The volume of the mortgage market in Russia was estimated at 4.3 trillion rubles

According to the results of 2020, 1.7 million mortgage loans were issued in Russia totaling 4.3 trillion rubles. This indicator has become a record in the history of the mortgage market in Russia, the report "Housing and Mortgage Markets: Preliminary Results of 2020", prepared in the analytical center of the state -owned company "Dom.rf", said.

According to Dom.rf, compared with 2019, mortgage lending increased by 35% in quantitative terms and 50% in monetary. The share of the market for new buildings in the total volume of mortgage transactions in the country increased from 27% to 29% and from 5.9% to 13.7%, the share of transactions for refinancing of previous housing loans increased.

“In 2020, several important factors have led to a noticeable increase in mortgage in 2020. Firstly, this is a decrease in market loans. More than 70% of the total mortgage is issued for them, so the rate of bets in this segment was up to 8% from 10-11% a year earlier. It became one of the most important events of the last year.

Recall that the government adopted a decree on a preferential mortgage program at 6.5% at the end of April last year. The document stated that the program applies to loans issued from April 17 to November 1, 2020, and preferential conditions are valid for the entire loan term. The difference between 6.5%that borrowers will pay, and the state will compensate the market for banks. The maximum amount of mortgage loan for the purchase of housing in Moscow, St. Petersburg, Moscow and Leningrad regions initially amounted to 8 million rubles, and in other regions - 3 million rubles. The initial contribution was at least 20% (then the threshold was reduced to 15%), and only housing in a new building can be bought as part of the program.

At the end of June, the government increased the maximum amounts of mortgage loans under the program from 8 to 12 million rubles for residents of Moscow, St. Petersburg, Moscow and Leningrad regions and from 3 to 6 million rubles for residents of other regions.

On October 27, 2020, the head of the Cabinet of Ministers Mikhail Mishustin signed a resolution on the extension of a preferential mortgage program at 6.5% until July 1, 2021. "The extension of the program will allow you to issue another 600 thousand loans for 1.8 trillion rubles. Of which 152 thousand loans for 303 billion rubles can be issued before the end of the year," the government said in the government’s website.

In November last year, the head of the Central Bank Elvira Nabiullina called on “timely” to complete the preferential mortgage program extended until July 2021 in order to avoid the emergence of “bubbles” in the market.

"Timely completion of this anti -crisis program will avoid the formation of" bubbles "and balance on a market basis demand and supply in the housing market. Markets, and not just subsidized mortgage rates have also decreased, and this will allow citizens to further obtain an affordable mortgage. Moreover, the increase in housing prices should be proportionate to the dynamics of the population’s income," Nabiullina noted.