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Preferential mortgage extended for six months in Russia

Russian President Vladimir Putin said that they decided to extend the preferential mortgage program until July 2024, but the interest rate on loans will increase. About it informs RIA News.

Initially, the preferential mortgage program in Russia was planned to be terminated on December 31 of this year. However, it was extended for another six months until July 1, 2024. In this case, the rate will be increased to 8% per annum. Prior to that, it was at the level of 7%.

At the same time, at a meeting of the Council for Strategic Development and National Projects, Putin stressed that the country would start curtailing the program, but they would do it smoothly.

Earlier, the Central Bank announced that the state program of preferential mortgages should be gradually collapse. Ruslana Bulatova, Deputy Director of the Department of Banking Regulation and Analytics of the Bank of Russia, noted that any subsidy program leads to price distortions.

State mortgage support for new buildings has been working since 2020. Rates on it until the end of February this year were kept at the level of 6% per annum. Then, against the backdrop of a sharp jump in the key rate to 20% due to a special operation, the federal government raised the rate on preferential mortgages from 7% to 12%. By the summer, rates were reduced to 9%.

On June 17, President Vladimir Putin, during his speech at the 25th St. Petersburg International Economic Forum, proposed lowering the mortgage rate from 9% to 7%. On June 17, the Ministry of Finance submitted a relevant document to the government, and it was approved.

For the Sverdlovsk Region and other regions, the maximum amount of a preferential housing loan is 6 million rubles, and for Moscow and St. Petersburg – 12 million rubles. The maximum term is 30 years. The minimum down payment is 15%.

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