Home leverage: Russians have become more likely to take loans secured by housing
The volume of lending secured by real estate in 2024 has grown almost one and a half times, analysts told Izvestia. Such rapid growth is recorded despite the fact that the overall demand for loans in various areas last year decreased by 40-50%. Experts note that earlier Russians most often pledged cars, but in 2024 this possibility was limited - loans are issued only taking into account the amount of the total debt of the client, which he had at the time of the new application. Therefore, borrowers are increasingly taking loans secured by housing, although in case of financial difficulties they risk its complete loss, experts warn.
How secured loans grew
In 2024, Russians began to take loans against the security of real estate by 45% more often than a year earlier, analysts told Izvestia. Thus, according to the IT-company TYMY, the volume of issuance of such loans in monetary terms in Russian banks showed a marked increase year-on-year, although the overall demand for lending in various areas has slipped by 40-50%.
Loan secured by real estate in contrast to the mortgage - non-purpose and can be spent on any purchase, reminded the partner of the law firm "Sonichev, Kazus and Partners" Alexander Kazus. However, it is difficult to refinance and reduce the interest rate.
Of the 27 largest banks, 19 have loans secured by real estate, in 2023, the issuance of loans amounted to 120.11 billion rubles, and in 2024 - 175 billion.
- For many banks, lending secured by real estate is nothing more than a subspecies of consumer lending and in the structure of the portfolio of all credit products rarely exceeds a share of 1-2%, - said the product director TYMY Nikita Arzamastsev. - This direction as such even banks do not target, it became relevant only in 2024.
The positive dynamics of this segment is the result of several factors. In particular, it is relevant for the banks themselves because of low risks. Loans against collateral imply more loyal terms and a low burden for borrowers.
Thus, with the Central Bank's refinancing rate of 21%, on average, banks offer a loan secured by real estate at 26.5% per annum, while a regular consumer loan - at 34%, wrote "Izvestia".
In the press service "Sovcombank" "Izvestia" confirmed the great demand for this type of lending. They pointed out that in December 2024, the volume of issuance increased by more than a third compared to the same period in 2023.
- For January is still difficult to make forecasts, as the month is still ongoing, but we plan to issue no less than in January last year - stressed in the credit organization.
At the end of 2024, as indicated in the press service of VTB, the bank provided loans secured by real estate for more than 3.1 billion.
- Non-purpose loans secured by real estate allow you to increase the probability of approval and get a lower rate compared to standard cash loans due to the transfer of pledge of the existing property object, - noted there. - Among other advantages - the ability to direct funds for any purpose, low compared to cash loans payment due to the long term of financing up to 30 years.
Why people started to take loans more often
Over the past year, the Central Bank has been actively restricting consumer lending - both by raising the key rate and by introducing quantitative restrictions on the issuance of loans - these are the so-called macroprudential limits. Now banks cannot issue more than 3% unsecured loans to people who spend more than 80% of their income on debt repayment. Financial organizations have to find ways around such restrictions, so they are more willing to issue loans secured by cars or real estate.
The reasons for the growth of secured lending were a change in the financial behavior of borrowers, adaptation of bank products to new requirements, the decline in interest in consumer loans, said the managing partner of the analytical agency "VMT Consult" Ekaterina Kosareva.
- In conditions of economic instability and tightening of bank requirements, citizens began to use collateral as a tool to obtain larger amounts and lower rates, - she believes. - This is especially relevant for the middle class, which needs significant funds for large purchases or debt issues. Banks are eager to offer loans against collateral, as it allows them to minimize their risks.
At the same time, according to her, credit organizations are actively adapting products: for example, simplify procedures for assessing collateral, offer more flexible terms and loyal rates.
Getting an unsecured loan has become much more difficult compared to the situation 2-3 years ago, added Valery Tumin, a member of the expert council on the development of the digital economy at the State Duma Committee on Economic Policy.
- Until recently, the sphere of secured lending was not in the focus of attention of the Bank of Russia and it was relatively easy to get a loan secured by a car or an apartment," he said. - Nevertheless, from November 2024, the limits on the issuance of loans secured by a vehicle began to operate. But three quarters of all secured loans were issued on this type of collateral.
On November 1 of last year, new macroprudential restrictions related to the issuance of non-purpose consumer loans secured by a vehicle came into force. The Bank of Russia increased macro-prudential surcharges on such loans - the changes affected borrowers with a debt load above 50%.
The share of loans secured by a vehicle in the total volume of consumer loans to individuals increased from 1% in 2023 to 3% in the second quarter of 2024. In some banks, the share of such loans grew from zero to make up to half of all loans, the Bank of Russia noted. At the same time, more than 40% of loans secured by a car are granted to borrowers with a debt load indicator (DLI) above 80%.
- As a result of covering the loophole for taking loans secured by a vehicle in 2025-2026, most likely, will increase the volume of loans for real estate: apartments, land,- says Valery Tumin. - To all appearances, the Bank of Russia does not intend to reduce requirements to borrowers.
In the first eight months of 2024, Russians pledged more than 1.5 million vehicles - this is 64% more than in the same period of 2023, reported "Izvestia" in the Federal Chamber of Notaries (FNP).
- In total, the register of notices of pledge of movable property now contains 11.6 million records of pledges on vehicles," they said.
However, Nikita Arzamastsev believes that this segment will not become a driver for banks.
- The difference in 2-3% per annum at the current level of interest rates does not play a significant role for the consumer, - he said. - If you take, for example, a loan of Br1 million for five years, the monthly payment at 26% and 29% will amount to about Br30 thousand and will differ by Br2-3 thousand.
What are the risks of collateral
Loans against collateral increase the property burden on borrowers, said Ekaterina Kosareva. According to her, if the economic situation worsens, citizens may lose property en masse.
- The trend towards growth of secured lending is the market's reaction to the new economic realities," the expert emphasized. - But it is important that borrowers realize that such loans carry certain risks, especially in an unstable economic situation. At the same time, this instrument can be useful with the right approach.
Alexander Kazus noted that with such loans the interest rate may seem to the borrower less than the market average.
- But if you study the schedule of payments, it turns out that it exceeds 21% per annum, and this is including insurance, - said the lawyer. - Without insurance, the bank will increase the rate by 1-5 percentage points. Sometimes there are discounts for the bank's payroll clients - minus 0.5-2 percentage points from the rate. The rate also depends on the type of collateral and the loan amount.
According to him, a loan secured by a house will cost a higher rate than a loan secured by an apartment. The bank will offer 50% for a wooden house and 70% for a brick house.
- At the same time, the interest rate may increase if the client has delinquencies and debts - up to 48% per annum, - warned Alexander Kazus. - Banks have the right to sell mortgages to third parties, whose goal is to make you accumulate penalties, fines and so on, which makes it extremely difficult to repay the debt.
The expert added that the market value of real estate can fall over time, and then the bank may require additional security measures or increase control over the execution of the contract.
- Even if a person tries to understand the contract, he may misunderstand it and draw wrong conclusions about the consequences, " he said. - A borrower may enter into a loan agreement or a loan agreement. In this case, the contract of pledge of real estate to secure repayment of borrowed funds is formalized separately or combined with the loan agreement, loan.
While the pledge is in force, the real estate cannot be sold, the encumbrance can be removed only after the loan is repaid.
- Since the loan is non-purpose, you can not get a tax deduction, - said the lawyer. - If the borrower cannot repay the loan, the bank has the right to seize the mortgaged property and sell it at auction to cover the debt.
In the end, all the described scenarios boil down to one risk - the loss of pledged property, the experts emphasized.