The Russian Ministry of Finance has proposed extending the concessional mortgage program at 6.5% per annum until the end of 2021.

This is stated in the draft resolution developed by the department.

Also, the Ministry of Finance plans to increase the total volume of loans under the program from 900 billion to 2.8 trillion rubles.

"The extension of the preferential mortgage program under current conditions will increase the effectiveness of support for the construction industry, the availability of mortgages in the context of the spread of coronavirus infection and will entail favorable socio-economic consequences for the country's economy," said Deputy Finance Minister Alexei Moiseev.

Recall that the authorities launched a preferential mortgage program at a rate of 6.5% per annum in April.

Until November 1, 2020, Russians can receive loans with an appropriate rate for the purchase of apartments worth up to 12 million rubles in the Moscow and St. Petersburg agglomerations, as well as up to 6 million rubles in other regions of the country.

As Moiseev emphasized, the provision of soft loans has proven to be an effective measure to support the housing market during a pandemic.

According to the Deputy Minister, during the period of the program, Russian banks have approved about 500 thousand applications and concluded 224 thousand loan agreements at a reduced rate for a total of 630.8 billion rubles.

A possible extension of the terms for issuing preferential loans may lead to an improvement in the living conditions of Russians.

The chief analyst of the TeleTrade Group, Mark Goykhman, told RT about this.

“Due to the lower rate, due to which borrowers often prefer to buy a new building, the debt burden of citizens is also somewhat reduced,” the expert added.

As the head of the DOM.RF analytical center Mikhail Goldberg told RT, in 2020 the preferential mortgage program ensured the construction of more than 11 million square meters.

m of housing.

According to him, the expected extension of the initiative in 2021 could lead to the issuance of more than 877 thousand loans.

“In general, this will help support the demand for housing being built and help developers create a reserve for increasing construction volumes,” Goldberg said.

Since the beginning of 2020, banks have issued more than 1 million mortgage loans to Russians for 2.7 trillion rubles.

This is stated in a joint study of the DOM.RF company and the Frank RG agency.

In September, credit institutions issued a record number of housing loans - more than 180-185 thousand for the amount of 470 billion rubles.

Compared to the same period in 2019, mortgage lending increased by 71% in quantitative terms and almost doubled in monetary terms.

“The increase in demand for mortgages contributes to the growth of employment, incomes, budgetary contributions in related industries: in the production of building materials and equipment, electricity, furniture and household goods.

Thus, preferential mortgages have a synergistic effect, which is extremely important for countering the crisis and recovering the economy, ”said Mark Goikhman.

  • © Pavel Lisitsyn / RIA Novosti

According to experts, the effect of the preferential mortgage program has led to a record decrease in the average rate on housing loans in Russia.

So, following the results of August, the indicator renewed its historical minimum and dropped to 7.16% per annum.

This is evidenced by the data of the Central Bank.

At the same time, against the backdrop of growing demand and lower rates, experts do not expect a significant increase in housing prices in the near future.

According to the vice-president of the International Academy of Mortgage and Real Estate Irina Radchenko, in connection with the threat of the second wave of coronavirus and fluctuations in the foreign exchange market, Russians are more likely to buy real estate as a reliable investment.

The situation has led to a rise in price per square meter in recent months.

However, further price dynamics will be more restrained, the expert is sure.

“On average across the country, real estate prices have grown by 5-7%.

At the same time, in some regions, housing prices went up by 10-15%.

At the same time, after the extension of the preferential mortgage program at 6.5% per annum, the effect of the excitement will disappear.

People will lose their fears about the imminent completion of the preferential program.

People will settle the housing issue in a calm manner.

Demand will decrease slightly, and prices will be adjusted, "Radchenko explained in a conversation with RT.