Family mortgage to be extended in Russia, but preferential mortgage to stay only in regions with low demand

Preferential mortgage is going to be extended in Russia only in those regions with low demand, while family mortgage is — everywhere, Russian Vice Premier Marat Khusnullin claimed, says RIA Novosti.

Head of the Bank of Russia Elvira Nabiullina claimed that despite tightening loan issue terms, preferential mortgage would continue developing:

“The mass preferential mortgage programme, which is not targeted, will expire in July, while targeted mortgage, including family mortgage, will stay. This is a popular mortgage. While family mortgage is now as widespread as mass preferential mortgage.”

The Bank of Russia will tighten mortgage requirements from 1 March 2024 by raising risk ratios for mortgages in banks. This year, the number of Russians who took out family mortgage at VTB alone has surpassed 66.400. The total amount of deals has amounted to nearly 380 billion rubles. This is nearly 80% above last year’s indicator in terms of the number and 86% up in terms of the size.

A preferential mortgage instalment that is paid to buy a home in new builds, build a house or buy a parcel of land to build it at 8% have topped 30% in December.