Second-hand family mortgages in Krasnoyarsk denied for buyers
Mom and Pop Real Estate Deal with Sky-High Interest Rates - The Only Option to Buy an Apartment in 2025
But this program comes with significant restrictions. Experts spill the beans on who and under what conditions can utilize the family mortgage program in 2025. For instance, buying a second-hand apartment isn't possible everywhere.
The family mortgage program has been active in Russia since 2018. It was initially set to end on July 1, 2024, but has been extended till 2030 per the President's orders.
All the nitty-gritty details of the family mortgage program have been clarified by experts in a dedicated section of the dom.rf portal this year.
General Conditions
So, under the family mortgage program, one can get a loan with an interest rate up to 6%, where the initial deposit must be at least 20% of the property's value. This initial deposit can be paid using matrimonial capital, which is also allowed for pre-payment of the family mortgage.
Parents with a child aged 6 years or younger, those with two or more minor children, or parents of a disabled child can avail of the family mortgage program. This also applies to families with adopted children.
The maximum loan amount is 12 million rubles in Moscow, Saint Petersburg, Moscow Oblast, and Leningrad Oblast, while it is half that (6 million rubles) for other regions. If the desired apartment costs more than the limit, one can get part of the loan through the family mortgage program, and the rest can be paid market rates or under regional mortgage programs.
Currently, numerous large banks participate in the family mortgage program.
What Can Be Bought
The family mortgage program can be used to buy a new flat from the developer: a ready flat or a flat under construction, and a self-constructed or completed private house.
Second-hand Homes
The program also extends to the purchase of a second-hand apartment or house from a closed-end investment fund, the Territory Development Fund, or the Moscow Housing Renovation Plus construction fund, as well as for building a house with a contractor and using escrow accounts. However, it is not possible to buy a property on the basis of a transfer of rights under a DDU agreement.
As of April 1, 2025, it will be possible to buy second-hand apartments under the following rules:
- The property must be located within city limits where no new multi-story buildings are being constructed or the number of such buildings does not exceed two.
- The property cannot be in a state of ruin or older than 20 years.
- Second-hand apartments can be bought with the family mortgage program only once.
Families with two minor children, disabled children, or children under 6 years old can utilize the program in 35 regions or in small towns with a population of up to 50,000 people, except for the regions of Moscow, Saint Petersburg, Moscow Oblast, and Leningrad Oblast.
In the list of regions with low construction volumes where families can buy a second-hand apartment using the family mortgage program, the Krasnoyarsk territory is not included.
However, the list of suitable small towns (a total of 904 towns in Russia) includes 20 towns in the Krasnoyarsk region where buying a second-hand apartment is possible.
In the Krasnoyarsk region, second-hand apartments will be available in Ilansky, Kodinsk, Artemovsk, Zaozerny, Duidden, Igar, Uzhur, Uyar, Achinsky, Bogotol, Borodino, Divnogorsk, Yeniseisk, Kansk, Lesosiabirsk, Nazarovo, Norilsk, Zheleznogorsk, Zelenogorsk, and Sharpyovo.
The location restriction does not apply if the family mortgage is used for purchasing or building a home.
Experts emphasize that it is not possible to refinance an existing loan when buying a second-hand property. Refinancing is only possible for loans for the purchase of a flat from a developer or for the construction of a home for a family with a disabled child.
Assistance for Large Families
Large families who have taken out the family mortgage can receive a government payment of up to 4.5 million rubles to pay off the mortgage.
For the family to qualify for the payment, there must be at least three children or a subsequent child born between January 1, 2019, and December 31, 2030. All family members must also have Russian citizenship. Moreover, the payment cannot exceed the remaining mortgage debt. For example, if the debt is only 3 million rubles, that amount would be transfered to the bank.
Repeat Use of Family Mortgage
The family mortgage can be taken out again if the previous agreement was signed before December 23, 2023.
If a family has already taken out a family mortgage after this date, it can be re-borrowed under the following conditions:
- If another child is born in the family.
- If the previous mortgage has been paid off.
The same rules apply if a family has previously taken out a mortgage under other government programs, like IT-mortgage, rural mortgage, arctic mortgage, and so on.
Limits
At the end of last year, the Finance Ministry of Russia prepared changes to the family mortgage program to exclude the limit mechanism from the program. The overall limit has been increased to 8.65 trillion rubles.
All banks can use the total limit for the implementation of the 90% subsidized program, and the government compensates the difference between the market and subsidized rates for the banks.If a bank refuses to grant a family mortgage for any internal reasons, families are advised to apply for a loan in another bank.
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- Under the family mortgage program, a loan with an interest rate up to 6% can be obtained, requiring an initial deposit of at least 20% of the property's value, as stated in the dedicated section on dom.rf portal.
- The family mortgage program, active in Russia since 2018, has been extended till 2030 as per the President's orders.
- Major banks participate in the family mortgage program, providing an opportunity for financing.
- This program can be used to buy a new flat from the developer, a self-constructed or completed private house, or even a second-hand apartment or house from specific funds or for building a house with a contractor using escrow accounts.
- As of April 1, 2025, it will be possible to buy second-hand apartments in 35 regions or small towns with a population of up to 50,000 people, except for the regions of Moscow, Saint Petersburg, Moscow Oblast, and Leningrad Oblast, under certain conditions.
- Large families who have taken out the family mortgage can receive a government payment of up to 4.5 million rubles to pay off the mortgage if they meet specific conditions, like having at least three children born between January 1, 2019, and December 31, 2030, and all family members having Russian citizenship.
