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Monday, October 24, 2016

Experts explained the sharp reduction in price of mortgage loans in Russia

The sharp depreciation of mortgage lending in Russia to 5.9% -7% per annum, the recent, is due to the General downturn in the economy and, in particular, in the field of real estate. In connection with decrease in purchasing power of Russians, the real estate market decided in the struggle for the buyer to increase the availability of mortgages, said the expert of the Russian Academy of national economy and public administration (Ranepa), doctor of economic Sciences Elena Ivankina.

“The fact that he [the property market] has a very high profitability and is quite able to survive without major losses, even the double price reduction. So he is able to share part of profits with customers and banks”, – explained in an interview with NSN Ivankina.

She believes that the trend of low interest rates in mortgage lending will remain at a time of economic slowdown — i.e. approximately two to three years.

Note that the reduced interest rates only provide for the first time, and not for the entire term of the mortgage.

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