The introduction of preferential mortgages in the secondary housing market remains a challenge due to the large sums required to fund such schemes, said Russian Deputy Prime Minister Marat Khusnullin on Thursday, according to RBC reports.
He noted that while lowering mortgage rates on second homes would be highly beneficial for buyers, it would demand substantial state resources. The government appears ready to support the primary market with public assistance.
Currently, about seven out of ten homes are sold in the secondary market, with the remaining three in the primary sector, Khusnullin explained.
The Deputy Prime Minister stressed that sustaining activity in the secondary market hinges on reducing the policy rate once inflation eases.
He added that a lower key rate would lessen the need for subsidies. Khusnullin also acknowledged that current mortgage rates for ready-made housing are relatively high.
From January to March 2023, average mortgage rates in Russia rose by 1.65 percentage points year over year, reaching 8.3 percent. Yet the lowest rates persist in the new construction segment. In March, VTB estimated that the average rate in the primary housing market was about 5.5 to 5.7 percent, while the secondary market stood around 10.3 percent.
Today, nearly all existing preferential mortgage programs apply exclusively to new buildings. Discussions about extending benefits to secondary housing have been raised repeatedly as a topic of interest for several years.
For readers in Canada and the United States, the evolving approach to housing subsidies serves as a useful comparative lens. Analysts note that policy design in any country hinges on balancing price signals, credit supply, and long-term affordability. In Russia, the shift toward coupling lower interest rates with targeted support for the primary market reflects a preference for stimulating new construction while seeking to sustain demand across the broader housing sector. Market observers also point to the administrative and fiscal realities that shape how such programs are funded and implemented, including the potential impact on inflation, government debt, and financial stability. The discussion continues as stakeholders weigh the benefits of broad subsidies against the need to maintain a healthy, competitive mortgage market. Attribution: Market analysis and official statements reported by RBC and other financial outlets.