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Lower inflation to help reduce house mortgage loan rates to 3-4 percent

Lower inflation will help reduce house mortgage loan rates to 3-4 percent a year

KURGAN, February 13 (Itar-Tass) —— Lower inflation will help reduce house mortgage loan rates to 3-4 percent a year, Prime Minister Vladimir Putin said.

“I think we should reduce the mortgage loan rate to 3-4 percent or so, but this can be done as bank rates and inflation go down,” Putin said at a meeting with Council members of Secondary School No. 7 in Kurgan on Monday, February 13.

He believes that the policy of inflation targeting should continue further. According to Putin, inflation in 2011 was the lowest in years.

“But this is not enough yet and we must bring inflation to 4-5 percent and we will be able to ensure acceptable house mortgage loan interest rates with different systems of support,” he said.

These measures will include subsidies for the down payment and loan interest rate payments.

“The system should be worked out to allow a person to get involved in the process and to make the programme acceptable to him,” Putin said.

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