Is cheap mortgage a reality?

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The mortgage rate in Russia continues to decline. Now it has reached its historical minimum, and experts seriously believe that in the foreseeable future it will be able to compare with European indicators. Only in February 2018, the average mortgage rate was 9,75% per annum, and in January it reached 9,85% per annum.





Lower bids are inextricably linked to policies Bank of Russia, which in February lowered its key rate to 7,5%, and in March - to 7,25%. As we recall, back in 2014-2015. mortgage rates were double-digit, then in 2017 they dropped to 10%, and now they have decreased even more significantly.

It is known that it was high interest rates on mortgages in recent years that acted as a serious obstacle to the development of the housing market in modern Russia. Without attracting credit, most Russians cannot buy an apartment from scratch, which entails a number of serious problems, including social tensions in society and demographic risks. The problem of housing prices is especially acute in the capital and in large cities of regional significance, while in the province prices look much more affordable.

High mortgage rates, in turn, further reduce the number of citizens who are able to buy a home. This inevitably affects the real estate market, the construction business, and, in particular, the banking sector. Since Russia managed to overcome economic crisis, inflation reached an acceptable level. Now there is no need for such high interest rates on loans, including mortgage rates, respectively, they will continue to decline.

Of course, up to 2% per annum in Europe, Russia is still far from European mortgage rates, and they are known to make up in countries such as France or Germany. But this is a quite tangible goal if inflation continues to decline. The impetus for lowering mortgage rates may be preferential subsidy programs that are funded by the state. So, since 2018, families with two or more children, provided that the second or third child were born after the onset of 2018, thanks to the presidential decision, were able to take mortgages at a reduced rate not exceeding 6% per annum. This decision will allow families with children to save up to 100 thousand rubles a year, which on the scale of several years of paying a mortgage loan forms a very impressive amount in excess of the amount of maternity capital paid by the state.

In a number of regions of the Russian Federation, social mortgage programs operate. For example, in Kazan, subject to a down payment of 10% to 30% of the cost of housing, a mortgage loan is provided for a period of up to 30 years and at a rate of 7% per annum. Experts expect that during 2018 mortgage rates will continue to decline and by the end of the year they can reach 8,75% - 9% per annum. If housing prices decline, this will increase the activity of buyers in the housing market, and in the long run will inevitably have a positive impact on the overall social and demographic situation in Russian society.
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