MILES AXLE Translation. Region: Russian Federation –
Source: Central Bank of Russia –
The Board of Directors of the Bank of Russia adopted solution from October 10, 2024 to March 31, 2025, there will be no restrictions for credit institutions total cost of credit (TCC) for mortgage consumer loans for the purchase (construction) of housing or land.
This decision will allow banks to reflect in mortgage rates the latest changes in the situation in the main segments of the financial market, including those that have developed under the influence of decisions on the key rate, without the risk of violating the requirements of the law on the maximum level of the APR. Thus, the possibility of obtaining mortgage loans by borrowers will remain – albeit at higher rates, but without an additional increase in the cost of housing.
The risks of increasing the debt burden of mortgage borrowers will be limited by the macroprudential surcharges already in effect.
To enable mortgage lenders to better adapt to changing market conditions, the Bank of Russia is considering the possibility of permanently lifting the limit on the APR in mortgages.
For other products of credit institutions and all loans of microfinance institutions, credit consumer cooperatives (including agricultural ones) and pawnshops, the limitation of the APR remains.
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Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.
http://vvv.kbr.ru/press/PR/?file=63864183471356979shBANK_SECTOR.htm