In September, Russian banks issued mortgage loans worth a record 955 billion rubles, which is 12% higher than the result of August, the report says. review Central Bank “On the development of the banking sector.”
“This may be due to people’s desire to take out a mortgage before the down payment is increased under preferential programs, as well as the fear of a further increase in apartment prices against the backdrop of a weakening ruble exchange rate,” according to regulator analysts.
In addition, the review notes, banks sought to issue loans in time before the tightening of macroprudential limits from October on the most risky loans. The issuance increased due to mortgages with state support (RUB 646 billion, +27% compared to August), while the issuance of market mortgages decreased by 9% over the month.
The mortgage portfolio of Russian banks grew by a record 4.2% in September after an increase of 3.7% in August and amounted to 17.1 trillion rubles. Year to date, the figure is up 23.5%, compared with a 20.9% gain in the exceptional 2021.
At the same time, consumer lending slowed down significantly amid rising rates and tightening macroprudential regulation: the volume of the portfolio increased by 1.5% versus 2.4% a month earlier, amounting to RUB 13.6 trillion.
The net profit of the Russian banking sector at the end of September amounted to 296 billion rubles, which is 16% lower than the August result. The regulator attributed this to a reduction in income from currency revaluation (to 8 billion rubles from 106 billion rubles in August). Since the beginning of the year, bank profits have reached 2.7 trillion rubles.
Today, there are several preferential mortgage programs in Russia. Preferential mortgages with a rate of 8% per annum and “Family mortgage” remain the most popular. In December 2022, the Russian government extended the preferential mortgage program until July 1, 2024, and also expanded the terms of the Family Mortgage. Now families with two children who have not yet turned 18 can receive a loan under this program.
Against the backdrop of the continued growth in the volume of mortgage loans, on September 12, 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.