The surge in mortgage costs paired with a squeeze in Russian incomes is pushing the typical loan repayment horizon toward a much longer schedule. This shift is being observed by market watchers and reflected in current lending patterns across the country.
One mortgage market expert, Andrei Barkhota, noted a specific scenario: extending loan maturities could keep monthly payments at the same level even if rates rise. He explained that under certain conditions, a borrower might need a 27‑year mortgage instead of an 11‑year plan, even though the rate increase was relatively modest. The idea is that longer terms can maintain affordability when income growth slows and debt service costs rise.
Experts agree that the fevered rush to secure housing loans before conditions tighten is likely over. Real incomes have fallen, and that dampens the pace of new lending. Banks remain cautious, and buyers are more selective, evaluating long‑term affordability rather than quick access to credit.
Analysts have observed a trend where many Russians currently take on loans averaging two decades but try to pay them off far sooner than the term would suggest. With the economy facing headwinds, fewer borrowers can finish their loans early, and lenders increasingly factor this into their risk assessments. The result is a more balanced, slower‑moving mortgage market where terms may stretch and borrowers plan for longer repayment horizons.
In the latest data reported by RBC, Equifax credit bureau figures show a pronounced surge in mortgage approvals and volumes. Banks approved tens of thousands of new mortgage loans, with aggregate lending reaching well into the hundreds of billions of rubles for the period. The pace of approvals has accelerated compared with earlier months, reflecting both competitive lending offers and shifting borrower demand, even as the broader economic backdrop remains challenging for household finances.