The availability of mortgages in Russia must be ensured by targeted measures, otherwise “bubbles” may appear in the financial market, said Elvira Nabiullina, Chairman of the Central Bank of Russia.
“Mortgage rates should not contradict market trends, otherwise we run the risk of getting bubbles in the financial market. <...> Therefore, the availability of mortgages must be ensured with more targeted measures: support for borrowers in the regions, young families, “Nabiullina quotes “RIA News” February 19.
The head of the Central Bank recalled that last year the mortgage rate was reduced due to a general decrease in rates in the market and anti-crisis preferential mortgages, which currently provoke an increase in the cost of housing.
According to her, at the regional level, the low rate has already been covered by the increased price of an apartment.
On the eve of Nabiullina said that preferential mortgages at 6.5% as an anti-crisis measure should be phased out in time, while maintaining it in a targeted manner in some regions.
On February 15, Russian President Vladimir Putin instructed the government, together with the Central Bank, to submit proposals for the implementation of preferential mortgage programs in 2021-2024, including considering the possibility of reducing the interest rate under the preferential mortgage program for families with two or more children.
Prime Minister Mikhail Mishustin and the head of the Central Bank of Russia were appointed responsible for the execution of the order.
The program to subsidize mortgage interest rates up to 6.5% was launched in April 2020 and was supposed to end on November 1, 2020. At the end of October, the Russian Prime Minister extended this program until July 1, 2021.
source https://pledgetimes.com/nabiullina-called-a-way-to-increase-the-availability-of-mortgages-in-russia/
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