The minimum down payment for mortgage programs with state support in Russia increased from 15% to 20%. The average down payment now close to 25%which experts say could be a problem for some potential borrowers.
![The minimum down payment for a preferential mortgage has increased to 20% The minimum down payment for a preferential mortgage has increased to 20%](https://lightsportnews.com/wp-content/uploads/2023/09/The-minimum-down-payment-for-a-preferential-mortgage-has-increased.jpeg)
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Sergey Gordeyko, chief expert at Russipoteka, noted that such an increase in the down payment requirement could create difficulties for some borrowers who cannot afford a higher payment. However, he also said that raising the threshold to 20% is not expected to have a significant impact on the market. The introduction of macroprudential buffers from 1 October is likely to have a more significant negative impact on the market. Under these new rules, only loans for the purchase of new buildings with a down payment of more than 30% will be considered standard risk loans, which may discourage many borrowers who cannot make such a large down payment.
Despite the change in mortgage terms, experts maintained their forecast for issuing 1.7 million loans worth 6.3-6.5 trillion rubles by the end of 2023, which would be the second-highest payout in history. High demand for mortgage loans continued in September, partly due to the devaluation of the ruble and an increase in the key interest rate. Demand remains high; production volume in the first eight months of this year has already exceeded the 2022 level by 1.5 times. However, the Bank of Russia is closely monitoring the market to prevent overheating and an increase in the share of high-risk loans in banks’ mortgage portfolios.