The utilization of accumulated pension funds for mortgage loan payments serves as a crucial tool in enhancing housing affordability. This mechanism can reduce the financial burden on citizens and stimulate the development of the mortgage market, which is particularly important for individuals from lower and middle-income groups who face difficulties in acquiring their own homes. This research aims to examine international experiences, particularly the cases of Sweden and Singapore, and, based on these examples, propose effective models for the use of accumulated pension funds in Armenia. To achieve this goal, it is essential to address potential legislative changes that would support the implementation of such a system. The research will also analyze the possible risks associated with this policy and explore ways to mitigate any negative impact on financial stability. As a result, the research will identify key steps to enhance public trust in the pension accumulation system while aligning with citizens’ needs, thereby creating new opportunities for the housing market. Moreover, introducing such a mechanism can contribute to the overall stability of the financial system and strengthen state involvement in social protection. Simultaneously, the increased demand for housing in Armenia’s business environment may also stimulate the construction sector, positively impacting the country’s economic growth.