Russia extends 2% mortgage scheme in newly integrated regions amid military operation

A bold move to reshape demographics or a lifeline for war-torn regions? Russia's ultra-low mortgage rates spark debate as construction surges.

, and Administrator

2026 May 17 . 11:01 AM

1 min read

The image shows a drawing of a building with a lot of windows on a piece of paper, which is likely... — The image shows a drawing of a building with a lot of windows on a piece of paper, which is likely a plan for a house in the Russian Federation. The paper contains detailed plans and text, likely providing further information about the house.

Russia extends 2% mortgage scheme in newly integrated regions amid military operation

Russia’s subsidised mortgage program, offering a fixed 2% interest rate, will continue in newly integrated regions until the end of the special military operation. The scheme aims to boost housing construction and encourage relocation to these areas. Officials have also set conditions for extending the low rate beyond that period. The 2% mortgage scheme first launched in Donetsk, Luhansk, Zaporizhzhia, and Kherson regions on January 1, 2023. It provides loans of up to 6 million rubles with a minimum down payment of 10%. The program includes extra guarantees for both investors and homebuyers, reducing financial risks.

While any Russian citizen can apply, each person is limited to one mortgage under the scheme. However, eligibility in Belgorod and Kursk regions remains restricted to local residents only. The government’s main priority is ensuring housing for those already living in the new territories. The current 2% rate will stay until construction volumes in these regions match the national average. After the military operation ends, officials believe the areas could attract more settlers due to their climate and coastal access.

The program’s extension depends on construction growth and the duration of the military operation. For now, the low-rate mortgages remain available to support local housing needs. Residents and potential relocators can still apply under the existing terms.