The preferential mortgage program will be extended until July 1, 2024

Russian President Vladimir Putin declaredthat the preferential mortgage program will be extended until July 1, 2024.

“After jumps in the mortgage rate in March-April to 12% … the preferential mortgage rate was reduced to 7%. On December 31, the preferential mortgage expires. In this regard, I consider it necessary to make the following decision… we will wind down the preferential mortgage mechanism… but we will do it smoothly. We will extend preferential mortgages throughout Russia until July 1, 2024,” he said at a meeting of the Council for Strategic Development and National Projects.

In this case, the rate will be increased from 7 to 8%, the president added.

In addition, Putin proposed expanding access to family mortgages. Now such a loan can be obtained by families with children born after January 1, 2018, while the president proposed extending it to families with at least two children under 18 years of age.

At the end of April 2020 the government approved preferential mortgage program for new buildings with a rate of 6.5% per annum. Since then, this measure has been extended several times, and the rate has changed. Currently, it is calculated until December 31, 2022, the rate is 7% per annum. Loan limit – 12 million rubles. for Moscow, St. Petersburg, the Moscow region and the Leningrad region and 6 million rubles. for other regions. The maximum loan term is 30 years.

There are also several other mortgage programs in Russia, under which the state subsidizes the rate from the federal budget: family (6% per annum), for IT specialists (5%), rural (3%) and Far Eastern (2%). The latter was previously extended until the end of 2030

Formerly Deputy Director of the Banking Regulation and Analytics Department of the Bank of Russia Ruslan Bulatov declaredthat the construction industry has become dependent on preferential lending, in this regard, the regulator advocates the gradual abandonment of the preferential mortgage program.