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Preferential mortgage programme to be extended until July 1, 2024
The preferential mortgage scheme in Russia will be extended until July 1, 2024 with the rate raised to 8% from 7%.
This instruction was given by Russian President Vladimir Putin. “As agreed, we will be winding down the preferential mortgage mechanisms, but we will do this smoothly. What I mean? We will extend preferential mortgages throughout Russia until July 1, 2024. At the same time, the rate will be a little higher, increasing to 8%,” he said at a meeting of the Council for Strategic Development and National Projects.
Among the new instructions is also the extension of the family mortgage coverage to include families with at least two children under 18 years old. “Now I propose to make mortgages at a rate of 6% to be avalable for families with at least two children under the age of 18. This is a new proposal, I ask you to work it out as soon as possible and start implementing it,” Vladimir Putin said.
The government-supported Preferential Mortgage scheme has been in place in Russia since 2020. In April, when the key rate urgently increased by the Central Bank in late February was 20%, the rate applicable under the preferential mortgage scheme was raised to 12%. In April, it was reduced to 9%, when the regulator lowered the key rate to 17%. In late June, Premier Mikhail Mishustin signed a resolution to reduce the mortgage rate to 7%. Besides, the scheme, initially valid till July 1, 2022, has been extended until the end of this year.