Home Loans Limited to Borrower's Locality: Matvienko's Proposal
In a recent development, the Russian Duma has proposed several changes to the existing family mortgage program, aiming to make it more accessible and fair for families across the country. Notably, these changes include zeroing the interest rate on family mortgages for large families and preventing the use of preferential loans for investment purposes.
However, it's important to note that these proposals are still under consideration and may be included in the 2026 budget. One of the key changes, the increase in the mortgage repayment amount for large families, could potentially double from the existing figure to 900,000 rubles, subject to approval.
Chairman of the Federation Council Valentina Matviyenko has also proposed a change in the rules for issuing preferential family mortgages, linking them to the region of registration of borrowers. This proposal, if accepted, could potentially increase the number of family mortgages issued to families in all regions of the country.
However, there is no clear evidence of rules or proposed changes linking mortgage issuance preferentially by the borrower's region of registration based on the available information. The focus appears to be on family status (number and age of children) and the amount of tax deductions or maternity capital that can be leveraged within the program.
It's worth mentioning that this is a new initiative separate from Matviyenko's proposal to amend the government decree to require family mortgages to be issued exclusively for the purchase or construction of housing in the subject where the borrower is registered.
The current preferential family mortgage program in Russia offers a 6% interest rate for families with children under six years old and is actively in effect as of 2025. In the past year, more than half of all family mortgages were issued in Moscow, Moscow region, St. Petersburg, and Leningrad region. About 40% of these loans were used to buy housing outside the regions where the borrowers live.
In conclusion, while preferential family mortgages in Russia are being expanded and adjusted, there is no clear evidence of rules or proposed changes linking mortgage issuance preferentially by the borrower's region of registration. For detailed regional regulations, it is recommended to consult specific regional housing authorities or updated government releases.
The proposed changes in the family mortgage program may extend to factors beyond family status, potentially including the region of registration of borrowers, as suggested by Chairman Valentina Matviyenko. If accepted, this change could potentially broaden the availability of family mortgages across all regions in the country. Despite this, it's currently unclear if there will be rules linking mortgage issuance preferentially by the borrower's region of registration, with the focus mainly on family status and tax deductions within the program.
