State Duma Deputy Alexander Yakubovsky shared his opinion on the situation surrounding compensation for lost income to banks from the implementation of preferential mortgage programs. He noted that a balance must be found between the positions of banks and developers, since if banks may suffer losses, then sooner or later this will affect the end consumer of all banking services.
The preferential mortgage program, which was launched in the spring of 2020, has fully fulfilled its role and is now playing out under new conditions. In addition to the undoubtedly positive effects of supporting the industry, the total contribution of which (with related industries) reaches 12% of GDP, stimulating demand and increasing the availability of mortgages as a mechanism for improving housing conditions, there are also a number of justified complaints about the existing program. For example, this is the gap between the cost of housing in the primary and secondary markets, the current decrease in housing affordability, in conditions of constantly overheated demand, Yakubovsky said.
“Now that subsidies for banks have been reduced, the gap between the market rate and the preferential rate has increased, such a product has lost its attractiveness, first of all, for its sale by credit institutions. Banks came out to introduce so-called commissions. For the most part, this is an opportunity for them to balance expenses and income, since preferential mortgage margins are lower than they were just two years ago. And the position of financial organizations is also understandable,” the deputy said.
But most importantly, you need to first of all think about end consumers, who until the end of July still have the opportunity to take out a housing loan at a rate significantly lower than market conditions and provide this opportunity for them.
“In the future, it seems to me that the program should become more targeted, helping certain categories of citizens, certain categories of specialists, improve their living conditions with the support of the state, or by supporting the development of the construction industry in those cities where there is low demand and low supply.
Returning to the banks, of course, if they incur losses from the implementation of such programs, then sooner or later this will affect the end client and such a balance must be found between the positions of the banks and developers who do not pose a threat to the ability of ordinary citizens to use the preferential program,” summed up Yakubovsky.