Buying an Apartment with a Mortgage in Yerevan and Other Cities of Armenia: How to Find the Best Terms in 2025

Purchasing an apartment with a mortgage has a direct impact on your family budget. In 2025, Armenia offers a wide range of mortgage programs — both with government support and on general market terms. In this guide, we’ll help you understand which banks offer the most favorable conditions, who these programs are best suited for, and what to consider when choosing a mortgage.

What Are Considered the "Best Conditions" in 2025?

The definition of “best conditions” depends on your goals and personal situation. For some, it’s important to minimize the monthly payment, while others aim to maximize government support. We’ve identified five key criteria you should focus on:

1. Interest rate: the lower it is, the less you’ll overpay
2. Down payment: affects how accessible the mortgage is
3. Loan term: determines your monthly payment amount
4. Availability of government support: can reduce the rate or cover part of the loan
5. Borrower requirements: age, place of employment, marital status

We analyzed over 70 mortgage offers from banks in Armenia and compiled selections tailored to different categories of borrowers.

Best Mortgage Offers in Yerevan and Other Cities

1. For All Borrowers (Without Government Support)

Best for: Borrowers with official income who are not eligible for government programs. These loans are easier to obtain and do not require you to meet specific criteria regarding age, marital status, or profession.

Pros:

1. No restrictions on participation
2. Fast application process (including online)
3. You can choose any property, including on the secondary market

Cons:

1. Higher interest rates
2. No subsidies for the down payment

2. For Young Families

Best for: Families where the combined age of the spouses does not exceed 70 years. These loans fall under the government program “Affordable Housing for Young Families”.

3. For Contract Military Personnel

Advantages:

1. A part of the interest rate is subsidized
2. The down payment is covered by a government subsidy

4. For Displaced People from Artsakh

Best for: Families displaced from Nagorno-Karabakh (Artsakh) — a government-supported program that fully covers both the interest rate and the down payment.

5. Income Tax Refund (for All Officially Employed Borrowers)

If you're officially employed and pay income tax (personal income tax — PIT), you may qualify for a tax refund when purchasing an apartment.

1. Applies when buying primary market housing outside of Yerevan
2. Up to AMD 1.5 million per year can be refunded from the state budget
3. Compatible with other government programs

Top 5 Best Mortgages Without Government Support

If you’re not eligible for government programs or prefer a faster mortgage process without extra bureaucracy, consider market-rate mortgage offers from banks. These loans are available to everyone — whether you're a young family, a military service member, or simply an individual with official income.

We analyzed all non-subsidized offers and selected the Top 5 Most Advantageous Mortgages in Yerevan for 2025 — featuring low interest rates, transparent conditions, and the ability to purchase property on both the primary and secondary markets.

Why These Made the List:

1. Low rates starting from 9.5%
2. No government involvement – accessible to all
3. Applicable in Yerevan, with no restrictions on profession, age, or marital status

Top 5 Mortgage Programs for Cities in Armenia (Excluding Yerevan)

If you’re planning to buy an apartment in Gyumri, Vanadzor, Abovyan, Hrazdan, Artashat, or other Armenian cities (excluding rural areas), it’s important to find mortgage offers tailored to regional urban centers. We've selected the best bank offers that are valid outside of Yerevan, not tied to rural housing programs, and do not involve government subsidies — meaning any borrower with sufficient income can apply.

Mortgage Application Lifehacks

1. Use a mortgage calculator: Estimate your monthly payment and total overpayment in advance using our online calculator — this will help you choose the right loan amount and term.
2. Improve your credit history: Pay off small loans and avoid overdue payments — this can increase your chances of approval and help lower your interest rate.
3. Add a co-borrower: Including a co-borrower boosts your chances of approval, as both of your incomes will be considered.
4. Check the property in advance: Especially for secondary market purchases — any legal encumbrances or unapproved renovations can block the deal.
5. Compare more than just the interest rate: Look closely at fees, insurance costs, and income requirements — these can significantly affect your final expenses.
6. Apply to 2–3 banks at once: This doesn’t hurt your credit score and increases your chances of getting the best terms.

Frequently Asked Questions (FAQ)

Can I get a mortgage without a down payment?

Yes, some banks (for example, Unibank) offer mortgages with 0% down payment, provided you pledge additional property or participate in a developer’s partner program.

Which is better — a fixed or a variable interest rate?

A fixed rate offers stability. A variable rate may be lower at the start but can increase over time. Choose based on your risk tolerance.

Can I repay my mortgage early?

Yes. Most banks in Armenia do not charge penalties for early repayment, but it’s always best to confirm this in the loan agreement.

What documents are required to apply for a mortgage?

1. Passport
2. Social security card
3. Proof of income
4. Property information
5. Documents for government support programs (if applicable)

Can I get a mortgage if I work unofficially?

It’s more difficult, but still possible. Some banks accept alternative proof of income — such as rental agreements, bank statements, etc.

How do I choose the right mortgage?

1. Identify your category: Are you eligible for government support (e.g., young family, military, displaced person)?
2. Calculate your budget: How much can you pay upfront, and what monthly payment is affordable for you?
3. Compare offers: Use the comparison tables above or apply filters on AFM.
4. Apply to several banks: This increases your chances of getting approved with favorable conditions.

Conclusion

If you're planning to take out a mortgage in Armenia in 2025 — you're on the right track. The government offers support for specific borrower categories, and banks provide dozens of programs with various rates, terms, and conditions. The key is to choose the mortgage that fits your needs.

Top Banks by Category (Based on Effective Interest Rate)

For all borrowers (without government support):

Unibank — effective rate from 13.1%, flexible terms up to 25 years, transparent conditions with no excessive requirements.

For young families:

Evocabank — effective rate from 4.38% under the “Affordable Housing for Young Families” government program.

For cities outside of Yerevan:

Fast Bank — effective rate from 10.7%, available nationwide with minimal restrictions.

VTB Armenia — effective rate from 12.5%, classic terms, trusted bank.

For foreign citizens:

Ardshinbank — effective rate from 14.0%, while the nominal rate is among the lowest on the market at 9.5%.

For military personnel and displaced persons from Artsakh:

Exact effective rates are not specified, but Evocabank offers government-subsidized or even zero-interest programs, making them the most advantageous in their respective categories.

Final Tips to Keep in Mind:

1. Compare not just the nominal rate, but the full effective overpayment — it often exceeds the advertised rate.
2. Use a mortgage calculator to instantly estimate the impact on your budget.
3. Apply to 2–3 banks simultaneously — it's free and increases your chances of better terms.
4. Working unofficially? Some banks accept alternative proof of income.

Find your best-fit mortgage with AFM — get personalized recommendations and start saving on interest today!