Central bank says to restrict mortgage lending from October

MOSCOW, Jul 28 (PRIME) -- The central bank will raise the risk premiums on mortgage loans from October 1 amid significant acceleration of mortgage lending by expansion of lending to the more risky groups of clients, the authority said on Friday.

"The Central Bank of Russia will raise the risk premiums on mortgage loans from October 1. The measure is aimed at limiting the risks of borrowers and banks," the central bank said.

The premiums on the most risky loans will be set at a prohibitive level.

Price hiking on the primary market was curtailed in general, which resulted in a decrease of the average loan to 4.9 million rubles in April–June from 6 million rubles as of June–July 2022.

At the same time, the price gap between the primary and the secondary market stood at 40% in January–March and at 39% in April–June, the central bank said.

(90.0225 rubles – U.S. $1)

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