Saving is not a big deal: housing savings reform will make buying a home safer
Amendments to the law on housing savings, which the State Duma plans to consider in the fall of 2025, are aimed at creating a new mechanism for financial protection and assistance to citizens in accumulating funds to buy housing, the head of the State Duma Committee on the financial market told Izvestia. The bill provides for deposit insurance of up to 10 million rubles, guaranteeing the return of savings even in the event of bankruptcy of a credit institution. This tool should become an effective alternative to mortgages and regular bank deposits, especially in conditions of rising interest rates and instability. The details are in the Izvestia article.
Housing savings as an alternative to debt
The new housing savings system is aimed at those who find mortgages too burdensome or undesirable in conditions of high interest rates. Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, told Izvestia that housing deposits will become a convenient tool for targeted accumulation.
— Mortgages with high interest rates can be an unprofitable solution. In addition, not everyone is comfortable taking on debt obligations. The relevance of housing deposits is particularly increasing in the context of the cessation of the sharp rise in real estate prices, which was observed during the period of the non-addressable mortgage with state support. In addition to the increased guarantee compensation, a significant advantage will be the ability to replenish the deposit by third parties, such as relatives," Aksakov said.
The Bank of Russia supports this bill: the regulator was actively involved in its development.
— The creation of a housing savings system in Russia, on the one hand, will provide citizens with the opportunity to accumulate a down payment in a special account with the right to subsequently conclude a mortgage loan agreement on special terms. On the other hand, it will allow credit institutions to expand their long—term resource base and improve the efficiency of mortgage portfolio management," the Central Bank's press service said.
Artemy Shurygin, President of the Russian Guild of Realtors (RGR), notes that the peculiarity of this scheme is a long period of accumulation, protecting money from inflation by regularly indexing the accumulated amount according to the official inflation rate of the Central Bank.
— In addition, we are talking about guarantees for the return of invested funds from the state, — says an expert from the RGR. — Such a program compares favorably with a regular mortgage by not immediately burdening the borrower with large payments to the bank, allowing citizens to gradually save the necessary amount, removing a significant financial burden from the family budget.
Insurance and risks: how guarantees work
The increased deposit insurance limit of up to 10 million rubles will become the main mechanism for protecting the savings of the population. At the same time, the draft law prescribes a disciplining measure — early withdrawal of funds or their misuse deprives the depositor of interest. But there are also limitations.
Elena Khomenko, Professor of the Department of Banking Law at the Moscow State Law University, warns about the risks of a systemic crisis.
— The mandatory deposit insurance system does not guarantee payments during the mass bankruptcy of banks, — says Khomenko. — The deposit insurance Fund has a limited volume, and if there are simultaneous problems in several banks, there may be delays or reductions in payments. It is also not yet clear which type of deposit is being opened — urgent or on demand, and this affects the interest on them.
Valeria Shuleva, a representative of the developer Zhelezno, notes a higher limit on the amount of the deposit.
— The bill establishes the obligation to insure deposits of up to 10 million rubles, which is significantly higher than the current limit of 1.4 million, but this amount may not be enough to buy a home in some regions. At the same time, if the client did not use the funds for their intended purpose after closing the deposit, the interest will be close to zero," she points out.
Housing affordability and target groups
The Ministry of Construction of Russia emphasizes that the housing savings mechanism will create conditions for accumulating funds for the purchase of housing with the support of banks at reduced mortgage rates.
— The housing savings mechanism is a form of accumulation of citizens' funds to pay for purchased housing with a mandatory policyholder of funds and the possibility of obtaining a mortgage loan on preferential terms, — explains the press service of the Ministry of Construction.
The importance of this tool for long-term social policy and the formation of financial literacy is highlighted by the CEO of Pro-Vision Communications, architect Vladimir Vinogradov.
—Exceeding insurance coverage for deposits of up to 10 million rubles is a vivid example of increasing financial literacy and government responsibility to citizens in housing matters," Vinogradov says. — Such a large-scale deposit guarantee creates the foundation for the formation of sustainable savings habits, which is especially important in conditions of economic instability and growing demands on mortgage programs.
He also draws attention to the importance of the system for young families and regional residents.
"Young families and residents of regions where mortgages are expensive or incomes are unstable will be able to save with less risk," the expert says.
Anton Glushkov, President of the National Association of Builders (NOSTROI), emphasizes that the bill looks promising for citizens with variable income levels, since it clearly defines the reasons for banks' possible refusal to provide a mortgage loan if there is a targeted housing deposit. This will increase the confidence of potential home buyers in the positive outcome of the review of applications by banks if they meet the established conditions.
At the same time, the bill, in his opinion, needs to be finalized: it is advisable to provide for fixed terms of mortgage agreements for depositors, special rate benefits and the obligation of backbone banks to accept such deposits. An increase in insurance coverage to 10 million rubles, according to Glushkov, is unlikely to have a significant impact on the motivation of depositors, since the frequency of insured events in the domestic banking sector has significantly decreased.
According to experts, when opening a housing deposit with a starting amount of 1 million rubles and a monthly replenishment of 20 thousand rubles at an estimated rate of 6% per annum (adjusted for inflation), after three years of accumulation, you can get about 2.5 million rubles. For comparison, when applying for a standard mortgage for 5 million rubles with a rate of 8% for 15 years, the overpayment will amount to about 3.5 million rubles, whereas when accumulating, you can save about 2 million rubles.
At the same time, the maximum amount of insurance coverage for housing deposits will be 10 million rubles, which is significantly higher than the standard limit of 1.4 million rubles. In regions with lower housing prices (for example, in the Volgograd region, the average cost per square meter is about 113 thousand rubles), the accumulated funds may be enough to buy a home faster than in Moscow, where the average price of a "square" reaches 351.5 thousand rubles.
Economic perspective and challenges
Experts express cautious optimism, noting the general difficulties for such tools in the Russian market. Alexey Popov, head of the CIAN Analytical Center, points out the limitations and the risk of budget burden.
— Similar regional programs (for example, savings accounts in Bashkiria that have been in operation for more than 10 years) they have limited application potential. Most of the buyers there prefer mortgages anyway," he noted.
Vitaly Kostyukevich, Director of retail products at Absolut Bank, believes that housing deposits will be effective in cooperation with developers: when a client opens a deposit at the market rate, but receives a discount on an apartment at the expense of the developer, or when there is an increased deposit rate and these increased percentages are subsidized by the developer.
"This tool will be interesting for young families and people with average incomes," explains Kostyukevich. — At the same time, it may not significantly affect the availability of housing for categories with unstable incomes.
Dmitry Vladimirov, Managing Partner of IDI-Project, also notes the usefulness of the innovation.
— The program will help save up for the initial payment, combining the reliability of the contribution and the target orientation, which increases trust, — he says. — It is useful for young families and low-income regions, but it depends on stable rates and a reasonable developer.
In general, if the new rules are adopted, housing affordability will definitely increase, but still not dramatically, says Optima Development CEO David Khudoyan. This mechanism is able to accelerate the accumulation of a down payment by an average of six months and is not without pitfalls, he is sure.
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