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Mortgages in Armenia often require an advance payment of up to 30% of the market value of the property. This amount often reaches 10-20 million drams, which makes it almost impossible to buy a new apartment or house.

Downpayment insurance is designed to safeguard a portion of the borrower's mortgage liability within specific programs. In the event of default, the insurance company assumes the responsibility of compensating the bank for losses incurred due to the client's failure to fulfill their obligations.

This product guarantees the downpayment amount to the creditor according to the mortgage loan certificate.

Eligibility for coverage extends to any working-age individual classified as a borrower. The insurance contract spans a one-year term, with the policy taking effect two days after the signing date.

Two packages are available: National Mortgage and Apartment for Young Families. In both scenarios, the outstanding principal downpayment balance is covered. The insurance encompasses accidents occurring within Armenia.

The insurance premium is set at 2% of the insurance amount (outstanding downpayment).


  • For secondary market - 30% of the property market value - 10 and more % downpayment,

  • For primary market - 20% of the market value - 7.5 and more % downpayment.


  • ​Lump sum, at the time of signing the contract,

  • Periodic - according to an agreement between the parties


  • Absence of pledged real estate under construction, due to failure of completing the construction or not having a final act and/or due to the bankruptcy of the developer,

  • Other financial losses and/or other loan-related losses incurred by the bank not considered as unpaid prepayment amount, including accrued interest (except for the National Mortgage Package), penalties, fines, court costs, compulsory service costs, mandatory payments, commission fees or other or incomplete performance of other financial obligations by the borrower, caused by loan default or improper loan repayment,

  • Confiscation, requisition, or other similar actions with respect to the mortgaged property by the order of state bodies,

  • Loss of the borrower's ownership of the subject of the mortgage,

  • Intentional illegal agreement between the Insurer (borrower) and the Beneficiary (its employees).


  • Pledged real estate purchase agreement or copy,

  • Copy of ownership certificate,

  • Copy of the auction protocol,

  • Copies of the writ of execution, the relevant decisions of the Compulsory Enforcement Service in relation to the sale of real estate by compulsory electronic auction,

  • Bank decisions related to the sale of property,

  • Other reference on the amount of unpaid prepayment or its balance,

  • Other documents required by the Insurer.

For the renewal of the contract, only the Bank's statement about the balance is necessary, if there are no changes in other documents.
The contract may be concluded:

  • In the company's office,

  • In partner Lenders/Banks offices.

Required steps in case of an accident

  • In case of an accident, contact EFES directly on the phone number 010 700 800,

  • Apply for insurance compensation no later than 60 days after the insurance accident,

  • Provide all the necessary documents for the settlement of the insurance accident within 60 days afer submitting the claim for compensation.


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