authorities will increase down payment on preferential mortgage up to 20% – Kommersant

The government plans to limit state-supported mortgage lending, sources say Vedomosti. The authorities can increase the down payment from 15% to 20% and reduce the maximum amount of subsidies to credit institutions by 0.5 percentage points.

One of the newspaper’s interlocutors said that a few months ago it became clear that “preferential mortgages have accelerated to such an extent that it is time to press them down.” He believes that the key risks are the imbalance of the real estate market and the continued increase in prices. According to a Vedomosti source, demand must be brought into line with the pace of supply growth.

A government source for the paper agreed that mortgage benefits should be limited. However, he called the increase in the down payment by 5 percentage points and the reduction of the subsidy by 0.5 percentage points too careful. To effectively cool the market, “the action could have been more bold,” he said. Vedomosti’s interlocutor at the Development Institute also agreed with the need to change the parameters for preferential mortgages, because “the difference between preferential and market rates has reached astronomical values.”

The average rates on mortgage programs of banks have come close to 14% per annum, according to the data of the Rusipoteka company, which Kommersant has read. Rates on preferential mortgages subsidized by the state are about half those on banking programs. According to JSC Dom.RF, in the last week from August 24 to August 31, loans under the preferential program for new buildings at 8% exceeded 60 billion rubles, reaching the maximum volume this year and the second result in the entire history of the program.

Read more about the situation on the market – in the material “Kommersant” “Mortgage built on interest”.

Leonid Uvarchev