Mortgage markets in Russia are continuing to see promotional offers from banks that promise lower initial rates or reduced interest for the first two or three years, while the overall price of housing is often overestimated. This was noted by the Central Bank in a commentary summarized by Izvestia. The message from the Bank of Russia is clear: it is actively working to minimize risks associated with mortgage products and to curb programs that could amplify those risks.
Several major lenders have acknowledged offering discounted mortgage options. Sberbank, for instance, explained that borrowers typically pursue a reduction of the rate by about 1.5 percentage points. In observed cases, more than 22 thousand customers have taken advantage of the program, resulting in savings totaling about 6.1 billion rubles. VTB confirmed the absence of additional risks tied to borrower debt levels or to the program meeting Central Bank requirements. The bank rolled out the option on May 10, with a one time payment needed to lower the rate by roughly between 0.5 and 0.8 percent.
The trend toward discounted mortgage offers began to gain traction in May, with banks promoting these products to attract borrowers. The Central Bank subsequently stressed the importance of borrowers recognizing that the savings on interest payments over the long term must outweigh the upfront bank commission charged for the rate reduction. In other words, the long term advantage hinges on whether the cumulative savings exceed the initial cost.
A broader assessment by the Central Bank showed a notable deterioration in the quality of housing loans issued in the past. In a policy brief released last year, the regulator highlighted that high risk loans within the new construction segment had risen by a record 69 percent in the fourth quarter of 2022, compared with 43 percent a year earlier. This trend underscores the need for vigilance as lenders steer customers toward promotional mortgage products that can mask true costs and risk.
Statements from former government official Siluanov touched on the balance between investor optimism and cautious prudence, reflecting ongoing public and regulatory dialogue about the housing market’s stability and the role of debt management in broader economic health.