Since the beginning of 2024, Russians have taken out almost 226 thousand housing loans under the Family Mortgage program for a total amount of 1.2 trillion rubles. Specialists from the DOM.RF company reported a significant increase in loan issuance compared to the same period in 2023, with a monetary value increase of approximately 35%. Over the entire period of the program, which began in 2018, more than 1.1 million families have improved their living conditions thanks to this initiative. Estimates suggest that 403 thousand loans worth 2.1 trillion rubles could be issued this year alone.
The Family Mortgage program allows families to secure loans for home purchases at a reduced interest rate of 6% per annum. This program is particularly beneficial for Russians with one child under seven years old or families with a disabled child. Eligible families can purchase apartments in both completed and under-construction projects, build private homes, or buy land for construction. Preferential loans are also available for families with two or more minor children, albeit with specific regional restrictions.
For real estate purchases, families can take out loans up to 12 million rubles in major cities like Moscow and St. Petersburg, and up to 6 million rubles in other regions. The minimum down payment required is 20% of the property's cost. In light of a cooling housing market, demand for family mortgages remains robust, contrasting with a general decrease in all real estate loans, which fell by 13% in the first seven months of 2024. Analysts attribute this trend to the recent tightening of monetary conditions, with the Central Bank raising the key interest rate to 18% per annum, causing market mortgage rates to soar.
The government previously ended a preferential mortgage program in July 2024, which had allowed citizens to take out loans at an 8% annual rate, significantly boosting demand. However, President Vladimir Putin's recent decision to extend the Family Mortgage program until 2030 aims to further improve living conditions for about 400 thousand families annually. This extension is expected to stimulate demand and support the construction industry, while high market rates may lead developers to offer discounts to attract buyers.
