Banking institution, Centrobank, suggests implementing a prohibition, barring financial institutions from imposing fees on mortgage projects under preferential terms.
In a recent gathering, Elvira Nabullina, the titan of the Central Bank of Russia, relayed her intentions to bar banks from slapping charges on preferential mortgage plans. Addressing the State Council presidium, she derided this practice as "bad practice."
In her proposal, she reiterated their antipathy towards these fees and pointed out that they had already banned certain such charges in the mortgage standard. She also stressed that the spike in the margin by the Ministry of Finance had somewhat lessened these fees, but they still persisted at around 5-6% in large banks. However, some banks manage to conduct business without these fees, she noted. Predictably, these fees were being passed on to developers, thereby upping the housing costs.
Elvira believed that these fees should be eradicated from the preferential programs altogether, contending that preferential loans were not allured by banks imposing these fees and administration could be effectively managed. She even proposed incorporating this initiative in the mortgage standard, expressing confidence in its legitimacy.
Apart from this, she expressed disapproval of an initiative to grant developers the authority to seize apartments sold on installments. Elvira asserted that it would galvanize unchecked and unregulated growth in the citizens' debt. She argued that banks already have systems in place to curb debt and initial payments. As the debt would escalate through installments, she argued, developers would gain the right to seize apartments, which she deemed "incorrect".
Moreover, the Central Bank of Russia foresees a 3-8% growth in mortgage lending by 2025. Whilst this isn't the 30% pace seen earlier, it still indicates growth. And they are optimistic that housing prices will not zoom as rapidly. The pace of housing price escalation has already slowed significantly in certain regions, according to Elvira.
Previously, our platform had reported that the volume of mortgage delinquency swelled by 63% from the prior year, to a whopping 95 billion rubles, marking a record high. Many borrowers, due to preferential programs, took out mortgages despite not adequately assessing their financial prowess.
commencement of 2025, the list of population categories qualified for Russia's agrarian mortgage program has seen a transformation. Earlier, almost any individual aged between 18 to 75, with verified income and a work history of at least three months, could procure a preferential loan, with interest rates as high as 3% annually. However, the updated requirements have tightened significantly, restricting the possibility of securing an agrarian mortgage.
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- I'm not sure if the proposed eradication of fees on preferential mortgage programs will entirely eliminate the fees, as they currently persist at around 5-6% in large banks.
- Elvira Nabullina, the head of the Central Bank of Russia, seems ready to regulate the cost of mortgages within the finance industry, not just on preferential plans.
- In politics and general news, Nabullina's recent statements on mortgage costs and her opposition to developers seizing apartments sold on installments have become a hot topic of discussion.
- The Central Bank of Russia anticipates a decrease in the volume of mortgage delinquency by 2025, following the recent increase to a record high of 95 billion rubles.
- In business news, the updated qualifications for Russia's agrarian mortgage program may lead to cost changes for individuals intending to purchase agricultural property.
