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.

The amount of the real estate tax is determined according to the cadastral value of the property, which is approximated to its market value. The tax rates vary depending on the cadastral value of the property.

For example, for apartments, the tax rates are:

• For an apartment with a value up to and including 10 million AMD: 0.05% of the value.

• For an apartment with a value from 10 million up to and including 25 million AMD: 5,000 AMD, plus 0.2% of the amount exceeding 10 million AMD.

• For an apartment with a value from 25 million up to and including 47 million AMD: 20,000 AMD, plus 0.2% of the amount exceeding 25 million AMD.

• For an apartment with a value from 47 million up to and including 75 million AMD: 64,000 AMD, plus 0.4% of the amount exceeding 47 million AMD.

• For an apartment with a value from 75 million up to and including 100 million AMD: 176,000 AMD, plus 0.6% of the amount exceeding 75 million AMD.

• For an apartment with a value from 100 million up to and including 200 million AMD: 326,000 AMD, plus 1% of the amount exceeding 100 million AMD.

• For an apartment with a value over 200 million AMD: 1,326,000 AMD, plus 1.5% of the amount exceeding 200 million AMD.

The tax rates for residential houses, garden houses, and other types of property are presented in Article 229 of the Tax Code of the Republic of Armenia.
You can find the Code on Arlis.am.

Attention
Starting from January 1, 2025, it is necessary to pay 75% of the calculated property tax rate, and starting from January 1, 2026, 100% of the calculated property tax.

Properyt tax applies to land plots, and to the subterranean and above-ground buildings, structures, and constructions erected on those land plots.

Property tax must also be paid, regardless of the existence of the right of ownership, for the following properties that have not yet undergone state registration:

• State-owned lands provided for permanent use.

• Newly constructed and/or modified taxable real estate that has been accounted for and appraised by the body managing the real estate cadastre.

• Unauthorized (self-willed) buildings and structures built by taxpayers who own the land, including unauthorized constructions within or adjacent to multi-apartment buildings.

Furthermore, the lessee is considered the taxpayer for real estate that is the subject of a leasing agreement.

The process for registering or transferring utilities in Armenia is straightforward, generally allowing foreigners to register without restriction. After a purchase or upon starting a tenancy, you must contact each utility provider separately to formalize the agreement. This involves signing a new contract and transferring the liability of the existing subscriber code into your name, ensuring accurate billing from the start.

You can pay utility bills in Armenia using payment apps (IDram, Telcell, EasyPay), through your bank's apps, branches, or ATMs, or via payment terminals and post offices (HayPost).