VTB Bank is preparing to raise the minimum rate on its market mortgage products to 18 percent, with the change set to take effect on June 17. This development was reported by TASS, citing the bank’s press service. The bank noted that ongoing increases in the cost of Federal Loan Bonds (OFZ) are influencing its lending conditions, prompting a base rate adjustment of 0.5 percentage points starting mid-June. This shift follows recent discussions in the Russian financial community about how higher bond costs impact domestic mortgage pricing and bank profitability.
Earlier, the Ministry of Finance of the Russian Federation signaled an increase in the additional fee used to calculate compensation to banks for issuing concessional mortgages after July 1. Analysts have highlighted how such policy steps can affect the overall affordability of subsidized housing programs and the banking sector’s risk management framework.
There are reports indicating significant activity within preferential mortgage programs, with a substantial pool of funds—reported to be around 11.6 trillion rubles—still allocated to subsidized loans. This level of participation underscores the ongoing government and financial sector emphasis on supporting homeownership, even as rates edge higher.
In related parliamentary commentary, Deputy Chairman of the State Duma Committee on Industry and Trade Alexander Spiridonov suggested expanding eligibility for the Far Eastern and Arctic Mortgage program to include young kindergarten teachers. The idea reflects broader efforts to broaden access to government-backed home loans for specific workforce groups, balancing regional development goals with fiscal sustainability.
Meanwhile, Prime Minister Mikhail Mishustin has indicated that families in smaller towns may gain access to mortgages at a rate as low as 6 percent under targeted programs. This initiative aims to relieve regional housing shortages and stimulate local economies by making homeownership more attainable for residents outside major metropolitan areas.