How to get a mortgage in Armenia
Updated: 2026-09 · ArmFinCredit
A mortgage is the largest loan most people ever take, so a wrong choice of bank or term costs millions of drams. Here is the order of steps and what to check at each one.
1. Work out the payment you can afford
Armenian banks usually cap the debt burden: all your loan payments must not take too large a share of confirmed income. Before choosing a flat, calculate the payment for several amounts and terms and keep a margin for rising expenses.
A longer term lowers the payment but noticeably raises the total interest. Compare 15 and 20 years — the difference is often more than the cost of renovation.
2. Down payment and type of property
Banks typically ask for 10–30% of the price as a down payment; the exact share depends on the bank, the programme and whether the property is new or resale. A larger down payment means a lower rate and payment.
State and partner programmes (for example for young families or through the National Mortgage Company) offer lower rates but have eligibility criteria — check them with the bank.
3. Compare banks by the effective rate
The nominal rate is not the full price of a loan. Banks must disclose the effective annual rate, which includes fees, valuation and insurance. Compare offers by it and by the total overpayment over the term.
Ask whether the rate is fixed or floating: a floating rate can rise after the Central Bank rate.
4. Documents and the deal
You usually need a passport and social card, proof of income (or a statement), documents for the property and a valuation report. After approval you sign the loan and pledge agreements, and the deal is registered with the Cadastre.
Besides interest, budget for valuation, insurance, notary and registration costs.
5. Tax benefits and early repayment
Armenia has an income-tax refund for mortgage interest, but its conditions have changed in recent years. Before buying, check with the bank and the State Revenue Committee whether your property qualifies.
Check the early repayment terms in the contract: even small monthly extra payments shorten the term and the interest.