The Russian government will improve the conditions for preferential mortgages at a rate of 6.5% per annum. This was announced on Monday, August 3, by Prime Minister Mikhail Mishustin. According to him, within the framework of the program, the size of the initial payment will be reduced from 20 to 15%.
“The corresponding decree has been signed. We will be able to involve in the program those borrowers who did not have time to accumulate the required amount before November 1, 2020. Participants in two more programs will have the same opportunity: preferential mortgages for families with children and Far Eastern mortgages, ”the head of the Cabinet of Ministers said at a meeting with his deputies.
Recall that the authorities launched a preferential mortgage program at a rate of 6.5% per annum in April. Initially, the Russians were provided with mortgage loans with an appropriate rate of up to 3 million rubles, and in Moscow, the Moscow region, St. Petersburg and the Leningrad region - up to 8 million rubles. Meanwhile, in June, the authorities announced the expansion of the program.
“The maximum loan level was increased from 3 million to 6 million rubles, and for residents of Moscow, the Moscow region, St. Petersburg and the Leningrad region - up to 12 million. This made it possible to issue loans for the purchase of apartments with a larger area,” Mishustin emphasized.
You can apply for a mortgage at a preferential interest until November 1, 2020. At the same time, the state subsidized rate of 6.5% is valid for the entire term of the loan. As the Prime Minister noted, since its launch, "the program has become one of the most successful tools to support both real estate buyers and the construction industry during the fight against coronavirus."
In total, Russian banks have already issued more than 90 thousand loans at a reduced rate for the amount of almost 240 billion rubles. This was announced on July 30 by the general director of DOM.RF, Vitaly Mutko. According to him, about 70% of all mortgage loans in Russia are issued under the preferential program. At the same time, experts believe that the corresponding figure may additionally grow in the near future.
“Reducing the down payment on mortgages to 15% will increase the demand for real estate by 2-3% in the coming months. The Russians who saved up for the first installment, but have not yet postponed the required amount, will now have the opportunity to quickly become the happy owners of square meters. Thus, mortgages have become even more affordable, which will help Russians to solve the housing issue more quickly, "said Irina Radchenko, vice president of the International Academy of Mortgage and Real Estate, in an interview with RT.
According to her, the initiative of the authorities will also support the country's banking system. According to the expert, a decrease in the initial payment to 15% does not create serious risks, but at the same time it gives credit institutions an opportunity to significantly increase their client base.
Moreover, the government's decision will accelerate the recovery of the construction industry from the consequences of the coronavirus pandemic. This point of view in an interview with RT was expressed by the vice-president of the Russian Guild of Realtors Konstantin Aprelev.
“During the pandemic, the industry suffered serious losses, since most of the transactions were postponed and the construction of facilities was frozen. At the same time, developers had to pay salaries to employees and keep their businesses in working order. Now, the reduction in the initial payment will help developers to quickly realize their facilities and build new ones, ”Aprelev explained.
Grace renewal
During a meeting on Monday, Mikhail Mishustin also announced an increase in the total amount of loans for which banks can issue soft loans, from 740 billion to 900 billion rubles. According to him, at least 310 thousand families will be able to improve their living conditions as a result.
Moreover, as the Prime Minister said earlier, the authorities may extend the program in autumn. This decision will further expand the number of recipients of preferential mortgages, believes the head of the analytical department of AMarkets Artyom Deev.
“Representatives of the financial sector have repeatedly proposed to the government to envisage the possibility of extending the preferential mortgage program until the end of this year and for 2021. Together with the reduction of the initial payment, this will support not only the mortgage lending market and the construction sector, but also related areas, such as the production of building and finishing materials, sanitary ware and furniture, ”the expert added.
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According to Deev, the extension of the program until the end of 2020 will increase the volume of mortgage loans issued in the country to last year's level - 3 trillion rubles. At the same time, analysts interviewed by RT do not expect an increase in real estate prices in Russia in the near future.
“After the abolition of quarantine, developers have raised prices for finished housing by about 5-8%, depending on the object. They did this in an attempt to capitalize on the growing demand against the backdrop of the launch of mortgages at 6.5%. But by the end of the year, the excitement will decrease somewhat and prices per square meter will decrease by the same 5-8%, ”says Irina Radchenko.
At the same time, according to the forecast of Konstantin Aprelev, the expected growth in supply in the real estate market and a slight decrease in household income as a result of the consequences of the coronavirus will lead to a decrease in the cost per square meter in Russia by 15-20% over the next one and a half years.