In 2025, Armenia offers several dozen mortgage programs — both through standard bank rates and government-subsidized programs. The range of interest rates is very wide: it’s possible to get a mortgage with rates as low as 1% or as high as 18% per annum.

How do you make the right choice and secure the best mortgage deal?

In this article, we’ll break down in detail how to choose a mortgage with the lowest interest rate in Armenia in 2025: which banks offer the best conditions, and what you should keep in mind and do to minimize your costs.

How to Choose the Right Mortgage?

The final cost of any mortgage loan depends on several factors, each of which must be considered when selecting a bank and a mortgage program.

Here’s a list of key aspects that determine the total cost of your loan:

1. Annual interest rate — the lower it is, the less you overpay.
2. Effective interest rate — includes fees and additional costs. Always pay attention to this rate. It reflects all hidden costs, which can be significant in mortgages. At AFM, we always compare loans based on the effective rate to show you the truly best offers!
3. Loan term — affects both the monthly payment and the total overpayment. The longer the term, the lower the monthly payments but the higher the total cost.
4. Down payment — the higher the down payment, the smaller the loan amount and, accordingly, the lower the overpayment. Often, banks offer better rates to clients with a larger down payment.
5. Loan currency — financial experts recommend taking out a mortgage in the same currency as your income. In addition, under Armenian law, residents can only take mortgages in Armenian drams (AMD).

All these factors are taken into account by the AFM team when displaying the effective mortgage rate, so you can confidently choose the most advantageous offer on our "Mortgage" page.

Why Is It Important to Look for the Lowest Rate?

The interest rate is one of the key parameters of any loan. Most borrowers focus primarily on it — and rightly so. Even a 1% difference in the annual rate can lead to a significant overpayment. For example:

1. With a loan of 20 million AMD over 20 years,
2. the difference between a 7% and an 8% interest rate would result in approximately 2.4 million AMD in additional costs over the entire term.

Thus, for long-term loans like mortgages, the interest rate becomes one of the main factors determining your final overpayment for an apartment or a house.

Let’s take a closer look at what you can do to secure the lowest mortgage rate in Armenia.

How to Get the Lowest Mortgage Rate in Armenia: Step-by-Step Guide

1. Assess your financial capacity and down payment size

Banks are more willing to offer lower rates to clients with stable incomes and larger down payments. Even if you have savings in a bank or at home, consider using them as part of your down payment. This way, interest will be charged on a smaller loan amount, and the bank may approve a lower rate.

2. Prepare a complete set of documents

A passport, income certificate, and employment verification documents — all of these will help the bank review your application faster. A well-prepared document package significantly increases your chances of quick approval.

3. Choose the right program

Use the AFM platform to compare mortgage programs. In the "Mortgage" section, specify the property price you are aiming for and the amount of down payment you are comfortable with. The results will always prioritize the lowest available rates. Pick the best conditions and study the program details carefully.

4. Clarify all details

Some banks use marketing techniques, advertising rates "starting from 6.9%." These offers are designed to catch your attention, but once you dive into the details, the actual loan cost may be much higher. Always double-check the conditions and focus on the effective interest rate: on our platform, we display full information and sort offers starting from the lowest effective rates.

5․ Apply to multiple banks at once

Submitting applications to several banks will give you multiple offers to choose from. Since you already have your documents prepared, it's easy to apply to several institutions and compare the terms of approved loans.

6. Fix the rate in the contract

Make sure the contract reflects exactly the rate you were promised. Pay attention to the type of rate:

1. Fixed rate — your monthly payment will remain stable throughout the loan term, making it easier to plan your budget.
2. Variable rate — the rate can change, often tied to the Central Bank’s key rate. It can be attractive in the short term but carries more risks in the long term.

At AFM, you can easily select your preferred type of rate using filters.

Where Can You Find the Lowest Mortgage Rates in Armenia?

We analyzed the mortgage programs offered by Armenian banks and compiled a ranking of the top five banks with the lowest interest rates.

The table below includes only the banks' standard offers, excluding government subsidies.

All listed rates apply under standard program conditions with a down payment ranging from 10% to 30%.

Please note that actual rates may vary depending on the loan amount, term, and size of the down payment.

Calculate Your Mortgage Online

Want to find out how much you’ll pay for your mortgage based on a specific rate and term?

Use AFM's free mortgage calculator:

AFM’s calculator will help you determine:

1. Monthly payment
2. Total overpayment on the loan
3. Impact of rate and term on the total amount

Try it now: just enter the amount, term, and rate — and get your results in 5 seconds.

Bank Programs vs. Government Programs: What’s the Difference?

Conclusion

If you qualify for government support programs — be sure to use them.

If not — look for banks offering a base rate below 7%.

6 Ways to Further Reduce Your Mortgage Rate

1. Government Programs — Participate in programs like "Affordable Housing", "Mortgage For Military Personnel", "For Families from Karabakh", and others. These initiatives offer partial or full interest rate subsidies. In some cases, the rate can even be reduced to 0%, especially if you live in a border region or belong to a designated social category.
2. 30% Down Payment — If you are able to make a larger down payment (for example, 30% or more), the bank will view you as a lower-risk borrower. This can serve as a basis for offering a reduced interest rate.
3. Good Credit History — Having no delinquencies on previous loans, maintaining a positive credit record with ACRA, and showing consistent income streams demonstrate your reliability to the bank. Such clients often receive better terms without additional negotiations.
4. Buying New Property — If you are purchasing newly built real estate, the bank may offer better terms compared to secondary market properties. New buildings are typically insured, more liquid, and meet modern standards, making them more attractive for lenders.
5. Buying Outside Yerevan — In regions like Ashtarak, Artashat, Abovyan, and other towns, real estate prices are lower. Some banks offer preferential terms, including reduced rates, for property purchases outside the capital.
6. Payroll Project — If your employer transfers your salary to an account at the same bank where you are applying for a mortgage, you can qualify for a preferential interest rate. These offers are available at most banks and can save you 0.3% to 1% per annum.

FAQ: Common Questions About the Lowest Mortgage Rates

What is considered a low mortgage rate in 2025?

A rate starting from 6.8% for mortgages in Armenian drams is among the lowest available from commercial banks. Within government programs, rates can be reduced to 0% if the interest is subsidized by the state.

Why might a bank not offer the lowest advertised rate?

The advertised rate is the "starting from" rate, and it applies only if all conditions are met — a high down payment, official income, and a strong credit history. In other cases, the bank may offer a higher rate.

What factors influence getting the lowest rate?

The main factors include:

1. Size of the down payment
2. Official employment
3. Credit history
4. Participation in a payroll project
5. Type of property (new construction vs. secondary market)
6. Eligibility for a government program

You can also find the most favorable mortgage loans on our platform.

Can you lock in the lowest rate before signing the contract?

Yes, but only if the bank issues a written offer guaranteeing the rate for a specific period (usually 5–15 business days). Be sure to clarify this when submitting your application.

What hidden factors can increase the rate?

1. Lack of insurance
2. Decreased down payment
3. Refusal to join a payroll project
4. Buying property on the secondary market
5. Existing loans or past delinquencies

Conclusion

In 2025, securing a mortgage at the lowest rate in Armenia is not a dream — it’s a very real and achievable goal. The key is to approach the process thoughtfully.

Here’s what truly matters:

1. Compare banks — rates start from 6.8%, but not everyone qualifies for them.
2. Check all conditions — low rates depend on your down payment, documentation, and credit history.
3. Use government programs — young families, military personnel, and families from Karabakh can receive subsidies and even 0% mortgages.
4. Submit your application carefully — find out in advance what affects the rate and how to lock it in.
5. Work on lowering your rate — by participating in payroll programs, buying new properties, making a larger down payment, or purchasing outside Yerevan.

Remember:

Even a 1% difference in the rate can save you millions of drams. Don’t hesitate to calculate it yourself or ask a bank representative for assistance.

Use helpful tools:

AFM’s mortgage calculator can instantly show you your monthly payment and total overpayment — in just 5 seconds.

If you or your loved ones are planning to buy a home — share this article.

It will save them time, stress, and money.

And to avoid overpaying and receive personalized mortgage recommendations — just visit AFM.

There you’ll find the best mortgage offers tailored specifically for you.

Paying less is not a privilege — it’s the result of smart choices.

Compare, calculate, and secure the best deals.

And the AFM team will always be here to help you!