Russia May End Its IT Mortgage Program Early

Russia could end its subsidized IT mortgage program as early as late 2026, although it was previously extended through 2030, RBC reports. Federal budget constraints are behind the proposal. The end of state support could make home purchases harder for IT professionals and reduce housing demand across the country's regions.

When Could the IT Mortgage Program End?

The Ministry of Digital Development and the government's economic and financial agencies are considering stopping new subsidized mortgage lending in December 2026. One reason is the high cost of reimbursing banks for the difference between market interest rates and subsidized rates. No final decision has been made, and the procedure for completing transactions with previously approved applications remains unclear.

The draft federal budget provides for a gradual reduction in spending on IT mortgages in Russia. The program is allocated RUB 77.8 billion in 2026, RUB 64.8 billion in 2027, RUB 41.1 billion in 2028 and RUB 35 billion in 2029. This represents a 55% decline over three years. Some of the funding is needed to service loans already issued, so the presence of subsidies in future budgets does not guarantee that new lending will continue.

At the same time, the government has allocated an additional RUB 7.7 billion for subsidized IT mortgages. The money will come from the reserve fund and be channeled through DOM.RF to reimburse banks for foregone interest income. The authorities expect the total number of borrowers under the program to reach at least 102,500 by the end of 2026. This additional funding covers current-year commitments and does not mean that plans for an early closure have been abandoned.

How the IT Mortgage Program Works in 2026

Current IT mortgage terms provide for an annual interest rate of up to 6% and a maximum subsidized loan of RUB 9 million. The minimum down payment starts at 20% of the property's value, while repayment periods can extend to 30 years. Banks may impose additional requirements, including a larger down payment.

The program is open to Russian citizens aged 18 to 50 who work for companies accredited by the Ministry of Digital Development and eligible for industry tax benefits. For employees of firms registered in cities with more than one million residents, as well as in the Moscow and Leningrad regions, minimum monthly income before tax is RUB 150,000. Elsewhere, the threshold is RUB 90,000.

Subsidized loans can be used to buy an apartment in a new development or to build a detached house using a contractor. Resale properties are not eligible. Moscow and St. Petersburg are also excluded: the restrictions apply both to the location of the property and to the employer's registration. Purchases in the Moscow and Leningrad regions, however, are permitted.

The preferential rate applies throughout the loan term as long as employment requirements are met. If a borrower leaves their job, they have six months to join another accredited IT company that qualifies for the program. Otherwise, the bank may increase the mortgage rate.

How Many IT Mortgages Have Been Issued?

From January to September 2026, banks issued 9,000 loans under the IT mortgage program worth nearly RUB 64.5 billion. According to DOM.RF, the number of agreements rose 11% compared with the same period in 2025, while their combined value increased 18%. Since the program was launched, IT professionals have taken out housing loans totaling almost RUB 880 billion.

The number of participants reached 100,000 by the end of July, the Ministry of Digital Development said. Following the rule changes in August 2024, nearly 22,000 professionals used subsidized IT mortgages to buy property worth around RUB 150 billion.

The Moscow region led in the first half of 2026, with 831 IT mortgage agreements worth RUB 6.7 billion. The top five also included Sverdlovsk and Novosibirsk regions (479 and 384 agreements, respectively), Tatarstan (452) and Krasnodar Krai (290). Overall, banks issued about 6,000 such loans worth more than RUB 41 billion over the six-month period.

The fastest growth in borrower numbers was recorded in the Leningrad region, up 46% compared with the first half of 2025. The Moscow region followed with 37%, Chelyabinsk region with 36%, Bashkortostan with 29% and Rostov region with 11%. The figures show that the program remains in demand in regions where its possible closure could affect the market for newly built homes.

Implications for Russia's Housing Market

The weighted-average mortgage rate for newly built homes reached 18.77% per year, compared with 6% for IT professionals. For a RUB 6 million loan over 20 years, the monthly payment would rise from RUB 42,986 to RUB 96,169, according to DOM.RF. The difference exceeds RUB 53,000, excluding insurance and bank fees.

Russia has already tightened other subsidized home-loan programs. Since February 2026, spouses must be co-borrowers under the family mortgage program, with only one such loan allowed per family. In October, interest rates were linked to the number of children: in most regions, they rose to 10% for families with one child and to 8% for those with two. The subsidy period was shortened to 15 years. Eligibility for rural mortgages was also narrowed earlier: these loans are now available mainly to agricultural and social-sector workers and certain other categories of borrowers.

International Investment analysts note that further cuts to mortgage subsidies could affect the entire new-build housing market, particularly the mass-market segment, where demand depends heavily on access to credit. Weaker buyer activity could lengthen the time needed to sell apartments and complicate the launch of new developments. A sharp fall in prices is not necessarily likely, however, as high construction costs limit developers' room to maneuver. If market mortgage rates remain at current levels, companies will have to adjust their plans and align their offerings more closely with households' actual purchasing power.

FAQ: Questions and Answers About IT Mortgages

When could the IT mortgage program close in Russia?

One scenario under consideration would end new lending in December 2026. As of November 7, no official decision to terminate the program early has been announced.

What is the IT mortgage rate in 2026?

Up to 6% per year. The maximum subsidized loan is RUB 9 million, with a down payment starting at 20%. Individual banks may apply additional requirements.

Who is eligible for an IT mortgage?

Russian citizens aged 18 to 50 who work for qualifying IT companies. Income thresholds and restrictions on where employers are registered apply; Moscow and St. Petersburg are excluded.

Can an IT mortgage be used to buy a resale property?

No. The program covers property purchased from developers or construction of a detached house, subject to the applicable conditions.

What happens to an existing IT mortgage if the program closes?

The terms of an existing loan agreement remain in force as long as the borrower continues to meet program requirements. After leaving a job, they must join another eligible IT company within the period set by the rules.

What happens to mortgage applications already approved by banks?

The procedure for completing these transactions has not yet been defined. Preliminary approval does not guarantee a loan if government program rules change before the contract is signed.