Mortgage with Government Support in Armenia: A Complete Guide to All Active Programs

If you're planning to take out a mortgage in Armenia, this is the most complete and up-to-date overview of all current government-backed programs. It includes all the essential information: what benefits are available for different categories of citizens, how to save on interest, where you can get a tax refund, and even how to buy property without a down payment. Whether you're a young family, a service member, a displaced person, or a first-time homebuyer — this guide covers all the key questions.

"Affordable Housing for Young Families"

This program has been in effect since 2010 and is aimed at helping young families purchase housing — both in Yerevan and in the regions. The support comes in two forms: subsidizing the interest rate or partially covering the principal. For new constructions, a tax refund is also available.

Key Terms:

"Affordable Housing for Young Families" is suitable for:

1. Young families where the combined age of spouses does not exceed 70 years
2. Single parents under 35 with at least one child
3. Citizens of Armenia with official income

Example:

If you take a mortgage of 20 million AMD for 20 years at 7.5% interest, your monthly payment will be around 161,000 AMD. With a 2% subsidy, the rate drops to 5.5%, and the payment decreases to 137,000 AMD. Total savings: over 5 million AMD across the loan period.

If this program interests you, you can find all the details through the link or visit the “Mortgage” section on AFM to compare the best offers from Armenian banks.

Program for Military Personnel

The Armenian government supports contract military personnel and security agency employees by subsidizing mortgage interest and helping with the down payment. The effective interest rate can go as low as 0%.

Key Terms:

This program is available for:

1. Contract officers and senior warrant officers
2. Employees of the Police, NSS (National Security Service), and the Penitentiary Service (based on quotas)
3. Only for those with official status and a service confirmation letter

Example: A mortgage of 25 million AMD over 20 years.

Without subsidies: approx. 298,000 AMD/month.

With a 4% subsidy + tax refund: 165,000–220,000 AMD/month.

Total savings: 25–35 million AMD.

Want to learn more about this program? Follow the link for detailed information or visit the “Mortgage” section on AFM to explore top offers from Armenian banks.

Income Tax Refund Program (Personal Income Tax / PIT)

If you’re purchasing a newly built property, the government refunds the mortgage interest paid through the PIT refund mechanism. This can effectively reduce your mortgage rate close to 0%.

Key Terms:

This program is suitable for:

1. All citizens of Armenia up to 45 years of age
2. Those applying for a mortgage on primary housing, where construction began before 2022
3. Only outside Yerevan (starting from 2025)

Example: At an 8% rate with a 25 million AMD loan, the annual interest is about 2 million AMD. If your annual income tax is 780,000 AMD, the state refunds that amount — effectively reducing your interest rate to near zero.

Total savings: up to 20–25 million AMD over 20 years.

Interested in this program? You can find all the details via the link, or check the “Mortgage” section on AFM to compare the most favorable options from Armenian banks.

Program for Displaced Families from Artsakh

This special program is designed for forcibly displaced families from Nagorno-Karabakh. The government provides housing certificates, fully covers the mortgage, and does not require any down payment.

Key Terms:

This program is available for:

1. Forcibly displaced persons from Nagorno-Karabakh
2. Citizens of Armenia with officially recognized refugee status
3. Purchasing or constructing housing in both urban and rural areas

Example: A family of four receives up to 20 million AMD for housing in a city. If the property costs 24 million AMD, the remaining 4 million can be covered by a 0% mortgage. The monthly payment is about 66,000 AMD, with no overpayment.

For full details, follow the link or explore the “Mortgage” section on AFM, where you’ll find the most relevant and beneficial offers from Armenian banks.

Energy-Efficient Home Renovation Program

This program is intended for apartment and private house owners planning capital or partial renovations with a focus on energy efficiency. It helps reduce utility costs and improve home comfort.

Key Terms:

This program is available for:

1. Owners of apartments and private homes within the Republic of Armenia
2. Citizens of Armenia planning to upgrade their homes for better energy efficiency
3. Suitable for insulation, window replacements, solar panel installation, and other green solutions

Example: A private homeowner takes out a loan of 9 million AMD for 7 years at a 12% interest rate. The government subsidizes 6%, reducing the effective rate to 6%, which cuts the monthly payment by almost 30,000 AMD.

Total savings: approx. 2.5 million AMD over the loan term.

Program for Families in Border Villages

This program supports families living in or planning to relocate to Armenia’s border villages. It is intended for those who own land or an unfinished house in a village and have a valid building permit.

Key Terms:

This program is available for:

1. Families residing in or planning to relocate to Armenia’s border villages
2. Citizens of Armenia who own a plot of land or an unfinished building with a construction permit
3. Suitable for building private housing, with a commitment to reside permanently in the new home

Example: A family relocating to Voskepar village (Tavush region) may receive up to 21 million AMD: 16 million AMD of base financing and an additional 5 million AMD in support. All interest is covered by the government.

Condition: the family must permanently live in the constructed home.

How to Choose the Right Program?

1. Young families: Choose the “Affordable Housing for Young Families” program — it offers subsidies and income tax refunds.
2. Military personnel: Apply through the specialized military program to gain maximum benefits.
3. Buyers of new constructions: Don’t miss the chance to get a PIT (income tax) refund on interest payments — especially if buying outside Yerevan.
4. Displaced families from Artsakh: Apply for housing certificates — receive property with no interest or down payment.
5. Families in border villages: Use the state-backed construction program — get up to 21 million AMD, no interest or down payment required.
6. Homeowners planning renovations: Take advantage of the energy-efficiency renovation program — cut costs and improve your home’s comfort.

Frequently Asked Questions (FAQ)

Q: Can I combine multiple programs?

A: Yes. For example, you can combine an interest rate subsidy with the income tax refund if purchasing a newly built home.

Q: What happens if a program ends?

A: The terms of your signed agreement remain valid. However, no new applications will be accepted after the program ends.

Q: Is it possible to get a mortgage with no down payment?

A: Only through the Program for Displaced Families from Artsakh.

Q: Is the tax refund program still valid in 2025?

A: Yes, but only outside Yerevan or for properties with building permits issued before 2022.

Conclusion

Armenia currently offers four major government programs that make mortgages significantly more affordable:

1. “Affordable Housing for Young Families”: Interest rate subsidies and income tax refunds, with rates starting from 5.5%.
2. Program for Military Personnel: Effective rates from 0%, down payment support, and income tax refunds.
3. Income Tax Refund Program (PIT): Effectively reduces the mortgage rate to 0%, applicable when buying new constructions outside Yerevan.
4. Program for Displaced Families from Artsakh: Housing with no interest and no down payment, with certificates issued per family member.

Thanks to these programs, you can:

1. Lower your mortgage rate to 0–5% through subsidies available to young families, servicemembers, and displaced individuals.
2. Avoid or minimize the down payment — for example, no down payment is required for displaced persons from Artsakh, and partial compensation is available for military personnel.
3. Receive up to 1.2 million AMD annually in tax refunds if you purchase a newly built home outside Yerevan.
4. Save between 5 to 35 million AMD over the lifetime of your loan thanks to subsidies and tax incentives.

Use AFM to find the best mortgage program tailored to your needs — and avoid overpaying!