Mishustin called the reserves to reduce mortgage rates

Prime Minister of Russia Mikhail Mishustin at the meeting of the government instructed to study the possibilities to further reduce mortgage rates and called the reserves to achieve affordable housing loans.

“In General, the mortgage is very expensive. And the President has made clear that he expects us mortgage interest rates below 8 percent,” — said Mishustin.

“First. You need to make the banks have not been able to wind rate,” — said the head of government.

For this, according to him, it is necessary to optimize the operating costs and the internal resources of the banks, to clarify the rules of lending to developers and reduce the cost of funding.

“Second. We need to create additional incentives for development of housing construction”, — said Mishustin.

It is possible to improve the efficiency of land use, time to prepare the site, to carry out engineering preparation of the territory. There is a “vacant land, including Federal property, for housing construction. Such land we have quite a lot” and it should actively use, said the head of government.

the Prime Minister instructed “to perform jointly with the Bank of Russia the situation and to submit proposals and to discuss the possibility of simplification of the procedure of refinancing mortgage loans, previously issued at higher interest rates”.

mortgage Rates for the second year in a row, updating the historical minimum in December reached 9%, but this is not enough. Current rates can not significantly improve the living conditions of the citizens. The mortgage is very expensive, the rates should fall below 8 percent, said Mishustin.

According to the Finance Ministry, mortgage rates will decrease by the end of 2020 to 7-8 percent.

In December 2019, the share of mortgage housing loans amounted to 25 percent of total lending to individuals in Russia, according to Bank of Russia estimates. The total outstanding housing mortgage loans in rubles and foreign currency by 1 January 2020 amounted to 7.7 trillion rubles and grew from the beginning of 2019 by 1.1 trillion rubles.