Abstract
<jats:p>The article explores the potential application of the German mortgage lending model in Armenia’s housing market, taking into account the country’s economic, financial, and legal context. It analyzes the current condition of the banking system, the dynamics of deposit growth, mortgage loan terms, price stability, and risk management mechanisms. The purpose of the article is to assess the feasibility of localizing the German model for the Armenian market and to identify the institutional and legislative changes required for its sustainable implementation. It also discusses the potential outcomes of applying the model, including improved mortgage accessibility, stimulation of the housing market, and enhancement of the investment environment. The author further examines how the model could contribute to long-term economic growth and social stability.</jats:p>