The Ministry of Finance reacted with caution to the expansion of preferential mortgages in the Arctic zone

The Ministry of Finance is cautious about extending preferential mortgages to the Arctic zone, Deputy Finance Minister Alexei Moiseev said at the St. Petersburg International Legal Forum.

“If the government makes a decision, we will implement it. But we, of course, believe that preferential mortgages in general are an anti-crisis story, and therefore it should be considered as such … oh, we are, as it were, carefully [относимся к этому предложению]”, – leads his words TASS.

Moiseev noted that the Ministry of Finance is generally careful about any expansion of preferential mortgage programs, because they can lead to higher prices and lower housing affordability, which has already happened in a number of cities, including in the Far East.

May 10 newspaper “Izvestia” reportedthat Deputy Prime Minister Yuri Trutnev instructed to launch a preferential mortgage program in the regions of the Arctic zone. It is proposed to extend the effect of the Far Eastern mortgage at 2% to these regions. On May 11, the Ministry for the Development of the Far East confirmed that the government is considering the possibility of extending the preferential mortgage program to the Arctic zone, transmitted “RIA News”. They also clarified that the Far Eastern mortgage is already operating in Yakutia and Chukotka – regions whose territories are part of the Arctic zone and the Far Eastern Federal District.

The Far Eastern Mortgage program was launched in Russia in 2019. The main goal is to improve housing conditions in the Far Eastern Federal District and develop the local construction market. In December 2022, the program with a preferential rate of 2% was extended until the end of 2030.

There are several more targeted state mortgage programs in Russia: preferential for new buildings (8% per annum, extended until July 1, 2024), family (6%), for IT specialists (5%) and rural (3%).