The share of loans with payment terms of 90 days (NLP 90+) in housing loans is currently at a very low level. In the ten months of 2023, the share decreased to 0.6%. This is 0.1 point lower than at the beginning of the year. The press service of the Central Bank of the Russian Federation told socialbites.ca about this.
However, the regulator is concerned about the quality of mortgage loans provided.
“Under the influence of macroprudential measures, the share of mortgages with LTV 80+ (with less than 20% down payment) is gradually decreasing. But in absolute terms the volume of such mortgages is still high. A mortgage with a small down payment carries a higher level of risk. “To reduce the issuance of risky mortgages, from March 1, 2024, the Bank of Russia will additionally increase risk coefficient premiums for loans with high PDI (an indicator of the borrower’s debt burden),” explained the press service of the Central Bank.
They announced that the measures taken in September and December 2023 to increase the down payment within the scope of government programs will contribute to improving the quality of mortgage issuance. In September, the minimum down payment for all government-backed programs increased to 20%, and for “Concession mortgages” (8% annually) the rate increased from 20% to 30% in December.
“Therefore, we can expect a decrease in the issuance of risky mortgages in the future,” the press service of the Central Bank summarized.
More details material “Newspapers.Ru”.
Previously Khusnullin accepted Decrease in mortgage issuance volumes in Russia in 2024.