Changes in the family mortgage program in Russia from October 1: the rate depends on the number of children
Quick Look
- From October 1, the terms of family mortgages will change in Russia: the rate will depend on the number of children in the family.
- For families with one child under seven years old, the rate will be 10%, the maximum loan amount is 6 million rubles.
- For families with two children - 8% and up to 8 million rubles, with three children - 6% and up to 10 million rubles.
AI-generated summary
Why It Matters
The family mortgage program in Russia has been in effect since 2018 and provides preferential conditions for housing loans to families with children. Previously, the rate was fixed at 6% for all program participants, regardless of the number of children.
From October 1, the rules of the family mortgage program in Russia will change - now the rate will depend on the number of children in the family. The innovations were reported on the Ministry of Finance website.
After reviewing the conditions for housing loans issued in all regions of the Russian Federation, with the exception of Moscow, the Moscow region, St. Petersburg and the Leningrad region, the rate for families with a single child who is under seven years old at the time of conclusion of the contract will be 10 percent. Moreover, the maximum loan amount for them is six million rubles.
For families with two children, the department informs, similar figures will be eight percent and eight million rubles, and for families with three children - six percent and 10 million rubles. Families with four and five children will be given a family mortgage at four and two percent per annum, respectively, and the maximum amount will be the same 10 million. It is clarified that in order to receive benefits in all these cases, at the time of concluding the contract, at least one child must not have reached the age of seven.
As for the capital region, as well as St. Petersburg and the Leningrad region, families with one child under seven years old will be able to get a loan of no more than 12 million rubles at a rate of 12 percent, and with two children - no more than 15 million at 10 percent. For large families, the maximum amount will be 18 million rubles, and the rate will be eight, six and four percent for families with three, four and five children, respectively. To receive the benefit, it is also necessary that at least one child be under seven years of age at the time of concluding the contract.
In the case of the construction of a private house or its completion, as well as the acquisition of a land plot with further construction of housing, a mortgage will be issued at six percent, regardless of the number of children and the region of residence of the family, the Ministry of Finance clarified.
What to Watch
AI outlook — possibilities, not facts
The volume of family mortgages issued in Russia will increase in the fourth quarter of 2024 compared to the third quarter
Likely · Within months
Open Questions
- How will funds be distributed to finance preferential mortgages in the context of lower rates for certain categories of families?
- Are there plans to further change the terms of the program after October 1?
- How much growth is expected in the volume of family mortgages issued as a result of the new conditions?
