Russia’s Concessional Mortgage Moves in 2025: Drafts, Programs, and Borrower Impacts
In mid-2025 Russia is weighing concessional mortgages around 12 percent for teachers, doctors, and other civil servants. Olga Epifanova, a senator and the Arbitration Director of the Ministry of Justice, publicly outlined this possibility. The plan is described as a draft amendment to a government decision. Under the proposal, the gap between the 12 percent rate and the base rate would be covered from the national budget. The plan would run in an experimental mode through 2027, after which the government could decide whether to keep the program in place.
Epifanova also explained that new preferential mortgage programs—tied to lists maintained by the Ministry of Industry and Trade—could become operational before the first half of next year. The senator noted that these programs could affect strategic sectors such as space and defense, which are considered the most priority and critical areas of science and industry in Russia.
There is also talk of revising the Rural Mortgage program. The idea is to narrow eligibility further to exclude housing purchases near large cities. Economists have predicted that given the current high interest rates and rising costs, it would be wiser for the government to service existing mortgage loans than to issue new ones. The aim is to temper speculative demand and better allocate housing resources across the country.
Beyond these changes, the Standard on the Protection of Rights and Legitimate Interests of Mortgage Borrowers is slated to take effect in January 2025. The standard envisions more frequent use of escrow accounts and a shift away from rewards to developers for lowering loan rates. This approach would address concerns about artificial growth in housing costs and reinforce borrower protections. In addition, the regulatory body will gain tools to impose macroprudential constraints on mortgage lending early in the year to shield banks from dishonest borrowers and to curb the rise in household debt.
As of July 1, 2024 the 8 percent concessional mortgage program was discontinued. Russia now features several alternative schemes with varying rates and terms, including the Family Mortgage at 6 percent, IT Mortgages up to 6 percent, the Far East and Arctic Mortgage at 2 percent, Rural Mortgage at 3 percent, and a Military Mortgage. These programs’ conditions depend on the issuing bank and regional policies, creating a mosaic of options for borrowers.
Data have previously indicated the extent of overpayments on mortgages among Russians, highlighting the pressure on household budgets in a high-rate environment. The evolving policy landscape shows a clear intent to reduce excessive costs for borrowers while directing capital to priority sectors and strategic regions. For observers outside Russia, these moves illustrate how government policy can intertwine subsidies, borrower protections, and macroprudential rules to influence housing affordability and market stability. The approach also mirrors broader discussions in other large economies about balancing credit access with financial risk and ensuring borrowers do not bear undue expense as rates shift.