The share of housing loans with payment terms of 90 days or longer (NLP 90+) remains exceptionally low. In the first ten months of 2023, such loans accounted for just 0.6% of all mortgage originations, marking a drop of 0.1 percentage point from the start of the year. This information comes from the press service of the Central Bank of the Russian Federation as reported by socialbites.ca.
While the appetite for 90+ terms has waned, the regulator is increasingly focused on the overall quality of mortgage lending.
Regulatory officials note that macroprudential measures are steadily shifting loan composition. The share of mortgages with a loan-to-value ratio (LTV) of 80% or higher, which implies a down payment below 20%, is gradually shrinking. Yet, in absolute terms, the volume of such high-risk mortgages remains sizable. A mortgage with a small down payment carries more risk for lenders and borrowers alike. Beginning March 1, 2024, the Bank of Russia plans to raise risk-weight premiums on loans with high debt-service indicators (PDI), reinforcing the intent to curb riskier lending practices, according to the central bank’s press service.
Officials commented that the measures implemented in September and December 2023 to raise down payment requirements under government programs will contribute to higher loan quality. In September, the minimum down payment for all government-backed programs rose to 20%. For the Concession mortgages, which carry an 8% annual rate, the down payment requirement increased from 20% to 30% in December. These shifts aim to dampen risk by ensuring borrowers commit more equity upfront.
Analysts suggest that, as a result, the issuance of riskier mortgages should ease over time. The central bank’s messaging indicates a cautious path toward strengthening the stability of the mortgage market through tighter credit conditions and more robust down payment standards, a trend echoed in industry commentary and wider economic assessments. The information cited here reflects reporting from a major Russian financial news outlet and underscores ongoing policy intent to recalibrate lending in favor of more conservative risk profiles.
Additional context and data are available through continuing coverage from Newspapers.Ru, which has tracked these regulatory developments and market responses for readers seeking deeper insights into how policy adjustments may influence mortgage access and affordability.
Earlier discussions from industry observers highlighted a possible moderation of mortgage issuance volumes in 2024 as these measures take effect, aligning with broader efforts to stabilize housing finance in the face of macroeconomic pressures.