Armenia to introduce reverse mortgage system for pensioners

ArmInfo. Armenia plans to introduce a reverse mortgage institute - a financial  mechanism designed to allow pensioner to monetize their real estate holdings.   Suren Tovmasyan, Chairman of the RA Cadastre Committee, announced  this initiative during a press conference on January 19.

The reverse mortgage system is specifically tailored for elderly  citizens who own their own house. Under this arrangement, a pensioner  uses their apartment as collateral for a bank loan while retaining  full ownership and the right to reside in the property. In exchange,  the bank provides the individual with monthly payments for the  remainder of their life. Upon the homeowner's passing, the mortgage  concludes and the financial institution takes possession of the  property.

"This will allow pensioners to avoid selling their property or moving  elsewhere to resolve social issues," the head of the Committee  stated. "Instead, they can continue living in their own homes while  receiving a lifelong annuity."