Modifying family mortgages is crucial, according to Golikova.
The Russian government has announced plans to modernize the family mortgage program as part of broader economic and social policy adjustments. This move is intended to support young families and alleviate economic barriers to having more children.
In December 2021, the Ministry of Finance implemented new rules for providing subsidies to banks under the family mortgage program. These changes aim to improve access to affordable housing and financial support for young families, a crucial step towards addressing Russia's demographic challenges.
The preferential mortgage program, known as "Family Mortgage," offers lower interest rates to families with children under the age of six and families raising a minor child with a disability. Currently, family mortgages with payments of 6% per annum are available under this program.
However, recent data shows a decline in the use of family mortgages. In the first half of 2025, 340 thousand loans worth 1.5 trillion rubles were issued, a 55% decrease in quantity and a 47% decrease in volume compared to the same period last year. This decline could be due to several factors, including economic conditions and the level of indebtedness among young families, which is quite high in Russia.
Deputy Prime Minister Tatiana Golikova has identified this issue as a serious problem and a big challenge for the Russian government. In response, the government has increased the total limit for credit organizations under the family mortgage program from 6.26 trillion to 8.65 trillion rubles. Additionally, the volume of subsidizing preferential mortgage programs was increased from 1.3 trillion to 2 trillion rubles in 2025.
Despite these challenges, the authorities do not plan to tighten the requirements for the preferential mortgage program "Family Mortgage." On the contrary, the government aims to increase mortgage affordability for families with children and tie mortgage benefits to the number of children, encouraging couples to have more children.
The modernization of the family mortgage program is part of Russia’s broader socio-economic efforts to support population growth amid economic uncertainty and slowing growth. By providing financial relief and housing stability to young families, the government hopes to encourage them to have more children, contributing to a more balanced demographic landscape in the future.
Vladimir Putin announced that the action of the preferential state program has been extended until 2030, further demonstrating the government's commitment to supporting young families and addressing demographic challenges. As more details about the modernization plans are released, it will be interesting to see how these changes will impact young families and the broader housing market in Russia.
- The Ministry of Finance is expected to enhance the subsidy provisions for banks under the "Family Mortgage" program, with the aim of boosting access to affordable housing and personal finance for young families, a strategy essential to addressing Russia's demographic concerns.
- As part of the modernization plans for the "Family Mortgage" program, the government is contemplating linking mortgage benefits to the number of children, incentivizing families to have more children and potentially creating a more balanced demographic landscape in Russia.
