According to the results of February 2021, 147,000 mortgage loans (up by 36 % YoY) were issued in Russia in the amount of RUB 410 billion (up by 53 % YoY), told Deputy Prime Minister of the Russian Federation Marat Khusnullin. In January-February, 242,000 mortgage loans were issued in the country for a total of RUB 669 billion — an all-time two-month record.
The 0.5 trillion mark usually reached in three months or more.
“We are seeing an unprecedented growth in mortgage lending, which has been sustained for the ninth month in a row. More than 240,000 mortgage loans since the beginning of the year — this is almost a quarter of a million families who have improved their living conditions. Of course, the main reason for such volumes is record low mortgage rates. A huge contribution to this result is made by the program of preferential mortgages for new buildings at 6.5 %. With the help of this tool, more than 400,000 families have bought housing since April last year, that’s over RUB 1.2 trillion of loans. The program has a colossal positive effect both for solving the housing issue of citizens and for expanding the volume of construction,” said Marat Khusnullin.
According to the Bank of Russia, in January the weighted average mortgage rate in the country was 7.23 % (2 pp lower than a year earlier). In the primary market, where there are preferential programs with state participation, the average rate is even lower — 5.86 %.
“The Housing Development Institute, in close cooperation with the Government and the Bank of Russia, is implementing a whole range of systemic measures to increase the availability of mortgages. Among them is the digitalization of mortgage lending: the further introduction of electronic mortgages, the transfer of the entire process of issuing and banking support of a loan to electronic form. This lowers the costs for banks and allows them to lower rates. The development of the mortgage bond market, which helps to attract long-term financial resources to the sector, contributes to the decrease in rates. This money also goes to the issuance of new mortgage loans,” said Vitaly Mutko.
Taken together, these and other structural measures to develop the mortgage market are designed to ensure a progressive decline in loan rates, which will make home purchases more affordable for families with an average income. Today, mortgages are the main instrument for solving the housing issue for Russians: more than 80 % of all real estate transactions in new buildings and 50 % in the secondary market are carried out with its help.
