Bank of Russia explains family-mortgage rates after 15 years

The Bank of Russia said on October 9 that state interest subsidies for family mortgages had been limited to 15 years from October 1. Longer loans remain possible, but later payments depend on rate-adjustment rules.

After the subsidized period, the rate may rise by at most 4 percentage points, subject to a ceiling of the then-current key rate plus 3 points. For loans financing individual house construction, that ceiling is the key rate plus 3.5 points.

Payment schedules should assume a 4-point increase unless the contract specifies a smaller one. The regulator recommends the same approach for later-period debt-burden and total-credit-cost calculations.

Banks should explain that future payments may change with the key rate. A longer loan term does not itself guarantee the original subsidized rate until repayment.