Mortgage issuance slowed down in Russia. This was reported to reporters by the Deputy Prime Minister of the Russian Federation, Marat Khusnullin.
“The only thing we’ve seen a disturbing trend so far is a downward trend in mortgage lending rates. According to the results of the first quarter, we will definitely bring this issue to the agenda at the prime minister level, and if necessary at the president level,” he said.
The Deputy Prime Minister added that the situation is currently being discussed with the Central Bank of the Russian Federation and how the extended preferential mortgage programs work.
As before reported, the era of near-zero mortgage rates is coming to an end, developers began to offer Russians mortgage loans at an annual rate of 3% as part of their program. At a press conference on Friday, Nabiullina said she plans to tackle the Central Bank’s high-risk mortgage schemes.
“As for the various mortgage plans from the developers, the cash-back tranche mortgages, we are definitely not happy with these plans, “who knows what”, as you say, I agree with that. We don’t just follow this system, [но] “We are ready to make a decision on this issue,” said the Central Bank Governor.
BCS World of Investments stockbroker Valery Yemelyanov said that those who are considering a scenario for investing in real estate should consider an important nuance on the basis of the gradual removal of mortgages with close to zero rates. The expert said that to get a real estate investment return, the loan rate should be lower than the rent rate.