Mass preferential mortgages are not as good as they seem at first glance

The broad preferential mortgage program was only appropriate as a short-term temporary measure to support demand for housing during the acute phase of the pandemic in 2020 or at the peak of uncertainty after the shocks of spring 2022. As a permanent measure, it is not capable of increasing housing affordability.

The result of a series of extensions of preferential mortgage terms for new buildings was a rapid rise in prices on the primary housing market, recalled Alexey Zabotkin:

The money that people hoped to save on interest payments was completely «eaten up» by the additional increase in the price of the apartment. Only targeted assistance to people in need makes sense, and the volumes of such programs should not be on a scale that determines the situation on the housing market as a whole.

source: «Rossiyskaya Gazeta»