Armenian banks do finance off-plan purchases, with active mortgage growth and supportive dram liquidity.
AraratBank and Converse Bank publish primary-market terms around 80% LTV; some lenders require insurance of the advance payment.
Illustrative rates: around 10% fixed for the first years in select programs; borrower rates sit above the Central Bank's 6.75% policy rate.
Expect staged disbursements close to completion—protect yourself with robust financing contingencies and refund clauses.
Prepare bank-ready documentation and align your purchase agreement with lender timelines to avoid deposit risk.
Buying off-plan in Armenia is no longer niche. Banks are putting real money to work in the primary market, and foreign and diaspora buyers can access mortgages—if they prepare smartly. This guide gives a practical reality check on who lends, typical rates and LTVs, documentation, and the financing contingencies that protect your deposit.
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Explore Investment in ArmeniaTable of Contents
- Quick Armenia snapshot — why off‑plan financing is feasible now
- Which lenders actively finance off‑plan/primary‑market purchases
- Typical loan economics — interest rates, LTVs and maturities
- Collateral, insurance and documentation
- How to apply: a step-by-step path
- Financing contingency: the clause that protects your deposit
- FAQ
Quick Armenia snapshot — why off‑plan financing is feasible now
Mortgage lending capacity is robust. Armenian mortgage portfolios exceeded AMD 1 trillion in early 2024, reflecting active retail credit formation and institutional appetite to fund housing demand, including new builds. Overall bank lending continued to expand through 2025, with the net loan book reaching about AMD 6.82 trillion by mid‑year—evidence that liquidity is available for qualified borrowers.
Pricing is anchored to dram conditions and Central Bank policy. The CBA refinancing rate stood at 6.75% as of September 2025; bank mortgage rates typically price several percentage points above, depending on borrower risk, LTV and program specifics.
Importantly for non‑residents, major banks extend mortgages to foreign and diaspora buyers, generally with competitive down‑payment requirements in standard programs. This broad access, combined with developer pipelines in Yerevan and regional hubs, makes off‑plan financing feasible if your purchase contract and loan approval are sequenced correctly. For context on property and ownership, see our overview of Armenia real estate and investment routes.
Which lenders actively finance off‑plan/primary‑market purchases
Two published benchmarks illustrate current market appetite for primary‑market (off‑plan) financing:
- AraratBank markets a "mortgage loans directly from the property developers" program with up to 80% LTV and around 10% interest during an initial fixed period (about 1–5 years).
- Converse Bank guidance indicates up to 80% LTV for primary‑market purchases funded in AMD, and notes mandatory insurance of the advance payment in relevant cases, a key risk mitigant for off‑plan disbursements.
Beyond those examples, major lenders such as Ameriabank, Evocabank, VTB and ACBA are active mortgage providers to foreign/diaspora borrowers. While program details vary, the breadth of bank participation supports off‑plan feasibility when the developer and buyer documentation are in order.
Snapshot of primary‑market financing options
| Lender | Program focus | Max LTV (illustrative) | Notable conditions |
|---|---|---|---|
| AraratBank | Developer‑linked off‑plan mortgages | Up to 80% | ~10% fixed in initial 1–5 years; terms vary by project |
| Converse Bank | Primary‑market purchases in AMD | Up to 80% | Insurance of advance payment may be required; pledge of completed unit |
| Other major banks | Mortgages available to foreign/diaspora buyers | Bank‑specific | Active mortgage lending; off‑plan depends on documentation and developer standing |
Tip: If you plan to pair an off‑plan purchase with Armenian residency or future citizenship, structure the property and mortgage documentation under your intended long‑term status from day one.
Typical loan economics — interest rates, LTVs and maturities buyers should expect
There is no single off‑plan template—terms depend on the lender, the project, and your profile. However, current market publications and bank materials point to the following:
- Interest rates: Example programs show roughly 10% fixed during an initial period before reverting or repricing; borrower rates generally sit above the CBA's 6.75% policy rate, reflecting risk and funding costs.
- LTVs: For primary‑market purchases, up to 80% LTV is commonly published; in some cases, where the buyer's advance payment is insured, effective leverage can be higher, subject to bank policy.
- Disbursement: Banks often avoid full disbursement until construction nears completion or predefined milestones are met; expect staged drawdowns and align your sales contract accordingly.
- Maturity: Tenors typically follow the bank's standard mortgage policies for dram loans; off‑plan status mainly affects disbursement schedule and collateral perfection rather than amortization length.
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Learn About Armenian Business SetupCollateral, insurance and documentation: what banks will ask for
- Collateral: The completed apartment is pledged; lenders may register the pledge upon commissioning and title issuance.
- Insurance: Some banks require insurance of the buyer's advance payments for primary‑market deals, which also protects you if the project stalls.
- Buyer documents: Expect standard KYC and income verification per bank policy. Non‑residents and diaspora buyers are generally eligible, but should prepare thorough financial and identity files.
- Developer package: Banks will review the construction permit, project schedule, and sales contract; they may condition disbursement on construction milestones.
How to apply: a step-by-step path to a bankable off‑plan purchase
- Pre‑qualify with 1–2 banks in AMD. Share your income profile and target project to gauge LTV and initial rate expectations; note that up to 80% LTV is common in the primary market when funded in AMD.
- Structure the preliminary sale contract. Insert clear mortgage and timing conditions (see "Financing contingency" below) so you are not obligated if the loan is denied or delayed.
- Submit the full credit file. Provide KYC/income documents and the developer's permits, schedule, and draft sales/pledge terms. Where required, arrange insurance of advance payments.
- Loan approval and conditions. Expect staged disbursement, with major tranches released only near completion or key milestones, and pledging of the finished unit upon commissioning.
- Registration and closing. On completion, the unit is registered and the mortgage pledge is perfected, after which the bank releases the final draw under your loan program.
For ownership structuring and tax planning around your purchase, consult our guides to taxes in Armenia and business registration.
Financing contingency: the clause that protects your deposit
Because banks frequently delay major disbursements until construction is substantially complete, off‑plan purchase contracts should explicitly anticipate financing risk. Experts recommend including mortgage approval contingencies and refund clauses for buyer protection.
Checklist for a robust financing contingency
- Condition precedent: "This Agreement is subject to Buyer obtaining mortgage approval on terms not less favorable than [LTV/rate band] by [date]."
- Staged disbursement alignment: Milestones and bank draw schedule are synchronized; if bank policy defers funding, buyer isn't in breach for non‑payment tied to lender timing.
- Refund of advance: If the mortgage is declined or the project misses milestones beyond a cure period, the developer refunds the buyer's advance (ideally backed by insurance where required).
- Force majeure and long‑stop date: Define a firm date by which the unit must be commissioned; if missed, the buyer may terminate with a full refund of advances.
- Assignment to lender: Permit assignment/pledge language acceptable to the bank so the mortgage can be perfected at completion.
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Get Tailored Legal AssistanceFAQ
Do Armenian banks finance off‑plan purchases for foreigners?
Yes. Major banks extend mortgages to foreign and diaspora buyers, and several support primary‑market purchases when documentation and project conditions are met.
What LTV can I expect for an off‑plan mortgage?
Published benchmarks show up to 80% LTV for primary‑market purchases. Where the buyer's advance payment is insured, some banks may allow higher effective leverage, subject to policy.
When does the bank release funds in an off‑plan deal?
Banks often stage disbursements and avoid full funding until construction nears completion or specified milestones are met; align your purchase agreement with this schedule.
Is insurance of the advance payment required?
Some lenders require insuring the buyer's advance payment for primary‑market purchases, enhancing protection if the project stalls and supporting the bank's risk management.
What interest rate should I budget?
As an example, AraratBank indicates about 10% fixed during the first 1–5 years in its developer‑linked program. More broadly, borrower rates price above the CBA's 6.75% policy rate, varying by risk and LTV.
Off‑plan financing in Armenia is workable with the right lender, careful documentation, and a watertight financing contingency. Align your contract with bank disbursement realities and use insurance where required to protect your advance—then let the mortgage work for you.
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