Budget and Mortgage: How Much You Can Borrow and What Down Payment You Need
The first step toward your own apartment is knowing your real budget. Here is what determines the loan amount, what down payment banks ask for, and which extra costs to plan for.
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A budget is more than the price of the apartment
Your purchase budget has three parts: your own money for the down payment, the loan the bank approves, and the cost of closing the deal. If you only plan for the first two, you may come up short at the last moment on the valuation, the Cadastre and bank fees.
So start with “how much can I comfortably pay each month”, not “which apartment do I want”. The bank calculates your maximum loan from that monthly payment.
How the bank decides how much to lend
The key figure is the share of your income that goes to all loan payments. Banks call it different things, but the idea is the same: what percentage of your net income is spent on repaying debt. The fewer other loans you have, the larger your mortgage can be.
A useful benchmark is the National Mortgage Company (NMC), which refinances mortgages issued by its partner banks. Under its standard program for buying an apartment or a house (nmc.am, checked on 13 September 2026):
- payments on all loans, including the new mortgage, may not exceed 45% of income;
- the loan amount is up to AMD 35 million;
- the term is at least 10 years;
- the loan is in drams only, with a fixed rate;
- total arrears on all loans over the last 12 months may not exceed 30 days.
Each bank has its own rules, but the logic is similar. A consumer loan or an installment plan for appliances reduces your mortgage amount, because those payments are counted too.
What down payment you need
The government services portal hartak.am lists a down payment of 10–30% of the apartment price in its mortgage guide (checked on 13 September 2026). The exact figure depends on the bank, the program and the type of property: new build or resale.
The NMC’s basic requirement is at least 30%. It can drop to 10% if you insure part of the down payment or pledge another property. Under the state program Affordable Housing for Young Families, the minimum is 20% for a new apartment bought from the developer and 30% on the resale market.
The prices in the table below are hypothetical — it is simple arithmetic to show the scale of the amounts.
| Apartment price | 30% down | 20% down | 10% down |
|---|---|---|---|
| AMD 20 mln | AMD 6 mln | AMD 4 mln | AMD 2 mln |
| AMD 30 mln | AMD 9 mln | AMD 6 mln | AMD 3 mln |
| AMD 40 mln | AMD 12 mln | AMD 8 mln | AMD 4 mln |
A smaller down payment means a bigger debt and, as a rule, extra conditions: down payment insurance, a second pledge or a higher rate. Ask the bank how the rate changes with the size of the down payment.
Which costs to add on top
Besides the price, a mortgage buyer pays for the valuation, certificates and registration. Benchmarks from hartak.am (checked on 13 September 2026):
| Cost | Paid to | Amount |
|---|---|---|
| Application review | bank | AMD 5,000 |
| Loan disbursement | bank | from AMD 50,000 |
| Apartment valuation | valuation company | AMD 18,000–25,000 |
| Unified certificate | Cadastre Committee | AMD 10,000 |
| Registration of ownership | Cadastre Committee | AMD 26,000–151,000 |
Add mandatory collateral insurance for the whole loan term and the notary’s services. Bank tariffs differ, so ask for a full list of payments before you sign.
Your first-week plan
- Work out your net household income and all current loan payments.
- Decide on a comfortable monthly payment with a buffer for surprises.
- Estimate the loan amount in the tuk-tuk mortgage calculator.
- Check how much you have for the down payment and closing costs.
- Ask two or three banks for a preliminary decision and compare the terms.
- Check whether you qualify for state programs for young families and families with children.
Key points
- Budget = down payment + loan + closing costs.
- The bank looks at how much of your income goes to all your loans; the NMC limit is 45%.
- The down payment is usually 10–30%; less than 30% is mostly possible with a second pledge or down payment insurance.
- Budget for the valuation, Cadastre, bank fees and insurance.
- Compare offers from several banks before choosing an apartment.
