The Ministry of Finance is alarmed by the difference in rates on market and preferential mortgages

The Russian Ministry of Finance has recorded a gap between rates on market and preferential mortgages, but has not yet discussed the issue of increasing the down payment on preferential mortgage lending programs. This was announced by Deputy Minister of Finance Alexey Moiseev on the sidelines of the International Customs Forum.

“We are concerned about the situation, because taking into account the increase in the Bank of Russia rate, it is obvious that the difference between the market rate and the rate under preferential programs is becoming colossal,” said the deputy minister.

He emphasized that he personally agrees with the Bank of Russia’s assessment of the mortgage market situation and believes that the preferential mortgage program should end as planned in mid-2024 and that there is no need to extend it.

Previously, the Central Bank proposed to the government raise minimum down payment under the preferential mortgage program in order to cool the housing loan market. The head of the regulator, Elvira Nabiullina, expressed concern that citizens are making money on preferential mortgages. Even before the latest rate increase, interest rates on non-concessional loans were close to 20% per annum. On Friday, October 27, the key rate of the Central Bank was raised from 13% to 15%.

More details in the material “Banks are rounding up mortgages”.

Alexandra Goroshilova