In Russia, they were going to limit the issuance of mortgages for indebted borrowers

Analyst Irina Dobrokhotova told how this could affect the cost of apartments

From October 1, restrictions on issuing mortgages with a low down payment to heavily indebted borrowers will come into force in Russia. The ban sounds something like this: if a Russian has collected hundreds of thousands of rubles worth of consumer loans, he is unlikely to be allowed to pay 10-15% as a down payment. And in general – most likely, they will prohibit the purchase of an apartment in a mortgage. Potential, albeit unreliable, buyers of new buildings are leaving, which means that the cost of new buildings will increase.

However, the restrictions apply not only to “pofigists”. Experts told how exactly banks can tighten the requirements for customers – both for “unreliable” and for everyone else.

For the most part, developers are ready to sell housing by any means. But here’s the problem – the banks are not ready.

– The general rule for all loans: the more risky the loan, the more the risky borrower will pay, because the bank may not receive the funds issued and interest on the loan, – says Irina Dobrokhotova, managing partner of Dombook, founder of BEST-Novostroy. – Therefore, for loans with a higher degree of risk, there are usually higher rates. The better your solvency and credit history (that is, payments on time, without delays), the more transparent your income is for the bank, the more they are confirmed, the more preferences you will have as a conscientious borrower.

For example, many banks have the most favorable rates for those whose income is confirmed in the form of 2-NDFL (personal income tax), and the same bank has a salary project (that is, the bank knows exactly how much money you have).

Now – with regard to restrictions on the issuance of mortgages with a low down payment. With a high degree of probability, credit institutions will still retain the initial contribution of 15% for state programs, but for programs with such a contribution, the rate will be made as high as possible. The same applies to standard programs – there, most likely, for customers with a low down payment, the rate will be increased to 0.7 – 1%.

– What will happen to housing prices before the end of the year?

– Let’s consider the change in the cost of comfort-class apartments in Moscow over the past month and over the year, – says Irina Dobrokhotova. – In August, the average cost per square meter in comfort-class housing increased by 3% – up to 314.5 thousand rubles. During the year, the same figure increased by 15%. And the average cost of an apartment also increased by 3% in August; per year – by 10%. That is, we see that prices continue to rise. This is also connected with the growth of the cost of construction: the cost of labor of builders, the cost of building and finishing materials, for example, fittings, cement, is growing. Logistics chains for the delivery of equipment and materials are changing – the development of new routes and the redistribution of routes are also expensive. So far, we can say that there are no preconditions for price reduction.

– What are the main restrictions on the part of banks in relation to customers? What do banks focus on when deciding whether to approve a loan?

– For the bank, first of all, it is important that the client-borrower carefully service the loan – make payments on time and generally be solvent and accurate.

The priority for the bank is precisely the cash flow from customers, and not collateral (in the case of a mortgage – real estate), because selling a mortgaged apartment for a bank can be much longer and more inconvenient than having stable cash flows from customers.