Thousand Tatarstan residents applying for rural mortgage for 1,5bn

A new programme of state support to purchase a house at a preferential rate from 0,1% to 3% has appeared in Russia

A state rural mortgage programme at very favourable rates has come into force in Russia since this year, which is also available for citizens despite its name, for instance, if they have found a newly built flat or decided to build a house in the suburbs. The programme allows buying a newly built flat, ready-to-move-in second-hand flat and to build or complete the construction of a house with one’s own contractors in the countryside. The rate is 0,1%-3%, while the biggest sum of loan is 3 million rubles. As Realnoe Vremya found out, almost a thousand Tatarstan residents had already turned to the programmer’s operator at 1,5 billion rubles. Our newspaper examined the terms of rural mortgage and discussed its prospects for the republic with real estate experts.

Rates, terms and banks

The preferential rate of the rural mortgage programme is from 0,1% to 3%, which is notably more accessible than usual loans taken out to buy or build a house. The state will compensate for the interest, which is equal to the key rate of the Central Bank of the Russian Federation — this is the gist of the subsidy.

The list of banks that will work with the programme was to be made up by 10 February. However, it was already known that Rosselkhozbank was on the roster of accredited financial institutions. The following terms to participate in the rural mortgage are published on the website of the bank: “The interest rate from 2,7% a year and to 3% in case of no personal insurance. A scheme for payoff can be chosen. Loan security is a pledge of a purchased (built) real property for the money borrowed from the bank”.

Nowadays the Tatarstan regional branch of Rosselkhozbank JSC has received 950 petitions at 1,538 billion rubles from the population of the republic.

The list of banks that will work with the programme was to be made up by 10 February. However, it was already known that Rosselkhozbank was on the roster of accredited financial institutions. Photo: Rosselkhozbank JSC

Territories and requirements for borrowers

The key moment is that a mortgage in the new programme can be taken out only to buy a house in the countryside. A village, khutor, stanitsa, aul, kishlak, urban-type settlement, workers’ settlement as well as small towns with a population of up to 30,000 people meet this criterion if they are included in the regional development programme.

There are no requirements for a borrower’s age, civil state, place of residence and social status. So citizens can also take out a rural mortgage, most importantly, the future house must be outside the city.

A married man, single mother as well as families without children, one child or large families can take out the loan. It is noteworthy that there is no restriction on borrowers’ children’s age. To compare, the state family mortgage programme requires children to be born in 2018 or later.

Rural mortgage can be taken out to buy a newly built flat or ready-to-move-in second-hand dwelling. It is also possible to build or complete the construction of a house with one’s own contractors. However, one should consider several nuances: firstly, you must have a parcel. It can be purchased, and a house with state support can be built on it. The longest period of works is limited to two years. Secondly, it is necessary to sign an agreement with a contractor — sole proprietor or firm — when building or completing the construction of a house.

It is also important that the house must be suitable for living, that’s to say, with electricity, water supply, sewerage and heating. Besides, its area can’t be less than the norm per family member (fixed on the spot).

  • Elvira Galyautdinova

    Elvira Galyautdinova commercial director at #Suvarstriot

    Undoubtedly, it is a very good programme. Rural Mortgage can make a house purchase for young families more accessible, including for those who have maternity capital. It is very good support from the state, thanks to it the burden on a family budget becomes four times lower than in standard terms.

    Our residential complex South Park, which is developing on the territory of Laishevo Hub, meets the requirements of the new programme. I will note that we are already observing a big number of applications from potential buyers. The amount of bookings has grown many times since the programme was launched a month ago.

  • Antonina Darchinova

    Antonina Darchinova commercial director at Kamastroyinvest

    The programme is already forcing sales of residential complexes that used to be sold worse than those that are close to the city. As far as I am concerned, there aren’t deals yet, but there is a buzz. Demand for such residential complexes will go up, of course, so what will happen then? People will live there, but how are they going to go to the city? If we are now rushing for this cheap price, we should understand how we are going to use it.

  • Takhir Khadyeyev

    Takhir Khadyeyev vice chairman of Tatarstan State Council's Committee for Environment, Agroindustrial and Food Policy

    A place to live in and work is all what one needs in the countryside. And the options existing today offer those citizens who are going to move to the countryside three options. If a person decided to build a house, the state pays up to 70% of the project’s value, the owner pays 30% himself. The next option is, for instance, I have a household or big farm, in this case, the state pays 80%, the business entity does 19%, and members of the municipality pay 1%.

    The last option is 80/20, in which the state pays the first part, and members of the municipality do the second one. These moments are delayed, of course. However, the authorities and officials of the state have heard demand, and the process was launched. I can only positively evaluate this programme. The state participates in it, which means a complete understanding of the necessity to support and help in this area.

    Moreover, there are several dangerous moments here. Sometimes we build a school for 200-300 people, but we don’t calculate if children will study there in some 10 years. And such schools stay empty then. Also, the construction will be carried out through contractors, and doing this through them is by 30-40% more expensive. It is also said that settlements with up to 30,000 people meet the requirements: most importantly, it doesn’t happen there. This can also take place because more agile people live in regional centres. It is also important that they build a house in a place in which it is necessary to revive a village. In general I want to say that practice is the best judge. It is early to say something, it is necessary to start working.

  • Iskander Yusupov

    Iskander Yusupov vice director general at Unistroy

    One of our facilities — Tsaryovo Village — fits the programme. And I can say that clients’ interest in the rural mortgage is quite high. According to last week’s data, we have already had tens of applications. Now we are waiting for all official procedures to end to begin signing deals. This is expected to be in February.

    In general we are assessing the initiative positively. I will repeat that the interest in the programme is really high. As for the biggest sum of the loan, it is quite accessible. A three-bedroomed flat in Tsaryovo is about 4 million rubles, if we are considering the most expensive options. I mean if a person has a million rubles, he can purchase even a three-bedroomed flat at a good rate. Two- and one-bedroomed flats are sold much better.

By Lina Sarimova