Annual Compensation for Down Payment Insurance Premiums by the State

The second program for state support of housing security for families with children proposes compensation for annual insurance premiums for down payment insurance by the state when acquiring a mortgage property. This was reported by the Ministry of Labor and Social Affairs.

Any family with at least one child that purchases residential real estate on or after July 1, 2020, can benefit from the program. The maximum price of the property is set at 30 million drams, which will increase by 5 million drams for each third and subsequent child of the beneficiary.

The minimum down payment required is at least 10% of the value for properties purchased from the secondary market and at least 7.5% for those from the primary market.

The amount of monetary assistance provided under the down payment insurance program will be determined at 90% of the annual insurance premium specified in the relevant contract, but no more than 180,000 drams per year. Payments will cease when the ratio of the remaining principal of the mortgage loan to the acquisition value of the property drops below 70% for properties purchased from the secondary market and below 80% for those from the primary market as of January 1 of that year.

An individual can benefit from the down payment insurance program only once. In 2020, support is planned for 300 families under this program.

Note: The program starts on July 1, 2020. No application needs to be made to the Ministry of Labor and Social Affairs for assistance under the program. Citizens should apply to the bank or credit organization from which they plan to take out a mortgage loan.