Central bank will increase the risk ratio for cheap mortgages – Rossiyskaya Gazeta



The Bank of Russia will increase the risk ratio for home loans with a low initial contribution of 150 to 200 percent. This is stated in the release published by the Central Bank.

The decision will enter into force for three months and will be applied to the mortgage issued since 1 January 2019. The purpose of the measure is to ensure the sustainable development of the mortgage segment, the Bank of Russia indicates.

A low initial mortgage lender sees a contribution of less than 20 percent of the cost of housing, according to previous comments from representatives of the Central Bank. The mortgage is now one of the fastest growing lending segments. Earlier, the Russian central bank emphasized that the regulator is primarily interested in the quality of home loans, not in this dynamic. At the same time, the head of the Central Bank Elvira Nabiullina also noted that it is impossible to allow a bubble on the mortgage market.

On 1 September, the Bank of Russia increased the risk ratios for consumer loans. The maximum (200 percent) ratio was for loans with a total credit cost of 25-30 percent. The central bank justified this decision by the need to ensure the qualitative growth of bank credit portfolios and not to increase lending to the population.


Source link