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Siluanov allowed that subsidized mortgage rates may continue past June ‘21: situation to be monitored

The subsidized mortgage program, which had supported the market during the pandemic and was recently extended till the middle of next year, may be extended once more later.

"I think by the end of next year’s first half we will take a look at the situation and make a further decision on the program ", - said Finance Minister Anton Siluanov in his interview to RBC TV on the sidelines at VTB Capital’s Russia Calling! Forum, answering the question whether the program would be scrapped next year.

Subsidized mortgages are issued for new-build apartment purchases. The maximum mortgage amount available to residents of Moscow and Saint-Petersburg and also Moscow and Leningrad regions is RUB 12 mn, for other regions – RUB 6 mn. The initial installment is to be no less than 15% of apartment price. The difference between the subsidized 6,5% rate and the market rate is reimbursed to banks by the state.

The subsidized mortgage program kicked off on April 17 and was initially supposed to continue to November 1, 2020. Now the program has over 90% of all mortgage loans taken out to buy new-build apartments.

Over the latest half of the year over 230 thousand mortgage loans have been issued for RUB 669 bn. September turned out to be a record-setting month, when over 60 thousand families took out mortgage loans. The initial limit of the program was set at RUB 740 bn, in summer it was raised to RUB 900 bn. According to FinMin estimates, by November 1, 2020 it is planned to issue about 268 thousand loans for RUB 800 bn. Extension of the program till June 1, 2021 will enable issue of 354 thousand loans more for RUB 1,1 tn, including 90 thousand loans for RUB 270 bn in November –December 2020.

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