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Resolution of 23 August 2021 No. 1392


Resolution of 23 August 2021 No. 1392

By order of the President, the Government has extended the Family Mortgage program. Loans at a preferential rate of up to 6% per annum for the purchase of housing or the construction of a private house can be obtained until December 31, 2023. The decree on this was signed by the Chairman of the Government Mikhail Mishustin.

A comment

From the opening remarks of Mikhail Mishustin at the Government meeting, August 17, 2021

“To ensure these changes, the Government more than doubles the limit of funds for granting loans – up to 1.7 trillion rubles,” Mikhail Mishustin said on meeting of the Government on 17 August.

According to him, the decision will help more families to buy their own homes, as well as support a number of industries, strengthen the demand for goods and services that people need, from building materials to furniture and various useful little things.

“Family mortgage” appeared in 2018. The program was launched on behalf of the President. Initially, the program was available only to those families in which a second or subsequent child was born after January 1, 2018. From July 1, 2021, on the instructions of the President, the terms of the program have been expanded. Now families with one child born after January 1, 2018 can take out such a loan.

The down payment is 15% of the cost of housing. The maximum loan amount depends on the region. So, for Moscow, St. Petersburg, Moscow and Leningrad regions it is 12 million rubles, for other territories – 6 million rubles. The difference between the preferential and market mortgage rates is reimbursed to banks by the state.

The program was initially calculated until the end of 2022. Then it was extended until March 1, 2023. The President of Russia Vladimir Putin instructed the Government to extend the program until December 31, 2023.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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