The Ministry of Finance of the Russian Federation recently submitted to the government a draft decision that introduces changes to the concessional mortgage program. This update comes with concerns about the speed of portfolio growth and a perceived decline in loan quality, according to a report by Interfax citing Deputy Minister Ivan Chebeskov. –
Chebeskov noted that the regulator is examining how to curb the rapid expansion of the mortgage portfolio while maintaining responsible lending standards. Among the potential measures under review is a higher minimum down payment for concessional loans, aimed at tempering demand and ensuring borrowers meet stricter financial criteria. –
He emphasized that the discussion covers multiple facets of concessional mortgages to prevent uncontrolled growth of the portfolio and to safeguard credit quality. The remarks highlight a willingness to adjust policy tools in response to evolving market conditions and borrower risk profiles. –
Previously, the government raised the minimum down payment from 15 percent to 20 percent of the housing cost. Yet this adjustment did not produce a marked slowdown in issuance, largely due to rising rates on market mortgage programs that kept funding options available for many buyers. –
Earlier this year, the Central Bank proposed aligning preferential mortgage rates more closely with market levels, a move that would influence the cost dynamics for borrowers and lenders alike. The intention behind this proposal is to ensure that subsidized lending remains sustainable within the broader financial system. –
There are early indicators that demand for mortgages in the secondary market may begin to stabilize as the market absorbs the previous shock. Observers are watching how these policy steps will interact with income trends, housing supply, and overall consumer confidence in real estate credit. –