Deputy Prime Minister Khusnullin has floated a policy shift in Russia’s housing finance system, proposing an increase in the preferred mortgage rate to 12 percent. This move signals a potential recalibration of how affordability, demand, and government support intersect in the country’s real estate market.
Since April 1, discussions have centered on raising the rate for the preferential mortgage program from 7 percent to 12 percent, while also adjusting the maximum loan amounts available under this scheme. The proposal comes from Deputy Prime Minister Marat Khusnullin, with official confirmation provided to major outlets in the Russian press cycle.
Khusnullin emphasized that the current preferential program offers loans up to 3 million rubles at 7 percent until July 1. He noted that given evolving economic conditions, it may be appropriate to revert to the previous framework. In practical terms, the proposal suggests lifting the rate to 12 percent, a figure the official framed as favorable under present circumstances and capable of supporting housing finance without destabilizing demand.
Beyond the rate adjustment, the plan would raise the loan ceilings in several key metropolitan and regional markets. In Moscow, the Moscow region, St. Petersburg, and the Leningrad region, the cap could rise to 12 million rubles. In other regions where housing remains more affordable, the ceiling would be set at 6 million rubles. These changes are intended to align loan sizes with local price realities and to sustain access to credit for a broader segment of homebuyers.
Officials argue that such a policy shift would help preserve mortgage lending momentum through the end of the year, ensuring that housing demand does not stall as market conditions fluctuate. The deputy prime minister underscored that the proposal has already been reviewed with the Bank of Russia alongside the Ministry of Finance, and that presidential backing would be the final step for implementation in early spring should it be approved.
Importantly, Khusnullin also affirmed that existing rates under rural, Far East, and family mortgage programs should remain unchanged—specifically at 3 percent, 2 percent, and 6 percent respectively. This retention is aimed at maintaining a safety net for those special programs while still encouraging overall mortgage activity and consumer confidence in home purchases.
The broader objective behind these proposals is to strike a balance between keeping mortgage lending accessible and reinforcing the stability of the housing market, especially as dynamic regional conditions and inflationary pressures influence lending costs. By adjusting both the rate and caps in a targeted manner, the government appears intent on preserving a vital channel for homeownership while navigating fiscal and monetary constraints. market observers will be watching closely to see how banks respond and whether the new parameters translate into sustained demand across diverse regions and household profiles.