When a child is born into a family repaying a mortgage loan, the state provides a lump-sum payment toward the outstanding principal of the loan. If the residential property is located in a border-area or designated rural settlement, the support increases by 50%. The same rule also applies to support for purchasing a home in the regions.
The regulation is set out in Government Decision No. 968-L of May 14, 2020, while the list of border settlements is established by Decision No. 1444-N of December 18, 2014. The appendix to Decision No. 968-L includes 48 settlements in 28 communities on the list of designated rural settlements, and 82 settlements in 13 communities on the list of border settlements. In total, there are 130 settlements.
The basic mortgage repayment support is 10% of the outstanding principal for the first or second child, but no more than AMD 500,000, while in Yerevan it is 5%. For the third and each subsequent child, the support is 50%, but no more than AMD 2 million, and 25% in Yerevan. In the designated settlements, this support increases by 50%.
For purchasing a home in the regions, the support amounts to 5% of the property's value, but no more than AMD 1 million, and increases by an additional 5%, up to AMD 500,000, for each third and subsequent child. In the case of building a house, the calculation is based on 10% of the loan amount. The maximum amount of this support is AMD 2 million, and in the designated settlements it also increases by 50%.
An application for mortgage repayment support must be submitted before the child turns one. The property value must not exceed AMD 35 million, increasing by AMD 5 million for each third and subsequent child. The beneficiary must have made repayments for at least 12 months, while the total duration of payment delays during the last 12 months must not exceed 30 calendar days. The property must be the family's only residential real estate.
In this case, the main practical issue is correctly identifying the settlement, since the 50% increase is linked not simply to living in a region but to being included in the designated lists. Therefore, it is important for a family to first check the settlement's status and only then calculate the expected support.
The amount also depends on several conditions, including the child's birth order, the type of property, the outstanding loan balance and the applicable limits in effect on the date of application. At the same time, the main program requirements remain in force, including the loan repayment history, the property's value and the requirement that it be the family's only residential real estate.
