By Lia Avagyan
Armenia is considering a new reverse mortgage system that would let pensioners receive monthly payments from banks while continuing to live in their homes.
The proposal, now under discussion in parliament, was presented on May 18 by Nane Kazaryan, deputy head of the Cadastre Committee. It would apply to citizens aged 63 and older who own residential property.
Under the plan, elderly homeowners could use their homes as collateral to obtain regular payments from a bank. They would still keep the right to live in the property for the rest of their lives. After their death, ownership of the home would transfer to the bank.
Officials say the goal is to help older people cope with rising living costs without forcing them to sell their homes or move elsewhere.
Before an agreement could be finalized, an independent appraiser would estimate the home’s market value, and the state would review the assessment. The property could then be used in a reverse mortgage arrangement with a commercial bank.
The draft law also states that if the bank later sells the property for more than the amount owed, any remaining funds could go to the heirs.
Another part of the legislative package focuses on inheritance rights between spouses. If one spouse dies, property acquired during the marriage would automatically pass to the surviving spouse instead of being divided immediately among other heirs. Children or other relatives would only receive inheritance rights after the second parent dies.
Supporters argue the reforms would strengthen financial protection for elderly citizens. Critics, however, worry that the reverse mortgage system could reduce the inheritance eventually left to family members.
