Mishustin: mortgage rates fall below 8 percent

a mortgage in Russia is still expensive and you need to change this situation, said Prime Minister of Russia Mikhail Mishustin at the government meeting.

the Prime Minister instructed first Deputy Prime Minister Andrey Belousov and Deputy Prime Minister Marat Husnullin “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 a higher interest” (quoted by TASS).

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 the total volume of 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.