The Russian Ministry of Finance is preparing to scale back the share of concessional mortgages in the new-housing market, a move reported by News citing officials close to the ministry. The shift signals a broader rethink of how state support is allocated in housing and aims to recalibrate incentives for buyers and lenders as the market evolves.
In the discussions described by News, ministry officials indicate that a set of proposals is being drafted to bring current programs under a single, coherent framework. The objective is to ensure that favorable mortgage terms reach households most in need of government aid and to extend targeted assistance to specific groups facing housing hurdles, including military personnel and technology sector specialists.
Analysts stress the importance of transparent, objective criteria to govern preferential programs. They argue that the total share of these programs should be kept within a defined cap, such as one quarter of all loans in the primary market, to prevent distortions that could squeeze out ordinary buyers. Current talks suggest preferential mortgage activity in the primary market remains well above that threshold, raising concerns about market balance and affordability.
Sources report that Prime Minister Mikhail Mishustin has directed the Ministry of Finance to form a working group that includes representatives from several ministries. The goal is to craft a unified position that reflects different viewpoints and practical considerations, with the aim of addressing imbalances observed in the real estate market. This collaborative approach would align policy design with real-world constraints and regional needs.
Earlier remarks from real estate expert Alexey Krichevsky warned that premiums for subprime mortgages are set to rise on March 1, which could further curb affordability for many borrowers. His assessment underscored the tension between tightening terms to improve risk profiles and preserving access to credit for first-time buyers and households with modest incomes.
In a separate note, Mishustin’s public statements urged caution against drawing premature conclusions. He signaled a preference for measured reforms rather than sweeping optimism, emphasizing stability and prudent budgeting as housing policy evolves.