By raising mortgage rates, VTB Bank follows the overall growth of rates on the credit market. This was announced to Izvestia by the associate professor of the PRUE. G.V. Plekhanov Denis Domashchenko on Monday, January 10.
Earlier on the same day, a representative of VTB said “Vedomosti”that the bank will raise mortgage rates on housing under construction and finished by 1 percentage point (pp) from January 11. The minimum rate for both VTB programs will reach 10.3%. Lending conditions for the purchase of housing within the framework of preferential state programs will not change, a representative of the financial organization added.
Now the mortgage rate of 9.3% is available for VTB’s payroll clients when making an online application and using digital services. Without these three conditions, the rate will reach 10.2%, but each of the conditions gives 0.3 p.p. discounts. The bank has been raising mortgage rates for the third month in a row.
Sberbank at the end of last year also raised mortgage rates.
“On the one hand, there is an opportunity to fix higher rates for a long period, taking advantage of the favorable conditions on the housing market. On the other hand, higher rates will cool the ardor of not entirely trustworthy borrowers, thereby reducing the overall level of bank credit risk, ”Domaschenko said.
Alexander Shibaev, director of the consulting and analytics department of the Kalinka Group elite real estate agency, told Izvestia that the growth of the key rate of the Bank of Russia is also leading to an increase in mortgage rates. At the last meeting in 2021 at the base rate on December 17, the Central Bank raised it by 1 percentage point, to 8.5%.
The growth of mortgage rates, according to the expert, will entail a decrease in demand in those segments of real estate where the share of mortgage transactions is the highest: this is a mass segment – real estate of economy and comfort classes, as well as business class.
According to the analyst, Moscow will become the most resistant city to a change in the key rate. In regional cities, the decline in demand may be “most noticeable,” he said. To maintain demand, developers, together with banks, will offer equity holders special programs for subsidized mortgages from the developer, according to which the proposed mortgage rate will be lower than the market rate, Shibaev said.
#economist #called #reasons #increase #mortgage #rates #banks