Ministry of Finance resists expansion of mortgage benefits for households with a minor child.
Fresh Take:
Russia's Ministry of Finance ain't feelin' the Cabinet's proposition to broaden the preferential family mortgages to families with a single kid below the age of 18, straight up. Anton Siluanov, the head honcho at the ministry, spilled the beans at a briefing, according to TASS.
"Yeah, we ain't down with this 'cause our financial commitments are tough on the budget under tight finances," Siluanov said.
Earlier this month, we spilled the tea on a hot topic about the Russian government vibin' the notion of enlarging family mortgages to incorporate families with a lone kiddo under 18, due to a significant dip in primary housing sales. Families simply can't afford to take on mortgages with a whopping 30% interest rate. Our sources also revealed that steep mortgage rates rank high among the worries of the Russian public, along with phone scams and roaming drones.
Just FYI, after axing preferential programs back in July 2024, family mortgages became the primary player in boosting new construction sales. Currently, families with kiddos up to 6 years old, as well as those raising a minor child with a disability, qualify for preferential mortgages with a minimum interest rate of 6%.
Past Coverage on Our Site:
This year's a doozy for developersHow tough is it sellin' houses at 120k per sq. meter? What's the lowdown on the IHS market in 2025?The rules goin' down for agrarian mortgages. Applicants gotta work in the agro-industrial sector nowAin't nothin' eternal. Cutting costs is developers' top priority these days
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- "I'm not sure if the proposed expansion of preferential family mortgages to single-child families below 18 is a good idea, considering the tough financial commitments we are already dealing with under tight finances," Siluanov expressed during a briefing.
- The Ministry of Finance, headed by Siluanov, has opposed the idea of broadening the preferential family mortgages, despite the Russian government's aim to stimulate primary housing sales due to a significant dip.
- In 2025, mortgages are expected to play a significant role in new construction sales, as family mortgages became the primary player after the elimination of preferential programs in July 2024.
- Siluanov's stance also aligns with public concerns about high mortgage rates, which rank high among the worries of the Russian public, alongside phone scams and roaming drones.
