What you need to know about a preferential mortgage and how to get it

What is the preferential mortgage program

In April 2020, a program appeared according to which any Russian could take out a mortgage at 6.5% per annum. You didn't have to have a low income or a child, be married, or serve in the military. Enough citizenship of the Russian Federation. True, there were still restrictions:

The apartment is only in a new building. But at any stage of construction, from a foundation pit to a rented house. At the same time, housing had to be bought from the developer under a purchase and sale agreement, equity participation or assignment of the right of claim.
The initial payment is at least 15%, the maximum loan amount is 6 million rubles. For Moscow, St. Petersburg, Moscow and Leningrad regions, the limit was higher - 12 million.

Otherwise, there is complete freedom: the term of the loan was not limited, it was possible to use state support measures like matkapital.

The program was valid until July 1, 2021. Now they decided to extend it, but on slightly different conditions.

What has changed in the preferential mortgage program

The new program, if not extended, will be valid until July 1, 2022. The basic requirements remain the same. Only the following has changed.

Interest rate

7% instead of 6.5%. The magnification looks significant. In reality, everything is not so dramatic. If you take a loan of 1 million rubles for 10 years, then at 6.5% per annum, the overpayment for the entire period will be 362.35 thousand, at 7% - 393.

However, it must be remembered that the larger the loan amount and term, the more significant the difference in overpayment.

Maximum loan amount

Now it will be 3 million. And for the whole of Russia - for Moscow and St. Petersburg too. The down payment remains the same - at least 15% of the cost of the apartment. This means that with a minimum of your own funds, you can buy housing for no more than 3 million 528 thousand rubles. In this case, the initial payment will be 529,200 rubles, and the loan itself will be 2,998,800.

To buy an apartment at a higher price, you will need more of your own funds, to which 3 million loans will already be added.

What you need to know if you are thinking about buying an apartment on a preferential mortgage

People who think about a mortgage are usually intimidated by interest and a large overpayment. Therefore, the rate cut is perceived as a signal that an urgent need to take out a loan. But impulsive actions have no place in everything related to finance. So there is no need to rush, even if the preferential program is limited in time.

First, banks are now offering rates that are not much higher than under the preferential program. This is especially true for new buildings: often developers and banks arrange special promotions, when the interest on loans is even lower than on the preferential program from the state.

Secondly, rush demand leads to an increase in property prices, which we observed during the first stage of the preferential program.

In fact, it is more profitable to take out a mortgage at a slightly higher percentage with lower housing prices. The overpayment amount can be controlled. For example, it will decrease if you give the loan ahead of schedule. But the main debt is not going anywhere. So it's best to think carefully first and decide if you are ready for a mortgage.