Russian banks issued a record volume of mortgages in 2021

AK&M 14 January 2022 18:54

The volume of mortgage loans issued by the end of 2021 in Russia reached the highest in the entire history of observations: last year 1.9 million loans were issued for 5.7 trillion rubles. Compared with the indicators of 2020, according to the preliminary assessment of the HOUSE.The Russian Federation and Frank RG, the market grew by 7% in quantitative terms and by 28% in monetary terms. This is stated in the message of DOM.RF.

Analysts estimate that in December 2021, banks issued about 194 thousand mortgage loans totaling 647 billion rubles.

In 2021, there was a significant increase in mortgage lending in Russia. This is due to unprecedented favorable conditions for mortgages. In particular, the Bank of Russia conducted a soft monetary policy for the first half of the year, and mortgage rates in the market segment were at a historic low. In addition, a record volume of loans - almost 640 thousand loans worth 1.6 trillion rubles - was issued under preferential mortgage programs

In 2021, about a quarter of all mortgage loans issued in the country fell on preferential programs, the operator of which is the HOUSE.RF, - "Preferential", "Family" and "Far Eastern" mortgages. The "Family Mortgage", extended in 2021 to families with one child, is in particular demand. This has significantly increased its coverage, banks compete with each other for the opportunity to issue such loans and offer significant discounts to the marginal rate set under this program. The implementation of the "Family Mortgage" and other preferential programs will support the market in 2022.

An additional incentive for the market is state support for individual housing construction, including the extension of mortgage rate subsidy programs to this segment. According to analysts, the introduction of the escrow account mechanism in private housing construction will contribute to an increase in the volume of lending to citizens in the residential housing sector. In addition, in 2021, the HOUSE.The Russian Federation held a competition for the development of standard residential housing projects, following which a database of standard documentation for the construction of individual houses will be created. Thanks to this, banks will be more willing to accept individual homes as collateral for a mortgage loan. These measures will increase the volume of civilized, comprehensive housing and communal services, and banks will be able to systematically reduce mortgage lending rates in the sector. As shown by the joint survey of the HOUSE.The Russian Federation and VTsIOM, the potential demand for mortgages for private homes in Russia, subject to the mandatory condition of construction by professional developers, may grow sixfold in the next five years and reach more than 100 thousand loans annually.

house.RF is a financial institution for development in the housing sector of Russia. It was established in 1997 under the name "Housing Mortgage Lending Agency" by the decree of the Government of the Russian Federation to promote the implementation of state housing policy.