The option for Russians to acquire apartments through installments without bank involvement has gained traction, according to the publication News.
Amid a fresh rise in the Central Bank’s key rate and tighter mortgage availability, many Russians are turning to direct-from-owner installment purchases. The federal company Etazhi shared this trend with the press, noting that buyers opt for housing deals that bypass traditional lending channels.
Experts point out that this approach is especially popular when acquiring suburban homes. In these arrangements the property is pledged as collateral until full payment is completed, which provides a form of seller protection. For buyers it can mean more favorable terms compared to steep mortgage rates, while sellers gain access to buyers who might struggle to secure bank financing. The key to success lies in drafting a precise purchase agreement and securing an appropriate deposit.
Analysts recall that between 2014 and 2016, when mortgage interest rates were high and demand soft, sellers increasingly accepted installments from buyers without loans. This option allowed them to move properties that might have lingered on the market, offering a viable alternative to conventional financing. The observation was shared by Tatyana Reshetnikova, a deputy head of the mortgage department at Etazhi.
At the most recent Central Bank meeting, the rate was raised sharply, lifting the key rate by 200 basis points to reach 15 percent—the highest level since May 2022. Market commentators have also warned that mortgage rates could push higher, with some economists forecasting annual rates around 20 percent through the end of the year. The evolving policy landscape continues to influence how households in Russia and neighboring markets approach home purchases, including by expanding the role of owner-financed installments and other non-bank methods.