OREANDA-NEWS. June 26, 2012. Open Joint-Stock Company Agency for Housing Mortgage Lending (AHML) is launching a new program as part of the task set by the Government to provide housing for your teachers.

Under the terms and conditions of this new mortgage product, young teachers will be able to receive a mortgage loan at an interest rate of 8.5% per annum regardless of the lending term and other parameters of the loan. Today, it is one of the lowest rates on the Russian mortgage market. This type of mortgage lending under the new program will be available to young teachers of state-funded and municipal schools aged under 35, entitled to receive subsidy to cover the down payment. The mandatory requirement under this program is confirmation of the borrower’s credit worthiness.  If the borrower does not have sufficient income to receive this type of loan in the required amount, the borrower may invite one co-borrower. According to the program, minimum down payment is 20%. However, the young teacher will only have to have 10% as his/her own funds, the remaining part will be covered by the subsidy.

“Mortgage Loans for Young Teachers” is another product from the line of the Agency’s socially-oriented products. The current programs - “Voennaya Ipoteka” (“Military Mortgage”) and “Materinsky Kapital” (“Maternity Capital”) – have already proven to be in great demand with the Russian borrowers. In 2011, the pilot project entitled “Mortgage Lending for Young Scientists” was also launched.

Within the nearest weeks, the regions interested in this plan must determine the number of young teachers that may participate in the program and their selection criteria and send this information to the Agency.

Refinancing volume under the “Mortgage Loans for Young Teachers” plan in the provinces will be evaluated by the Agency taking into account, among other things, the distribution of subsidies by the Ministry of Education and Science of the Russian Federation and the readiness of the federal subjects themselves for participation in the program.