The share of government concession loan programs in the total housing loan volume may reach 60% by the end of 2023, exceeding one quarter of the figure at the beginning of January. Such an estimate was given by the head of the VTB Mortgage Loans Department, Sergey Babin, his words were transmitted by the press service to socialbites.ca.
“By the end of the year, government support could increase by another 10 percent and receive 60 percent of the total loan amount, which is more than a quarter of what it was at the beginning of the year (45%).” Babin’s press service quotes.
VTB stated that after the increase in the rates of mortgage programs in the market, interest will shift to government-sponsored programs that allow to keep the loan burden to a minimum. Borrowers’ interest in standard schemes that often involve second-home purchases will likely dwindle. The state bank explained that this was facilitated by the increase in finished apartment prices and the additional measures taken by the Central Bank to regulate the market.
Anastasia Skuratova, Head of the Regional Analysis Department of the Main Directorate of the Central Federal District of the Bank of Russia, in an interview with socialbites.ca registeredBecause preferential programs now support the mortgage market as a whole, loans are available at an annual rate of 8%. He admitted that long-term loans, including mortgages, will become more affordable for Russians. The inflation premium that banks include in loan interest rates will decrease. This means that interest rates will decrease.
After the Central Bank increased the interest rate by 350 basis points to 12% annually, both banks, which are in the top 30 in terms of assets, increased their housing loan interest rates by 1.5-3 points on average. Average mortgage interest was 14% per year.
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