New mortgage system expected to make home buying easier
Uzbekistan is set to launch a "targeted mortgage savings" system on July 1, 2026, aimed at making homeownership more accessible through a structured savings-and-credit model. The pilot program allows citizens to accumulate down payments in special bank accounts while benefiting from market-based interest rates and additional government subsidies. To further ease the financial burden, the state will provide interest rate compensations for up to five years and guarantee the return of funds if a property is not purchased. This initiative is designed to foster a new financial culture among residents while providing the banking sector with stable, long-term resources.
In Uzbekistan, a new mechanism in the mortgage market — a “targeted mortgage deposit” — is planned to be introduced to encourage the provision of housing for the population. This initiative was developed within the framework of implementation of the President’s decree No. PF–29 dated February 24, 2026, and is expected to be carried out on a trial basis starting July 1, 2026.
The essence of the new system is simple, but effective: before taking out a mortgage loan, citizens will accumulate funds in a special deposit account. These funds will later be directed toward forming the down payment, thereby significantly easing the loan burden.
Within the framework of the mechanism, a number of important opportunities will be created:
– special deposit accounts will be opened in commercial banks;
– market-based interest rates will be accrued on deposits;
– additional subsidies will be allocated by the state;
– accumulated funds will be directed directly to mortgage loans.
This approach brings benefits on two fronts. First, it expands housing purchase opportunities for the population — because people save money in advance and reduce financial pressure. Second, it creates stable and long-term resources for the banking system.
In addition, provisions are also envisaged whereby part of the down payment will be covered by the state, compensation will be provided for a certain portion of mortgage interest rates for up to 5 years, and if a citizen does not buy a home, the funds will be returned with interest.
In short, the “targeted mortgage deposit” is not just a simple loan, but a new financial culture. If it works properly, home ownership will not remain a dream, but become a real plan.
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