All news
Major banks have raised initial payments on preferential mortgages. Is it now impossible to buy an apartment at all?
This week, Alfa-Bank announced that it would follow VTB in increasing the size of the initial payment (IP) to 50% under the preferential program. At the same time, Sberbank and UBRIIR have completely stopped accepting applications for this type of mortgage, since the allocated limit has already been exhausted.
Our colleagues from E1.RU spoke with experts about the consequences of increasing the size of the down payment on preferential mortgages and the threat to buyers from the abolition of the maximum cost of mortgage lending.
Ekaterina Toropova, director of the real estate agency Metrazhi (Ekaterinburg), noted that the sharp increase in the down payment affected not only those who want to take out a mortgage, but also those who have already been approved for a mortgage.
"Unfortunately, the initial payment on a mortgage has been increased to 50%. What is even more unfortunate is that this increase is sudden. Our clients who were approved for a family mortgage and were already looking for housing suddenly found themselves with nothing," said Ekaterina Toropova.
— The main mission of the Family Mortgage is to support young families with children and provide low interest rates when buying a home. But where can a young family get a 50 percent down payment or millions of dollars now? The question is rhetorical. "We hope that the increase in PV will be temporary until the jump due to the redistribution of program limits ends," he emphasized.
— After the redistribution of limits on family and IT mortgages, some banks had more funds for these operations, while others had less. The latter include Alfa and VTB, so they decided to increase the down payment in order to “stretch” the remaining amount in order to maintain the ability to issue at least some preferential loans, says Alexey Popov.
The maximum cost of credit is the maximum amount that the borrower must pay the bank over the term of the mortgage. This includes interest, principal, insurance and other additional costs. Regulating the size of the APR, the central bank calculated the indicator quarterly and published it on its website. The calculations were made according to the following formula: The maximum value cannot exceed 292% per annum, and the average market value of the APR can increase by 1/3. Now there are no restrictions.
Another expert, Ekaterina Toropova, agrees with the final conclusion. People will not notice anything, but not because interest rates will not increase, but because mortgages have already become unaffordable.
- It has both advantages and disadvantages. Anyone in the know knows that large banks have recently reintroduced a commission for developers, and of course these commissions are always included in the cost of the property. This means that the buyer will ultimately pay. Banks cancelled these commissions after the central bank decided to lift the restrictions on the maximum cost of loans. Therefore, there is no need to artificially inflate the cost of housing, - says Ekaterina Toropova.
Experts have previously outlined what other surprises to expect after October 25, when interest rates could rise again. Please follow the link for information on how you can cut rates and when that will happen.