The minimum down payment for a mortgage in Russia has doubled, according to the press service of the Central Bank of Russia (CBR).
Starting June 1, 2023, borrowers must provide at least 20 percent of the loan amount as a down payment rather than 10 percent. Beginning January 1, 2024 the entrance fee rises further to 30 percent. The central bank introduced this step to curb a potential price bubble in the mortgage market as the sector expands rapidly and high risk loans with significant debt loads have increased.
Elvira Nabiullina, head of the Central Bank of the Russian Federation, emphasized that risky mortgages can have serious negative effects on the national economy. The regulator noted the need to tighten lending conditions to preserve financial stability and reduce systemic risk.
Analyst Denis Bobkov, who previously led Marketing and Analytics at Asterus, explained that the Bank of Russia has adjusted premium to risk ratios in line with the new down payment thresholds. He noted that higher risk evaluations will push banks to raise interest rates on mortgage loans, potentially making them less attractive to borrowers and influencing demand in the housing market.
These policy moves reflect a broader strategy to align mortgage lending with underlying affordability and to slow a rapid expansion of lending to households carrying heavy debt. The central bank is signaling a preference for stronger borrower reserves and more conservative debt levels as the market evolves. Observers point to the balance the regulator aims to strike between supporting housing activity and maintaining financial resilience across lenders and households. The effects of the changes will unfold over the coming quarters as banks adjust pricing, underwriting standards, and product offerings to align with the revised risk framework. In commentary, experts highlight the importance of transparent information for consumers and the role of lenders in ensuring sustainable mortgage servicing amid shifting policy parameters, market demand, and macroeconomic conditions. [Source: Central Bank of Russia]