Mishustin extended preferential mortgage

Prime Minister Mikhail Mishustin extended the preferential mortgage program at 6.5% until July 1, 2021. Initially, it was supposed to end on November 1 this year.

Preferential mortgages are issued for the purchase of new housing. The maximum loan amount for residents of the capitals and their regions is 12 million rubles. For other regions - 6 million rubles, the minimum down payment - 15% of the cost of housing. The difference between the preferential rate of 6.5% and market banks is reimbursed by the state.

• According to the government's calculations, the extension of the program will make it possible to issue another 600,000 loans worth 1.8 trillion rubles. Of these, 152 thousand loans worth 303 billion rubles can be issued before the end of the year.

• The preferential program caused an explosive growth in mortgages: according to Dom.RF, more than 1 million mortgage loans worth about 2.7 trillion rubles were issued in Russia in three quarters of 2020. This is almost the same as for the whole of 2019 (1.3 million loans for 2.8 trillion rubles).

• The Ministry of Finance proposed to extend the program until the end of 2021. The amount of expenses in this case would increase from the previously planned 900 billion rubles to 2.8 trillion rubles.