The head of the financial stability department of the Central Bank, Elizaveta Danilova, said that the regulator is in favor of a gradual curtailment of the preferential mortgage program at 6.5 percent. Reported by RIA News…
According to Danilova, the program should be phased out “in order not to lead to excessive risks.” In her opinion, it is important to monitor the dynamics of prices, since in recent years they have been growing due to the growth of mortgage volumes and insufficient supply of housing.
She noted that preferential mortgages are losing their socially oriented nature, due to the fact that there is a large investment demand for housing in large cities – wealthy people use real estate as an investment, which further stimulates price growth, “as a result of which the original goal is not achieved programs – to make housing available to the general public ”.
In addition, Elizaveta Danilova noted, the largest share of issuance of preferential mortgages is observed in regions with increased price pressure – Moscow, the Moscow region, St. Petersburg, the Leningrad region and the Krasnodar Territory, while the goal of the program is to develop housing construction in other regions. … She proposed extending the program of preferential mortgages to those regions “where there is a more difficult situation in the housing market and where such a program will be needed.”
In January, Russia was predicted to fall in house prices. According to experts, in 2021 the Russian real estate market will cool down – even if the Central Bank continues to reduce the key rate and the program of preferential mortgages at 6.5 percent per annum is extended.
The decree on the introduction of the preferential mortgage program in April 2020 was signed by Russian Prime Minister Mikhail Mishustin. According to the document, it was allowed to purchase housing in a new building. The innovation was supposed to be valid until November 1, 2020, but six months later it became known about its extension until July 1, 2021. Soon, Deputy Prime Minister of Russia Marat Khusnullin spoke about the possible work of the program after that date.
source https://pledgetimes.com/the-central-bank-announced-the-need-to-wind-down-preferential-mortgages/
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