This text is an automatic translation from Русский. It was generated by AI and may contain inaccuracies.
Read original →NOSTROY President: 'A 10% Mortgage Rate for the First Child Already Seems Quite High'
NOSTROY President Anton Glushkov assessed the proposal for a tiered family mortgage program. Why a 10% rate for the first child could reduce housing demand by 20% and what makes higher rates dangerous.
AI summary
The head of the State Duma Committee on Financial Markets, Anatoly Aksakov, proposed introducing a tiered family mortgage with rates of 10%, 6%, and 4% depending on the number of children. NOSTROY President Anton Glushkov considers the 10% rate for the first child too high, which could lead to a reduction in demand in the primary housing market by at least 20%. Experts fear that instead of stimulating demographics, the new scheme will reduce mortgage accessibility for young families.
Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, has proposed introducing a tiered family mortgage system, linking the interest rate to the number of children in a family: 10% for the first child, 6% for the second, and 4% for the third. The idea is being actively discussed as a possible compromise between supporting families and reducing budget expenditures on subsidized programs.
The question, however, is whether such parameters would actually make mortgages affordable or lead to the opposite effect. We discussed this with the president of the National Association of Builders (NOSTROY) Anton Nikolaevich Glushkov.
"The 6% rate has proven its effectiveness"
According to the expert, the discussion about modernizing the family mortgage has been ongoing for several years and is connected to attempts to transform this instrument into not only a housing support measure but also a genuine demographic incentive.
"That's why the idea being actively discussed today is the development of a long-standing concept. At the same time, the main question remains determining the threshold values—those very rate 'steps' for the population."
There's already a key benchmark here—the 6% rate currently applied in the existing family mortgage program.
"The experience of the past year and a half to two years has clearly demonstrated that a rate of 6% is affordable for citizens and effectively stimulates demand. The statistics prove it—more than 80% of transactions in the primary housing market across the country are made using the subsidized family mortgage."
The Family Mortgage program has indeed become a key driver of housing demand in recent years, with the government-subsidized rate of up to 6% remaining in effect until 2030. This program was extended on the instruction of the Russian president and applies to families with children purchasing housing from developers or for individual home construction.
It's important to note that Russia's overall mortgage lending market is currently experiencing a slowdown: according to Bank of Russia data, the volume of mortgage loans issued fell by approximately 9% to 4.3 trillion rubles by the end of 2025.