Mortgage in Russia is stalled in may

Russian banks last month issued a “traditionally less mortgage loans” than in April, amid the long holidays, according to a review of the United credit Bureau.

According to preliminary data of Bureau, in may 2020, “the mortgage was less than in April by 11% by number (77 million loans) and 7% by volume (more than 180 billion rubles)”. “Compared to may of last year, issuance has remained approximately at the same level, decreasing by 1% the number of loans and an increase of 3% in volume”, — noted in the study.

However, the General Director of OKB Arthur A. draws attention to “the acceleration of disbursements in the last week of may.” “The support of the mortgage provides as the reduction of the key rate at the end of April, and the new state program of preferential mortgages for new buildings, with the result that in may significantly decreased the full cost of a mortgage loan”, — the expert emphasizes.

Recall that on Monday, the Chairman of the government of the Russian Federation Mikhail Mishustin noted the potential for further declines in mortgage rates in Russia. “In may, according to Bank of Russia, the average interest rate on such loans fell to 7.4%, there is potential for further reduction. This contributes to, including the launch of the program of preferential mortgage at 6.5%,” — said the Prime Minister.

in early April, Russian President Vladimir Putin instructed the Bank of Russia for may 1 to submit proposals on improving availability of mortgages. In addition, in particular, the government was instructed to develop measures to improve the investment attractiveness of housing construction projects.

In the middle of last month at the industry meeting the head of state supported the idea to launch a special program of preferential mortgage to “support our citizens and the construction industry”. Putin added that under this program it will be possible to get a mortgage at a rate of 6.5% per annum for the purchase of new housing-class comfort at the price of up to 3 million rubles in the regions and to 8 million roubles in Moscow and St Petersburg. The program of preferential mortgage in the 2020 plan to spend about 6 billion rubles.

23 APR Mishustin approved the program of preferential mortgage at 6.5% per annum, with the difference between market and preferential rate of banks will reimburse the state.

Later Deputy Prime Minister Marat Khusnullin has made it clear that the authorities do not intend to prolong the duration of the program of preferential mortgage at 6.5% per annum after its completion, on 1 November 2020.

on June 23, speaking in another televised address to Russians, Putin has proposed to extend preferential mortgage at 6.5% on the purchase of new homes valued up to 6 million rubles, and in Moscow and St. Petersburg — up to 12 million rubles. As pointed out by the head of state, “it is necessary to expand opportunities for choice comfortable, modern housing.” “In this regard, I propose to extend preferential mortgage on a new home value not to three as before, and up to six million rubles, and in the largest Metropolitan areas — Moscow to St. Petersburg — up to 12 million rubles. Here property prices are much higher than in the whole of Russia”, — said the President.

let’s Add that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.

2 Jun Mishustin reported on the nationwide state plan for the recovery of the Russian economy in 2020-2021 years, noting in particular that the cost of the plan will be about 5 trillion rubles. June 19, Putin was sent a revised draft of the national plan.

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