The Government of the Russian Federation has earmarked an additional 95 billion rubles to support preferential mortgage programs, a move disclosed on the Council of Ministers website. This fresh funding is part of broader efforts to sustain subsidized lending amid shifts in monetary policy and to ensure that favorable loan terms remain available to Russian homebuyers. [Source: Government of the Russian Federation]
The announcement links the new financing to the recent tightening of monetary policy by the Bank of Russia, noting that the key rate increase plays a central role in shaping the cost of credit. In late October, officials reported that the key rate had been raised to 15 percent per year, a move designed to influence inflation expectations and credit conditions across the economy. The implication for borrowers is that subsidies and interest support are crucial to preserving affordable access to mortgages under the evolving financial landscape. [Source: Government of the Russian Federation]
Among the provisions, an order issued on November 9 authorizes the distribution of the additional funds for preferential mortgages. The document, signed by Prime Minister Mikhail Mishustin, outlines how the 95 billion rubles will be allocated to specific programs, ensuring continued support for homebuyers who benefit from reduced interest rates. [Source: Government of the Russian Federation]
Breaking down the allocations, about 41 billion rubles are designated to subsidize the Preferential Mortgage program, more than 46 billion rubles to subsidize the Family Mortgage, and roughly 8 billion rubles to maintain the favorable rate for participants in the Far Eastern Mortgage program. These figures illustrate a targeted approach to subsidies, aiming to balance regional needs with nationwide housing policy objectives. [Source: Government of the Russian Federation]
In statements from Mishustin, the government highlighted that in 2023 the country is expected to issue around 700 thousand privileged mortgages. Officials reaffirm their commitment to keeping the loan interest subsidy program at a seven percent annual rate, underscoring the desire to maintain predictable and manageable mortgage costs for families and individuals seeking housing. [Source: Government of the Russian Federation]
Additionally, market observers note that new housing prices in 56 Russian regions have reached record levels in recent cycles, underscoring the ongoing affordability challenge despite subsidy efforts. The government’s approach combines price signaling with targeted subsidies, aiming to stabilize the housing market while expanding access to credit. [Source: Government of the Russian Federation]