In September 2023, issuances under preferential mortgage programs reached their highest level in the entire history of their existence, despite the increase in the down payment from 15 to 20%. About it reported Bank of Russia in the bulletin “What trends are talking about.”
The Central Bank of the Russian Federation notes that the number of loans issued for secondary housing increased by 17.7% compared to September 2022, the number issued under equity participation agreements (PPA) – by 48%. Issues on preferential mortgages accounted for 60% of the total number of mortgage loans.
According to the regulator’s observations, the demand for preferential mortgages was fueled by an increase in rates on unsubsidized loans, as well as fear of an imminent winding down or significant tightening of the terms of the program. Fears of rising inflation could also stimulate demand.
“At such moments, real estate is considered by the population as a protective asset against rising prices and exchange rate fluctuations,” notes the Central Bank.
On September 12, against the backdrop of the continuing growth in the volume of mortgage loans, the Cabinet of Ministers increased the minimum down payment on a mortgage with state support from 15 to 20%, and also reduced by 0.5 percentage points the maximum amount of subsidies for banks that issue mortgages under preferential government programs.