The Central Bank of Russia increased credit institutions’ risk ratio premiums for mortgage loans to overleveraged borrowers TASS.
This is because credit standards in the mortgage market have deteriorated significantly in the face of rapid credit growth. In the last two years, the share of loans provided to borrowers with a debt burden of over 80 percent has almost doubled, reaching 47 percent in the third quarter of 2023.
This decision will force banks to provide fewer home loans to such borrowers.
Now the borrower’s debt burden premium is over 80 percent and the down payment for 10-15 percent will be 9 percent, for the contribution of 15-20 percent it will be 8 percent, for the contribution of 20-30 percent it will be 7 percent – the contribution will be 30-50 percent – 6 percent. (previously – 2) and with 50% down payment, the premium to the risk coefficient will be 5 (previously – 1).
The last time the regulator increased premiums was October 1 last year.
Russian President Vladimir Putin in his speech to the Federal Assembly on February 28 offered Extending the Family Mortgage program until 2030.
Formerly Central Bank of the Russian Federation raised key rate up to 16%.