GENERICO.ruWorldThe Accounts Chamber warned of the risk of a financial bubble in the mortgage market

The Accounts Chamber warned of the risk of a financial bubble in the mortgage market

MOSCOW, 28 Sep. The mortgage market in Russia requires close attention of the Central Bank, since a sharp increase in the mortgage portfolio and real estate prices can lead to a bubble, the statement of the Accounts Chamber says on the report on the execution of the federal budget for 2020. “It should be noted that the mortgage market requires close attention from side of the regulator, since a sharp increase in the mortgage portfolio and growth in real estate prices can form a financial bubble, which can seriously hit the stability of the financial sector and the income of the population, “the document says. The Accounts Chamber notes that the activity of participants in the mortgage market in 2020 year increased compared to 2019 thanks to a large-scale concessional lending program. “By the end of 2020, the mortgage portfolio grew by 21%, exceeding the result of 2019 (about 20%), and as of January 1, 2021 amounted to 9.5 trillion rubles. year, 1,713 thousand mortgage loans were provided for a total amount of 4.3 trillion rubles, which is more than in 2019 both in quantitative (+ 35%) and monetary (+ 51%) terms, “the document adds. Bank “Dom.RF” has lowered the rate on “Far Eastern mortgage” The agency indicates that the increased demand for mortgages led to an increase in real estate prices in 2020: in the primary market – by 12%, in the secondary market – by 9.5%. as part of anti-crisis measures last spring, it launched a preferential mortgage program with a rate of up to 6.5%. This triggered a boom in home lending and a rise in property prices. Against this background, a discussion erupted, during which opponents of the extension of the preferential mortgage pointed out that it contributed to the overheating of the market in a number of regions. As a result, the Cabinet extended the preferential mortgage program until July 1, 2022 with a significant change in the conditions: to buy housing in a new building within its framework it is possible at a rate of up to 7% per annum, and the maximum loan amount for all regions is 3 million rubles (before that it was 6 million rubles, and in Moscow, the Moscow region, St. Petersburg and the Leningrad region – 12 million). Experts told when they begin to take away housing for mortgage debts


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