Russian government considers ending subsidized mortgages for IT workers early

Russian authorities are discussing an early end to the state-subsidized mortgage program for workers in the information technology (IT) sector, three sources told the business news outlet RBC. Two of them said the program will finish in December 2026, while a third said the parameters and timing of an early termination are still being worked out.

A federal official said the issue remains under discussion and no final decision has been made. A representative of the Digital Development Ministry said that, with budget funds limited, financing for the program for the next period is being worked out. He promised that rates for people who have already taken out loans will not change for the full term of their loan agreements.

Background of the program

The preferential mortgage for IT workers was introduced in spring 2022. Employees of IT companies accredited by the Digital Development Ministry that use tax incentives could apply.

The interest rate initially did not exceed 5%. In 2024 the terms were tightened: the rate cap was raised to 6%, and Moscow and St. Petersburg were removed from the regions where the program applies. In cities with more than a million residents, the maximum loan fell from 18 million to nine million rubles, and the salary threshold rose from 120,000 to 150,000 rubles.

The ministry said at the time that the changes were partly driven by the program's heavy burden on the budget. The government also announced plans then to extend the program through 2030.