Russian mortgage market faces sudden suspension as Rosselkhozbank halts most applications
Rosselkhozbank, commonly known as RSHB, has temporarily stopped accepting new applications for virtually all mortgage products. The exception is loans tied to rural housing, which remain its core specialty. This change is currently reflected on the bank’s online portal and is being echoed in related customer communications. When customers attempt to apply for any non-rural mortgage, they encounter a clear notice stating that applications are temporarily suspended.
The bank has not published a timetable for resuming normal acceptance of applications, nor has it provided a reason for the pause. This lack of detail leaves borrowers and industry observers without a definitive forecast for the restart of these programs.
In addition, RBC Market reported that mortgage applications from clients will no longer be accepted through the bank’s call center as of August 24. This aligns with the broader pause in mortgage activity and adds an extra channel limitation for potential borrowers seeking financing.
Context for this pause includes information from the Central Bank, which noted that the overall volume of mortgage lending in July 2024 declined sharply compared with June. Specifically, mortgage issuance to residents fell from 788 billion rubles in June to 356 billion rubles in July. Analysts attributed the June figure to the completion of a state program offering preferential mortgages, which had artificially boosted volumes earlier in the year.
Historically, borrowers with existing mortgage obligations found relief in the event of job loss or dismissal, a safety net that has come under scrutiny as lenders reassess risk in a slowing market. The current pause may reflect a wider recalibration of mortgage risk, regulatory expectations, and liquidity considerations that are shaping lending guidelines across Russia.
Industry observers emphasize that shifts in mortgage policy can influence consumer confidence and the ability of families to secure housing finance. While rural mortgage programs remain available, any prospective borrower considering a non-rural option should prepare for potential delays, updated eligibility criteria, and revised documentation requirements as lenders review risk and portfolio mix.
What this means for the broader mortgage landscape is a pause in expansion opportunities and a possible rebalancing of demand. Prospective buyers should monitor official notices from Rosselkhozbank and the Central Bank, and consider consulting with financial advisers to understand how changes could affect timelines, rates, and the availability of different loan products in the near term.
The market in Russia has seen frequent policy shifts in the past few years, with regulatory measures playing a crucial role in shaping consumer access to credit. As lenders adjust to evolving macroeconomic conditions, borrowers may need to adapt by exploring alternative lenders, reassessing purchase timelines, and tightening household budgets to accommodate potential fluctuations in mortgage terms.
Overall, the temporary suspension signals a period of consolidation rather than permanent withdrawal from the mortgage market. For families relying on rural housing programs, continuity appears to remain intact, while those seeking urban or non-rural financing may face a wait-and-see phase as banks reassess demand and risk appetite.