CENTRAL BANK OF RUSSIA PROPOSED TO LIMIT PREFERENTIAL MORTGAGE LOANS

According to Danilova’s opinion, voiced in an interview with RIA Novosti, this is necessary to reduce excess risks. In the situation that has developed in recent years, it is possible to determine an increase in real estate prices, which is associated with both an insufficient number of proposals and an increase in the issuance of preferential mortgage loans.

Mortgages began to lose their social focus, and an increase in the so-called investment demand for real estate might be noted: purchasers of apartments on a preferential mortgage program often see this as an investment.

At the same time, the task of the program was to provide housing for citizens who are unable to acquire it on their own.

Danilova also noted the fact that the higher housing prices, the more interest in purchasing real estate, which ultimately again affects the rise in prices. As a result, the large-scale mortgage program partially stimulates the rise in the real estate prices, while the original goal of the program is simply not achieved.

Another key direction of preferential mortgage loans was the development of construction in the regions. However, now an increased demand for mortgages is observed in Moscow and St. Petersburg along with the adjacent regions, as well as in the Krasnodar Territory.

In this regard, Danilova admitted the possibility of extending the program only for a number of regions where you can see a more difficult situation in the housing market.

We should recall that the current program of the preferential mortgage lending will be in force until this summer. Whether it will be extended on the same scale has not yet been reported.