The sharp depreciation of the ruble has become a pivotal factor in Russia’s housing finance landscape. Analysts note that the currency’s slide has coincided with a surge in mortgage activity during May, a trend attributed to the currency move rather than improvements in living standards for most residents. This perspective comes from industry observers and financial reports cited by URA.RU and others monitoring the market closely.
In the first five months of the year, the ruble lost a substantial portion of its value, with estimates suggesting a decline around a quarter from the start of 2023. This devaluation has been identified as a primary driver behind the record levels of housing loans issued in that period. Observers caution that such lending growth does not translate into broader prosperity for the typical citizen, and that gains in mortgage activity are often tied to the presence of savings rather than widespread income improvements.
One prominent analyst explained that earlier, currency holders frequently moved their savings into foreign currencies without facing significant price swings. The current environment, marked by effective restrictions on foreign currency deposits, has altered that dynamic. Fewer people are willing to keep funds in foreign currency at banks when there are sizable costs involved and less favorable terms for storing value in foreign money, he noted.
Earlier communications from Russia’s central banking authorities indicated a shift in the structure of mortgage requirements. The designated minimum down payment for a home loan has undergone a notable change, signaling a more stringent entry point for borrowers across the country.
Beginning on 1 June 2023, the minimum mortgage down payment was raised to twenty percent. This meant that borrowers needed to provide a larger upfront contribution to secure financing. In a planned progression, the policy was set to tighten further, with the down payment expected to rise to thirty percent six months later, taking effect on 1 January 2024. This adjustment reflects a broader strategy to reinforce loan quality and balance risk in the housing market while aligning with evolving monetary conditions.