The Russian government has extended the Family Mortgage program until 2024.

The corresponding decree was signed by the Prime Minister of the country Mikhail Mishustin.

"Loans at a preferential rate of up to 6% per annum for the purchase of housing or the construction of a private house can be obtained until December 31, 2023," the Cabinet of Ministers said in a statement.

As Mishustin noted earlier, the reduced interest will be valid for the entire term of the loan, and the government will reimburse the difference between the market and preferential rates to banks.

Under the program, the down payment is 15% of the cost of housing.

At the same time, the maximum loan amount depends on the region - for Moscow, St. Petersburg, Moscow and Leningrad regions - it is 12 million rubles, and for other subjects of the country - 6 million.

According to the Russian prime minister, the extension of the initiative will help more families to buy their own homes.

The decision of the authorities should also support a number of industries, strengthen the demand for goods and services necessary for people - “from building materials to furniture and various useful little things,” the chairman of the government is sure.

To ensure the adopted changes to the program, the authorities will more than double the limit of funds for issuing loans.

Thus, a total of 1.7 trillion rubles is planned to be allocated for the implementation of the initiative.

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Russian President Vladimir Putin ordered to expand the terms of the preferential family mortgage program during a speech at the St. Petersburg International Economic Forum (SPIEF).

Initially, Russians with two or more children born after January 1, 2018 could apply for a home loan at a reduced rate of 6% per annum.

Since July 1, 2021, such an opportunity has appeared for parents with one child born after January 1, 2018.

In total, since the beginning of 2021, under the Family Mortgage program, Russians have issued almost 33.4 thousand soft loans for a total amount of over 108.4 billion rubles.

The initiative is most popular among residents of Moscow, the Moscow region, St. Petersburg and the Krasnodar Territory.

This is evidenced by the materials of the company "DOM.RF".

According to the organization's specialists, the spread of family mortgages for the birth of first-borns will double the issuance of such loans in 2022.

In addition, the initiative will have a positive effect on the general demographic situation in the country, analysts are sure.

“Cramped living conditions are one of the main barriers when families decide to have a child.

The opportunity to take a preferential mortgage at the birth of their first child will become an incentive for many young families not to postpone the birth of a child until later.

At the same time, the early birth of the first child increases the likelihood of the birth of subsequent children, ”says the DOM.RF review.

Young families who will be able to obtain a loan or refinance an existing loan at a reduced interest rate will primarily benefit from the expansion of the conditions for family mortgages.

Polina Gusyatnikova, Senior Managing Partner of PG Partners Law Firm, spoke about this in a conversation with RT.

“You can refinance a mortgage taken even before the birth of children.

That is, if a family bought an apartment, say, in 2017, and after January 1, 2018, a child was born, parents can go to the bank and refinance the existing loan at a preferential interest rate, ”the specialist noted.

Although the maximum rate for the family mortgage program is 6%, the real percentage is often lower, added Polina Gusyatnikova.

According to her, everything depends on the program in the particular bank where the family applies.

It should be noted that, according to DOM.RF, on average in Russia, credit organizations are now issuing home loans within the framework of family mortgages at 5% per annum.

Complete development

In general, the expansion of the preferential family mortgage program will not only improve the living conditions for parents, but also have a positive effect on the pace of construction.

Yuri Baranchik, Deputy Director of the Institute of International Political and Economic Strategies RUSSTRAT, shared this opinion in an interview with RT.

“The extension of the family mortgage will support the demand in the primary housing market, and not only in relation to the purchase of apartments, but also low-rise construction.

The preferential programs support and stimulate the demand for real estate in the country - the better the conditions for loans, the more housing is sold, the more is being built, ”the specialist explained.

At the same time, the expert does not expect a serious increase in real estate prices in the foreseeable future.

According to him, the currently observed rise in housing prices is largely due to the growth of developers' costs against the background of an increase in the cost of building materials and logistics services.

However, the observed trend may be temporary, and the rise in prices per square meter will soon stop, Baranchik does not exclude.

A similar assessment is shared by Mikhail Kogan, head of the analytical research department at the Higher School of Financial Management. As the analyst noted in a conversation with RT, the peak in real estate prices was passed in the spring, and by the end of the year the cost of housing may drop by 3-5% on average.