Government to Subsidize Mortgage Rates and Down Payments for Military Personnel

The government today approved a targeted state support program aimed at assisting contract military personnel of the armed forces in acquiring or constructing residential property.

Under the program, up to 500 military personnel from the Ministry of Defense are eligible to receive state support each year. The program does not apply to those military personnel who have already improved their housing conditions under the statutory housing provision prior to this decision coming into effect. Additionally, it does not apply to any mortgage agreements signed by military personnel before the decision takes effect.

As part of the program, military personnel (co-borrowers) can receive a mortgage loan solely once for the purpose of acquiring or constructing a residential house. Among spouses who are military personnel, the mortgage loan will only be provided to one of the spouses.

The maximum allowable value for a property being acquired or constructed under this program is set at 28,500,000 AMD, with the property value determined as the minimum of the appraised or acquisition values. If the value exceeds this maximum, state support will only be provided within the specified maximum amount. Furthermore, for the purpose of constructing a residential house, the program is applicable only if there is a building permit for constructing a house on the land registered in the name of the military personnel (joint or partial ownership).

Prime Minister Nikol Pashinyan noted that he has received information about buildings that have been unused for 30 years being repurposed into residential houses. 'I received one or two letters from investors suggesting that it would be prudent to discuss the conversion of such buildings—like five-story non-industrial spaces or former hotels that have been dilapidated for 30 years—into residential homes. Regulations state that these types of buildings are not included in the primary market formation. Let’s give an instruction to look into this matter; we have the opportunity. This will also spur the development of housing construction in the regions,' he said.