The Ministry of Finance of Russia has signaled changes to the concessional mortgage program, with a plan to raise the required down payment from 20% to 30% for both standard concessional mortgages and privileged loans. This move would mark a notable tightening of initial equity requirements for borrowers. In parallel, the ministry has proposed cutting the maximum loan size available in St. Petersburg and surrounding regions from 12 million rubles to 6 million rubles, effectively narrowing the ceiling on the amount eligible for the program in major urban areas. These proposals were reported by Interfax, citing official sources familiar with the discussions.
Beyond the down payment and loan size adjustments, the ministry’s draft measures include reducing the subsidies paid to banks by 0.5 percentage points. This is paired with a tightening of eligibility rules intended to prevent multiple concessional loans from being issued to a single borrower and to curb the accumulation of favorable financing across households. The net effect would be a shift toward more selective distribution of concessional financing and a lower drag on state support for the mortgage market.
Another focal point is debt load management. The draft envisions capping a borrower’s total debt burden at no more than 50% of income when the soft loan is counted, along with new income requirements. In practice, this signals a more conservative lending environment, where borrowers would need stronger income profiles to qualify and where the program would prioritize borrowers with healthier debt-to-income characteristics. The impact on the pool of eligible Russians could be meaningful, prioritizing long-term affordability and reducing the risk of overextension within the program.
According to Ivan Chebeskov, Deputy Minister of Finance, cited by Izvestia, the ministry has presented its draft decision to the government for consideration. The overarching concern driving these changes rests on concerns about rapid growth in the mortgage portfolio and a perceived decline in loan quality. To address these worries, the regulator is weighing several measures, including raising the minimum down payment on concessional loans, tightening limits on loan size, and reinforcing income-based qualification criteria. The aim is to preserve the sustainability of the program while ensuring it continues to target households with genuine affordability needs rather than expanding eligibility indiscriminately.
Previously, the Central Bank of the Russian Federation increased its key rate to 15%, a move that has implications for borrowing costs across the housing market. The combination of higher policy rates and the proposed adjustments to the concessional mortgage program emphasizes the central role that macroprudential oversight and targeted policy design play in shaping access to affordable housing. The ongoing dialogue between the finance ministry, the central bank, and other regulators reflects a broader strategy to balance affordable housing access with prudent risk management for lenders and the state budget. Observers note that these proposed changes, if enacted, would shift the landscape for homebuyers who rely on subsidized financing and could influence demand patterns in major urban centers as well as regional markets. [citation]
Additional context suggests the government continues to assess the effectiveness of subsidies, the structure of soft loans, and the overall credit environment. Stakeholders—from potential borrowers to banks and real estate professionals—will be watching closely as the proposal moves through formal approval processes. The evolution of the concessional mortgage program remains a key component of Russia’s broader housing policy, aimed at expanding access to affordable housing while maintaining financial stability and credit quality across the system. [citation]
Meanwhile, analysts remind readers that policy changes often unfold in stages, with transitional rules and phased implementations designed to minimize market disruption. Borrowers currently engaged in the process should stay informed about any official updates, since real-world outcomes depend on the exact specifications adopted by authorities and the pace at which changes are rolled out. The conversation around concessional lending continues to reflect a tension between widening access to affordable housing and preserving the health of the mortgage loan portfolio, a balance that decision-makers say is essential for long-term housing stability in Russia. [citation]