How to Get a Mortgage from ACBA Bank on Beneficial Terms

ACBA Bank is one of the most stable and versatile banks in Armenia, actively serving both individual and corporate clients. The bank participates in all major government-backed mortgage programs, including those for young families, displaced persons, and residents of border communities. In addition, ACBA offers flexible conditions under its standard mortgage products, including home purchase, renovation, construction, and refinancing.

In this article, we’ll explore which programs are available, how to choose the best interest rate, and how you can save money.

Top 5 ACBA Bank Mortgage Programs with Favorable Rates

Below are mortgage offers with the lowest maximum effective interest rates (in AMD):

Takeaway: Thanks to participation in government programs, ACBA offers mortgage rates starting from 7.5%, whereas standard mortgage products may reach 19–21%. The difference amounts to millions of AMD.

You can also find all the lowest rates and zero fees on AFM.

How Much You Can Save: Overpayment Calculation

Example:

1. Loan amount: AMD 25 million
2. Term: 20 years
3. Interest rate: 7.5% can cause Approx. AMD 22 million in overpayment
4. Interest rate: 19.5% can cause Over AMD 46 million in overpayment
5. Savings: Over AMD 24 million by choosing a subsidized government program

You can read about how to buy an apartment with or without a mortgage on AFM.

Government Programs ACBA Bank Participates In

ACBA is involved in all major government initiatives aimed at improving housing access:

1. Affordable Housing – Young Families:
2. Rates from 7.5%, reduced down payment starting at 7.5%, family income cap applies.
3. Housing in Border Communities:
4. 13% rate, 0% down payment, subsidy of up to AMD 21 million.
5. National Mortgage Company (NMC):
6. Apartment or house purchase, rates from 12.8%, down payment starting from 10%.
7. Program for Displaced Persons:
8. Preferential terms for both primary and secondary market purchases, rates up to 13% possible.
9. Energy-Efficient Renovation:
10. Opportunity to improve housing with rates from 18% and higher.

ACBA Bank Mortgage Programs

The bank offers a wide range of loan solutions in AMD, USD, and EUR.

Home Purchase

1. Suitable for both primary and secondary markets
2. Currency: AMD, USD, EUR
3. Interest rate: from 13% to 25.19%
4. Loan term: up to 20 years

Property Renovation

1. Interest rate: from 18% to 21.34%
2. Amount: up to AMD 50 million
3. Loan term: up to 10 years

Home Construction in Border Communities

1. Available only under government support programs
2. Subsidy: up to AMD 21 million
3. Fixed rate: 13.81%

NMC (National Mortgage Company) Mortgage

1. For the purchase of new or existing property
2. Interest rate: from 12.8%
3. Down payment: from 10%
4. Loan term: up to 15 years

For Young Families

1. Primary market: interest rate from 7.5%, up to AMD 27.75 million
2. Secondary market: interest rate from 7.5%–8.5%, up to AMD 22.5 million

Comparison: Standard Mortgage vs Government-Subsidized Mortgage

Comparison of Key Program Terms

You can compare all mortgage loans from ACBA Bank — with and without government programs — in the “Mortgage” section.

Fees and Expenses for Mortgages at ACBA Bank

Although ACBA Bank does not charge service fees, obtaining a mortgage involves mandatory payments:

1. Application review fee: 0.5% of the loan amount (may be waived)
2. Disbursement fee: up to 0.5% (may be included in the rate)
3. Property appraisal: AMD 5,000 – 15,000
4. Notary services: AMD 10,000
5. Cadastral services and unified certificate: approx. AMD 10,000
6. Pledge registration fee: AMD 2,000 – 25,000
7. Property and life insurance: 0.15% – 0.16% of the remaining loan balance

Tip: Before applying, use AFM to calculate the total cost of the mortgage — this helps you avoid unexpected expenses.

Conditions for Non-Residents

ACBA Bank also offers mortgage loans to non-residents, subject to specific conditions:

1. Currency: Only in USD or EUR
2. Down payment: from 10%
3. Max effective rate: up to 25.19%
4. Required documents: Passport, proof of income, collateral property

How to Apply for a Mortgage at ACBA Bank: Step-by-Step Guide

1. Define your goal: purchase, renovation, or construction
2. Explore available programs — including those with government support
3. Prepare your documents (the full list is available on AFM and the bank’s website)
4. Submit your application at a bank branch (online applications are not yet available)
5. Wait for a decision — typically within 2 banking days
6. Complete the transaction with a notary and register with the cadastral office

Can You Get a Mortgage Without a Down Payment?

Yes — under certain programs (e.g., construction in border communities), no down payment is required.

In some cases, the down payment can also be replaced by providing additional collateral.

Can You Get a Mortgage Without a Credit History?

Yes, ACBA Bank considers applications from clients without a credit history, provided the following conditions are met:

1. Verified income
2. Official employment for at least 12 months
3. Possibility of involving a co-borrower or guarantor

Mandatory Expenses When Getting a Mortgage at ACBA Bank

FAQ – Mortgages at ACBA Bank

A: Currently, mortgage applications at ACBA Bank must be submitted in person at a branch. However, you can review the terms of all available programs in advance via the bank’s official website or through the AFM platform, where you can also compare offers from different banks.

Q: How long does it take to process a mortgage application?

A: If you submit a complete set of documents, the bank typically makes a decision within 2 business days. In some cases, additional checks or documentation may extend this timeframe.

Q: What programs are available for young families?

A: ACBA participates in the “Affordable Housing for Young Families” government program, which includes options for both primary and secondary housing markets.

1. Rates start at 7.5%
2. Minimum down payment: from 7.5%
3. There are eligibility criteria based on age, family income, and ownership status (you must not own other property).

Q: Is there a penalty for early repayment?

A: Yes. The penalty depends on the year of repayment:

1. 0.6% of the repaid amount in the first year
2. 0.4% in the second year
3. 0.2% in the third year
4. From the fourth year onward, early repayment is free of charge

Q: What is the maximum loan term?

A: Depending on the program, ACBA offers mortgage terms ranging from 10 to 20 years. In some cases (such as military programs or those involving NMC), the term can be extended up to 30 years.

Conclusion: It’s Not Just the Rate — It’s the Strategy That Saves You Millions

Making the right mortgage choice can help you save AMD 20–25 million just in interest costs. ACBA’s government-supported programs offer:

1. Rates from 7.5%
2. Down payments from 0%
3. Relaxed borrower requirements

For members of the Armenian diaspora, foreign currency loans (USD, EUR) are available with property collateral in Armenia and a minimum 10% down payment.

For residents, ACBA provides a wide selection of programs with both fixed and floating rates, including options for borrowers without a credit history.

Compare offers via AFM — and pay only for square meters, not for calculation mistakes.