The Russian Ministry of Finance has clarified that the reduction of the interest rate is available to borrowers who have taken out a combined loan, with part issued at a concessional rate within the set limit and another part at a market rate above the limit.

The Bank of Russia has recently lowered the key interest rate, prompting lending market changes. Earlier, banks issued mortgages at a market rate for amounts over 12 million rubles in Moscow, the Moscow Region, St. Petersburg and the Leningrad Region, and amounts over 6 million rubles for other Russian regions.

The actual concession under a combined mortgage depends on the key interest rate and terms of a specific lender.

“Refinancing is unlimited. In the past, banks considered refinancing the market-rate part of a mortgage as issuance of a new loan. Since a concessional mortgage is only available once per borrower, the concessional rate under refinancing would be recalculated at a market rate,” the ministry explains.

However, starting February 1, 2026, a limit of one concessional loan per family will be introduced. Spouses will be obliged to register as co-borrowers. Yet, they will still be allowed to engage third parties if their own income is below the threshold for mortgage issuance.