Financial assistance to families with multiple children for mortgage repayment could potentially be doubled.
In a recent conversation with RIA Novosti, Anatoly Aksakov, the chairman of the State Duma's Financial Markets Committee, discussed the potential increase in housing compensation for families with three or more children in Russia. The increase, currently planned to reach 900,000 rubles, is designed to support families under the existing housing compensation program.
However, Aksakov made it clear that he does not support expanding preferential mortgage programs, stating that such measures could lead to increased interest rates for the mass consumer of mortgages. This stance contrasts with suggestions in the Duma to zero the interest rate on family mortgages for large families, a proposal that has not been officially endorsed.
The Russian government's housing compensation program, which currently provides 450,000 rubles to families with three or more children, is aimed at supporting families and encouraging population growth. The increase in housing compensation was announced by Aksakov himself and is for families where the third or subsequent child was born or will be born from January 1, 2019, to December 31, 2030.
While preferential mortgage programs are being developed, such as a special mortgage with a conditional interest rate of 2% per annum for participants and families of soldiers in the special military operation (SMO), these are targeted specifically at military families and do not imply a zero-interest rate for family mortgages broadly.
Economic conditions in Russia, including relatively high key interest rates (around 17-20%), also make a zero-interest rate mortgage unlikely in the near term. The Central Bank maintains higher rates to control inflation, and experts warn that rates below 15% would be needed for economic recovery, but have not suggested zero rates.
In conclusion, while there is a focus on increasing mortgage limits and introducing tax-related benefits, there is no evidence from current legislative or economic reports that the State Duma has proposed eliminating interest rates entirely on family mortgages for large families. The focus remains on supporting families and encouraging population growth through initiatives like the increased housing compensation program.
[1] Source: TASS News Agency [2] Source: RT News [3] Source: The Moscow Times
The chairman of the State Duma's Financial Markets Committee, Anatoly Aksakov, does not support expanding preferential mortgage programs, as he believes such measures could lead to increased interest rates for the mass consumer of mortgages, contrary to suggestions in the Duma to zero the interest rate on family mortgages for large families. Instead, the Russian government's focus remains on supporting families and encouraging population growth through initiatives like the increased housing compensation program in the business sector of finance.
