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Arctic Mortgage preferential lending program kicks off in Russia

Applicants should be spouses or unmarried borrowers under the age of 36 who have at least one child under the age of 19

MOSCOW, November 1. /TASS/. The Arctic Mortgage preferential lending program kicked off in Russia on November 1. Residents of the Murmansk Region, Nenets, Yamalo-Nenets and Chukotka Autonomous Regions, as well as northern municipalities in the Arkhangelsk, Krasnoyarsk, Yakutia, Karelia and Komi Regions may apply for a 2% mortgage loan.

Applicants should be spouses or unmarried borrowers under the age of 36 who have at least one child under the age of 19. Additionally, applicants may be participants in programs The Arctic Hectare, or The Labor Mobility, doctors and teachers aged between 21 and 70 years.

The loan may be used to buy a newly built apartment, ready-made housing in villages and towns, as well as to build a family house. The 2% rate is applicable to loans with the minimal amount of 6 million rubles ($64,000) for a term of up to 20 years. The minimum down payment is 20%. Two Russian banks - VTB and DOM.RF have announced their participation in the program, and from October, 24 they have been processing applications for preferential mortgage loans.

Russian President Vladimir Putin's order was to launch a preferential Arctic mortgage at 2% rate for young families by November 1, 2023. This is an extension to the Russian Arctic Zone of the Far Eastern Mortgage program, under which more than 90,000 families have improved their housing conditions in the Far Eastern Federal District. According Minister for Development of the Far East and Arctic Alexey Chekunkov, this extension would require about 11.6 billion rubles until 2035 ($124 million).