The Armenian government plans to extend and continue from 2027 through 2031 the state support program for mortgage repayment linked to the birth of a child. The measure is included in a new draft proposing amendments and additions to relevant government decisions.
The current program was approved for 2024-2026, while the new draft envisages introducing the “2027-2031 State Support Program for Mortgage Repayment Related to the Birth of a Child.” It will take effect on January 1, 2027, and remain in force through December 31, 2031, Factor.am reports.
The program envisages a one-time payment of 1 million drams, which will be used to repay the outstanding principal on a mortgage loan. If the outstanding principal is less than 1 million drams, assistance will be provided in the amount of the actual outstanding balance.
If more than one child is born at the same time, such as twins, the 1 million dram assistance will be calculated and provided for each child born simultaneously. Thus, in the case of twins, the total assistance will amount to 2 million drams.
When the assistance is used to repay the outstanding mortgage principal, borrowers will not be charged penalties for early repayment.
A beneficiary of the program will be a parent who is an Armenian citizen, is the borrower repaying the mortgage and owns the residential property purchased, being built or already constructed with the mortgage. In addition, the parent and child must be identified in the State Population Register. If the child was born abroad, the child will be required to have obtained an Armenian passport.
To qualify for the program, the child must have been born on or after January 1, 2027. An application must be submitted no later than the child’s first birthday to participate in the program.
The value of the residential property purchased or under construction — its purchase price, appraised market value or estimated construction cost — must not exceed 40 million Armenian drams.
A property ownership restriction is also envisaged. During the year preceding the application date, the beneficiary and, if married, their spouse must not have owned a 50% or greater share in any other residential property or held a registered right to purchase an apartment, apart from the mortgaged property covered by the program.
Citizens will be able to benefit from this program regardless of whether they have used other state housing support programs.
After the child is born, the citizen will apply to the bank or credit organization that issued the mortgage. Banks that have an agreement with the authorized ministry will transfer the relevant data to the ministry through an automated software system.
If the organization does not have an agreement with the ministry, it will issue the citizen a certificate, which the applicant will submit to the ministry.
After receiving the data, the ministry will automatically obtain the necessary information from the Civil Status Acts Registration Agency and the Cadastre Committee within 10 working days, issue a positive decision and transfer the assistance to the bank to be applied toward repayment of the mortgage principal.