Planning to take out a mortgage in Armenia but not sure if your savings are enough for the down payment?

In 2025, conditions can vary significantly depending on the bank, the type of property, and whether you participate in government support programs.

In this article, we explain:

1. What is the minimum down payment needed to qualify for a mortgage
2. How you can reduce the required amount using government subsidies, alternative collateral, or special offers from developers
3. Where you can find mortgages without a down payment in Armenia
4. How to choose the best mortgage terms without overpaying

What Is a Down Payment on a Mortgage and Why Is It Important?

A down payment is the amount that the borrower pays upfront for the property before receiving a mortgage loan.

It typically represents a percentage of the property's purchase price.

The smaller the down payment, the larger the loan amount — and therefore, the higher the total interest you will pay over the life of the mortgage.

Moreover, the size of your down payment influences loan terms:

1. A larger down payment often leads to a lower interest rate and
2. A simpler loan approval process.

What Are the Current Bank Requirements in Armenia?

Most Armenian banks require a minimum down payment of 10% to 20% depending on:

1. The type of property
2. The selected mortgage program
3. The borrower's creditworthiness

If you are purchasing property on the secondary market or non-standard real estate, a higher down payment may be required.

Banks also assess other key factors:

1. Official, documented income
2. Stable employment history
3. Positive credit record
4. Availability of additional collateral, such as real estate

Main Types of Mortgage Programs in Armenia

Most mortgages in Armenia can be categorized into three main groups:

1. Commercial Bank Programs — standard conditions without government support.
2. Banks independently set mortgage terms, calculate rates, and determine requirements.
3. Mortgages with Government Program Participation — offering reduced rates or partial down payment assistance.
4. In these cases, the government helps borrowers make mortgages more affordable.
5. Mortgages in Partnership with Developers — where banks collaborate directly with developers to offer lower down payments or installment plans for the initial payment.

Each of these options has its specific requirements regarding minimum down payments and borrower criteria.

How to Choose the Most Advantageous Option?

Use the AFM platform to find and compare up-to-date mortgage offers from different banks.

Here you can easily review:

1. Interest rates
2. Program conditions
3. Available incentives and subsidies

Add AFM to your bookmarks to always have access to the latest information on the best mortgage deals — both with and without a down payment.

Explore the "Mortgage" section, use the mortgage calculator to estimate overpayments, and select the bank offering the best terms that suit your financial capabilities.

AFM provides all the necessary tools to help you make informed decisions — saving you money both on the down payment and on interest rates.

Minimum Down Payment for a Mortgage in Armenia

What Down Payment Is Required?

1. Minimum — from 10% of the property's value (this is the basic requirement at most banks).
2. Common practice — 15–20% down payment, especially when buying secondary market properties or non-standard real estate.

Exceptions:

When purchasing newly built properties, the bank may require:

1. A direct advance payment to the developer
2. Loan collateral covering 100% of the loan amount
3. Alternative collateral to replace the down payment

Example:

If the apartment costs 30 million AMD, the minimum down payment would be 3 million AMD (10%).

Is It Possible to Get a Mortgage Without a Down Payment?

Yes, but certain conditions apply:

1. You must provide additional collateral.
2. The total value of the collateral must exceed the loan amount by 30% or more.

Additionally, banks may require:

1. Stable and high official income
2. Insurance coverage for the unpaid down payment (Unpaid Down Payment Insurance, or equivalent)

It’s important to note that not all banks openly advertise 0% down payment options on their websites.

However, in practice, if you offer additional collateral or purchase a property from an accredited developer, the bank may waive the down payment requirement, provided that all risks are adequately covered.

You can learn more about how to buy an apartment in Armenia on our platform AFM.

Tip:

You have a much higher chance of securing such conditions if you have a strong credit history with no past delinquencies.

Can You Get a Government-Supported Mortgage Without a Down Payment?

Yes, some government mortgage programs in Armenia allow borrowers to obtain a mortgage without making an upfront payment, either fully or partially covering the required down payment through subsidies.

For example:

1. Young families residing in regions or border areas can receive up to 2.5 million AMD in support, which may fully cover the required down payment.

Key conditions include:

1. Meeting the program’s eligibility requirements (age, family composition, region of residence, military service status, etc.)
2. Taking the mortgage through a participating bank

Supporting documents are mandatory, and the subsidy is transferred directly to the bank to cover the down payment.

Example Banks Offering 0% Down Payment Options

How to Know If a Zero Down Payment Is Possible When Buying New Build?

If you are planning to purchase an apartment from a developer, but haven't found clear information about down payment reductions, check the developer partnerships section.

Developers often collaborate with specific banks and may offer:

1. Installment plans for the down payment,
2. Reduced initial payment options, or
3. Special bonuses that lower the financial burden upfront.

These conditions are usually negotiated individually, depending on:

1. The specific development project,
2. The construction stage, and
3. The bank partnership agreements.

How to Participate in Government Programs and What Programs Are Active in Armenia?

To participate in Armenia’s government-backed mortgage programs, you must:

1. Meet the specific eligibility criteria for each program
2. Submit your application through an authorized participating bank

Currently, Armenia offers several key support programs:

1. "Affordable Housing for Young Families"
2. Mortgages for Contract Military Personnel
3. Regional Income Tax Refund Program
4. Support for Families in Border Regions
5. Assistance for Displaced Families from Nagorno-Karabakh

Through these programs, the government may:

1. Subsidize part of the mortgage interest rate, or
2. Cover a portion of the down payment

To participate, you need to:

1. Apply through a bank that participates in the program
2. Submit the required documents and proof of eligibility, such as:
3. Age
4. Place of residence
5. Military service status
6. Number of children, etc.

Government Programs That Help Reduce the Down Payment

In some cases, the subsidy covers 2% or 4% of the property value — depending on the region of residence.

Important:

You can only participate in these programs through a partner bank.

You must provide official supporting documents, such as certificates, IDs, and extracts.

Example:

When purchasing an apartment for 20 million AMD, a family from a designated region may receive up to 800,000 AMD in subsidies.

You can explore all current housing support programs on the AFM platform.

How to Confirm the Down Payment?

The bank requires official proof that the down payment has been made.

Accepted forms of confirmation include:

1. Receipt from the developer
2. Purchase agreement indicating the down payment amount
3. Bank certificate confirming the funds are blocked
4. Confirmation of government subsidy transfer

Note:

If a subsidy is used, its transfer must also be officially documented.

Additional Expenses When Taking Out a Mortgage

In addition to the down payment, there are mandatory associated costs, such as:

1. State registration fee: 26,000–52,000 AMD
2. Property insurance: approximately 0.15% of the outstanding loan amount
3. Life/accident insurance: approximately 0.15%

The total additional cost may amount to 1.5%–3% of the loan amount.

Banks with the Lowest Down Payment Requirements

Below is a sample list of banks with a minimum down payment requirement starting from 10%:

Check conditions directly with the bank — sometimes, a low down payment is only available when purchasing property from partner developers or within specific programs.

Why Is It Important to Compare Bank Offers?

A mortgage is a long-term financial commitment, and differences in terms can amount to hundreds of thousands or even millions of drams.

Comparing banks allows you to:

1. Find the lowest interest rate and minimum down payment
2. Identify programs with government support or special terms
3. Understand where fewer documents or guarantees are required
4. See the total cost of the loan, including all fees and insurance

Final Summary: What Is the Required Down Payment for a Mortgage in Armenia?

The minimum down payment in Armenia ranges from 0% to 10% of the property value.

This is the standard at most banks, but:

1. Some banks require 15–20%, especially for secondary market properties

Examples:

1. Ardshinbank — minimum down payment from 15%, depending on the property type
2. Ameriabank — from 10%, but the actual amount may be higher depending on the conditions

In certain cases, a 0% down payment is possible if you provide additional collateral.

Examples:

1. Evocabank — offers 0% down mortgages if extra collateral is provided
2. Unibank — allows no down payment if the loan is secured with other property

Government Programs Can Help Cover Part of the Down Payment:

1. Up to 2.5 million AMD or 2–4% of the property value

Examples:

1. Ameriabank — participates in programs for families with children and in border regions, with subsidies up to 5% of the property price
2. Ardshinbank — offers mortgage products with government housing subsidies

Don’t Forget the Additional Costs:

1. Property insurance: 0.15%–0.3% of the loan amount
2. Life and disability insurance: 0.3%–0.5% annually
3. Example: At Inecobank, insurance costs are included in the loan amount and automatically renewed each year
4. 
   
5. State fees:
6. Pledge registration — up to 26,400 AMD
7. Ownership registration — up to 46,100 AMD
8. 
   

Final Takeaway

You can buy a home with modest savings — the key is to choose the right bank, check whether you qualify for government programs, and account for all associated costs.

Tips: How to Reduce Your Down Payment

1. Use government support — some programs cover up to 5% of the property value
2. Look for banks that partner with specific developers
3. Consider buying new builds with deferred payment options
4. Offer the bank alternative collateral

The exact amount of the required down payment depends on your individual situation:

1. The type of property
2. The bank’s policy
3. Program participation
4. Your credit history

Some banks and developers allow you to bypass the down payment entirely if you provide additional security or qualify for subsidies.

So, if you don’t have large savings — that’s not a reason to give up on the idea of getting a mortgage.

However, it’s important to understand:

1. The smaller the down payment, the larger the loan — and the higher the total interest paid over time.
2. With a low down payment, banks often impose stricter requirements on your income, collateral, and credit history.

That’s why choosing a reasonable down payment is not just about affordability — it’s also about long-term savings.

Use the AFM platform to compare bank offers, calculate your total overpayment, and choose a mortgage that won’t stretch your budget.

AFM helps you compare mortgage offers across banks — saving you millions of drams and protecting you from hidden overpayments.