The preferential Arctic Mortgage housing loan programme was launched in Russia on Wednesday. Residents of Murmansk Region, Nenets, Yamal-Nenets and Chukotka Autonomous Areas, as well as northern municipalities of Arkhangelsk Region, Krasnoyarsk Territory, Yakutia, Karelia and Komi can apply for a mortgage at a 2% annual rate. This is reported by TASS.

Married or unmarried borrowers under 36 years old with at least one child under 19 years old can avail of a mortgage at a preferential rate. Recipients of free land plots under the Hectare in the Arctic programme, participants of the programme entitled 'Increasing Mobility of Labour Resources' and medical professionals and teachers aged between 21 and 70 can also apply for a loan with government support.

The loan can be used to purchase new constructions, ready-made housing in settlements and single-industry towns or for individual residential construction. With a 2% rate, the minimum loan amount is RUB 6 mn for a term of up to 20 years. The minimum initial payment when purchasing a home is 20%. Two Russian banks, VTB and DOM.RF, have announced their participation in the programme and began accepting mortgage applications from 24 October.