Eduard Samigullin, development director of Zhiloy Kvartal Group of Companies, said that banks will continue to increase mortgage interest rates if the Central Bank increases interest rates again.
Let us remind you that in September the regulator decided to increase this rate to 13%. As experts say, banks cannot help changing the terms of mortgage loans upwards after the key growth, and most likely this forced trend will continue.
“Sber or VTB, the leaders of the mortgage market, do not have such a resource. “However, although credit institutions have already started to increase prices, those who want to improve their living conditions, anticipating that mortgage loan prices will increase rapidly, are trying to do this in a timely manner,” he said.
According to Samigullin, in August the sales volume on the real estate market of the Republic of Belarus increased twice as much as the statistical average.
“This excitement was largely due to the Central Bank sharply increasing the interest rate from 8.5 percent to 12 percent. We saw a similar increase in sales at the beginning of September, when it was decided to increase the minimum down payment threshold from 15% to 20%,” the expert said.
Samigullin added that during this period, people who already had approved mortgages entered into transactions or accelerated to obtain mortgages on older, more favorable terms.
According to the expert, whether the Central Bank will continue to increase the interest rate depends on many factors, including real and expected inflation dynamics and the assessment of risks arising from internal and external conditions.
Elena Petropavlovskaya, head of the analytical center of the RBI Group, also noted that there is now an increase in activity in the market as buyers rush to purchase real estate using old, already approved loans at lower rates.
“Market expectations are highly dependent on government subsidies for social benefit programs and the rates for those benefit programs. I would also like to note that there is also an increase in the minimum down payment for a concessional mortgage; “This rate increases to 20%,” he explained.
Let us remind you that previously VTB banks, Sberbank Dom.RF and other credit organizations announced increases in rates on concessional mortgage programs.
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.