Page 110 - RusRPTJul24

Market-Rate Mortgages
In contrast, the issuance of market-rate mortgages remained moderate, reaching 124 billion rubles in May, up from 116 billion rubles in April, constrained by high interest rates.
The marked increase in mortgage lending underscores the significant role of government support programmes in sustaining the housing market, even amid higher interest rates and economic uncertainties.
A total of 110bn rubles were loaned under Russia preferential mortgage schemes for new-build apartments in April, according to the Central Bank. That’s up 15% from March.
Banks are prematurely curtailing lending under the preferential mortgage program, which will cease to operate on July 1 (for more on why that’s important, see here). From June 21, state-owned Sber will stop accepting applications for discounted mortgages at 8% and will stop issuing IT mortgages. Bringing an end to the current preferential mortgage set-up is a long-standing aspiration of the Finance Ministry and the Central Bank.
110 RUSSIA Country Report July 2024 www.intellinews.com