In Russia, they proposed to launch a mortgage at 5%


The State Duma Committee on Construction and Housing and Public Utilities took the initiative to launch mortgages in Russia for all citizens at a rate of 5% and without the use of budget funds. A letter with such a proposal was sent to the Ministry of Construction, the Central Bank and the government, so that the authorities would make these decisions in the format of a government decree or amendments to the legislation. Izvestia got acquainted with the document.

The current program of preferential mortgages for new buildings at 8% has been extended only until mid-2024, recalled Alexander Aksenenko, Deputy Chairman of the State Duma Committee for Construction and Housing and Communal Services. One can only hope for its further continuation, which is why in parallel it is necessary to look for and offer alternative solutions to support demand in the real estate market, he stressed.

It is assumed that the Central Bank will provide loans to banks secured by previously issued highly reliable mortgage portfolios at 2% per annum. At the same time, the margin of financial organizations will be 2-3%, and, thus, the final rate on such a loan for a citizen will not exceed 5%, follows from the letter of the parliamentarians.

The press service of the Cabinet of Ministers reported that the document was received by the apparatus of the government of the Russian Federation. The Bank of Russia noted that mortgage support programs, as well as preferential lending programs in general, should be targeted, not universal.

The time-limited nature of mortgage programs leads to rush demand, which stimulates rising housing prices, said Vladimir Koshelev, First Deputy Chairman of the State Duma Committee on Construction and Housing and Public Utilities from the LDPR faction. And developers, realizing that the support measures are temporary, are in no hurry to invest in new projects, he said.

“Budget funds are spent on preferential mortgages. In such a situation, it is obvious that we need not a temporary, but a permanent affordable people’s mortgage, at 5% per annum, which can be launched without spending from the budget, ”the deputy emphasized.

The mortgage portfolio showed high reliability even against the backdrop of turbulence in the stock market caused by the pandemic, sanctions and other problems, Vladimir Koshelev added. The delinquency on such loans, as it was, remained at the level of error.

This is a good, reliable and liquid pledge, he stressed. The money that the state allocates today to subsidize preferential mortgages can be redirected to the construction of social facilities, the parliamentarian believes.

Read more in the exclusive Izvestia article:

Contributory conditions: in the Russian Federation it was proposed to launch a universal mortgage at 5%


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