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Housing Finance

Access to decent shelter is a basic need. It is the first target of the UN Sustainable Development Agenda 2030: making cities inclusive, safe, resilient, and sustainable. This goal must be backed up by adequate financing for housing. Therefore, the provision of appropriate financial services is instrumental in improving living conditions in many countries.

To promote housing finance, IAS has been engaged in institution and capacity-building programmes for several years. We define housing finance broadly, ranging from housing microfinance to mortgage lending, the provision of affordable housing to the promotion of energy efficiency in residential buildings.

Our main working areas include:

Housing Finance core working areas

Housing Finance core working areas


We design and conduct market and feasibility studies, housing finance sector reviews, including reviews and evaluation of options for implementing financial instruments and structures in the sector.

Programme design

We provide guidance at the policy level on regulatory aspects of housing finance. Other focus areas include the development of appropriate long-term funding structures: through the set-up of liquidity facilities and mortgage corporations, the improvement of legal frameworks, consumer protection, affordable housing solutions, etc.

Product development

We assist lending institutions in designing home improvement and acquisition products that meet the needs of their customers. Furthermore, we combine these products with savings features in order to support accumulation of capital or with elements of energy efficiency in order to promote sustainable constructions. Products are designed to support responsible lending and customer protection, as well as to promote lending in local currency at fixed interest rates. 

Capacity building

Our services include the development of sound lending practices, including customer counselling; loan origination and marketing; underwriting; servicing and collections; recoveries; and risk management. This is done according to best international practices based on quality standards for mortgage lending and the EU directive on residential lending.


Training is offered in the form of classroom and on-the-job training. Furthermore, in order to promote knowledge in the housing finance sector, we offer an annual executive education course called the Housing Finance Summer Academy.

Flagship Projects


Housing Finance Programme Armenia

KfW will provide a loan to the Central Bank of Armenia (CBA), which will be channeled to the National Mortgage Company. The funds will be utilized by financial institutions that will extend housing loans to Armenian citizens from low- and middle-income households. The overarching development goal of the program is to contribute to the deepening and strengthening of the financial sector.

The Project at a Glance
Duration 2016-2017
Client Central Bank of Armenia and National Mortage Company
Country Armenia
Main objectives
  • Ensure the smooth implementation of the program
  • Create an adequate level of understanding and capacity within the financial institutions to offer the new loan products
  • Support the smooth development and implementation of two successful new housing loan products ( rural and energy efficiency (EE)
  • Raise awareness for EE-investments and a good base of information NMC refinances housing loans


Our Services
  • Define selection criteria and select financial institutions (FIs) for participating in the program
  • Assist the selected partner  FIs in developing and implementing new EE housing loan products
  • Train staff on tool application; monitoring and reporting of energy savings
  • Support in product design and implementation of internal changes
  • Design and implement a nationwide awareness raising campaign related to EE lending products;
  • Support the FIs to create conditions to offer rural housing loans outside of the capital city

For more information contact


Housing Finance Programme Tajikistan

Despite existing high demand for housing finance in Tajikistan this sub-sector is still comparatively underdeveloped and faces many constraints. Financial institutions have been particularly reluctant to give out longer-term loans in local currency for various housing purposes (construction, renovation, expansion or purchase) due to lack of longer-term refinance and adequate appraisal technologies.

The KfW’s Housing Finance Programme has the overall goal of contributing to the improvement of housing and living conditions of middle and lower income households in Tajikistan by increasing (in terms of access and maturity) the supply of housing loans in local currency, which would in turn contribute to the deepening and widening of the financial sector of Tajikistan.

The Project at a Glance
Duration 2014 - on-going
Client Ministry of Economic Development and Trade (MEDT) and Kreditanstalt für Wiederaufbau (KfW)
Country Tajikistan
Main objective Main objective is the sustainable increase of adequate housing finance to be used by the target group in particular in rural areas

Our Services
  • Development and negotiation of channelling agreements with 4 financial institutions (FIs)
  • Set-up and management of the Disposition Fund
  • Validation of needs assessment of the FIs
  • Development of housing/mortgage finance products including residental energy efficiency products
  • Development of housing microfinance products for two MFIs
  • Development and implementation of marketing strategy for above products
  • Introduction/improvement of credit technologies, policies and quality standards for housing / mortgage finance
  • Training and capacity building
  • Support in Risk Management, IT/MIS and other areas

For more information contact

For more information contact