In 2024, the Russian budget is projected to incur roughly 260 billion rubles in additional costs to extend the family mortgage program. This figure comes from the Ministry of Finance and reflects the government’s continuing approach to support Russian families with housing needs amid shifting market conditions.
The ministry noted that the family mortgage will remain in effect through 2030, a policy that President Vladimir Putin announced during a speech to the Federal Assembly. For households with children under six, the existing terms and a 6% interest rate will continue to apply, and the core components of the program will stay intact. The extension is designed to ensure predictable support for families while allowing for adjustments as economic circumstances evolve.
When the extension is taken into account, the overall outlay tied to the program is estimated at about 1.5 trillion rubles. The Ministry of Finance emphasized that the actual spend will be influenced by fluctuations in the interest rate environment, underscoring how monetary policy and fiscal planning intersect in housing finance.
On March 4, Finance Minister Anton Siluanov indicated that the share of concessional mortgages in Russia’s primary housing market should be reduced, moving from around 90% at the end of 2023 toward a target of 20–25%. This shift signals a broader recalibration of mortgage incentives aimed at broadening market participation and gradually diversifying financing options for homebuyers, according to RIA News.
Previously, the Central Bank reported that new housing purchase plans were being developed for homes under construction in Russia. These developments carry potential risks for buyers, particularly in relation to funding arrangements and contract structure, as the market adapts to evolving regulatory and financial conditions. Stakeholders are watching closely how these plans will influence demand, pricing, and the timing of purchases.
At the same time, some banks, in collaboration with developers, began offering Russians the option to apply for mortgages tied to participation in joint construction projects (DDU). In this setup, a portion of the funds allocated to the apartment is placed in a letter of credit instead of an escrow account, a detail that has drawn attention from buyers and industry observers as it affects security and risk exposure during construction and delivery. Such arrangements illustrate the ongoing experimentation within Russia’s housing finance landscape as policymakers seek to balance accessibility with prudent risk management.
Historically, there has been discussion within the State Duma about rising mortgage rejections among Russians. This topic reflects broader concerns about affordability, creditworthiness criteria, and the capacity of households to meet debt obligations under shifting macroeconomic conditions. As policy discussions continue, the government and financial institutions are likely to adjust measures to maintain lending stability while supporting buyers across different segments of the market.