The accelerated growth of mortgage lending could lead to a decrease in housing affordability and increase the risk of a crisis, according to a report by the Accounts Chamber.
“According to the Bank of Russia, in addition to the potential decrease in the affordability of home purchases, the accelerated growth of mortgage lending may have negative consequences for macroeconomic stability. Studies have shown that a higher debt burden of the private sector increases the likelihood of crises, ”the document says.
The Accounts Chamber noted that at the end of 2020, the volume of mortgage issuance amounted to 4.3 trillion rubles, which became an absolute record in the history of the mortgage market. This market growth was caused by a decrease in interest rates on loans and government preferential programs.
The department proposed to adjust the preferential mortgage program when it is extended after July 1, 2021 and issue it to citizens in need. Also, according to the Accounts Chamber, citizens should be allowed to use the program only once.
On June 4, Russian President Vladimir Putin announced the change in preferential programs. Earlier, under the “State Support 2020” program, launched in April last year, it was possible to purchase housing in a new building at a fixed rate of no more than 6.5% per annum. At the same time, the maximum loan amount was 12 million rubles. for Moscow, St. Petersburg and their regions and 6 million rubles. for other regions. Under the new conditions, which will take effect from July 2 and will last until July 1, 2022, the rate will be 7%, and the maximum lending amount for all regions of the country will be 3 million rubles.
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