In Russia, the size of the minimum down payment for a mortgage has doubled. Changes announced press service Central Bank of Russia (CBR).
From 1 June 2023, the minimum mortgage payment is 20%, not 10%. After six months, starting January 1, 2024, the entrance fee will increase to 30%.
The regulator explained the increase in the fee with the risk of a price bubble in the mortgage loan market. It is noted that the related sector is growing rapidly and with it, the number of high-risk loans with a high debt load from Russians has increased.
As Elvira Nabiullina, head of the Central Bank of the Russian Federation, noted, risky mortgages are fraught with negative consequences for the country’s economy.
Denis Bobkov, formerly Head of Marketing and Analytics at Asterus saidThat the Bank of Russia has now changed the premium-to-risk ratios, which will depend on the size of the down payment on a mortgage loan. At the same time, an increase in the risk ratio will force banks to raise loan interest rates. This will make them less attractive to customers.
Source: Gazeta
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