Russia overhauls family mortgage rules with new rates and loan caps

Russia is set to change its family mortgage programme from 1 July. The updated rules will adjust interest rates and loan limits for different types of families. These changes will apply across the country, with variations for Moscow, St Petersburg, and other regions. Under the new terms, families with one child in Moscow and St Petersburg may pay up to 12% interest per year. Their maximum loan will be capped at 12 million rubles. In other regions, similar families could face rates of 10% and a limit of 6 million rubles.

For families with two or more children, the loan limit rises to 15 million rubles at 10% in the capital cities. Elsewhere, the cap drops to 8 million rubles at 8% annual interest. The programme will also factor in property size and down payment amounts when setting conditions.

Hybrid mortgage options, including combined loans or those exceeding set limits, may no longer be available. Some regions with low construction activity may impose extra restrictions, potentially excluding large families with older children. The revised programme introduces tiered rates and loan caps based on family size and location. It also tightens eligibility in certain areas. These adjustments will take effect from the start of July.