Support for raising limits on IT-claimable mortgage amounts by the Finance Minister.
In a recent announcement, the Russian Ministry of Finance has jumped into action, supporting an expansion of IT mortgage limits to keep the program running smoothly. According to their press service, this move is meant to counteract any potential halting of the program itself.
Currently, DOM.RF is reallocating the remaining IT mortgage limits among banks that have already reached their own limits (roughly 39 billion rubles). This redistribution enables the continuation of IT mortgages, taking into account the reallocation, until the Russian government formally adopts a new decree.
At the moment, Russia offers various federal mortgage programs, including mortgage loans for IT specialists at a competitive 5% interest rate. Notably, back in December 2024, the Ministry of Digital Development proposed an extension of this mortgage program for employees of recognized IT companies. To date, over 38,500 housing loans have been issued through this program during its 1.5-year tenure.
However, it's essential to consider the broader mortgage market context in Russia. The housing market is challenged by dwindling new construction, partly due to high interest rates. This could lead to a housing shortage, potentially impacting overall demand for mortgages. Moreover, there's been an alarming increase in mortgage and consumer loan defaults this year, likely due to the high interest rates. These factors may exert pressure on IT specialists, as well.
Looking forward, government initiatives like subsidizing loans for developers to boost housing supply may indirectly benefit IT specialists by increasing the accessible housing options. Furthermore, any plans from the Central Bank to stabilize the economy and lower interest rates could improve conditions for all mortgage borrowers, including IT specialists.
The Russian Ministry of Finance's support for expanding IT mortgage limits is not limited to the IT sector alone; it also aims to stimulate the society's overall business landscape, as these mortgages contribute significantly to real-estate investments. With the redistribution of IT mortgage limits among banks and possible government initiatives like subsidizing housing development, the finance sector could witness continued investing in real-estate businesses by IT specialists.
