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From May 1, Russia will tighten the rules for issuing mortgages. This will mainly affect those who want to buy housing in new buildings. In fact, minimum-rate mortgages will cease to exist, Nikolai Kuznetsov, an associate professor at the finance and credit department of the Institute of Economics and Finance at the State University of Management, told Prime.
The expert explained that since May, the Central Bank has increased premiums on risk ratios for mortgage loans that can be obtained for the purchase of housing under agreements for equity participation in houses under construction. As a result, demand in the primary real estate market will fall, as it is low interest rates on loans that have helped developers in their trade. The share of transactions using the minimum mortgage was around 75%.
According to Kuznetsov, special mortgage programs have been developed during the coronavirus pandemic to stimulate demand for new buildings. As a result, proposals appeared with record lending rates. At the same time, the requirements for borrowers have also decreased.
All this led to the fact that the growth in housing prices in new buildings significantly exceeded the dynamics of the secondary market, as well as the increase in income of the population. The burden on people has increased. According to the Central Bank, among those who have taken out a mortgage, about half spend up to 80% of their income on paying off various loans.
In such a situation, any negative situation with work can lead to the loss of the ability to repay the loan, which means that a person can lose his mortgage housing. The central bank’s innovation aims to prevent the growth of such subprime mortgages, the economist explained.
Earlier, Glavny Regionalny reported that the Russians plan to issue mortgages at near-zero rates in border regions.
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