his/her spouse (if there is a registered marriage)
• The property is the only residential property owned by the beneficiary or his/her spouse (in the case of a registered marriage) by ownership (50% or more).

You must apply in person to one of the following banks or credit institutions (use the browser's translation tool to view the English version if it's not available) that have signed an agreement with the Ministry of Labor and Social Affairs.

The list of required documents is determined by the bank or credit institution.

Energy-efficient renovation of an apartment (residential building) is subsidized if the total cost of the works is allocated to the acquisition or replacement of alternative energy sources (energy-efficient building materials, heating systems, external doors, and windows) and in the case of an individual residential building, also to the thermal insulation of external cladding and enclosing structures:

• For apartments - at least 20%,
• For residential buildings - at least 30%.

Energy efficiency standards will be established in the procedure for implementing the program.

The loan limit is:

• For renovating an apartment in a multi-apartment building - no more than 7 million AMD.
• For individual residential buildings - no more than 10 million AMD.

Citizens of the Republic of Armenia who own an apartment (residential house) in the Republic of Armenia and who have obtained loan funds from financial institutions for the energy-efficient renovation of their apartment (residential house) after the program implementation procedure came into force.

The interest rate on the renovation loan is subsidized at the following rates:

• In border or high mountain settlements: 14%
• In non-border rural settlements: 12%
• In non-border urban settlements: 11%
• In Yerevan city: 9%

Within the framework of the program, the state provides military personnel with:

• Subsidization of interest on mortgage loans.
• Refund of income tax for obtaining a loan as a down payment and when purchasing an apartment or house directly from the developer, including reimbursement of interest paid on the loan.
• Repayment of the principal amount of the loan.

The following should be taken into account:

• The maximum value of real estate within the framework of the program is 28,500,000 AMD.
• The amount of state support for the down payment is 2,500,000 AMD, subsidized by 5% of the loan interest rate.

Contract servicemen of the officer and senior non-commissioned officer ranks (holders of the rank of non-commissioned officer, senior non-commissioned officer) within the Ministry of Defense system can become beneficiaries of the program.

The program provides financial assistance to families of

• Deceased servicemen.
• Former servicemen who are entitled to a military pension from the RA Ministry of Defense for a first or second-degree disability.

It can be used to acquire an apartment with ownership rights or the right to purchase an apartment.

The program is open to:

Former servicemen entitled to a military pension for disability of the 1st or 2nd degree and families of deceased servicemen who, as of the date of receiving the right to a pension or the date of the death of the serviceman, do not own a residential space in the territory of the Republic of Armenia, or have one but it is in a 4th degree of emergency and is subject to demolition.

Former servicemen entitled to a military pension for disability of the 1st degree who, as of the date of receiving the right to a pension, own a residential space in the territory of the Republic of Armenia, but the living area of ​​the serviceman and each member of their family is less than 5.5 square meters.

Before the entry into force of the Law “On Military Service and the Status of a Serviceman” of the Government of the Republic of Armenia of June 9, 2005, and N 1016-N of August 10, 2017

• Former servicemen who are entitled to a military pension for disability of the 2nd degree, who have residential space in the territory of the Republic of Armenia by right of ownership, but the living area of ​​the serviceman and each member of their family is less than 5.5 square meters, and who are registered as needing improvement of housing conditions in accordance with the procedure established by the Resolutions of the Government of the Republic of Armenia No. 947-N of June 9, 2005, and No. 1016-N of August 10, 2017, and who have a residential area in the territory of the Republic of Armenia by right of ownership, but the living area of ​​the serviceman and each member of their family is less than 5.5 square meters.

Former servicemen who are entitled to a military pension for disability of the 3rd degree, who do not have residential space in the territory of the Republic of Armenia by right of ownership, or who have one but it is in a 4th-degree emergency and is subject to demolition, or the living area of ​​the serviceman and each member of their family is less than 5.5 square meters.

It is necessary to submit the application and the required documents to the head of the community where the serviceman is registered (For example, in Yerevan, to the Mayor of Yerevan).

Required documents are:

• A certificate of recognition of the serviceman as a disabled person and a copy of the conclusion of the military medical examination body on the causal connection of the serviceman's illness, injury, or mutilation with military service.
• A certificate confirming the right to a military pension for disability of the 1st or 2nd degree of the RA Ministry of Defense system or the status of a family member of a deceased serviceman (Issued by the RA Ministry of Defense Social Security Department)
• Information on housing conditions and family composition, which must include information about the owner of the apartment, the living area of ​​the apartment, the number of rooms, the persons registered at that address, and their kinship (if adult family members are registered at different addresses, then a similar certificate must be submitted from all places of registration), a copy of the certificate of ownership of the apartment and (or) residential building.
• Information provided by the territorial subdivision and information center of the RA Real Estate Cadastre Committee on having a residential area in the territory of the Republic of Armenia under the name of the beneficiary, as well as on alienation of a residential area under the right of ownership within the 5 years preceding the date of recognition of the serviceman as entitled to a military pension for disability of the 1st or 2nd degree or death.
• Copies of passports of adult beneficiaries with registration pages, copies of marriage (divorce) and birth certificates of minor children, references on education and disability, and being under care.

The program provides:

• A certificate of the right to purchase
  • An apartment
  • An apartment in a building under construction
  • An individual residential house
• A certificate of construction of an individual residential house
• Assistance in repaying an existing mortgage loan

Certificates for receiving assistance for one family member (regardless of age) are issued in the following amounts:

• 5 million AMD if the house/apartment is purchased or built in any of the following urban and rural settlements.
• 4 million AMD if the house/apartment is purchased or built in any of the following urban and rural settlements.
• 3 million AMD if the house/apartment is purchased or built in other settlements, except for the 1st and 2nd zones of Yerevan (includes the Small Center, other parts of the Kentron administrative district, and a part of the Arabkir administrative district).
• 2 million AMD if the mortgage has already been taken out; the 1st and 2nd zones of Yerevan are an exception.

A family displaced from Nagorno-Karabakh after September 27, 2020, may apply for assistance if all family members (including minors) are citizens of the Republic of Armenia.

Persons forcibly displaced from Nagorno-Karabakh receive Armenian citizenship through a simplified procedure.

A family cannot apply for support if:

• It is a beneficiary under other programs to ensure affordable housing (approved by Resolution No. 169-L of February 17, 2022).
• At least one of the family members owns an apartment or residential house in the Republic of Armenia as of September 19, 2023, or the date of application.

The following can apply to the first and second components of support:

• Families with 3 or more minor children.
• Families with a deceased, a breadwinner, or a member with a disability level of 1 or 2.
• Families with other compositions, who will be considered creditworthy by a financial institution, in addition to the required certificate, will receive an additional mortgage loan of at least 50% of its value under any program component.

Families with a mortgage loan as of May 16, 2024, may be eligible for the third support component if the real estate they acquired or are building (constructing) meets certain criteria.

• The price does not exceed 55 million AMD.
• The living area is not less than 12 square meters for each beneficiary family member.
• The ownership right is registered in the names of all beneficiary family members.