The Bank of Russia proposes not to extend the preferential mortgage program, targeted measures are needed, the head of the Central Bank of the Russian Federation Elvira Nabiullina told reporters on the sidelines of the Russia Calling! Forum organized by VTB Capital.

“We propose not to renew the preferential mortgage that came instead of the 6.5% program. We also have other preferential programs, more targeted, they work, and are aimed at supporting mortgages in those sectors where it is needed. “, – she said.

At the same time, Nabiullina noted that the extension of such a program could negatively affect the market. “Large-scale [preferential] mortgage renewals could support high housing price increases that reduce housing affordability, and we are seeing this kind of impact,” she said.

At the same time, according to the head of the Central Bank, after a major change in the parameters of preferential mortgages in the summer, some expected a sharp drop in mortgage issues, but this did not happen. “Mortgages are growing at a high rate, in our opinion, by the end of the year it may be about 27% growth. This is higher than the growth in the nominal income of the population, and this growth should be commensurate,” she stressed.

About preferential mortgages

From July 2, 2021, the preferential mortgage program was extended until July 1, 2022 on new terms. Now you can buy housing in a new building at a rate of up to 7% per annum. For all regions, the maximum loan amount is 3 million rubles. The down payment must be at least 15% of the cost of housing. The difference between the market rate and the preferential rate is reimbursed to banks by the state.

Previously, preferential mortgages were issued at 6.5% per annum for home buyers in new buildings. This program was approved by the government of the Russian Federation at the end of April 2020 and made it possible to attract more than 2 trillion rubles to housing construction in Russia, it was issued by more than half a million families. A mortgage loan on preferential terms could be taken up to 12 million rubles in Moscow, St. Petersburg, Moscow and Leningrad regions and up to 6 million rubles in other regions.