A Reverse Mortgage Institute to be Introduced for Pensioners in Armenia

Armenia is set to introduce a new mechanism related to real estate: the reverse mortgage institute. This was announced by Suren Tovmasyan, the head of the Cadastre Committee, during a joint session of the permanent committees of the National Assembly, where he presented the details of the legislative initiative.

According to Tovmasyan, this initiative is intended for pensioners who own real estate. After the adoption of the legislative package, they will have the opportunity to turn their property into a reverse mortgage subject and receive regular payments from the bank in order to improve their social situation.

"The pensioner will not have repayment issues; he continues to live in his house, does not change his environment, and receives a certain amount each month, which will be added to his pension. This will allow for a more dignified life and the enhancement of their quality of life," stated Tovmasyan.

He noted that after the evaluation of the property's value, the payment term and the amount of money that the bank will transfer to the pensioner each month will be determined. The project is still in the discussion phase and has been introduced as a legislative proposal.