Extension of preferential mortgage in Russia called ineffective

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www.vsyako.netPhoto: Konstantin Kokoshkin / “Kommersant”

The effect of the expansion of the program of preferential mortgage at 6.5 percent per annum will be insignificant. This opinion was expressed by “the Ribbon.ru” Vladimir Prokhorov, a member of the General Council of the public organization “Business Russia”.

“You have to remember that the duration of the program is restricted in the same way as the limit (funding program — approx. “Of the tape.ru”) — 740 billion rubles, — said the expert. — After it is exhausted, the buyer might withdraw from the market in anticipation of more favorable credit conditions. Therefore, if the effect, it will be insignificant, the demand for housing may rise by 10-15 percent and to reach the performance end of last year.”

The expansion of the program Prokhorov called ineffective, stating that a real incentive for the housing industry must extend it for at least a year. In addition, it is suggested to further reduce the interest rate on the mortgage and until the minimum threshold to reduce the initial fee. “Banks themselves need to develop programs that will mitigate the conditions for granting loans for housing. We are already seeing a fairly high failure rate”, — concluded the expert.

Mortgage at 6.5 percent per annum, Russian President Vladimir Putin announced April 16. A few days later, Russian banks have launched appropriate credit products. On June 23 the President announced that the program will be expanded to the size of mortgages for home purchase at a rate of 6.5% has increased from 3 million to 6 million rubles. In the largest Metropolitan areas — Moscow and St. Petersburg this figure rose to 12 million rubles.

Video, photo All from Russia.

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