The government will allocate 157 billion rubles for preferential mortgage programs

The government will additionally allocate 157 billion rubles for the implementation of mortgage programs with state support, of which almost 66 billion rubles for family mortgages. This was announced on September 17 by Russian Prime Minister Mikhail Mishustin.

"The government will allocate an additional 157 billion rubles for their implementation, of which almost 66 billion will be spent on family expenses for the purchase of an apartment or house, which can be taken by parents raising children. She is on behalf of the President (of the Russian Federation Vladimir Putin. — Ed.) extended until 2030," he said at a government meeting.

Another 6 billion rubles will be allocated for preferential mortgages for residents of the Far East and the Arctic zone. About 85 billion rubles are provided for subsidizing interest rates on loans previously issued under the completed preferential program.

According to Mishustin, federal funding will allow the government to fully fulfill its obligations to banks. At the same time, existing mortgage programs will retain the possibility of use for citizens who plan to improve their living conditions.

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Why is housing affordability falling in large regions?

On September 5, Putin supported the idea of children's Ombudsman Maria Lvova-Belova to reduce the interest rate on preferential mortgages for large families when buying a house. The Ombudsman added that such a measure would provide targeted government support to large families and further stimulate the individual housing construction sector in the country's regions.

On August 31, the press service of the Ministry of Finance of the Russian Federation reported that more than 1 million large families since 2019 have received payments of up to 450 thousand rubles to repay mortgage debt. At the same time, in some regions, the amount of support is higher than the federal limit. Starting in 2023, 17 regions will add a regional subsidy of up to 550 thousand rubles to the payment of up to 450 thousand rubles, so the total amount of assistance can reach 1 million rubles.