The Russian Ministry of Finance has confirmed the continuation of the family mortgage initiative, with a particular focus on benefiting families with children up to six years of age.
Deputy Finance Minister Ivan Chebeskov shared during an interview with RBK-TV that the extension of the mortgage scheme is irrefutably decided, a directive previously mandated by Russian President Vladimir Putin which the government is set to fulfil.
Legislators have already drafted a bill to extend the family mortgage program until the year 2030, offering substantial support to Russian families. Prime Minister Mikhail Mishustin highlighted that in 2023 alone, 190,000 families availed themselves of this support, with a projected budget of 50 billion roubles required for its continuation into 2024.
Currently set to expire on 1st July 2024, the family mortgage’s terms could see a potential rate increase to 12% for mortgages concerning families with children over the age of six, should the scheme continue until 2030. This course of action is among several under consideration to maintain support for large families. However, for families with young children (up to six years of age), Putin has stipulated that the preferential mortgage rate should be maintained at 6%.
Experts have noted that even a rate of 12% could be regarded as favourable, given the current conditions under which Russian banks are issuing mortgages at annual rates ranging from 16.5% to 25%.
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