New opportunities are opening up for pensioners in Armenia. The government is introducing the reverse mortgage institute, which allows pensioners to transfer their homes to banks and receive monthly payments until the end of their lives. This was announced by Nane Ghazaryan, Deputy Chairman of the Cadastre Committee of Armenia, at a press conference at the Armenpress press center.
“The reverse mortgage is a new type of credit agreement with clear regulations. Senior citizens, if they own residential property and wish to obtain financing, can pledge their property and receive regular payments from a bank or credit organization,” said Nane Ghazaryan.
She added that this will serve as an additional source of income in the form of stable payments, and the citizen will not lose their place of residence. “This means that the citizen will continue to live in their home as before. During this time, the bank will not be able to manage it or conduct any transactions related to the property,” she noted.
After the citizen's death, if the heirs wish to repay the amounts paid, this option will be available. Otherwise, the property will pass to the bank. The amount paid to the owner will depend on the value of the property and its location.
The reverse mortgage is not a mandatory condition but an option for pensioners who can apply to banks at their discretion. The project is currently in the National Assembly, and it is expected that citizens will be able to take advantage of this opportunity starting January 1, 2027.
The government is also introducing the institute of exclusive property rights for spouses, which will be registered with the Cadastre Committee.
