The Central Bank intends to fight the tricks of developers on the so-called subsidized mortgage, which sets extremely low interest rates up to near zero. The regulator may introduce increased requirements for reserves for such loans, Alexander Danilov, director of the department of banking regulation and analytics of the Central Bank, told Izvestia.
“In cases where banks participating in such schemes underestimate the risks, we may introduce increased requirements for provisioning such loans. As a result, banks will better assess their risks and may refuse to issue such loans, as this will put pressure on capital and profits, ”the representative of the Central Bank specified.
The scheme that developers resort to is quite simple. They attract banks as partners that issue loans at minimal interest rates (in some cases even less than 0.1%), compensating for this with a one-time commission. At the same time, they include their expenses for reimbursement in the cost of housing. For example, an apartment costs 10 million rubles, the developer sells it for 12-13 million, and gives 2-3 million to a credit institution.
Experts believe that the indicated decision of the Central Bank will actually put an end to the marketing ploy of developers to allegedly subsidize the interest rate, since it will be unprofitable for credit institutions to participate in such programs.
Read more in the exclusive Izvestia article:
“Close the bet: the Central Bank may tighten requirements for low-interest mortgages”
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