The government will decide on the extension of a preferential mortgage program in May-June

The Government of the Russian Federation will decide on the fate of the preferential mortgage program for a month and a half before its end on July 1, 2021. This was announced by Decar 29 by the Minister of Finance of the Russian Federation Anton Siluanov.

“We will decide the issue of extending the preferential program next year. For a month, maybe one and a half before July 1, when the official program ends, sit down, see what will happen on the market, what bets will be, how this sector will develop, then we will make the words Siluanov TASS.

Recall that the government adopted a decree on a preferential mortgage program at 6.5% at the end of April. The document stated that the program applies to loans issued from April 17 to November 1, 2020, and preferential conditions are valid for the entire loan term. The difference between 6.5%that borrowers will pay, and the state will compensate the market for banks. The maximum amount of mortgage loan for the purchase of housing in Moscow, St. Petersburg, Moscow and Leningrad regions initially amounted to 8 million rubles, and in other regions - 3 million rubles. The initial contribution was at least 20% (then the threshold was reduced to 15%), and only housing in a new building can be bought as part of the program.

At the end of June, the government increased the maximum amounts of mortgage loans under the program from 8 to 12 million rubles for residents of Moscow, St. Petersburg, Moscow and Leningrad regions and from 3 to 6 million rubles for residents of other regions.

On October 27, the head of the Cabinet of Ministers Mikhail Mishustin signed a decision on the extension of a preferential mortgage program at 6.5% until July 1, 2021. "The extension of the program will allow you to issue another 600 thousand loans for 1.8 trillion rubles. Of which 152 thousand loans for 303 billion rubles can be issued before the end of the year," the government said in the government’s website.

Soon after the program extended, Russian President Vladimir Putin announced the need to prevent a sharp increase in housing prices, which can negate the effect of a preferential mortgage program at 6.5%. "With an increase in the availability of a mortgage, it is necessary to increase the proposal in the housing market in order to prevent distortions and a sharp increase in housing prices. We see this threat, otherwise the whole effect of reducing the rates will come to naught, will reduce to zero," he said.

At the end of November, Deputy Prime Minister Marat Khusnullin said that he intends to seek a preferential mortgage program for new buildings after July 1, 2021. "I, as a responsible for the industry, will defend the right and will prove that the mortgage must be extended further, that without this the development of the country and the implementation of national projects are impossible," Khusnullin said.

A few days before, the head of the Central Bank Elvira Nabiullina called on “timely” to complete the preferential mortgage program extended until July 2021 in order to avoid the emergence of “bubbles” in the market.

"Timely completion of this anti -crisis program will avoid the formation of" bubbles "and balance on a market basis demand and supply in the housing market. Markets, and not just subsidized mortgage rates have also decreased, and this will allow citizens to further obtain an affordable mortgage. Moreover, the increase in housing prices should be proportionate to the dynamics of the population’s income," Nabiullina noted.

Last week, the head of Sberman German Gref said that the program of preferential mortgage at 6.5% should not be renewed after July 1, 2021, when the validity period is over. “You have to come out of it, of course. When to come out, the question is open. If there are no shocks, I personally are not to renew this program since July,” Gref said.