Apartments and mortgage Interest Rate in Russia

In today’s blog, I decided to continue the tradition of answering the most popular questions from my channel’s comments. Many people don’t understand how Russians can buy apartments with a 30% mortgage interest rate. That’s why I decided to explain it, especially for you guys. If you’re interested in this topic, like this blog leave a comment, and let’s go!

Before writing this blog, I decided to check the mortgage interest rate again. The last time I spoke about it, it was winter, and the mortgage interest rate in Russia was 30%. According to official bank websites now, the average mortgage interest rate is about 35%. So it’s 5% higher than in winter. Hopefully, it will go down over the years. Honestly, for me, this mortgage interest rate is very high, and it’s difficult to buy something in these circumstances.

It’s really windy right now, which I like because it makes the hot weather more comfortable. Also, water falls from air conditioners like small rain—I really enjoy it. I’ve changed my location again, and here it’s even quieter than before.

First, I should mention something I’ve already discussed in earlier blogs: inherited properties. Many people don’t believe me or think I don’t know the full picture, but really, many Russians inherit properties. People live in apartments inherited from previous generations or sell them to buy something else. This is very common in Russia. I know many people among my relatives, friends, and colleagues who inherited apartments. It’s a normal situation and has helped many people live in better conditions without worrying about rent.

Many people inherit property around 18 years old when their grandparents pass away. Usually, it’s not luxurious—often a one or two-bedroom apartment in a Soviet building.

The second thing is that mortgage interest rates weren’t always so high. Before 2020, rates were normal, and many people weren’t afraid of getting a mortgage. Some families got mortgages before 2020 and were lucky. Russia also offers preferential mortgages for families with kids, people buying houses in rural areas, and those with certain qualifications. For example, if you have a diploma, you may qualify for a lower mortgage rate. Russian moms have benefits too; for example, the government pays around $9,000 for the first child, which can be used for property or education. For the second child, and for larger families, you can even get a piece of land in rural areas for free to build a house.

Now, you may ask: what about people who didn’t inherit property, don’t have kids, and don’t have enough money? Yes, it’s a difficult situation. Many people live with parents, some rent, and moving to cities like Moscow usually means renting because buying property is nearly impossible unless you have a very high income, are a celebrity, official, or run a successful business.

Personally, I like Krasnodar and plan to stay here. For me, it’s a perfect city in Russia. I love the people, the climate, and the quality of food—it’s natural, fresh, and farm-sourced. The only downside is traffic jams, but otherwise, I really enjoy living here.

In the future, I plan to move to a rural area but within the Krasnodar region. The prices here are higher than in Siberia, where you can get a house for around 1 million rubles, but for me, Krasnodar is perfect. When I have my own house, I’d like to grow roses, like my grandmother did when I was a child. She’s now 80, and we chat on CG sometimes.

It’s hard to choose between city life and village life because both have advantages and disadvantages. In the city, everything is close—you can walk to a supermarket, coffee shop, or restaurant. In the village, the air is fresh, you can grow vegetables, and get a bigger, more comfortable house. Apartments in Krasnodar are expensive, but that’s typical for big cities everywhere, like New York or Paris.

In addition, for those of you who are interested, I also share information about Immigration services in Russia, including visa updates, residency tips, and legal procedures to help foreigners live and work here.