The Armenian government is introducing a reverse mortgage mechanism and proposing changes to the regulation of spousal property rights, Head of the Cadastre Committee Suren Tovmasyan said at a cabinet meeting.
According to him, the new system will allow pensioners to generate additional income from their real estate without losing the right to live in their homes, Panorama.am reports.
Tovmasyan explained that citizens who face difficulties maintaining property acquired during their lifetime or received through inheritance or donation often seek ways to generate income from it and improve their living standards by leveraging accumulated capital.
“Property owners will be able, through agreements with banks, to transfer their homes under a reverse mortgage scheme while retaining ownership rights and the right to reside there. This means pensioners will not be forced to sell their property or relocate in order to cover expenses, as they will receive income through this mechanism.
These payments will supplement their pensions and provide additional financial resources, enabling people to live more comfortably,” he said.
He also noted that another proposed amendment envisages that in the case of property jointly acquired by spouses, after the death of one of them, the surviving spouse will retain sole ownership rights until their death, after which inheritance rules will apply.
Prime Minister Nikol Pashinyan reiterated his earlier controversial statement that a pensioner owning a $500,000 home in central Yerevan should not receive social benefits, adding that the reform fulfills a 2018 promise by expanding the freedom of pensioners.
