A mortgage in Uzbekistan has long ceased to be just a bank loan “for an apartment”. Today, it is a whole system that includes bank conditions, government subsidies, separate rules for the primary housing market and changes introduced in 2024–2026. That is why, when choosing a home, looking only at the interest rate is no longer enough. It is important to understand how much of your own money you need to contribute, whether you can qualify for a subsidy, whether the selected property fits the current rules, and what the real burden on the family budget will be.
In simple terms, a mortgage is a loan for buying housing, where the property becomes collateral for the borrower’s obligation to the bank. But for the buyer, the practical side is much more important: what down payment is required, what loan term is available, how the payment is calculated and what expenses arise in addition to the loan itself. These are the questions that determine whether the purchase will be affordable in real life.
How mortgages work today
In practice, there are two main parts. The first is the mortgage loan issued by the bank. The second is government support, which in certain cases helps cover part of the down payment and part of the interest expenses. A subsidy does not replace the mortgage and does not cancel the borrower’s obligations to the bank. It only reduces part of the financial burden if the borrower meets the established requirements.
Another important point: a mortgage and an installment plan from a developer are not the same thing. A mortgage is arranged through a bank and is regulated by banking and government rules. An installment plan is a separate mechanism offered by the seller or developer. For the buyer, this is a fundamental difference, because government subsidies apply specifically to mortgage lending.
Today, separate rules are especially important for the primary housing market. In recent years, the government has changed its approach specifically to buying apartments in new buildings: subsidy conditions have been adjusted, one of the mandatory insurance requirements has been abolished, and from 2026 new opportunities have appeared for transactions through the escrow system.
What changed in 2024–2026
From May 1, 2024, the requirement to insure the mortgage property against insurance risks was abolished for mortgages used to buy apartments in the primary market. For buyers of new-build apartments, this is an important change: the registration process has become simpler than before.
Under the same 2024 program, the subsidy for compensating part of the down payment on mortgage loans for apartments in the primary market is paid in a fixed amount — 30 million soums. For many families, this is one of the most noticeable support measures, because the down payment is often the main barrier at the start.
From January 1, 2026, within the escrow system, loans are allowed for purchasing apartments in apartment buildings that are at least 50% complete. Subsidies from the state budget may also be paid for such loans. For the new-build market, this is a significant change: it expands the opportunities to buy housing before construction is fully completed, but already at a substantial stage of readiness.
There is another benchmark that everyone interested in mortgages should watch: the Central Bank’s key rate. At the meeting on January 28, 2026, it was set at 14% per year. This does not mean that all mortgage loans are issued at exactly this rate, but the key rate affects overall monetary conditions and is important for understanding the lending market.
Who can qualify for a subsidy
According to the official procedure, an applicant for a state mortgage subsidy may be a citizen of the Republic of Uzbekistan aged from 18 to 60. The subsidy itself may be provided to cover part of the down payment and/or part of the interest expenses on a mortgage loan.
It is important not to confuse the right to apply with a guarantee of approval. The opportunity to submit an application does not mean that the subsidy will be granted automatically or that the bank will issue a loan in any case. In practice, two things must always be considered at the same time: whether the borrower meets the established requirements and whether the bank is ready to approve the mortgage under its own conditions.
An application can be submitted in two ways:
- through a Public Services Center;
- through the Single Portal of Interactive Public Services — my.gov.uz.
This is convenient because the service is officially provided and available through government services. In addition, according to official information, an application for a subsidy can be submitted throughout the year, and submitting and clarifying information through Public Services Centers and the Single Portal is free of charge.
Which conditions to look at first
The first thing to start calculating is usually the down payment. The current rules for mortgage loans state that it is set at no less than 15% of the value of the apartment being purchased. This is the basic benchmark to rely on when planning a purchase.
The second important parameter is the loan term. Current mortgage mechanisms mention a term of up to 20 years. They also provide for a six-month grace period at the client’s request. Formally, this makes entering the loan easier, but in practice the term should always be assessed not only in terms of a comfortable monthly payment, but also in terms of the overall financial burden over the long run.
The third point is the repayment format. The borrower can choose an annuity or differentiated repayment method. In the first case, the payment is more even and predictable. In the second case, the burden is usually higher at the beginning and then gradually decreases. This is not just a formality, but an important part of financial planning, because the same loan can feel very different under different repayment schemes.
The situation where the selected apartment costs more than the loan limit should also be considered separately. The current procedure directly states that in this case the difference is paid from the borrower’s own funds and other sources not prohibited by law. Simply put, if the bank and the program do not cover the full cost of the home, the missing amount will have to be covered independently.
How the process usually works
In everyday terms, applying for a mortgage looks roughly like this: a person chooses an apartment, checks the possibility of financing, submits an application for a subsidy if necessary, goes through verification, and then proceeds to the transaction itself. Formally, there are several stages in this chain, so it is better to view a mortgage as a process rather than a single bank decision of “yes” or “no”.
At this stage, it is especially important not to rush. Before signing documents, it is better to understand in advance:
- how much money will be needed to enter the transaction;
- whether the property fits the current mortgage mechanisms;
- whether there are grounds to expect a subsidy;
- what the payment will look like not only now, but also over the next several years.
This approach may seem slower, but it is much safer. In mortgages, the main mistakes usually happen not when choosing the apartment, but when underestimating the whole structure of the transaction. This follows from the current rules themselves: what matters is not one parameter, but the combination of down payment, term, repayment scheme, subsidy eligibility and property status.
What is especially important when buying an apartment in a new building
For the primary market, it is not enough to look only at price, district and layout. It is necessary to understand whether a specific apartment fits the current mortgage rules, what stage the property is at, and how exactly the transaction is arranged. For new buildings, this is especially relevant because several important changes have taken place in the primary market in recent years.
If you are buying an apartment in a building under construction, the escrow mechanism should be considered separately. From 2026, this system allows loans for apartments in apartment buildings that are at least 50% complete, as well as subsidies for such loans. For the buyer, this means that when choosing a property, not only the new building itself matters, but also the stage of its readiness.
In practice, before a new-build transaction, it makes sense to calmly check several things:
- on what basis the property is being sold;
- whether it is eligible for a mortgage;
- what the payment procedure is;
- how much of your own money will be required;
- whether a subsidy can be applied in this particular situation.
What expenses exist besides the monthly payment
One of the most common mistakes is calculating only the amount that will go to the bank every month. In reality, a mortgage is almost always broader than a single payment. In addition to it, you need to account for the down payment, possible transaction registration expenses and all related costs that arise after buying the home.
Usually, a person faces at least three levels of expenses:
- money needed before the transaction;
- the monthly credit burden;
- expenses after buying the home, such as renovation, furnishing and moving.
The last point is not part of the mortgage itself as a banking product, but it is no less important for the family budget. Therefore, it is necessary to evaluate not only the loan, but the entire purchase budget as a whole. This conclusion is based on the general structure of the transaction and the down payment requirements.
The most common mistakes
The most common mistake is looking only at the interest rate. In practice, the down payment, loan term, repayment format, possibility of receiving a subsidy and the difference between the apartment price and the lending limit are no less important. Sometimes these details determine whether the purchase will be comfortable or too heavy.
The second common mistake is relying on outdated rules. In a short period of time, Uzbekistan’s mortgage system has already changed noticeably: for the primary market, the requirement to insure the mortgage property has been abolished, a fixed subsidy amount for part of the down payment has been established, and from 2026 new opportunities have appeared for the escrow system. If you rely on old materials without dates and references, it is easy to draw the wrong conclusions.
One more important point: a subsidy can really help significantly, but by itself it does not solve the issue of housing affordability. A mortgage remains a long-term obligation, so it is always better to make a decision after a calm calculation, not only because a benefit or suitable program has appeared. This is a practical conclusion, but it follows directly from the current subsidy procedure and mortgage conditions.
The main thing about mortgages
A mortgage in Uzbekistan is a working tool for buying housing, but it should be approached without illusions. It is important not only to receive bank approval, but also to clearly understand the entire structure of the transaction: how much of your own money will be needed, whether there is a chance of receiving a subsidy, whether the property fits the current rules, and what the real burden on the budget will be.
If you are considering an apartment in a new building, it is especially important to check the property status, the building’s stage of readiness, the purchase scheme and the financing conditions in advance. This approach requires a little more time at the start, but it helps make a decision based on facts rather than emotions.
Sources
- Law of the Republic of Uzbekistan “On Mortgage”.
- Procedure for paying subsidies to citizens for the purchase of housing — gov.uz.
- Submitting an application for a state subsidy on a mortgage loan — my.gov.uz.
- Decree of the President of the Republic of Uzbekistan No. UP-70 dated 30.04.2024.
- Decree of the President of the Republic of Uzbekistan No. UP-26 dated 21.02.2025.
- Decision of the Board of the Central Bank dated 28.01.2026 on the key rate.
