Putin Instructed to Take Measures to Reduce the Mortgage Rate to 8%
OREANDA-NEWS Russian President Vladimir Putin instructed the government and the Central Bank to take measures to reduce the mortgage rate to 8% per annum and below. This item appears in the list of instructions of the Head of State after the address to the Federal Assembly.
Earlier, the President made such an initiative during his annual address to the Federal Assembly. According to experts, subsidizing housing loans, as well as the creation of tax incentives for developers will help to fulfill the decree of the head of state. At the same time, the situation will largely depend on the dynamics of inflation and Central Bank policy.
Russian President Vladimir Putin instructed the government and the Central Bank to take measures to reduce the mortgage rate to 8% per annum and below. This item appears in the list of instructions of the head of state after the address to the Federal Assembly.
According to the Central Bank, at the beginning of the year the weighted average rate on mortgage loans was 9.56 %. It reached a historic low of 9.41% in September 2018, and fell below 10% for the first time in October 2017.
Experts pay special attention to the involvement of the construction industry in the process. This stimulates both the mortgage rate and its reduction. After all, after the adoption of the law on shared construction, the issue of obtaining a mortgage becomes more complicated.
Vladimir Putin also instructed the government and the Bank of Russia to amend the legislation to provide citizens with a "mortgage vacation" — a delay in payments to citizens who have lost their income. The deadline for fulfilling this order is July 1, 2019.
In addition, the head of state proposed to compensate large families 450 thousand rubles, to establish a preferential rate for families with children for the entire term of the loan, as well as to introduce a mechanism of "vacation" for temporarily lost income. The Head of the Central Bank Elvira Nabiullina and Prime Minister Dmitry Medvedev were appointed responsible for the implementation of these instructions.