Starting in July, it will be almost impossible to get a mortgage with a down payment of less than 20%.

Starting from July 1, 2025, it will be almost impossible for Russians with a low down payment and a high debt burden to get a loan to buy a home. The central bank intends to introduce direct quantitative restrictions (macroprudential limits, MPL) on mortgages for the most risky borrowers, the regulator's press service told Izvestia.

Payment visibility: The average mortgage cost dropped below 30% in early March

Why are housing loans getting cheaper and how will this affect the real estate market?

"We plan that the MPL will first be established for the most risky mortgage loans issued from July 1, 2025," the Central Bank noted.

It is specified that at the first stage, quantitative restrictions will affect the most risky borrowers who spend more than 80% of their income on debt servicing and have a low initial payment (no more than 20%). However, at the moment, the Bank of Russia has not disclosed what specific limits will be set.

"The MPL values will be determined based on the situation in the economy and, in particular, in the mortgage market and among developers," the regulator's press service said.

Experts consider the introduction of restrictions to be a logical step, since after the cancellation of the massive preferential mortgage program in the middle of last year, banks and developers began using tricks so that people with a low down payment could purchase housing with a mortgage.

In addition, last year the Central Bank received the legislative authority to impose macroprudential limits on mortgages. Their action begins on April 1 of this year.

Read more in the exclusive Izvestia article:

How does the Central Bank do this: starting in July, it will become almost impossible to get a mortgage with a contribution below 20%