Bank Aval starts crediting of real estate purchase at the primary market with the use of bonds of building companies

Bank Aval has introduced a scheme of crediting private persons for purchase of real estate at the primary market by means of borrower’s acquiring of the securities (bonds), issued by the building company. That was reported by the Bank’s Press Center with reference to the Retail Banking Department of JSPPB Aval.

As was reported at the Department, within the new scheme of crediting, credits to private individuals are granted for acquiring interest-free targeted bonds of the building organization, which provide the property for the real estate (an apartment or a place in a car park) at the primary market, against which the securities have been issued.

Credit funds are granted by means of their cashless transfer on the account of a real estate seller for payment of the full cost of the bonds. At that, a borrower should make his own down payment, by paying for a part of the housing’s cost or the cost of the car place at his own expense.

As a security for a credit till the moment of putting the real estate into operation, there acts a pledge of the bonds, acquired by the borrower, which are saved on the borrower’s account in securities, and after putting the real property into operation — a mortgage.

At that, such an account of a borrowing person in securities is not closed and may be used for other transactions.

Bank Aval gives credits to private individuals for purchase of a real estate both at the secondary and the primary markets. A credit in hryvnias, US dollars or euros can be obtained for a term to 20 years. At his own expense, a borrower may pay from 10% of the dwelling’s cost (depending upon a cost of the dwelling or the car place to be acquired). In case of availability of an additional pledge (another liquid real estate or property rights for a deposit), a credit in Bank Aval may be obtained without a client’s down payment.

The Bank’s credit sizes from 1,000 to 105,000 US dollars, without restriction of a cost of the real property to be acquired.