Mortgage for the rich – MK

Experts discussed the housing market and came to disappointing conclusions

The key rate is now at 16% and, as experts predict, it will not fall at the next meeting of the Board of Directors of the Central Bank. On the one hand, now is the time for new investors to dance a joyful tap dance, but what about those who need to buy a home? Despite the fact that the Bank of Russia officially believes that preferential mortgages are not unprofitable for banks, and, therefore, there is no risk of Russians being left without a roof over their heads, market experts say that tightening the Central Bank’s regulations may close access to mortgages poor segments of the population.

As he told the publication KP.RU Deputy Chairman of the State Duma Committee on Economic Policy Artem Kiryanov, the decisions of the Central Bank may primarily affect the opportunities for obtaining housing loans specifically for families with low incomes.

“When trying to minimize unproven risks, it is very important not to deny access to purchasing an apartment to those who need it most. The richest borrowers have the minimum level of the maximum permissible debt load in a mortgage, while poorer borrowers, especially in the regions, have a higher MDI (debt load indicator). This is especially true for mortgages with government support. If the rich receive all the support, this is a very bad budget policy,” the publication quotes the State Duma deputy.

“The rampant macroprudential regulation (a set of measures aimed at minimizing possible risks in the financial sector – editor’s note) in Russia has no precedent in the world. It should be introduced at the stage of overheating of the economy, it is unlikely that in the current period, when Russia is consistently recovering from covid and sanctions, our economy needs such measures to curb growth,” says economist Vasily Koltashov, noting that at the same time the Central Bank is surprised by The fact is that banks take into account the markups introduced by the regulator in pricing. Although these are the basic basics of financial literacy.

Previously, the Central Bank insisted on banning payments under subsidy programs for all mortgage issuances with the borrower’s PDN above 50%. For loans with a personal income tax of 50%-80% and especially a personal income tax of 80%+, the Central Bank introduced the most stringent restrictions.

However, Andrei Koryakovtsev, an expert at the Institute of a New Society, believes that such bans are unnecessary.

“A mortgage loan is the largest loan a family will ever take out. At the same time, mortgages are generally available to wealthier citizens. However, relatively poor people also take out mortgages; they sell their existing apartment or carry out an alternative transaction, and use the mortgage to pay additional funds. This determines the high level of personal income tax on mortgage loans. 75% of mortgage loans are issued with a PDA of more than 50%. Meanwhile, in real life, mortgages, even with high PDNs, demonstrate high quality indicators; the share of problem loans is measured in fractions of a percent and differs little from other PDT ranges,” he told KP.RU.

The situation on the part of developers also looks disappointing. Already as a practically accomplished fact – from March 2024, unprecedented risk ratios will be introduced for mortgages with a debt burden ratio (DLI) of more than 50%, and especially more than 80%. Such strict regulation will lead to another 4-fold drop in sales. It is no coincidence that developers and banks came to an agreement to avoid a collapse through subsidies. Issues, of course, will all fall early compared to the end of 2023, but by about 40%.

So it turns out that due to strict regulation of the market by the Central Bank, those segments of the population who have free money can count on excellent interest rates on deposits, but others who are collecting their last hard-earned money for their own apartment remain out of work. So much for the Matthew Effect: “The poor get poorer and the rich get richer.”