Rural mortgage: In Tatarstan, young people prefer housing in small villages
Today, the Ministry of Agriculture and Food of the Republic of Tatarstan hosted a press conference of the Ministry of Agriculture and Food of the Republic of Tatarstan dedicated to the implementation of rural mortgages in the republic. It was attended by Deputy Minister of Agriculture and Food of the Republic of Tatarstan Marsel Makhmutov, Director of the Tatarstan branch of Rosselkhozbank JSC Lyalya Kudermetova, Head of the Department for Relations with Partners and Mortgage Lending at Sberbank PJSC Leonid Zakharov, Director of the Retail Products Development Directorate of Ak Bars PJSC Bank Alexander Pronyagin and head of the partner channel, acquiring and car lending department of PJSC "Ak Bars Bank" Oleg Islamov.
“The Republic of Tatarstan in 2020 participated in the new State Program of the Russian Federation “Integrated Development of Rural Areas”. The volume of financing in the republic amounted to 3,085.2 million rubles, including 1,328.7 million rubles from the federal budget, 1,040.4 million rubles from the republican budget, funds from local budgets and extra-budgetary funds amounted to 715.8 million rubles. According to this indicator, the Republic of Tatarstan entered the top three in Russia ”, - noted Marsel Makhmutov.
He added that one of the activities of the State Program is "Rural mortgage".
The goal of the project is to create conditions for providing affordable and comfortable housing to citizens living in rural areas, by ensuring the volume of housing commissioning (acquisition) by 2026 to 122 thousand families.
Marsel Makhmutov also recalled that as part of the state program, the state provides subsidies to credit institutions to compensate the lost income from mortgage loans. Thanks to this, citizens living in rural areas can receive a preferential mortgage rate or refinance an existing mortgage loan on preferential terms.
At the end of his speech, he noted that in 2020 Rosselkhozbank out of 8349 applications, issued 1639 loans for rural mortgages in the amount of 3,602 million rubles. Sberbank issued 50 mortgage loans (out of 1096 applications received) in the amount of 117.2 million rubles. Ak Bars Bank issued 4 mortgage loans in the amount of 5.6 million rubles (out of received 187 applications). In total, in 2020, 1,693 mortgage loans were issued in the republic in the amount of 3,724.8 million rubles.
In 2021, activities for the allocation of mortgage loans will continue. The Ministry of Agriculture of Russia plans to increase the funding limit for subsidizing the interest rate on mortgages. In 2020, 0.9 billion rubles were funded across the Russian Federation, 4.1 billion rubles are planned to be allocated in 2021.
With the help of the Rural Mortgage, citizens can get a loan at a preferential rate of up to 3 percent per annum for the purchase of a land plot and the construction of housing on it, an apartment in a new building, a ready-made private house, for the construction of housing on an existing plot.
The maximum term for a loan is 25 years. The borrower's own contribution is at least 10%. The maximum loan amount is 3 million rubles. You can use maternity capital as a down payment.
The mortgage applies to land or housing in rural areas and in cities with a population of no more than 30 thousand people. Construction must be carried out under a work contract with a contractor. The terms of the work contract must provide the completion of the construction of an individual residential building within a 24 months period from the date of granting the borrower a preferential mortgage loan.
Lyalya Kudermetova noted that despite the fact that housing on a rural mortgage can also be purchased in regional centers, small villages are in great demand among applicants, residents of Tatarstan prefer to buy ready-made housing, and mainly young people apply for a mortgage, the average age of the recipient mortgages is up to 35 years. The procedure for obtaining a rural mortgage takes more time than for a conventional mortgage and requires more documents, but this is all due to the need to coordinate each borrower and each property with the federal center (the Ministry of Agriculture of Russia).
Banks confirmed that the interest rate on rural mortgages will be no more than 3% and may even be reduced if a number of conditions are met, there are no hidden fees and other "pitfalls".
What's new in 2021:
You can buy an apartment in houses no higher than 5 floors;
Within 6 months, you must register in the purchased housing;
It is now possible to build a house on a rented land plot.