Mortgage in Russia

Main article: Lending in Russia

Mortgage rates

{{# CentroBank: statIpot 'Weighted Average Mortgage Rate in Russia}}

Average mortgage term

{{# CentroBank: statIpotTime 'Weighted average term in months for housing mortgage loans in Russia}}

Preferential mortgages for IT professionals

Main article: Preferential mortgage for IT specialists in Russia

Industrial mortgage

Main article: Industrial mortgage in Russia

Electronic mortgage in the field of mortgage lending

Main article: Electronic mortgage in the field of mortgage lending

Overdue mortgage debt

Main item: Overdue mortgage debt

2024

The Central Bank estimated budget spending on preferential mortgages at 1.2 trillion rubles over 10 years

Budget expenditures on subsidies to banks for preferential mortgages at 8% with state support, the issuance of which ended on July 1, can amount to 1.2 trillion rubles. during the repayment period of loans already provided. Such data were published by the Central Bank of the Russian Federation at the end of August 2024.

The regulator gives its assessment on the assumption that the dynamics of the key rate will correspond to the baseline forecast, and loans will be repaid evenly over 10 years. Since the spring of 2020, when the program of mass preferential mortgages began to work, the budget spent 500 billion rubles on subsidies to banks, the Central Bank said in a report.

For civil servants in Russia launched a special mortgage with payment of debt and interest from the federal budget

On July 15, 2024, an experiment began in Russia to provide civil servants with housing using mortgages. The authorities began to pay from the federal budget the cost of 33 square meters. m of housing, which is calculated from the "official" price of the "square" (the Ministry of Construction approves it once a quarter for each region), - a quarter of the amount is issued for the first installment, the rest - for nine years in equal parts.

Banks in the Russian Federation were issued additional limits on preferential mortgages for 2.3 trillion rubles

Russian banks received additional limits on mortgage state programs in the amount of 2.3 trillion rubles. This was reported to "Дом.РФ" at the end of January 2024.

As Izvestia writes with reference to the data of the state-owned company, the limits on family mortgages at 6% were expanded by 1.2 trillion rubles, and on preferential mortgages for new buildings at 8% - by 1 trillion rubles. Also, 31 billion rubles were distributed between credit institutions for a Far Eastern mortgage.

Russian banks received additional limits on mortgage state programs

Most of the allocated funds were received Sber by "" - 673 billion rubles for a family mortgage and 700 billion rubles for a preferential mortgage. Also in the top in terms of limits entered, and VTB Alfa-Bank the bank "Дом.РФ."

An increase in limits on state programs will allow banks to issue more preferential mortgages, and the demand from borrowers will grow, said Natalya Milchakova, leading analyst at Freedom Finance Global. Now most of the mortgages are issued precisely according to state programs, added Evgeny Shavnev, general director of the investment company in the Flip real estate market. According to statistics from the Central Bank of the Russian Federation, state programs account for 74% of loans issued, this leads to an artificial inflation of housing prices, which creates risks for the market, the expert said in a conversation with the newspaper.

On January 16, 2023, ДОМ.РФ General Director Vitaly Mutko said that the state-owned company may revise the rules for issuing banks with limits allocated by the country's budget to support mortgages at state-subsidized rates. According to him, these funds can be redistributed in favor of banks that did not introduce a commission for developers for each buyer of housing taking a preferential mortgage. In particular, Sberbank, VTB and Alfa-Bank can lose state subsidies to cover expenses, the total share of which in the country's mortgage market reaches 85%.^[1]

2023

The Accounts Chamber named government spending on preferential mortgages in 2021-2023.

The Accounts Chamber of Russia in September 2024 published data on government spending on preferential mortgage programs for the period from 2021 to 2023. According to the department's report, over the specified period, budget allocations for financing preferential mortgage programs amounted to ₽568,1 billion.

According to Interfax, in the next issue of the bulletin of the Accounts Chamber, dedicated to the results of the audit of preferential mortgage programs, it is indicated that the total expenses of the federal budget for subsidizing preferential mortgages in the period from 2021 to 2026 will exceed ₽1,6 trillion. This amount includes the ₽568,1 billion already spent.

The Accounts Chamber presented data on government spending on preferential mortgages for 2021-2023

Auditors note a significant increase in the popularity of preferential mortgage programs. In 2021-2022, every third mortgage loan was issued under concessional lending programs, and in 2023 this figure increased to every second loan. Moreover, mortgage loans issued under preferential programs in 2021-2023 account for more than 50% of the total number and volume of issuance of preferential mortgage loans under all programs. In 2021, this share exceeded 60%.

The Accounts Chamber emphasizes that preferential mortgage lending programs stimulate demand in the housing construction market, allowing developers to implement new projects that are completed in the future for 2-3 years. However, at the same time, the federal budget assumes long-term obligations under these programs - for 20 or more years.

Such policies states have both positive and potentially negative consequences. On the one hand, it contributes to the development of the construction industry and helps citizens purchase housing on more favorable terms. On the other hand, long-term financial obligations of the state can create an additional burden on the budget in the future.^[2]

Increase in the share of mortgages for more than 25 years to 57%

About 57% of mortgage loans issued in Russia in the second half of 2023 have maturities exceeding 25 years. This is 10 percentage points more than the second half of 2022. The Bank of Russia, with reference to the materials of the credit bureau, published such data in early April 2024.

It follows from the regulator's report that the share of mortgages for a period of more than 30 years in July-December 2023 amounted to 15%. The Central Bank of the Russian Federation also noted that the age of the borrower at the time of payment of the loan: 42% of the mortgage issued in the second half of the year will be repaid when the borrower turns more than 65 years old. On an annualized basis, the share rose 11 percentage points. The share of mortgage loans to borrowers over 40 years old in the second half of 2023 increased by 3 pp relative to the value of a year ago. The average debt balance on mortgage loans issued in the second half of 2023 amounted to 3.7 million rubles.

According to the report of the Central Bank, the share of mortgages where borrowers could make an initial payment at the expense of a consumer loan remained "moderate" in 2023 - 6.3%. About the same figure took place in 2023. At the same time, the number of borrowers with, in addition to mortgages, at least one more consumer loan is increasing in Russia. In 2023, there were 1.1 million more of them.

In 2023, Elizaveta Danilova, director of the financial stability department of the Bank of Russia, cited data according to which the average term of a mortgage loan for housing under construction reached 25.6 years, and in 2016 it was 15.7 years. At the end of January 2024, the head of the Central Bank Elvira Nabiullina also said that the average term of a mortgage loan in 2023 increased to 25 years from 18 years in 2020. At the same time, Nabiullina noted that the Central Bank advocates a balanced development of mortgages, because a boom in the housing market threatens a crisis, and not an increase in its availability.

ANALYSIS OF TRENDS IN RETAIL LENDING SEGMENT BASED ON CREDIT BUREAU DATA

Net increase in mortgage loans in Russia 4.1 trillion rubles

Net increase in mortgage loans in Russia: 4.1 trillion rubles in 2023 vs 2 trillion in 2022 and 2.5 trillion rubles in 2021

Record issuance of preferential mortgages - 4.7 trillion rubles

At the end of 2023, Russian banks issued a preferential mortgage for 4.7 trillion rubles, which is a record figure. Compared to 2022, the volume of mortgage loans issued under state support programs increased by 48%. This is evidenced by the data that the Central Bank of the Russian Federation published at the end of January 2024.

According to RIA Real Estate, citing materials from the regulator, preferential loans accounted for 60.8% of the mortgage market in 2023. Thanks to subsidy programs, the weighted average mortgage rate by the end of 2023 decreased to 7.91% per annum from 8.18% a month earlier.

Russian banks issued a preferential mortgage for 4.7 trillion rubles

The share of housing loans in the total volume of loans issued to individuals in 2023 increased to almost 30%, while in 2022 it was 26.8%. In general, the Russians were provided with 26.1 trillion rubles of ruble loans.

Debt on mortgage housing loans (LCI) at the end of 2023 amounted to 18.2 trillion rubles (+ 29.4% in relation to 2022). The main increase fell on LCIs under DDUs (equity agreements), the debt on which increased by 44.7% over the year - to 4.9 trillion rubles.

The issuance of mortgage loans in December slowed down for the third month in a row to 288 billion rubles of net growth (issuance minus repayment), compared with 666 billion in September. Even with a slowdown, 0.3 trillion rubles of monthly growth are quite consistent with record indicators in 2021.

Almost all loan issuance in December is subsidized loans with state support of various types, the share of which reached a record 83% compared to the average annual figure of 60%, i.e. mortgages are completely on the state.

In 2023, the Ministry of Finance of the Russian Federation warned that numerous preferential mortgage programs not only deform the market, but also create budgetary risks due to "artificial" inflation of prices, and to fulfill the obligations of the federal budget, which are of a continuing nature. Thus, 154.1 billion rubles have already been provided for the Preferential Mortgage program in 2023-2025, and 208.7 billion rubles for the Family Mortgage program. The federal budget provides 504.1 billion rubles for the implementation of all the above preferential mortgage programs in 2023-2025.

By the end of 2023, the Government of the Russian Federation began to move along the path of tightening the conditions for preferential mortgages, increasing the initial payment on it from 20 to 30% and setting one maximum size of a preferential loan for all regions at 6 million rubles.^[3]

Mortgage portfolio of Russian banks for the year grew by a record 34.5%

The mortgage portfolio of Russian banks in 2023 grew by a record 34.5% compared to 2022 and reached 18.2 trillion rubles. This was reported in the review of the Central Bank of the Russian Federation, published at the end of January 2024.

According to the regulator's materials, the mortgage portfolio of Russian banks in 2022 showed a rise of 20.4%, to 13.8 trillion rubles. Thus, in 2023, this financial indicator increased by 70%.

As explained in the Central Bank of the Russian Federation, the growth of mortgages was stimulated mainly by state support programs (they account for about 60% of all issues), the rates at which did not affect the increase in the key rate. In December, mortgages grew by 2.9%, despite tightening conditions for preferential programs and an increase in market rates, the Bank of Russia said.

The volume of mortgage loans issued by banks in 2023 amounted to a record 7.8 trillion rubles. For comparison, in 2022 this figure was at the level of 4.8 trillion rubles. The previous record was recorded in 2021, when Russians received 5.7 trillion rubles in mortgages.

In January 2024, the head of the Central Bank Elvira Nabiullina said that the Bank of Russia stands for the harmonious development of a mortgage loan, as a surge in the real estate market threatens a crisis. Housing affordability and mortgage affordability cannot be confused, she said.

Because even if interest rates are low, but a person must take a larger loan, - since prices have increased as a result of mass preferential programs - this does not mean an increase in the availability of housing, - explained the head of the Central Bank.

According to the regulator, in December 2023, 785 billion rubles of mortgage loans were issued against 726 billion rubles a month earlier. The main contribution was made by loans with state support: banks issued them for 655 billion rubles (+ 21%, 540 billion rubles in November), including against the background of announced decisions to tighten the conditions of state programs. The issuance of both Preferential Mortgage (up to about 280 billion rubles from 233 billion rubles in November 2023) and Family Mortgage (up to about 284 billion rubles from 241 billion rubles) increased.

ON THE DEVELOPMENT OF THE BANKING SECTOR OF THE RUSSIAN FEDERATION IN DECEMBER 2023

Moscow mortgage market soared by 25.6% over the year

The Moscow mortgage market in 2023 soared by 25.6% compared to 2022 - to 136,208 home mortgage lending agreements in the primary and secondary real estate markets. Rosreestr published such data on January 18, 2024.

In 2022, the Rosreestr Office in Moscow registered 108,426 mortgage agreements when buying a home, in 2021 - 127,637. Compared to 2021, the market volume increased by 6.7%, the department notes.

Deputy Mayor of Moscow for Economic Policy and Property and Land Relations Vladimir Efimov, commenting on the data of Rosreestr, noted that the Russian capital retains leadership in the country in terms of preferential mortgage loans issued. Their volume in 2023 amounted to 898.6 billion rubles, which corresponds to 19.7% in the total volume of preferential mortgages. In Moscow, for the entire duration of the programs, loans were issued in the amount of about 2.1 trillion rubles, Efimov said in January 2024.

Since the end of the third quarter of 2023, the housing lending market with the involvement of mortgages in Moscow has been gradually slowing down, "says Igor Maidanov, head of the Rosreestr Office in Moscow. - After the August peak since September last year, each month the number of registered mortgages decreased by an average of 9%. At the same time, the indicator for the year, as predicted, became a record over the past 15 years.

According to RBC, the main reasons for the rush demand for new buildings are an increase in mortgage rates, the possible abolition of preferential programs and tightening requirements for mortgage borrowers. These factors encouraged buyers to get out of the deal faster.

Record sales in 2023 are due to an increase in the key rate (when demand from the secondary segment switched to the primary), as well as a discussion of the prospects for preferential mortgage programs in 2024 (when those who decided to buy entered the market "have not yet canceled everything," Aleksei Popov explained.[4]

Record issuance of preferential mortgages in September - 630 billion rubles per month

The volume of mortgage loans issued within the framework of preferential mortgage programs in Russia breaks all records - in September 2023, over 630 billion rubles of preferential mortgage loans were issued, which is twice as high as the average volume of issuance from March to June 2023 and six (!) Times higher than preferential loans on average six months before the outbreak of the conflict in Ukraine.

The acceleration began almost immediately from the moment of tightening the monetary policy of the Central Bank of the Russian Federation from mid-July and is connected, just with an attempt to catch the last moment of low interest rates, i.e. increased demand in anticipation of an increase in rates.

The total volume of mortgage loans amounted to 962 billion (+ 12% versus August and + 85% YoY), in January-September 2023 an increase of 61% YoY.

From October, a sharp slowdown may occur due to tightening the standards for issuing loans (according to the state program, a minimum contribution of 20%, plus tightening for banks to gradate the debt burden of customers), an increase in the average rate and the borrowing potential of Russian households realized in August-September.

Bank "Дом.РФ" issued the first mortgage using a QR code

A family from Tyumen issued the first mortgage loan in Russia using a QR code - a deal without filling out a questionnaire and providing documents was carried out by the Bank ДОМ.РФ. The client scanned the QR code automatically formed in the partner's personal account and in a matter of minutes received a comprehensive solution of the bank for all existing mortgage programs. Read more here.

The average mortgage term in Russia has grown to 24 years, the maturity is up to 4.3 years

The average mortgage term in Russia as of May 2023 increased to 24 years. In 2019, it was equal to 18 years.

Russians repay mortgages in an average of 4.3 years, analysts found out. In 2022, citizens took an average of about 3 years to do this.

Mortgage debt of Russians exceeded 14 trillion rubles

The Central Bank of Russia in March 2023 reported that the debt of Russians on mortgages exceeded 14 trillion rubles.

Preferential mortgage program for residents of Lugansk, Donetsk, Kherson and Zaporizhzhya regions with a rate of 2%

In January 2023, the Government of the Russian Federation approved a preferential mortgage program for residents of Lugansk, Donetsk, Kherson and Zaporizhzhya regions with a rate of no more than 2% per annum.

2022

Private houses accounted for only 1.3% of the mortgage portfolio in Russia

Private houses accounted for only 1.3% of the mortgage portfolio in Russian banks in 2022. This is stated in a joint study by analysts "Дом.РФ" and "Domklik," which was published on February 13, 2023.

The volume of issued mortgages for individual housing construction (IZHS) in Russia in 2022 amounted to 181.6 billion rubles. Due to these loans, the construction of 3.6 million square meters. m of individual houses, in 2021 - only 1.1 million square meters. m.

According to Дом.РФ, in 2022, only every tenth individual house was built using mortgages, while in apartment buildings 8 out of 10 apartments are purchased with mortgages. So far, the main restriction on the development of lending on individual housing construction is the lack of a market for standard, liquid private houses, which affects the mortgage rate.

To develop standardization of private housing construction, a new mechanism can be used - industrial housing construction, within the framework of which citizens' funds will be attracted to escrow accounts, and the contractor will be able to carry out construction with the help of project financing. In this case, the share of mortgages in the construction of individual housing construction may increase from the current 10% to 50% in the medium term, "emphasizes Mikhail Goldberg, head of the Дом.РФ analytical center.

According to the Domklik service, the largest share of loans for private housing construction in 2022 fell on regions with a high level of income of the population: Moscow and Moscow Region, St. Petersburg and Leningrad Region, Tatarstan, Tyumen Region. In addition, the rating also includes popular tourist destinations: Krasnodar Territory, Irkutsk Region. The leaders also include the regions covered by the Far Eastern Mortgage program: the Republic of Sakha (Yakutia), Primorsky Territory, and the Trans-Baikal Territory.^[5]

Mortgage issuance decreased by 15.5%, to 4.81 trillion rubles

The volume of mortgage housing loans (LCI) for individuals in Russia in 2022 amounted to 4.81 trillion rubles, which is 15.5% less than a year ago at 5.7 trillion rubles. This is evidenced by the data of the Central Bank of the Russian Federation, published on January 30, 2023.

According to statistics collected by the regulator, the total portfolio of mortgage loans of Russian banks in 2022 increased by 2 trillion 40 billion rubles, or 17%, to 14 trillion 63.6 billion rubles, against an increase of 2 trillion 513.6 billion rubles, or 26.4%, in 2021. The total mortgage portfolio also includes debt on claims acquired by credit institutions for mortgage housing loans; as of January 1, 2023, it amounted to 221.8 billion rubles against 255.1 billion rubles a year earlier.

According to the results of 2022, Russian banks signed 1.3 million contracts for the issuance of mortgage housing loans - 30.5% less than in 2021. The weighted average mortgage rate began to decline by the end of the year. In December 2022, it was 6.65% (in November - 7.11%). This is due to an increase in the share of loans for new buildings. At the same time, the interest rate on loans excluding new buildings for the month also decreased - from 9.67% to 9.57%. The weighted average term of loans has sharply increased - by the end of 2022, mortgages were issued for an average of 24 years (289 months).

The leader in the volume of mortgage issuance was December, when borrowers received 696.87 billion rubles for the purchase of housing, and the outsider - May with an indicator of 139.688 billion rubles. The demand for mortgages in December is explained by the desire of people to receive loans at lower rates due to their upcoming growth from 2023 under the program of preferential mortgages with state support, the bank explained. In particular, 57.4 thousand mortgage loans worth 311.8 billion rubles were provided under equity agreements in December 2022. This is 5% higher than in December 2021 by quantity and 36.8% by volume, follows from the materials of the Central Bank of the Russian Federation.^[6]

Record monthly volume of mortgage loans - 641 billion rubles

The Central Bank recorded  a surge in activity in the mortgage market in December. Banks set a new record by issuing loans worth 696.9 billion rubles. The previous historical maximum in terms of issuance was recorded in December of a record 2021  - 641.3 billion rubles.

Extension of preferential mortgages at 2%, 6% and 8%

The preferential mortgage will be extended until July 1, 2024, but with an increase in the rate to 8%, Russia President Putin said in December 2022.

Family mortgages at 6% will be extended in 2023 to families in which two children have not reached the age of 18. In the new regions of the Russian Federation, the rate will be 2%.

Mortgage refusals share rises to 46.2% - all-time record

The share of mortgage refusals in Russia at the end of 2022 against the background of the conflict in Ukraine increased to 46.2%, which was the highest figure in the entire history of observations.

Average mortgage term hits all-time high of 24.1 years

The average mortgage term in Russia in December reached a historic maximum of 24.1 years, follows from the data of the Central Bank.

Mortgage loans exceeded 51% in the portfolio of loans to individuals

In the summer of 2022, mortgage loans began to occupy more than half of the retail portfolio of Russian banks. According to VTB estimates, in July the share of mortgage debt reached 51% of the total portfolio of loans to the population.

The opportunity to apply for a mortgage subsidy for large families on Public services

On August 17, 2022, the Ministry of Digital Development announced that a service Public services launched on the portal, with the help of which large families can apply for a subsidy from the state to pay off mortgages of up to 450 thousand rubles Public services, while the application procedure has become easier and more convenient. Read more here.

Increase in the number of contracts to 51 thousand in June

The Russian mortgage market has moved to the recovery stage after two months of drawdown: in June 2022, the volume of housing loans issued increased by 58.5% compared to May and reached 198.1 billion rubles, according to the Equifax credit bureau.

In the first summer month, Russian banks concluded almost 51 thousand mortgage agreements with borrowers, which is 67.6% more than the May result.

Decrease in the number of loans for housing to 31 thousand in May - at least 8 years

In May 2022, Russian banks issued the population only 31.5 thousand loans for housing for 119.4 billion rubles. The volume of approved loans has been minimal since February 2017, and the number of concluded contracts is the lowest in the last eight years. Compared to April, issuance decreased by 26.7% in monetary terms and by more than a third (36.7%) in quantitative terms.

Reduction of the average mortgage loan payment to 26 thousand rubles per month

75% drop in mortgage loans issued in April

The fall in mortgage issuance in April 2022 was the maximum in history Russia against the background of the ongoing conflict on. To Ukraine Thus, the number of mortgage loans issued decreased by 75%.

Banks in April 2022 provided borrowers with mortgage housing loans totaling 161.6 billion rubles, which is 3.2 times less than March (521.3 billion rubles) and 3.4 times more than April 2021 (551.0 billion rubles).

2021

Named the largest mortgage banks in Russia

In 2021, the 20 largest mortgage banks in Russia issued almost 1.9 million such loans in the amount of 5.6 trillion rubles, which, respectively, is 8% and 30% more than a year ago. The leaders of this market were Sberbank and VTB, which in 2021 issued a mortgage worth 4.1 trillion rubles. This is stated in the study, which was conducted by "Дом.РФ" in conjunction with analysts Frank RG.

At the end of 2021, changes took place in the five largest banks in terms of the volume of loans issued: Дом.РФ Bank entered the top five, rising one line; Alfa-Bank and Otkritie Bank climbed one line and took third and fourth places, respectively. Rosselkhozbank, which ranked third, dropped to sixth (the volume of loans issued by the bank decreased by 26% by 2020).

Experts associated the tangible growth of the Russian mortgage market with low interest rates on market programs, the extension of preferential mortgages for new buildings and the expansion of coverage under the Family Mortgage program. The share of mortgages with state support at the end of 2021 remained at the level of the previous year (28%).

Most loans in 2021 were issued by banks from the top 20 for finished housing (59% of the total). This is 1.1 million loans totaling 3 trillion rubles. Loans for new buildings amounted to 27% of the total issuance (496 thousand loans for 1.9 trillion rubles), and most of them (66% or 326 thousand) were issued on a preferential mortgage.

According to the report, the share of loans under programs with state support at the end of 2021 amounted to 28% in quantitative terms, practically unchanged in comparison with 2020. The top 20 banks issued 523 thousand loans on them (+ 10% by 2020) for 1.6 trillion rubles.

On average, for all programs in 2021, the approval level was 61%, including for market programs - 60%, for preferential mortgages for new buildings, the approval level is consistently higher than for other programs, and averages 67%. [39fac04ace8d-3.pdf Top 20 mortgage banks in 2021|https://www.tadviser.ru/index.php/Файл: 39fac04ace8d-3.pdf Top 20 mortgage banks in 2021]

Growth in mortgage loans to 5.69 trillion rubles

In 2021, Russians were issued mortgage loans totaling 5.69 trillion rubles, which is about a quarter more than in 2020. Such data was published by VTB on January 12, 2022.

We are talking about the entire Russian mortgage market. VTB itself in 2021 issued such loans for 1.2 trillion rubles (+ 30% compared to the previous year), which was a record result for the bank.

Mortgage sales in 2021 became a record in the entire history of market development in Russia and, according to our estimate, came close to 5.7 trillion rubles. Due to the acquisition of new real estate, the quality of life was improved by about 2 million Russians, which is comparable to the population of a large metropolis, "said Evgeny Dyachkin, vice president, deputy head of VTB's retail business department.

According to him, the market dynamics were influenced by deferred demand due to the COVID-19 coronavirus pandemic, the active commissioning of new development projects, as well as a record low level of rates in the first half of 2021.

Дом.РФ Bank in 2021 increased the issuance of mortgages compared to the previous year by almost 15% - up to 140 billion rubles, the press service of the financial organization said. Mortgage programs with state support were in greatest demand among Дом.РФ customers, they accounted for about 40% of all loans issued by the bank.

At the end of 2021, mortgages rose in price in Rosselkhozbank, Дом.РФ Bank, Gazprombank and Sovcombank. In the latter, by the beginning of 2022, they are considering a new increase in mortgage rates. Gazprombank does not exclude that they can still increase mortgage rates (by January 12, 2022, 10.9%).

According to Дом.РФ for 2021, the weighted average mortgage rate for new buildings in the top 15 banks was 9.58%, in the secondary market - 9.62%, on family mortgages - 4.77%.^[7]

Russian cosmonauts will be able to get a preferential mortgage at 0.1% per annum

On December 8, 2021, it became known that Promsvyazbank (PSB) and Roscosmos entered into an agreement, which implies the provision of a preferential mortgage for members of the Russian cosmonaut squad. The agreement was signed after the launch of the Soyuz-2.1a rocket with the Soyuz MS-20 manned spacecraft on December 8 from Baikonur.

"In accordance with the agreement, cosmonauts and candidates for cosmonauts will be able to take advantage of the preferential mortgage program from PSB at a rate of 0.1% per annum," the press service of Roscosmos noted.

As specified in the state corporation, housing under the program can be purchased both in the primary and secondary markets. The maximum loan amount is 12 million rubles for astronauts, 7 million rubles for candidates for astronauts, the initial payment is 10% of the loan amount. The loan is provided for a period of three to 15 years.

According to the first deputy chairman of the PSB Oleg Minaev, a specially developed program of preferential mortgages for astronauts will allow them to improve their living conditions and will become a tool for long-term motivation and support for people of professions significant for the country.

In turn, Maxim Ovchinnikov, First Deputy General Director of Roscosmos for Economics and Finance, said that a special insurance program has also been developed for astronauts, and wages have been increased.^[8]

The dynamics of the number of mortgage loans over 5 years

936 thousand mortgage loans worth 2.69 trillion rubles were issued in the 1st half of the year

According to the results of the first half of 2021, Russian banks issued 936 thousand mortgage loans totaling 2.69 trillion rubles.

Compared to the first half of 2020, issuance increased by 44% in quantitative terms and by 74% in monetary terms. The number of loans issued set a historical record, reaching a six-month maximum in the history of the Russian mortgage market.

The average mortgage loan reached 3.06 million rubles

Sberbank first issued a mortgage loan online in the secondary market

Sberbank on March 10, 2021 announced that for the first time it issued a mortgage loan for the purchase of finished housing without a visit from the buyer and seller to the bank - completely in a remote format. The deal participants signed all documents with enhanced qualified electronic signatures. The deal was carried out thanks to DomClick services from Sberbank. Read more here.

The full cost of a mortgage loan dropped to 8.6% per annum

In February 2021, the indicator of the full cost of a mortgage loan dropped to 8.6% per annum. 

But due to the rise in apartment prices, the average loan amount continues to grow, in February reached 2.76 million rubles. (2.46 million rubles in February 2020). There are strong imbalances in the market - the cost of housing in the pit stage almost coincides with the cost of ready-made housing.

2020

Increase in the number of mortgage transactions by 18%, to 3.5 million

At the end of 2020, the number of mortgage transactions registered by Rosreestr reached 3.5 million against 3 million a year earlier. Thus, there was an almost 18 percent increase.

In this volume of transactions, the share of electronic mortgages at the end of 2020 exceeded 37%. In total, Rosreestr received more than 26.3 million applications for registration and registration actions over the year, almost 2 million of them for mortgage registration. More than 747 thousand packages of documents were submitted electronically.

In the total volume of transactions with primary real estate, the share of electronic also increased - from 20% to 44%. During the year, 412.8 thousand equity participation agreements were submitted online out of 950 thousand received by Rosreestr. In total, in 2020, 764 thousand equity agreements (DDUs) and 3.7 million rights to transfer ownership to the secondary housing were registered.

We are developing electronic services, the banking sector is actively mastering electronic registration, submitting more and more documents in electronic form, and this reduces the registration time and the passage of documents. We are moving away from paper media, - said Andrei Roerich, deputy head of the Rosreestr Office for the Altai Territory.

According to TASS, the Russian Information Agency, citing data from Rosreestr, if in April 2020, due to the restrictions introduced due to the COVID-19 coronavirus, the number of registered mortgages in Russia decreased to 173.8 thousand, then in June this figure amounted to 252.7 thousand, and in August - 322.8 thousand. In the following months, the indicator steadily increased by 30 thousand mortgages. Most transactions involving loans were registered in December 2020 - 441 thousand, which is 38% more than in December 2019.

According to the head of Rosreestr Oleg Skufinsky, mortgage lending programs with state support have become an effective mechanism and additional incentive for restoring the mortgage market.^[9]

The number of refinanced mortgages in Russia increased by 167%, to 234 thousand.

In 2020, the number of refinanced mortgages in Russia increased by 167% - to 234 thousand from 88 thousand a year earlier. This is evidenced by the data of the analytical center "Дом.РФ."

According to experts, in 2020, Russians refinanced mortgage loans totaling about 600 billion rubles, which is a record for the Russian market. The share of refinancing transactions in the total volume of mortgages increased to 13.7% against 6.8% in 2019. By the end of the year, the refinancing rate fell below 8%, in 2019 it averaged 9.5-10%.

The market has developed ideal conditions for refinancing previously taken loans. According to our estimate, the average rate of the current mortgage portfolio is 10-11%, while the loan can be refinanced at an average of 8%. That is, the benefit to the borrower is more than two percentage points. This allows him to significantly reduce the costs of interest payments, - commented Mikhail Goldberg, head of the Дом.РФ analytical center.

According to him, the growth of refinancing has a positive effect on the quality of the mortgage portfolio in the country: the lower the payment burden on citizens, the less likely mortgage defaults are. The share of overdue mortgage debt over 90 days in Russia by the end of 2020 amounted to less than 1.4%, including loans on the primary market - less than 1.1%.

Banks are quite willing to refinance mortgage loans of other credit institutions - as a rule, a borrower who has been regularly paying a mortgage for some time is considered more reliable than a new client, Ekaterina Shchurikhina, junior director of banking ratings at Expert RA, told Kommersant. For existing lenders, she said, refinancing a loan at a lower rate is a way to keep a client in the bank, otherwise he will go to competitors.^[10]

Mortgage issuance in Russia has grown to a record

In 2020, Russians issued 1.7 million loans for the purchase of housing totaling 4.3 trillion rubles, which, respectively, is 35% and 30% more than a year ago. The market size turned out to be a record, according to analysts at Дом.рф.

Experts attributed the rapid development of mortgages to several factors, the main of which is a decrease in market rates on housing loans - to 8% from 10-11% in 2019. In addition, the launch of preferential programs, in particular, a program for issuing loans at 6.5% for the purchase of apartments in new buildings, helped to popularize mortgage lending. As part of the state program of preferential mortgages, 345.6 thousand loans were issued in the amount of more than 1 trillion rubles.

As a result, in the segment of new buildings, which is mainly covered by preferential programs, the average rate decreased to about 6%, - said Vitaly Mutko, General Director of Дом.рф.

At the same time, the main growth of the mortgage market is ensured by loans for the purchase of finished housing (about 70% of issuance). New mortgage loans (excluding refinancing) in 2020 were issued about 1.5 million, which is 25% more compared to 2019. The mortgage portfolio, taking into account securitization on an annualized basis, increased by 19.4%, to 9.8 trillion rubles (9.2% of GDP).

According to the Дом.рф report, in 2020, Russians were issued 990 new loans for finished housing, which is 18% higher than a year ago. The number of refinanced loans increased by 167%, to 234 thousand, and the number of housing loans for new buildings rose by 43%, to 485 thousand. The average mortgage rate on housing in a new building decreased year-on-year by 2.9 percentage points. - up to 5.9%.

In "Дом.рф" noted that despite concerns, the record demand for mortgages in Russia did not lead to the formation of a "bubble" in the market. Mortgage lending remains the highest quality segment of the retail lending market, analysts stressed.^[11]

Registry office data will be transferred to public services for remote registration of mortgages

Data from the Unified State Register of Civil Status Records (USR Registry Office) will be transferred to the Unified Identification and Authentication System (ESIA, used on the public services portal) in order to provide remote banking services. Read more here.

Growth of mortgage debt of Russians to 8.1 trillion rubles

The portfolio of mortgage loans of Russian banks as of August 1, 2020 for the first time in history exceeded 8.131 trillion rubles, follows from the data of the Central Bank. Increase since the beginning of the year by 639 billion, 8.5%.

In July, the total mortgage debt of Russians increased by 2.1% - to 8 trillion rubles. A year ago, as of August 1, 2019, the volume of mortgage debt of Russians amounted to 7 trillion rubles.

The volume of overdue loans at the beginning of August amounted to 75.6 billion rubles, which is 0.6% more compared to June (75.1 billion rubles), as well as 3% more than a year earlier (73.3 billion rubles).

VTB customers will receive 200 million rubles to pay off mortgages as part of electronic interaction with the FIU

On May 28, 2020, VTB announced that it had sent more than 430 applications for disposal of maternity (family) capital funds as part of the electronic interaction process with the Russian Pension Fund. For a month of work on the technology of data exchange in XML format, customers have already received the first confirmation of the FIU on a positive decision and used the means to improve housing conditions. At the end of May 2020, the total amount of such transfers for applications in operation exceeds 200 million rubles.

The bank began accepting applications for the disposal of maternity (family) capital in all offices of the network from April 15. VTB became an organization not only receiving Russia confirmation from the Pension Fund on the right of certificate holders to use funds, but also implemented the filing and consideration of client applications within the framework of an electronic work format. The first customers to receive a payment for early repayment credit of a mortgage as part of the digital process were a family of. Krasnoyarsk The largest number of appeals at the end of May 2020 was recorded in,,,, the Orenburg Irkutsk Stavropol Territory Altai Territory Republic, and. Tatarstan To Moscow St. Petersburg

VTB implemented the process of fully electronic interaction with the Pension Fund of Russia. Thanks to the launch of this technology, customers can already at the time of registration of the mortgage apply to the FIU with a statement about the use of maternity capital funds. The simplest procedure allows you to reduce the number of appeals to state bodies. In addition, due to the automation and electronic transfer of the process, the period for consideration of applications and transfer of funds is significantly reduced, commented Mikhail Seroshtan, head of the Mortgage Lending department - vice president of VTB Bank.

As part of electronic interaction with the Pension Fund of Russia, borrowers can apply for the use of maternity capital to improve housing conditions and direct these funds to a down payment on a mortgage or to early repayment of a loan. You can apply at any branch of VTB, of the documents the client will only need a passport.

Reduction of the average mortgage loan to 2.48 million rubles

The average size of a mortgage loan in April 2020 in Russia fell to the level of early 2019 and amounted to 2.48 million rubles.

In Russia, for the first time, they took out a mortgage and bought an apartment completely via the Internet

On April 15, 2020, it became known about the first case when a mortgage was first taken out in Russia and bought an apartment completely via the Internet. The deal was carried out by VTB and the PIK group, in which a client from home purchased real estate in the Sheremetyevsky residential complex in Moscow.

This is not only a technological breakthrough that we made together, but also a historical event when paper transactions are a thing of the past, the PIK group said.

VTB has switched to a new process of obtaining a mortgage loan. It is fully digital and does not require a visit to the bank's office. A mortgage application is issued on the developer's website. After its approval by the bank, the client signs all documents completely remotely - an application for opening an account, credit documentation, a DDU agreement - using an enhanced qualified electronic signature issued by the certification center. Settlements under the transaction are carried out online through the Meter Square secure settlement service (part of the VTB Group).

By mid-April 2020, the pilot project is being implemented in Moscow. PIK clients will be able to go through all the processes of purchasing an apartment on the company's website: from applying for a loan to signing a DDU and receiving a loan using a digital signature.

According to the president of the PIK group, Sergei Gordeev, the company worked somewhat to ensure that anyone could receive a mortgage and buy an apartment without leaving home. Although some banks declared such a service, in fact they replaced the concepts - either a courier's visit to the client was required, or a client's visit to the bank, he said.

The self-isolation regime was a challenge for us , and we were able   to create a truly innovative product with VTB Bank and with the assistance of the Central Bank of Russia. It would seem that a small step in the development of technologies was a huge leap for the entire industry, - said Gordeev.[12]

Banks in Russia switched to services for remote registration of mortgages

By mid-April 2020, banks in Russia began to actively develop remote mortgage registration. After the introduction of the self-isolation regime, the Central Bank of the Russian Federation temporarily softened the requirements for banks to identify customers for mortgage transactions remotely. 

Sberbank organized a mortgage loan at home. Masked Sberbank employees come to the client's home to issue an enhanced electronic digital signature, sign credit documents and send documents for registration of the transfer of property rights in electronic form. The rest of the questions on the choice and registration of housing can be solved online on the DomClick website.

The Bank of ДОМ.РФ also began to conduct electronic transactions with mortgages, when clients sign all documents with an enhanced qualified electronic signature using a smartphone. By mid-April 2020, such transactions were carried out in Moscow, St. Petersburg, Samara, Nizhny Novgorod and Chelyabinsk, in the near future the bank plans to scale up electronic mortgages to all regions of the bank's presence.

Otkritie Bank told TASS the Russian Information Agency that remote mortgages are also already available to customers, and the credit institution intends to develop this technology and scale up to a wide range of borrowers.

According to Igor Dmitriev, head of the Rosbank Dom digital partner business center, against the background of increased demand for mortgages, Rosbank is introducing new services and services, including issuing such a loan to a house and paying for insurance in a mobile application.

Alfa-Bank noted that you can apply for a mortgage by April 15, 2020 remotely through the borrower's personal account and without the need to visit the office. At the same time, the bank is developing a process of completely remote registration of mortgages.^[13]

Raiffeisen Bank: a quarter of Russians do not know why to pay a mortgage ahead of schedule

For a significant majority of Russians (78%), the size of the monthly payment is more important than the term of the mortgage loan. This was announced on February 11, 2020 by Raiffeisen Bank. The analysis is based on survey data from more than two thousand people from 17 major cities in the country.

44% of respondents plan to repay the mortgage ahead of schedule or partially ahead of schedule. The main reason for refusing this option to close the loan is the lack of extra money. It was allocated by 75% of respondents. At the same time, almost a quarter (22%) do not know why to pay a mortgage ahead of schedule.

The average time to close a mortgage loan in Raiffeisen Bank is 7 years instead of 15, said Andrey Spivakov, Managing Director for Credit Retail Products at Raiffeisen Bank

Most respondents (73%) are going to spend the tax deduction on early repayment. 24% will invest money back in repairs. 3% - either previously used the tax deduction, or will spend it on themselves: go on vacation or update the car.

2019

The first decrease in mortgage issuance in 4 years to 2.8 trillion rubles

Despite the decline in rates, the mortgage market collapsed for the first time in 4 years. Banks in 2019 issued 1.3 million mortgage loans worth 2.8 trillion rubles. Compared to 2018, in quantitative terms, the decrease was 14%, and in monetary terms - 5%.

As follows from the Expert RA report, in 2019 the volume of mortgage loans decreased for the first time in four years. In 2016, they were issued for a total amount of 1.5 trillion rubles, in 2017 - 2 trillion rubles, and in 2018 - 3 trillion rubles. The total debt on loans amounted to 7.5 trillion rubles.

Russians with mortgages divorce ten times less often

Borrowers paying mortgages are divorced 10 times less often than other Russians: the share of divorces among them is only 2%, while among those who are not burdened with loan obligations, it reaches 20%, according to a joint study by the Equifax credit bureau and the National Association of Professional Collection Agencies.

"Among those who are not burdened with credit obligations, the share of divorces varies from 10 to 20%, and among mortgage borrowers it is minimal - about 2%," experts say.

Analysts explain this by the fact that the family is more balanced in deciding on mortgages both in terms of their financial capabilities and in terms of psychological stability within the family.

About 40% of Russians paying mortgages after deciding on a divorce allow delay, but most of them after some time return to permanent payments.

Reduction in mortgage issuance by 7% in the first 5 months

In January - May 2019, banks issued 412,000 mortgage loans in the amount of 910 billion rubles, which is 7% less than in the past year.

In May 2019, Russian banks issued mortgage loans for 150 billion rubles, which is 31% less than in the same period last year, when the figure was 218.5 billion rubles.

The OKB noted that in May 68 thousand loans were issued for the purchase of housing against 109.7 thousand in 2018 (a decrease of 38%).

Map of average mortgage size in the regions of Russia

Mortgage rate hikes by market's biggest players

Chief economist Alfa-Bank Natalia Orlova considers the growth potential of mortgage loans in 2019 "more limited than in 2018." The head of the analytical center "Rusipotek" Sergey Gordeiko expects that the issuance of mortgages in 2019 will grow to 3.3 trillion rubles. The growth is likely to be, but much less than it was in 2018, agrees Pavel Samiev, general director of the BusinessDrom agency. Mortgage issuance in 2019 will be comparable to 2018, analysts say. "Дом.РФ"

Some are waiting for results lower than in 2018. In the basic scenario, Expert RA will not exceed 2.5 trillion rubles, but if inflation risks are fully realized and the Central Bank has to significantly increase the key rate, it may fall to the level of 2017 - about 2 trillion rubles, warns the leading analyst on bank ratings "Expert RA" Ekaterina Shchurikhina.

Individual developers note a reduction in the share of mortgages in sales.

In the first half of 2019, mortgage rates will grow by an average of 0.5-1 pp, Shchurikhina predicts. The weighted average rate of mortgage loans issued in 2019 will reach 10.3-10.5% per annum, believes Elena Kudlik, deputy chairman of the board of Deltacredit. Gordeiko expects 10%.

The biggest players up the ante. In 2019, this was done by Sberbank, VTB, Deltacredit, Gazprombank, Дом.РФ, Absolut Bank, Otkritie FC - by 0.25-1 p. The average rates in them are 10-11% per annum with comprehensive insurance.

Since 2019, the requirements for issuing loans have been tightened: for mortgages with a down payment of less than 20%, banks apply an increased risk ratio - 200% instead of 150%. This requires more capital from the bank to issue such loans. At the same time, mortgages are not the most profitable product for banks.

2018

Sberbank's share in the mortgage market decreased from 53 to 51%

Sberbank's share in the volume of loans issued in the mortgage market of the Russian Federation decreased in 2018 from 53% to 51%, while Alfa-Bank became the leader in terms of lending growth, according to the Expert RA mortgage review for 2018.

"State banks in 2018 increased their issuance more actively - their total mortgage lending increased by 52% against 41% for private players, a year earlier the growth rates were comparable (49% and 51%, respectively). The concentration of the mortgage market on players with state participation in 2018 increased - their share in loans increased from 85.6% to 86.5%. At the same time, the share of the largest player in the market - Sberbank - decreased from 53% to 51%, "analysts say.

Most banks from the top 20 in terms of mortgage lending in 2018 showed an increase in issuance volumes, while more than half of them had a growth rate higher than the market average. The absolute leader in the increase in issuance, according to analysts, was Alfa-Bank.

"Alfa-Bank (+ 1177%) became the leader in the growth rate of mortgage loans due to the low base effect of 2017. The top three in terms of growth rates also included Otkritie Bank (+ 172%) and SMP Bank (+ 120%), "- said[14]51%.

The growth rate of mortgage issuance in the market as a whole amounted to 49%, in Sberbank - 43%.

1.47 million mortgage loans worth 3.012 trillion rubles were issued

On February 6, 2019, it became known that in 2018, for the first time in the history of observations since 2006 banks , 1.47 million mortgage loans were issued for 3.012 trillion rubles. - 1.5 times more than in 2017, follows from. data CENTRAL BANK The mortgage portfolio also reached its maximum value - 6.38 trillion rubles.

The average annual mortgage issuance rate was 9.56% per annum against 10.64% in 2017.

The minimum for the entire observation period - 9.41% per annum - the weighted average rate of loans issued for the month reached in October 2018. However, in December it increased by 0.14 percentage points (pp) to 9.66% per annum, being at the level of April, - still this is 0.13 pp lower than a year earlier.

Among the main reasons for the mortgage boom, analysts "Дом.РФ" in the review call the reduction of rates to a historic minimum. The market is growing primarily due to new borrowers - the refinancing share was about 11%, minus it, a "new" mortgage was issued by about 2.67 trillion rubles. (+ 40% by 2018). According to Дом.РФ, in recent months the share of mortgage transactions in new buildings is 56%, in the secondary market - 49%.

The average size of the mortgage taken over the year increased from 1.86 million to 2 million rubles, according to Дом.РФ estimates.

According to marketing Dmitry Tsvetov, director of the A101 department and product development, in 2018 the share of mortgages in the company's sales was 65%.

The mortgage boom in 2018 worried the Central Bank. In September, he said that 44% of mortgages were issued by banks with an initial payment of less than 20%, and in 2017 their share did not exceed 20%.

author '= Herman Gref, CEO of Sberbank ' 0.1 pp - net interest margin of Sberbank's mortgage, this is on the verge of profitability.

According to the Central Bank, the share of overdue debt in 2018 decreased to 0.96% from 1.06% a year earlier. However, according to Vladimir Shikin, Deputy Marketing Director of the National Bureau of Credit Histories (NBCH), the average scoring score of mortgage borrowers whose data was transferred to the NBCH decreased in 2018 compared to 2017 from 718 to 705 points. This indicates a possible deterioration in the portfolio in the future, Shikin said. Samiev also believes that in 2019, due to an increase in issuance, the delay may grow - however, "slightly"^[15].

2017: Growth of issuance in the first half of the year by 15% to the level of record 2014

According to AHML, in the first half of 2017 alone, over 420 thousand mortgage loans worth 765 billion rubles were issued in the country. This is 15% more than in 2016 and corresponds to the level of a record 2014. "The current state of the mortgage market is not a concern," agency analysts summarize.

2016:574 thousand loans were issued for 945 billion rubles

In 2016, in the mortgage segment, the total number of new loans increased by 16%, lending volumes by 19%. In 2016, 575.04 thousand loans were issued for 945.89 billion rubles, in 2015 - 497.83 thousand loans for 797.20 billion rubles. The "average check" for mortgage loans increased from 1.60 to 1.64 million rubles.

2015: Decrease in the number of new loans by 36% to 470 thousand loans by 1.2 trillion rubles

In total, at the end of 2015, there were 2.6 million active mortgage loans in the portfolios of banks totaling just under 3.3 trillion rubles.

The decrease in the number of new mortgage issues was 36%, volumes decreased by 38%. In 2015, 470 thousand loans were issued for a total amount of about 749 billion rubles, in 2014 - 730 thousand loans for 1.2 trillion rubles. The "average check" for mortgage loans decreased from 1.65 to 1.59 million rubles. This is due to the fact that in 2015, Russians more often opted for a cheaper segment of housing in new buildings, which was provided with state support.

The traditionally stable segment of mortgage loans showed the highest growth rates of overdue debt in 2015. This is primarily due to the recalculation of foreign currency mortgages at new foreign exchange rates. Despite the fact that foreign currency loans make up no more than 1% of the total number of mortgage loans, the weakening of the national currency negatively affected the entire mortgage portfolio.

The number of overdue mortgage loans for the year decreased by 3%: from 84 to 82 thousand loans. At the end of the year, the share of loans with late payment amounted to 3.2% of the total mortgage portfolio of banks. However, the volume of overdue mortgage debt increased by 58%: from 83 to 132 billion rubles. At this time, the share of overdue debt is just over 4% of the total loan debt on mortgages.

2014: Mortgage beats cash loans for first time

In December 2014, banks issued mortgage loans for 227.6 billion rubles, surpassing unsecured lending in this indicator (225 billion rubles), follows from the analytical report of the consulting company Frank RG. A year earlier, in December 2013, the issuance of mortgages lagged behind consumer loans twice - 184 billion and 383 billion rubles. respectively.

"Banks are squeezing risky unsecured lending," explains Frank RG CEO Yuri Gribanov. The trend towards lagging behind retail lending from mortgages was manifested, according to him, back in the summer of 2014.

Mortgage in the USSR

See also

• Russian economy

Notes