Gref spoke about the consequences of canceling preferential mortgages – Kommersant
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The price gap between primary and secondary housing could be reduced to 7–8% or fall to zero if preferential mortgages are cancelled, said Sberbank CEO German Gref (MOEX: SBER). He explained that sometimes a “bubble” in the mortgage market refers to the difference in prices in the primary and secondary markets. According to him, in Moscow this figure is 36–37%, but it is “logically explained by the presence of subsidized primary mortgages.”
“As soon as this mechanism leaves the market, I think this differentiation will most likely decrease to the market, real minimum. That is, either it will be equal to zero, or around 7–8%, no more,” Mr. Gref said during his speech at Sber Investor Day (the event was broadcast on website credit organization).
“On mortgages, we have issued a special report. We looked to see if there is a bubble in the mortgage market. We don’t see it,” Mr. Gref emphasized. He also noted that Sberbank does not predict the emergence of a critical state of the mortgage market.
A “mortgage bubble” is a situation in the mortgage market in which a significant portion of borrowers cannot repay their mortgage debt on time. The rapid growth of mortgage lending also leads to an increase in the share of high-risk borrowers, depreciation of mortgage securities and the subsequent collapse of the mortgage market and the entire real estate market.
Minister of Construction and Housing and Communal Services Irek Faizullin saidthat preferential mortgage programs “in some form” will remain after July 2024. According to Interfax, the Ministry of Finance this week submitted to the government draft resolution on changing the conditions for issuing preferential mortgages. The ministry, in particular, proposed increasing the minimum down payment on a preferential mortgage from 20% to 30%. If requirements are tightened, the issuance of preferential mortgage loans for new buildings may be reduced by 20–40%.
Details – in the material “Kommersant” “Preferential mortgages are freezing”.
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