Preferential loan family program to be offered in Kamchatka region
In a move to ease housing access for families, the Russian government is set to expand its preferential mortgage program to include families with children aged 7 to 14 years old. The new initiative, scheduled to launch on June 15, aims to provide more affordable housing options for growing families across the country.
Natalia, a resident of Petropavlovsk-Kamchatsky and a mother of an 8-year-old child, has been struggling to obtain a mortgage under the existing preferential offers due to unaffordable rates of 25-34%. With the new program, she is hopeful that her dream of homeownership can become a reality. She has already found a suitable apartment and is eagerly awaiting June 15.
The new program will differentiate mortgage rates by region and family size, offering the lowest rates to those with three or more children living in cramped conditions and with limited income. The government will provide state guarantees to reduce bank credit risks, making the mortgages more accessible.
Experts emphasise the importance of financial literacy to avoid housing loss due to repayment difficulties. In addition to the mortgage rate benefits, the government is drafting legislation to extend credit holidays for parents with multiple children. Families with a second or subsequent child will receive an extended mortgage payment deferral of 1.5 years, during which interest on the principal will accrue only between months 7 and 18, with repayments deferred until after the mortgage term ends.
The anticipated impact of the new program is to make mortgages more affordable and accessible for growing families, particularly in regions with high living costs or housing shortages. The program is expected to promote demographic growth and address housing deficits. However, concerns remain about the sustainability of such programs given wider economic pressures and the need for adequate financial education and government support to prevent defaults.
References: - Izvestia, 2025-07-29 - Russian Government, 2025-07-31 - Charter97, 2025-07-10
- Natalia, with her 8-year-old child, aims to seize the opportunity offered by the new mortgage program, as it is designed to lower rates for families with multiple children, providing a better financial atmosphere for her lifestyle.
- The Russian government, in its efforts to boost home-and-garden ownership for growing families, is also planning to grant credit holidays for parents with multiple children within the business sector, making it easier for them to manage their finance and maintain their living standard.
