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Russian Ministers Cabinet approves decree on preferential mortgages for 1 year

For citizens with children, an even more profitable "Family Mortgage" program has been operating since 2018
House of the Russian Government Mikhail Tereshchenko/TASS
House of the Russian Government
© Mikhail Tereshchenko/TASS

MOSCOW, July 1. / TASS /. The Russian government has approved a resolution to expand the Family Mortgage program and extend the Preferential Mortgage program for one more year, the Cabinet press service said in a statement on Thursday.

"On behalf of the President, the preferential mortgage program, which was launched in 2020 as one of the measures to support citizens and the construction industry, is being extended until July 1, 2022," the statement said. In addition, the terms of the "Family Mortgage" program will be expanded, and families with one child will also be able to take part in it. It will be possible to buy housing in a new building as part of the "Preferential Mortgage" program starting on July 2 at a rate of up to 7% per annum. The maximum loan amount for all regions is 3 mln rubles. The down payment, as before, must be at least 15% of the housing cost. The difference between the preferential rate and the market rate is reimbursed by the state.

For citizens with children, an even more profitable "Family Mortgage" program has been operating since 2018. Loans at a preferential rate of up to 6% per annum can be obtained for the purchase of housing or the construction of a private house. Previously, this program was available only to those families in which a second or subsequent child was born after January 1, 2018, and now families with one child born after January 1, 2018 will also be able to take out this kind of loan. The maximum loan amount depends on the region. For Moscow, St. Petersburg, Moscow and Leningrad regions it is 12 mln rubles, for other territories 6 mln rubles.

Russian President Vladimir Putin proposed extending the preferential mortgage program and expanding lending conditions for families with children, on June 4 at a plenary session of the St. Petersburg International Economic Forum. As a result of the event, he gave a corresponding order to the government.