Due to the mortgage loans support state program, it has become possible to avoid significant falls on the market in this sphere.
Sergei Moiseev, the Director of the Financial Stability Department of the Central Bank, claimed this at the “Risks management in retail banking” conference. According to him, the ruble crash at the end of last year resulted in a temporary purchasing boom, which led to a historic record in the volume of leased mortgage loans.
The population then showed demand for real estate as an investment asset, and there was also a boom in credits in cash. But all of this is in the past - we are actually seeing the death of POS-crediting and (relatively) okay conditions for mortgage loans, one better than might be expected. “In fact, we haven’t seen a significant decrease in this market. Of course, the volumes have decreases twice, but it is not so dramatic”, Sergei Moiseev said.
To remind you, according to the law on preference mortgage loans the RF government had planned to allot 20 bln rubles to Russian banks to subsidize the rates of mortgage loans for primary housing so that it did not surpass 12%.
The banks were supposed to lease mortgage loans for 400 bln rubles. Later, the RF Government expanded the program for preference mortgage loans up to 700 bln rubles. It will operate until March 1st, 2016.