the Average size of mortgage loans in Russia was in April of the current year 2.39 million rubles, which is 8% less in comparison with the previous month, follows from the review of the National Bureau of credit histories (NBCH).
yoy decline in average purchase mortgage was less significant — 2.4% (in April 2019 2.45 million rubles).
Commenting on the findings, General Director nbki Alexander Vikulin said that “compared to other segments of retail lending, in April 2020, the reduction of mortgage loans was not as radical.”
“the Decrease in the average check on the mortgage largely due to the fact that citizens are trying to reduce the debt burden in times of economic uncertainty. Therefore, the choice of the parameters of a mortgage loan try to increase the size of the down payment, thereby minimizing future payments”, — the expert believes.
Recall also that the Russian banks in April have reduced the issuance of mortgage loans by 1.5 times. As noted in the review of NCB, in the last month were issued to 49.3% less mortgage loans compared to March 2020 and 35.3% less than in April 2019. Experts explained the decline of the mortgage loans in April, quarantine measures and economic situation in the country.
Before it was reported that Russia since the beginning of this year significantly increased the number of troubled mortgage loans secured new apartments. In the whole country borrowers, previously issued mortgages for housing under construction, stopped to pay every 252 credit, whereas at the beginning of the year has not been serviced every 262 the loan. According to the experts the collection Agency a “Debt Consultant”, for the first quarter of the current year the volume of mortgage arrears in the market of housing under construction grew 7 percent to 13 percent for the entire 2019, and April 1, the amount of “bad” debts exceeded $ 6.2 billion.
in early April, Russian President Vladimir Putin instructed the Bank of Russia to submit proposals for improving the 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.
on 23 April the Chairman of the government of the Russian Federation Mikhail Mishustin approved the program of preferential mortgage at 6.5% per annum. “The rate is not above 6.5% is maintained for the entire term of the loan. The program is distributed on home loans to 8 million roubles in Moscow and St. Petersburg and up to 3 million rubles — in other regions of the country”, — noted in the explanatory Memorandum. In the document it was specified that the reduced mortgage will be valid until November 1, 2020.
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.
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.
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