YEREVAN, July 3. /ARKA/. The National Assembly of Armenia approved on Friday, in a special session, amendments to the Civil Code of Armenia, introducing the institution of reverse mortgage and a new type of property rights for spouses.
According to Nane Gazarayan, Deputy Chair of the RA Cadastre Committee, the amendments propose the introduction of two new institutions — reverse mortgage as a new type of collateral and a credit agreement for reverse mortgage.
She stated that the reverse mortgage mechanism is primarily intended for pensioners who are homeowners.
“The mechanism will allow pensioners who own homes to transfer their property into a reverse mortgage and receive monthly payments from the bank, thereby improving their social status,” Gazarayan said.
She noted that the amendments also introduce a new type of right — the “exclusive property right of the spouse.” According to the proposed changes, property acquired during marriage can be registered as the exclusive property of one spouse.
According to Gazarayan, this will provide greater legal certainty in property relations and enhance the social protection of citizens.
“The introduction of reverse mortgage institutions and exclusive property rights of spouses is an important step not only for the development of the real estate market but also for strengthening the social function of the state. It expands the opportunities for the realization of citizens' property rights and creates an additional financial instrument that allows converting the value of owned property into a stable source of income,” she emphasized.
She also stated that the introduction of these institutions is planned for January 1, 2027.
A homeowner who utilizes the reverse mortgage mechanism retains ownership of the property and receives regular payments from the bank against the collateral of that property.
Reverse mortgage is a financial instrument that allows property owners, typically pensioners, to receive regular income against their property without selling it. After the owner's death, the property may pass to the bank or heirs if they settle the outstanding debt.
