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Mortgage with state support – what has changed

Ипотека с господдержкой – что изменилось

Dmitry Medvedev on February 29 signed a decree on extending the state program of subsidizing of a mortgage before January 1, 2017. It was originally planned that the reduced mortgage will be available to the Russians only until the end of February of the current year, however, the high demand for housing loans at a rate of 12% per annum has compelled government to reconsider the duration of the program. What are the main changes have occurred in connection with the signing of the Decree of 29 February 2016 No. 150?

The main changes are two:

  • The duration of the program – until January 1, 2017.
  • The amount of funds allocated for the issuance (purchase) of mortgage loans (loans), increased from 700 billion to 1 trillion roubles.
  • In this case, as follows from the releases of financial institutions, major Russian banks have increased interest rates on the mortgage with state support to 11.75-12% per annum after the government’s decision to extend this program.

    So, “VTB 24” will continue to participate in the state program to support mortgage lending, but the rates in the framework of this programme will be increased from 11.4% to 12% per annum.

    Sberbank also raised the rate by 0.6 percentage points to 12% per annum.

    And in Gazprombank rates in the framework of this programme be increased from 10.6% before to 11.35% for loans up to 7 years and an initial payment more than 50% and from 11% to 11.75% for all other loans under this program. Thus, according to the January data, issuing mortgages with state subsidies accounted for 44% of the volume of mortgage lending of Gazprombank. In January, the Bank issued mortgage loans worth more than 2 billion rubles, the increase compared to the same period last year was 69%.

    According to the Ministry of Finance, by the beginning of February 2016 in the country was issued 227,6 thousand of preferential mortgage loans totaling 405,1 billion rubles, the Volume of state subsidies amounted to RUB 3.3 billion for January alone, banks issued 17 thousand preferential mortgage loans worth a total of 30.8 billion rubles.

    Meanwhile, a survey conducted by the National Agency for financial studies (NAFI), showed that only 14% of people plan to improve housing conditions in the next three years. Of these, about 42% rely solely on the mortgage. The previous year the proportion of Russians willing to improve their housing conditions through mortgage loan, constituted only 18%.

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