Authorities postpone initiative to offer favorable home loans for families with young children, under the age of 14.
Hold Up on Those Mortgages, Buddy!
It looks like the government has hit a snag in their plans to offer low-interest mortgages, especially for families with children under 14. The reason? Money, money, money!
According to Marat Khusnullin, a high key rate for mortgages means "huge budget spending," and the Ministry of Finance isn't exactly backing this move because, well, the budget's already stretched thin.
Anton Siluanov, the Russian Finance Minister, echoed Khusnullin's sentiments during the Sberbank Business Breakfast at the St. Petersburg International Economic Forum (SPIEF) 2025. He advised everyone to keep their financial expectations realistic to maintain financial stability in the country.
Back in May 2025, President Vladimir Putin gave the order for the government, along with the State Council commission on the "Infrastructure for Life" direction, to develop a proposal for low-interest mortgages for families with children. This initiative was also aimed at families of special operation participants. The big players, Prime Minister Mikhail Mishustin and the head of Tatarstan and State Council chairman Rustam Minnikhanov, were expected to present their proposals by June 15.
Currently, families with children under six, children with disabilities, or families with at least two minor children living in certain smaller cities or regions with low construction volumes can take advantage of a 6% annual mortgage program. The limit on loans varies, with up to 12 million rubles for the big cities and down to 6 million rubles for other regions.
Under the family mortgage program, you can buy an apartment or house from developers, build your own abode with a contractor, or use an escrow account for payment. As of April 1, family mortgages have even expanded to include secondary housing in towns where no more than two new houses are being built. However, this family mortgage benefit can only be used once to buy secondary housing in a multi-apartment building less than 20 years old, which is deemed structurally sound, and not from your blood relatives.
It seems like the government is making strides to ease the financial burden for families with children through mortgage programs, but the economy’sgotta keep grinning and bearing it. Despite the encouraging support for families, macroeconomic conditions remain cautious with high interest rates and inflation.
So, while we wait for the green light on those low-interest mortgages, let’s keep our fingers crossed for a brighter financial future. For more updates, don’t forget to follow our Telegram channel @expert_mag! #Mortgage #MaraKhusnullin #SPIEF #FinanceForFamilies
The Ministry of Finance is hesitant to support the government's plan for low-interest mortgages due to budget constraints and the need to maintain financial stability in the country. Accordingly, Anton Siluanov advises everyone to keep their financial expectations realistic during these cautious macroeconomic conditions.
Despite the government's encouragement for low-interest mortgages for families with children, the economy faces challenges with high interest rates and inflation, making it necessary for the government to carefully consider any financial business decisions.
