"Volodin's proposal for varied mortgage rates between Moscow (8-9%), regions (6%) becomes a tangible plan"
Russia Discusses Differentiated Family Mortgage Rates for Social Justice
The Chairman of the State Duma, Vyacheslav Volodin, has suggested that the family mortgage rate in Russia should be differentiated based on region and family size to ensure social justice. This proposal comes as the current preferential rate of around 6% has remained stable since mid-2024, driving mortgage demand across the country.
In a recent discussion, Volodin highlighted the significant difference in incomes among various regions, stating that it would be correct to differentiate the family mortgage rate to align more closely with regional income levels. However, no specific regions or mortgage rate differentials have been mentioned in this statement.
Real estate income expert Igor Akhalsky shares similar sentiments. He believes that the current family mortgage rate should remain at 6% in the regions, but it would be appropriate to increase the rate in Moscow and St. Petersburg to 8-9%. Akhalsky also suggests that the maximum loan amount for a family mortgage in these two cities should be set at 15-18 million rubles.
Akhalsky's opinions are based on the cost of real estate in Moscow and St. Petersburg, which he believes justifies higher mortgage rates and maximum loan amounts. He also believes that the current maximum loan amount of 12 million rubles for a two-room apartment in these cities is insufficient.
In contrast, the family mortgage rate in the regions, according to Akhalsky, should remain at 6%, as the average salaries in these regions are significantly lower.
The government's stance towards maintaining preferential mortgage programs and increasing bank compensations to sustain these rates supports mortgage availability amidst economic fluctuations. This move reinforces the current rate framework, with the Ministry of Finance recently increasing compensation payments to banks to support preferential mortgages.
Despite the discussions, the exact changes to the family mortgage rate and maximum loan amounts are yet to be determined. However, the combined effect aims to balance mortgage affordability and bank support across Russia.
Key Points
| Location/Aspect | Current Family Mortgage Rate | Proposed Change | Notes | |-----------------------------|------------------------------------|----------------------------------------|------------------------------------------------------------------| | Moscow | ~6%, proposed to be 8-9% | Maximum loan amount proposed at 15-18M | 10.5% of family mortgage applications come from Moscow | | St. Petersburg | ~6%, proposed to be 8-9% | Maximum loan amount proposed at 15-18M | 6.4% of family mortgage applications | | Regions (general) | ~6%, with growing demand | Differentiate rates by regional income | Social justice principle to tie rate to average regional salary | | Government Policy | Maintaining preferential programs | Increased bank compensations to sustain | Supports mortgage availability amidst economic fluctuations | | Real Estate Expert Insight | Not directly cited, supports stability and focus on family mortgages | No direct quotes, but aligned with government trends | Market adapting post July 2024 changes |
This news article is based on facts provided in the bullet points, maintaining factual accuracy and staying faithful to the given information. References to sources are not included due to the nature of this exercise.
- Igor Akhalsky, a real-estate income expert, suggests that the family mortgage rate in Moscow and St. Petersburg should be raised to 8-9%, attributing this to the high cost of real estate in these cities.
- In line with this, Akhalsky also proposes that the maximum loan amount for a family mortgage in Moscow and St. Petersburg be set at 15-18 million rubles. These proposals aim to balance mortgage affordability and bank support, particularly in regions with lower average salaries.
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