A government-supported family mortgage has emerged as the most popular state program in Russia for 2023, according to Deputy Prime Minister Marat Khusnullin during the Day of the Construction Industry and Housing and Communal Services at the international exhibition and forum Russia. The remarks were reported by TASS.
Khusnullin noted that in 2023 Russians secured seven million mortgage loans, with two point four million of them backed by government programs. This represents a substantial rise from the previous year and underscores the growing role of state support in the housing market. Khusnullin highlighted that the mortgage portfolio expanded by four trillion rubles in 2023, double the level seen in 2022. The family mortgage program, in particular, achieved its largest volume in recent years, marking a notable milestone for the program and for housing finance overall.
During the briefing, Khusnullin revealed that from 2020 to 2024, the overall mortgage debt in Russia rose to eighteen trillion rubles. He urged authorities to continue expanding mortgage options and announced plans to decide on the parameters of long term, preferential socially oriented mortgages by July first. The emphasis was on sustaining momentum in mortgage lending and ensuring access to affordable financing for families and priority groups.
What exactly is a government backed mortgage?
Russia has operated several state backed mortgage programs since 2018. These schemes typically apply to housing under construction or to completed homes purchased from developers. The programs include family mortgages, Far Eastern mortgages, rural mortgages, military mortgages and IT professional mortgages. Some regions also run programs to support public sector workers such as doctors and teachers.
Typical interest rates for family mortgages hover around six percent, while IT mortgages commonly offer around five percent. The market faced a sharp drop in housing demand in 2020 amid the COVID-19 pandemic, which pushed developers toward insolvency. In response, President Vladimir Putin directed authorities to introduce privileged mortgage schemes to stabilize the sector.
At the outset, Russians could obtain a mortgage loan at six and a half percent per year to buy a new apartment. The rules governing aid were adjusted several times, and the rate later rose to eight percent. The initial down payment required under the program increased from fifteen percent to twenty percent in September 2023, and then to thirty percent in December. In December, the maximum concessional loan size for new buildings was standardized across all regions at six million rubles. Previously, the upper limit for major cities like Moscow, St. Petersburg, and the surrounding Leningrad region stood at twelve million rubles.
The government signaled plans to discontinue collective concessional mortgages for new buildings starting July first, 2024, while seeking to extend the family mortgage and to expand the program only in regions with lower demand. At the same time, support for the family mortgage was set to continue as a major pillar of housing policy. Earlier discussions touched on the broader mortgage market and potential adjustments for 2024, as noted by discussions with the Central Bank of Russia and other market observers.
Overall, the trajectory of Russia’s mortgage programs reflects a strategic push to keep housing finance accessible, stabilize construction activity, and support families with favorable lending terms during economic shifts. The continued evolution of these programs signals an ongoing commitment to housing affordability and the broader goals of social policy in Russia, with careful attention to regional demand and macroeconomic conditions.