Pension savings can be used to buy a home: what you need to do

A portion of pension savings can be used to buy a home. The money may be used to take out a mortgage or to participate in shared-equity housing schemes. This was announced by the Kyrgyzstan Pension Fund.

However, not everyone will be able to take advantage of this opportunity. The main condition is that the funded portion of the applicant’s personal insurance account, or that of their spouse, must exceed 50,000 KGS.

To access the funds, you must first obtain a statement of your pension account balance from the regional office of the Social Fund. You should then contact a bank if you are taking out a mortgage, or the developer if you are buying a flat in a building under construction. They will issue a letter of confirmation, after which all documents must be submitted back to the Social Fund.

To apply for a mortgage, you will need your passport, a marriage certificate (if using your spouse’s account) and a letter from the bank confirming either the approval of the loan or the existence of a mortgage debt.

In the case of shared-equity construction, in addition to your passport and marriage certificate, you will need to provide a letter from the construction company, OJSC ‘GIK’ or the Bishkek or Osh City Council. For property from a private developer, you will also need an extract from the State Register and confirmation from the State Construction Committee that the property is included in the register of buildings under construction.

The Social Fund has emphasised that pension savings can only be used to purchase a home if the account balance exceeds 50,000 KGS.