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."
