Putin instructed the Cabinet of Ministers to ensure the reduction of preferential mortgages to 7%

The order must be completed by July 25. Officially, Putin announced the reduction of the preferential mortgage rate in mid-June “Putin instructed the Cabinet of Ministers to ensure the reduction of preferential mortgages to 7%” />

President Vladimir Putin instructed the government to ensure changes in the conditions of preferential mortgages, establishing that the rate on it when buying housing on the primary market should not exceed 7%. The corresponding instruction was given by the President following the results of the St. Petersburg International Economic Forum (SPIEF), which was held in mid-June.

Deadline for execution of the instruction— July 25.

In March, the preferential mortgage rate was increased from 7 to 12% against the backdrop of a record increase in the key rate by the Central Bank to 20%. However, then the key rate began to decline: first— up to 17%, then— up to 14%. The preferential mortgage rate went down as well— up to 9%.

Speaking at SPIEF, Putin announced further measures to ensure housing affordability— lowering the rate to 7%. “After a sharp rise in the spring, interest rates in the Russian economy are gradually declining, the Central Bank lowers the key rate. In this regard, I consider it possible to once again reduce the rate on preferential mortgages, now to 7%,— he explained.

The government signed the corresponding decree on June 22.

The maximum mortgage rates remained: 12 million rubles. for Moscow and St. Petersburg and 6 million rubles. for other subjects. The program is valid until the end of 2022.

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