The Central Bank called for an increase in rates on preferential mortgages

In Russia, it is necessary to gradually increase rates on preferential mortgages to market levels. Such a measure is necessary to reduce the difference in prices in the primary and secondary housing markets, as indicated in the financial stability review of the Central Bank of Russia.

According to the Central Bank, since 2020 the price gap between primary and secondary housing has increased significantly. By the beginning of October 2023, the difference reached 42%. “To reduce the price differential in the primary and secondary markets, it is necessary to gradually increase rates on preferential mortgage programs to the market level and abandon their broad format of action in favor of a targeted one (depending on the region – approx. URA.RU),” says in review Bank of Russia.

It is clarified that such a situation carries risks for both borrowers and banks. According to the regulator, the cost of the apartment. The mortgage taken out may not be enough to repay the loan obligation.

Earlier, Russian President Vladimir Putin instructed to extend the preferential mortgage program until July 1, 2024. Recently, the Ministry of Construction stated that the issue of maintaining the program in a modified form is being discussed.