Nabiullina urged not to allow mortgage growth rates due to risky loans

Mortgage growth rates should not be increased at the expense of risky loans. This was stated by the head of the Central Bank of Russia, Elvira Nabiullina, on April 15 at an expanded meeting of the Presidium of the State Council.

"Therefore, we are introducing an indicator of the debt burden on a citizen — how much, depending on income, he directs to service the loan — and the requirements for the initial payment, they are very important," the head of the Central Bank emphasized.

Nabiullina said that this year the Central Bank predicts mortgage growth in the range of 3% to 8%. She added that the growth rate of housing prices has slowed down significantly in some regions.

She also stressed that developers, despite the increase in the key interest rate, receive loans at 10%. Nabiullina added that a number of large banks retain commissions for developers. The head of the Central Bank pointed out that under preferential mortgage programs, it is necessary to ban the commission for developers in order to prevent an increase in housing prices.

She also stressed that the Central Bank of the Russian Federation does not support the idea of allowing developers to withdraw housing that was taken in installments for debts. According to her, this will lead to an increase in the creditworthiness of the population.

Preferential mortgages have helped 3.8 million families buy homes in five years.

At the meeting with Mutko, Putin called this issue one of the most sensitive for Russians.

On April 9, Nabiullina said that the Central Bank does not see a bubble in the mortgage market, and there are no fears that it will appear. According to her, if people have a late payment for a loan, then after 30 days they most often return to the payment schedule.