The majority of Russians surveyed (53%) decided to postpone the purchase of an apartment indefinitely. 20 per cent have managed to apply for a concessional mortgage, while 15 per cent will try to do so before it is canceled from 1 July 2024. This follows from a survey of the financial market “Vyberu.ru”.
12 percent of those surveyed had received rejection from banks in June. According to analysts, this is because credit institutions have exhausted the limits allocated to them by the government for mortgage subsidy.
When respondents were asked whether they believed that the abolition of privileged mortgages would stabilize property prices in Russia, 21% answered positively. However, 79% of respondents are confident that after the end of the government program, property prices will continue to rise and it will become much more difficult to buy.
“Over the next two weeks, banks will begin reducing the number of approved mortgage applications to buy time to make already approved loans before July 1. Therefore, credit institutions will now check debtors and their debt burden more carefully and impose new requirements. For example, some banks are already doubling the required down payment,” said Yaroslav Bajurak, general director of Vyberu.ru.
In his opinion, the excitement is fully justified – consumers are preparing for a possible reduction in the availability of preferential mortgage programs. The expert said that in order to get the bank’s approval on time, you need to reduce the risk of rejection in advance: increase the down payment or reassess the property and choose a more budgetary lot and at the same time attract a co-borrower who can repay the debts.
Bajurak admitted that after the end of concessional mortgages for new buildings, the growth of housing loans in the country will slow down, then demand will be redistributed, priority will be given to cheaper secondary real estate, as well as individual housing construction projects. The expert did not exclude that new market conditions will affect the decline in prices of basic goods, which is currently fueled, including concessional loans.
The survey was conducted among 3 thousand Russians in June 2024.
Russians before promise Increase in loan prices despite maintenance of the base rate.