Russia extends preferential mortgage program into mid-2024 and expands eligibility
A government-backed extension keeps the preferential mortgage program in effect through July 1, 2024. The decision has been publicly announced by the cabinet, signaling continuity for home buyers seeking favorable loan terms within Russia’s housing market.
The decree implementing the extension was signed by Prime Minister Mikhail Mishustin, underscoring the administration’s commitment to supporting residential construction and buyer access to affordable financing. The core policy offers an eight percent per annum direct mortgage loan for purchasing housing in new buildings, constructing a detached house, or advancing the development of a private dwelling on land that the borrower owns or plans to acquire.
Geographic rules for the discounted lending come with clearly defined caps. In Moscow, St. Petersburg, and the broader Moscow and Leningrad regions, the maximum loan amount available at the preferential rate reaches 12 million rubles. In all other regions of Russia, the cap stands at 6 million rubles. Prospective borrowers must provide an initial payment of no less than 15 percent of the property value to qualify for the program.
Alongside these changes, the government broadened the terms of the Family Mortgage program. Previously, eligibility was limited to Russian families with at least one child born after January 1, 2018. The updated rules remove a timing constraint, allowing families with two underage children to participate regardless of when the children were born. This adjustment is designed to support larger households and encourage family-driven homeownership across the country.
Industry observers note that the reform aims to concentrate the program’s reach on households that stand to benefit most, while also focusing on the stability of the housing market and the broader financial system. In discussing the policy’s direction, Elizaveta Danilova, who formerly led the Financial Stability Department at the Central Bank of Russia, remarked that the intention is to direct preferential mortgage resources toward targeted segments and to curb indiscriminate access to these subsidies. The nuanced approach is intended to balance consumer support with prudent oversight to prevent excessive risk taking in the mortgage market. Source: Cabinet communications and central bank commentary.
[Source: Cabinet of Ministers; Central Bank of the Russian Federation commentary]