Savings mortgage deposits for housing launched

A new opportunity is being created for citizens planning to purchase housing in Uzbekistan. In accordance with the Presidential decree, a targeted mortgage deposit system will be launched on a trial basis starting July 1, 2024. This system is a great relief, especially for citizens who have received a state subsidy, facilitating the process of accumulating the down payment.

According to the new procedure, citizens approved for a subsidy can open special accounts at banks. State-allocated subsidy funds will be transferred to this account as initial capital. Banks will calculate income on the remaining balance at market interest rates. This allows citizens to increase their funds and save the necessary down payment for housing faster.

The term of this savings is set for up to 12 months. If a housing purchase agreement is not concluded within a year, the funds will be returned. In this case, the citizen's personal savings are returned to them, while the state subsidy and accrued interest are transferred back to the state budget. The detailed regulation of the experiment is expected to be approved by June 1, 2024. It should be noted that payments for subsidizing interest rates will only begin after the mortgage loan is actually issued.