preferential mortgage must be targeted – Kommersant

The Central Bank (CB) stands for the balanced development of mortgages, said the head of the Central Bank, Elvira Nabiullina. She believes that preferential mortgages in Russia should be targeted, because the massive ones are paid for by taxpayers who do not take advantage of these benefits.

“Programs (mortgage.— “Ъ”), in my opinion, there should be targeted ones, for example – family, rural, Far Eastern mortgages. They are aimed at solving those problems that cannot be solved by market methods,” Ms. Nabiullina said in an interview with RIA Novosti.

In her opinion, the boom in the housing market is most likely threatening a crisis, rather than increasing its affordability. As the head of the Central Bank clarified, the average term of a mortgage loan increased from 18 years in 2020 to 25 years. Elvira Nabiullina urged not to confuse the affordability of housing and the affordability of a mortgage.

“Because even if interest rates are low, but a person must take out a larger volume of credit, since prices have increased as a result of massive preferential programs, this does not mean an increase in the affordability of housing,” explained the head of the Central Bank.

How Kommersant reported, Sberbank, VTB and Alfa Bank, whose combined share in the country’s mortgage market reaches 85%, may lose government subsidies to cover costs when issuing housing loans with state support. Dom.RF, as the operator of the distribution of these funds, warned that budget money could be redistributed in favor of credit institutions that did not introduce commissions for developers for each preferential borrower. Promsvyazbank will be the first of the major players to stop charging commissions from developers.

Details – in the material “Kommersant” “Preferential mortgages have a gap in commissions”.

Laura Keffer