The government instructed to work out reduced payments on the mortgage

Image: portal of the mayor and government of Moscow Maxim Denisov

the Government has instructed first Deputy Prime Minister Andrei Belousov, Deputy Prime Minister Marat Husnullin with the participation of the Central Bank to March 16, 2023, to submit proposals to reduce the size of payment of citizens on mortgage loans. This is stated on the website of the Cabinet of Ministers.

“Until March 16, 2023 to submit to the Chairman of the government of the Russian Federation Mikhail Mishustin proposals to reduce the size of payment of citizens on mortgage loans, including the creation of conditions of refinancing of earlier granted mortgage loans under the simplified procedure”, – stated in the text instructions.

the Government also instructed the Ministry of construction, Ministry of economic development and Rosreestr until March 16 to submit proposals to engage ineffectively used land plots. Deputy Prime Minister Dmitry Chernyshenko is mandated to provide citizens with information on the preferential programs of mortgage lending, implemented by the government of the Russian Federation.

this week, Mikhail Mishustin asked Andrei Belousov and Marat Husnullina jointly with the Bank of Russia to perform the procedure of refinancing your mortgage and consider the possibility of simplification.

the Prime Minister noted that this must be done due to the ignorance of many citizens about their capabilities. He stressed that the average rate on mortgages in December last year amounted to 9%.

Mishustin also reminded of the existence of a preferential mortgage to 6% on the purchase of apartments in the primary market for families, which is the second and subsequent child.

in addition, the far East young families have the opportunity to take a loan at 2%. Mishustin said that there are also so-called rural mortgage with an interest rate of not more than 3%.

In January the weighted average rate on mortgage loans fell to a historic low of 9%. Just last year, individuals took 1.27 million mortgage loans. It is 13.7% lower than a year earlier.

In December 2019 mortgage loans accounted for a quarter of the amount of funds borrowed by individuals. For the month it was issued over 145 thousand mortgage loans totaling 345,1 billion. It’s almost a quarter more than the previous month.

According to the latest data, loans have 39.5 million people. Most of the clients of Russian banks have only one loan – cash loan or mortgage. The share of such borrowers of the total amount credited citizens gradually decreases.

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