The number of Russian applications for mortgages in September 2021 decreased by 41.4% compared to the same month last year, when different rules of concessional housing loans were in force. This was reported by the National Bureau of Credit Histories (NBCH).
Until July 1, a preferential rate of 6.5% per annum was applied to housing loans in Russia. This has become one of the main factors behind the growth in demand.
“The decrease in demand for mortgage loans in recent years has been most influenced by the increase in the cost per square meter in the country. Including taking into account the dynamics of incomes of the population, which could not compensate for such a rapid rise in the cost of housing, “- said TASS marketing director Alexei Volkov.
“It is worth noting the changes from July 1, 2021, the conditions for the concessional mortgage program,” he added. “Limiting the loan amount under the program to 3 million rubles. Obviously, taking into account the initial payment of no more than 20-30%, this amount is insufficient for residents of a number of the most economically developed regions of the country to obtain a mortgage under a preferential program. “
After changing the conditions of the preferential mortgage, the rates became at least 7%, and the available loan amount was 3 million rubles. instead of 12 million rubles. According to “Doma.RF”, by the beginning of September the volume of applications accepted and issuance on preferential mortgages for new buildings fell to a minimum since the launch of the state program. The Central Bank expects a fall in rush demand. At the same time, real estate prices will not decrease, experts say, because building materials are becoming more expensive.
For more details on the impact of growth in rates on mortgage demand, see the article “Kommersant FM” “Banks are ahead of the curve”.