Mortgage rates for families should align with the average income in the region, according to Volodin's statement
In a significant development, Russia is set to introduce a differentiated mortgage rate system for families, as suggested by State Duma Speaker Vyacheslav Volodin on July 16, 2025. This proposal was made during a meeting with Russian Prime Minister Mikhail Mishustin and is believed to be supported by President Vladimir Putin.
The idea of a differentiated mortgage rate system has been under consideration by the Russian cabinet, with Valentina Matviyenko, the Federation Council speaker, also advocating for the improvement of the process of issuing family mortgages. The lower house of parliament has recommended that relevant ministries work on this issue.
The family mortgage program with state support was launched in Russia in 2018 and has undergone multiple parameter changes since then. Currently, the mortgage interest rate is the same for all regions in Russia, but under the proposed system, the interest rate would vary depending on the region and the borrower's profile. For instance, in Moscow, the proposed mortgage interest rate would be one rate, while in Saratov, it would be commensurate with the average salary in the Saratov region.
The proposed system is expected to result in social justice, as outlined by Volodin. The program is designed to benefit specific families, including those with children under six years old, families caring for a minor child with a disability, families living in small towns with a population of up to 50,000 people and having two minor children aged seven to 18, and families with two minor children living in regions with low construction volumes or where individual development programs are in place.
The introduction of a differentiated mortgage rate system is part of Russia's broader efforts to deepen mortgage market reforms by improving transparency and competitiveness. The aim is to enhance affordability and target state subsidies more effectively, potentially encouraging more sophisticated differentiated mortgage rate structures. This includes efforts to broaden access to mortgages with better risk segmentation and tailored pricing.
The history of Russia's mortgage market has traditionally featured relatively high and uniform interest rates, shaped strongly by the central bank's policy rates and risk premiums related to economic volatility. Differentiated mortgage rates based on borrower creditworthiness, loan terms, or geographic factors have emerged progressively as the market matured, but comprehensive official differentiation policies were limited compared to some advanced economies.
For the most accurate and recent details on differentiated mortgage rates in Russia, direct sources from Russian financial regulators, central bank publications, or specialized market reports would be necessary. These resources would provide the most up-to-date information on this significant development in Russia's mortgage market.
- The proposed differentiated mortgage rate system in Russia, advocated by Vyacheslav Volodin and supported by President Putin, is a step towards enhancing business-politics relations, as it aims to improve the economy by promoting homeownership, particularly for certain families, and reforming the mortgage market for increased competitiveness and transparency.
- The introduction of the differentiated mortgage rate system, part of Russia's general-news, could significantly impact the finance sector by fostering social justice, broadening access to mortgages with better risk segmentation, and targeting state subsidies more effectively, thus influencing the broader economy and business environment.
