Pension Payments for Repayment of Home Mortgage Loan Principal
In Kazakhstan, the Rules for the Use of Lump-Sum Pension Payments to Improve Housing Conditions have been amended. According to the changes, lump-sum pension payments may now be used to partially or fully repay only the principal debt of a home mortgage loan. The repayment of interest, penalties, and fines using pension savings is no longer permitted. Previously, such use was allowed under these Rules.
The application procedure has also been changed. After opening a special account, the applicant submits an electronic application to use pension funds, indicating the account number, the purpose of use, and the available amount, which is certified by the applicant’s electronic digital signature. Previously, the same application also required specifying the method for withholding and transferring personal income tax.
The Order clarifies that the assignment of rights under a Home Construction Savings Agreement is permitted only to spouses and close relatives, who are not entitled to transfer these rights to third parties.
In addition, if supporting documents are not submitted, the money will be returned to the applicant’s UAPF account. In the event of an erroneous transfer, the authorized operator must send a notification to the UAPF, along with the applicant’s consent, within three working days. The UAPF will then return the money to the applicant’s account within five working days.
The Order will take effect on 2 February 2026, except for the provisions on the cancellation of personal income tax withholding, which came into force on 1 January 2026.
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