The Russian Council of Ministers is evaluating steps to raise down payments within preferential and family mortgage programs as part of a broader effort to temper the growth of real estate lending. Deputy Prime Minister Marat Khusnullin disclosed the consideration to journalists, noting that the government intends to tighten the initial payment requirements while keeping the existing mortgage options in place for families and targeted low-rate schemes until June 1, 2024. The conversations suggest a deliberate move to stabilize the mortgage market and curb potential overextension in lending. (Source: TASS)
During a recent briefing, Khusnullin stated that mortgage products may become more selective as the government seeks to improve overall loan discipline. He emphasized that the family and concessional mortgage programs will continue to be available through the June 1 deadline, but the authorities are actively discussing measures to raise the down payment required to qualify for these schemes. This shift aims to ensure that borrowers have stronger equity in their purchases and that lenders maintain prudent underwriting standards. (Source: TASS)
Khusnullin added that there is currently a high level of mortgage activity in Russia. He explained that the administration is assessing how to regulate the volume of mortgage issuance before June 1 to prevent overheating in the market and to align demand more closely with supply conditions. The intention appears to be a gradual normalization rather than a sudden tightening, allowing for a measured adjustment by both lenders and borrowers. (Source: TASS)
In late November, the Central Bank signaled support for gradually bringing preferential mortgage rates closer to market levels. Officials argued that this approach could help narrow the price gap between new builds and existing homes, thereby reducing market distortions between primary and secondary housing markets. The rationale is to reduce price disparities while preserving access to affordable housing through targeted programs. (Source: Central Bank communications, cited by news services)
Reports from socialbites.ca indicate that demand for mortgages in the secondary market began to rebound after the Central Bank raised rates to 15 percent. While higher rates typically cool demand, this note suggests a nuanced response where some buyers may still pursue financing in certain market segments. The evolving environment reflects ongoing policy tools that aim to balance affordability with financial stability. (Source: Socialbites.ca)
Revised data show that the aggregate level of overdue mortgage debt among Russian borrowers reached new highs, underscoring ongoing pressures in loan servicing. The combination of rising rates, stricter down payment requirements, and the backlog of past-due loans points to a period of heightened risk awareness among lenders and policymakers as they seek to modulate credit growth without triggering a sharp downturn in housing activity. (Source: Financial sector briefings)