Siluanov puts subsidised mortgage spending at 1.6–1.7 trillion rubles

Russia's federal budget will spend about 1.6–1.7 trillion rubles on subsidised mortgage programmes this year, Finance Minister Anton Siluanov told the State Duma. He linked the high subsidy bill to rising interest rates.

Siluanov compared the estimate with last year's spending of 2 trillion rubles. During periods of low interest rates, mortgage interest subsidies cost the budget 200–300 billion rubles.

The broad programme offering 8% loans for newly built homes ran from 2020 until July 1, 2024. Targeted family, IT, Far Eastern and Arctic, rural and military mortgage programmes remain in place.

Family mortgage terms changed on October 1, with rates and loan limits depending on the number of children and the region. For loans issued from that date for terms exceeding 15 years, the Bank of Russia recommended calculating debt burdens and total borrowing costs using the initial rate plus 4 percentage points after state support ends, unless the contract specifies a smaller increase. Banks were also advised to explain that future payments may change.