The government will allocate an additional 95 billion rubles for preferential mortgages

The government will allocate an additional 95 billion rubles. to support mortgage programs. About 46 billion of them will go to family mortgages, 41 billion to preferential mortgages, and almost 8 billion more to Far Eastern ones. About it stated Prime Minister Mikhail Mishustin at the next meeting of the Cabinet of Ministers.

“Such assistance will allow even more of our citizens to purchase an apartment in a new building, a private house or a plot for its construction,” Mishustin emphasized.

In total, by the end of 2023, it is planned to provide about 700,000 loans within the framework of these programs. In total, over 2 million loans worth more than 8.5 trillion rubles were issued during their operation.

In September 2023, issuances under preferential mortgage programs reached maximum in the entire history of their existence, despite the increase in the down payment from 15 to 20%. Issues on preferential mortgages accounted for 60% of the total number of mortgage loans. According to the observations of the Central Bank, the demand for preferential mortgages was fueled by an increase in rates on unsubsidized loans, as well as fear of an imminent winding down or significant tightening of the terms of the program. Fears of rising inflation could also stimulate demand.

On September 12, amid the continuing growth in the volume of mortgage loans, the Cabinet of Ministers increased the minimum down payment on a mortgage with state support from 15 to 20%, and also reduced by 0.5 percentage points the maximum amount of subsidies for banks that issue mortgages under preferential government programs.