Volodin proposed tying the mortgage rate to the average salary in the region

State Duma Chairman Vyacheslav Volodin proposed that the Central Bank (CB) tie the mortgage rate to the average salary in the region. The head of the Central Bank, Elvira Nabiullina, announced her readiness to discuss this issue with the government.

“In the regions, the percentage should certainly be different. It should be higher in those regions where average wages are higher. And where the average salary is lower, it should accordingly be lower,” said Mr. Volodin after the speech of the head of the Central Bank at the plenary meeting State Duma.

Vyacheslav Volodin suggested that differentiation of mortgage rates will allow citizens to “more actively participate in housing construction through mortgage programs,” and will also ensure equal access to funds under mortgage programs. From the lower house of parliament, according to him, a specialized committee headed by Deputy Chairman of the State Duma Alexei Gordeev will join the work.

Elvira Nabiullina supported the targeted nature of the mortgage. Another differentiation criterion, she said, could be the gap in prices on the primary and secondary housing markets, which “in the country as a whole is 42%.”

At a plenary meeting in the State Duma, the head of the Central Bank reportedthat prices for new buildings have increased by 90% in three years. The growth of the mortgage portfolio of Russian banks amounted to 32% over the year.

Read more in the publication “Kommersant” “New buildings are moving away from the hype”.

Petr Buzlaev