On July 1, the 8% preferential mortgage program ends. Against this background, banks declare that they are ready to maintain a low interest rate if developers agree to subsidize the shortfall in income. President of the International Mortgage and Real Estate Academy Irina Radchenko stated “Reedus” doubts the success of this venture.
“The key rate in Russia is 16 percent, and for market mortgages it is 20 percent. The maturity of the housing loan is 20-30 years. “I do not think that a developer will emerge that can compensate for the 12 percent loss of income that the bank has experienced over 20-30 years,” Radchenko said.
He added that demand in the new building market could decrease by at least threefold after the abolition of concessional mortgages. The expert also admitted that loans in the primary housing market will become more accessible when prices for new apartments fall significantly.
Antonina Darchinova, Commercial Director of Novastroy Group of Companies, previously spokeIt is stated that the demand for new buildings in Russia will decrease by 30-40% after July 1, when the state program for privileged mortgages in the country ends.
In June reportedIt was stated that the Russian Ministry of Finance agreed to increase the premium for calculating the compensation to be paid to banks for granting privileged mortgages after July 1. We are talking about increasing the premium to the Central Bank key rate, which is used to calculate compensation for banks’ income losses under state-sponsored programs.
Russians before gave adviceHow can I make a mortgage more profitable?
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Source: Gazeta
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