Down payments for the low-rate family mortgage averaged 27.9% in December 2021. Families with children typically take out mortgages for 20 years, but pay off home loans in full in 4.5 years in medium.
Nikolay Vasyov, Vice President, Head of DomClick Division, Sberbank:
“We are seeing demand for the mortgage program for families with children growing, especially after it was expanded last summer to include firstborns and construction of single-family homes. Family Mortgages is now a hit with all governments. Since its launch in 2018, more than 80,000 families across the country have used it at Sber. Mortgages under the Family Program peaked in October and December 2021 when Sber issued more than 5,000 loans a month. The 0.3% drop in the rate in December positioned even more Russians to get a loan at a great rate.”
Domclick, a real estate service of Sberbank, analyzed the issuance of family mortgages after the reduction of the rate from 5% to 4.7%. Over a month, the bank granted 7,500 mortgage loans for a total of 29.2 billion rubles, up 15.6 billion rubles from a monthly average since the start of 2021.
Sber also improved its refinance options at the end of December 2021. The new program, called “Mortgage Refinance for Families with Children”, is designed to ease the burden of debt – better loan terms allow borrowers to use their money for other purposes. Program participants can refinance a loan issued by another bank for the purchase of new real estate.
The government-backed mortgage program allows borrowers to purchase move-in ready or construction-stage homes from developers, investors, or to build a home. The borrowing limit is 12 million rubles in Moscow, Moscow region, St. Petersburg and Leningrad region; in other parts of Russia it reaches 6 min RUB.
Choose your apartment and apply for a mortgage online on Domclick.
Sberbank of Russia published this content on February 01, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on February 01, 2022 10:01:00 AM UTC.