How to Save for a Down Payment: A Plan Without Illusions

Step 1. Set an honest target

The target is not just the down payment. Add the closing costs — valuation, certificates, Cadastre registration, bank and notary fees — plus a reserve for moving. See our article on the costs of buying an apartment for detailed amounts.

The size of the down payment depends on the bank and the program. The hartak.am portal gives a range of 10–30% of the price. Under the Affordable Housing for Young Families program, the minimum is 20% for a new build bought from the developer and 30% on the resale market; it can be reduced with an additional pledge, a guarantee or insurance on part of the down payment (Government Decision No. 98-N, checked on 13 September 2026).

The prices in the table are hypothetical, just an example calculation. Plug in the prices of apartments you are actually looking at in listings.

Step 2. Split the target into months

A simple formula: divide the target by the number of months. For example, AMD 3 million over 24 months is AMD 125,000 a month; over 36 months it is about AMD 83,000. If the monthly amount is unrealistic, change the parameters: a cheaper apartment, a different district or town, a longer timeline. An honest three-year plan beats a pretty one-year plan that falls apart after six months.

Step 3. Automate it

• Open a separate account or deposit just for the down payment, so the money doesn’t mix with everyday spending.
• Set up an automatic transfer on payday.
• Send bonuses, gifts and one-off income straight to your savings.
• Review your progress every quarter and adjust the plan.

When choosing a deposit, compare several banks: can you top it up and withdraw without losing interest? You can read about how deposits are protected on the Central Bank website, cba.am.

Step 4. Use state support

For families with two minor children buying a home with a mortgage in the provinces, the 2024–2026 housing support program provides down payment help: 5% of the home price, capped at AMD 1 million, plus 5% (up to AMD 500,000) for the third and each subsequent child, up to AMD 2 million in total (Public Radio of Armenia, 14 March 2024). The program runs until the end of 2026.

Young families should also look at the Affordable Housing for Young Families program: the rate is lower, and for resale purchases the state subsidizes part of the interest. See our article on state programs for young families for details.

Step 5. Show the bank a good track record

While you save, watch your credit history: no late payments and as few open loans as possible. The National Mortgage Company, for example, requires no more than 30 days of total arrears on all loans over the last 12 months, and all loan payments including the mortgage must not exceed 45% of income.

How are you saving for a down payment? I set money aside every monthI keep it in a depositI’m counting on help from familyI haven’t started yet

Key points

• Target = down payment + closing costs + reserve.
• The down payment is usually 10–30% of the price; under the young families program it starts at 20% (new build) or 30% (resale).
• An automatic transfer to a separate account works better than willpower.
• Don’t borrow for the down payment — it will reduce the mortgage you are approved for.
• Families with children in the provinces can get down payment help until the end of 2026.