Enhanced mortgage repayment rates set by the Finance Ministry for both domestic families and rural Eastern regions.
Expansion of the Family Mortgage Program in Russia
The Russian government has announced an extension to its popular family mortgage program, which offers preferential mortgage loans at reduced interest rates. From 1 April 2025, this program will now include secondary housing in cities with no more than two new buildings.
Originally initiated by President Vladimir Putin in 2018, the family mortgage program has been a key government initiative aimed at supporting families with children. The program's key interest rate of 8% has been a significant draw, accounting for approximately 88% of subsidized loans in June 2025 [1][2].
While the broad preferential mortgage program ended its 8% subsidized mortgage rate in July 2024, the family mortgage program continues to dominate subsidized lending, with about 80% of mortgages in 2025 issued under such targeted government schemes [1][3].
The extension of the program to secondary housing is a welcome move for families seeking to purchase additional properties. This expansion is expected to boost housing demand in eligible cities and stimulate construction activity.
It's worth noting that the maximum rate provided by program conditions for purchasing housing in multi-apartment buildings remains unspecified. However, for privileged mortgages for individual construction, the key rate increases by 3.0 percentage points, and for purchasing housing in multi-apartment buildings, it increases by 2.5 percentage points [1][3].
The increased compensation for privileged mortgage loans will be effective from 7 August to 1 November 2025. This extension is aimed at providing further support to families during the transition period following the end of the 8% subsidized mortgage rate.
The family mortgage program, despite its recent changes, continues to play a crucial role in Russia's housing market. Since its inception in 2018, the program has significantly contributed to the growth of Russia's housing construction, with a sharp increase in mortgage lending volumes supporting individual residential buildings construction [2].
Exact cumulative beneficiary numbers since 2018 are not explicitly given, but the dominance of the program in recent subsidized mortgages indicates that millions of families have likely benefited over the years, given Russia’s mortgage market size and construction growth.
The extension of the family mortgage program to secondary housing is a positive step towards making housing more affordable for families in eligible cities. As the program continues to evolve, it remains a key part of the government's efforts to stimulate housing construction and affordability, especially for families with children.
[1] Source: The Moscow Times [2] Source: Russia Beyond [3] Source: TASS News Agency
Investors can look forward to increased demand for real-estate, particularly in cities with no more than two new buildings, due to the expansion of the family mortgage program in Russia. This extension aims to make secondary housing more accessible for families, potentially stimulating construction activity in the specified cities.
In addition, the family mortgage program, widely used for primary housing, could also serve as a lucrative opportunity for investors focusing on the real-estate sector, given its influence on Russia's housing market and the potential rise in housing demand.
