Mortgage prepayments to be cut twice in Armenia

PanARMENIAN.Net - The association of mortgage market members of Armenia has developed a new product envisaging involvement of insurance companies, what will allow to cut the prepayments twice.

According to the association executive director Gevorg Bosnoyan, the project was approved and supported by the Central Bank of Armenia.

“The product is meant to resolve one the most urgent problems - the amount of prepayment. For example is the apartment is estimated at AMD 15mln, the buyers will pay AMD 2,250mln (15%) instead of the previous AMD 4,5mln (30%). The remaining AMD 2,250mln will be provided by the insurance company. I think this solution will be favorable for all,” Bosnoyan told a PanARMENIAN.Net reporter.

Besides, the association is developing another mortgage product – a savings loan – which will be presented this year. Customers will be given an opportunity to accumulate funds during 2 or 3 years, after what the bank will provide a 2% discount in exchange for the possibility to dispose of the funds during the accumulative period.