“Market” laws mortgage




Market” laws mortgage

Everyone says that the mortgage market perked up. Only here the resurrection it is hardly natural. After all, one can hardly speak of market rules in the mortgage lending segment, which is practically controlled by the state. According to analysts, if you add up the share of state-owned banks and credit organizations associated with state agencies, and the Agency for Housing Mortgage Lending (HMLA), which regulates the lending partner banks, now in the hands of the state is up to 80% of the mortgage market. On the one hand, it’s not bad. Provision of housing – social issue. All of the outstanding moments in this area have a negative impact on the image of the state in the eyes of the people, and investors. In addition, the heavy times of crisis it is the government could help borrowers who have lost their income not lose another mortgage and housing. On the other hand, not all banks are willing to blindly follow the instructions of the authorities and to cut rates to a minimum. Indeed, although the acute phase of the crisis, and behind, the global “warming” in the economy is still too early to say.


Russian Prime Minister Vladimir Putin in 2009, has repeatedly said that the interest rates on housing loans inexcusably high. Here are the banks with state participation and decided to set an example for others. First Savings Bank has announced the reduction of interest rates and the abolition of all commissions on loans. According to Natalia Karaseva, Director of Retail Lending Savings Bank, since the middle of last year, the bank “systematically and progressively liberalize the terms of mortgage lending.” “So, in October-November last year on housing loans was reduced minimum down payment to 20% (for young families with child (ren) up to 15%). Abolition of compulsory registration of other real estate collateral for loans for purposes of participation in share building (on the objects passed the selection procedure set by the bank). Also, relaxed requirements for income borrowers – says Natalya Karasev. – This year we accept as proof of income, not only information form 2-PIT, but also to help in any form, a certificate in the form of the bank. ” When calculating the credit limit Savings Bank takes into account the income of family members, co-borrowers, the program “Young Family” is also taken into account the possible involvement of parents. In addition, the bank offers special conditions for the participants payroll, under the housing program implemented in cooperation with the regional authorities and large companies, the size of the down payment is 10%.

A very important step in the direction of increasing credit availability and transparency of banking services, according to Natalia Karaseva, is the abolition of all commissions on loans while reducing rates for many programs. “Loans have really become more affordable, and, for some programs rates now below pre-crisis levels, – she said. – The cost of credit (the “effective rate” or “total cost of credit”) is defined as the sum of interest and commission payments. As a result of the abolition of commissions, only charged to the customer for the credit card with the April 19, 2010 is the rate for the product. ” That is, in addition to reducing the nominal rates on some credit programs for each loan product Savings Bank lowered its cost. “For example, the standard” mortgage loan “range of the cost of credit (depending on the loan amount, the size of the down payment, loan term, and type of client) as a result of the abolition of commissions ranged from 0.18% to 9.29% per annum,” – explained Natalia Karasev.

In terms of mortgage programs now ruble loan from Sberbank can take 10.5 – 16% depending on the category of the borrower, the property. In this case, the Savings Bank provides loans not only for the purchase or construction of housing, but also to refinance the loan to other banks under 11,7-13,5% per annum in rubles, which is much lower than many rates in the market.

VTB 24 and then outlined the new lower rates on mortgage loans. “The interest rate on the mortgage depends on the rate at which banks can raise funds for its issue – said George Ter-Aristokesyants, vice president, head of the development of loan products and affiliate programs VTB 24. – Now the cost of resources in the market is reduced – and this has a positive impact on the rate. It is also important that the government is taking steps to increase the availability of resources for the banks, which also has a positive effect on the rate for the client. ” Now credit in rubles for the purchase of housing in the VTB 24 is available at the rate of 12.6% in foreign currency – by 9.1%. According to George Ter-Aristokesyants, the bank is also taking consistent steps to improve its mortgage programs across the board: “We have reduced the initial payment requirements to 20%. Also in the near future, we plan to launch a mortgage with a down payment of 10%, provided the borrower’s liability insurance for non-payment of the loan. ” This is a new initiative for the domestic mortgage market.

In addition, according to George Ter-Aristokesyants, the availability of mortgages is determined not only by its cost. Although, of course, reduced rate – falls loan payment, reduced loan payment – you can get a large amount on their income. “But it is also important down payment – not everyone has savings in the right amount. Essential requirements of the bank and the borrower, “- said the expert. “Mortgage rates are actually declining gradually, but, in my opinion, is more important than reducing the down payment low rates – continues Oleg Sokolov, director of retail lending Binbanka. – Also in this direction is improving. ” “Only the successive steps to improve the conditions of mortgage programs in several areas will significantly increase the availability of mortgages” – summed up the Ter-Aristokesyants.

Mortgage has become more accessible in the major commercial banks that are active players in the market of housing loans. For example, a bank DeltaCredit now offers loans at 11.5% in rubles. This is – the minimum rate. The average mortgage loan in rubles for a period of 25 years (down payment of 25-30%) can be obtained at DeltaCredit at 15% per annum, which is still below the crisis rates. The bank BSGV ruble rates start at 13.5%, while the dollar by 9.25%. Slightly higher rates at Alfa Bank, although he reduced them in February 2010. Today, the minimum interest rates for mortgage loans at Alfa Bank loan for the purchase of flats in the secondary housing market up from 17.5% in RUR (formerly of 20.6%) and 14% in U.S. dollars (formerly of 14.4% ).

According to Oleg Sokolov, “many banks follow the suggestions of powers and perform as many of the measures taken for the development of mortgage lending institutions are interesting from the point of view of their own business.” That is, many banks now there is an excess liquidity, which is just to spend on a mortgage. After all, traditional mortgage business – quite profitable for the bank, the interest payments on housing loans constitute the lion’s share of the credit institution.

However, smaller banks are in no hurry to significantly lower the cost of mortgages, though it has not given them a price for the crisis – at 25% per annum.

The dynamics of the mortgage market happy. But, in fact, the activity of the sector depends on the business development of the largest players 10-15. This – Sberbank and VTB 24 Bank, several large private lending institutions and banks – agents HMLA working on standards agency. In this case, only a fraction of the Savings Bank in this segment, according to various estimates, 63-70% and VTB 24 – about 8%. In addition to the two state-owned banks among the main players in the mortgage include: TransCreditBank, DeltaKredit, BSGV, Rosbank, MIA, Bank of ITB, KIT Finance Zhilfinans, Nordea Bank, Investtorgbank, the Agricultural Bank. Although, according to the Central Bank, last year provided 584 residential mortgage loans of the bank.

According to Alexander Handrueva, head of the consulting group “Banks. Finance. Investment “, the first vice-president of the Association of Regional Banks of Russia, in the structure of mortgage lending occurred very fundamental qualitative change. “Banks that are part of the five largest in terms of assets in 2008 were 37%, now their share has increased to 61%, – he explains. – So we see that the composition of the players in the mortgage market is undergoing a qualitative change. I think that this trend will certainly continue. Mortgage market will be the market that will run the largest banks, especially state-owned and foreign-owned, as well as large domestic private credit institutions. ” According slovamAnatoliya Pechatnikova, a member of the Board, Director of Mortgage Bank VTB 24, if previously present on the market of 400-500 active players, in the midst of crisis their number has dropped to just a few dozen.

That is not to say that the banks massively rushed to issue mortgage loans. Even before the major active participants – Alpha Bank, Bank of Moscow, Nomos-Bank, Uralsib – only began to take the first steps towards the restoration of the mortgage portfolio. What to speak of their small counterparts.


More and more Russians are now seeking to obtain a mortgage loan. Rumor has it that in the branches of some banks, especially in the regions, there were even a queue for a mortgage. “Many experts believe that housing prices are now at the bottom, so it’s time to buy, and the mortgage – one of the best and often the only way for most of our citizens,” – says the trend George Ter-Aristokesyants. If we add to this the growth of people’s confidence in its financial position at the completion of the crisis and the increasing appeal of the conditions of the mortgage – it becomes clear why there are queues for housing loans. “Queues for loans – a clear testimony of the faith of the country to a brighter future, or at least, in what is the worst in this crisis is already behind” – agrees Oleg Sokolov.

According to Irina Kuz’micheva, Credit Department DeltaCredit, now there is an increase in complaints to the banks for a mortgage. “We expect the volume of issuance in 2010 will be higher than in 2009 by at least 40%, – she said. – And this is natural, given the fact that the solution of the housing problem is very important for a large number of Russian citizens. ” Activation of pent-up demand, which was formed last year, and are waiting in the Savings Bank. “The housing issue still requires a fairly quick fix” – concludes Natalia Karasev.

The only problem is that mortgage loans can afford to wealthy people. Before the crisis, it was. “When I looked up to the crisis on the dynamics – told not long ago at a conference on promising strategies for banks Natalia Orlova, chief economist at Alfa Bank. – Demand for mortgage lending is largely coming from people with a fairly high level of wages. That is, it is such investment demand. ” Now the level of solvency Russians deserve close attention. First of all, on the part of banks willing to increase its mortgage portfolio. According to Oleg Sokolov, from the point of view of substandard loans, the banks no one bothers to check the borrowers, but very few banks actually carry out quality checks of clients.

“Now we can say that the mortgage comes to life. This is largely contributed to the anti-crisis program aimed at increasing the availability of housing loans to individuals, realized the main market in the last year – says in this regard Natalia Karasev. – Of course, the interest rate on the loan – far is not the only factor influencing the level of consumer demand for housing. Equally important are the requirements for the borrower, and the price of real estate, as well as, in fact, the level of citizens’ ability to pay. ”


As you know, under the laws of the market economy, price is determined by the intersection of supply and demand curves. Currently, demand for mortgages is clearly outstripping supply. However, demand-that mostly can not be considered solvent. Because it is clear that the level of interest rates on housing loans are now clearly defined market.

Yes, according to Central Bank data, the weighted average mortgage rate for the ruble since the beginning of the year was 13.6%. But the price of the issue in this case, artificially undervalued, issued under such low interest only mortgages are the same key players. And were it not for the will of the authorities is not known yet, at what rates would then be issued to pay the mortgage, these lenders. After all, the “bad” debt has not been canceled, and issuing home loans now – it’s like a game of roulette: Can or not the borrower will be able to cope with the credit burden, only time will tell.

Despite the favorable trends that economists say and officials, the Russians still live in the fallen wages and unstable employment. Many employers seek by any means to get professionals, masters of all trades, but as cheap as possible. Without thinking, can change a person who has worked a long time on the rookie, who will be paying 2-3 times less. This, by the way, they say, and representatives of the state. For example, Andrew Languages, head of ARMC, pointed out not long ago that the main cause of financial difficulty – at low wages, that business shifts its material problems to staff.

However, the important problem of the mortgage market is that everyone Sberbank and his ilk will not give mortgages. Hence, perhaps, and took the very same line for a mortgage loan offices in a number of banks. Experts talk about the price “bottom” of the market square meters. The authorities and the state-owned banks go on about an affordable mortgage. Here the Russians and want to finally solve, their housing problems, becoming at this very stage.

However, commercial banks’ average hand “, though already expressed their willingness to give housing loans to actively do not rush to increase their mortgage portfolios. And understandably so. Without solving the problem of delay on the old long-term loans, recruit new – not quite right.

“In order to revive the mortgage, of course, it is important availability: interest rates, down payment requirements of banks to customers. But we must not forget that the mortgage – it is a way of acquisition of property, and no less important for the growth of demand for it is the situation in the housing market and the economy of the country “, – says George Ter-Aristokesyants.

Mortgages really came to life. This is a firm government, bankers and borrowers. Indeed, the loan to buy an apartment now get quite a can, under certain conditions. But that’s to say that the mortgage has blossomed what started the qualitative development of the market, it will be possible only when there will be real competition between banks, and when interest rates will be determined not by the state and the market.

Mortgage Statistics

According to the most recent data the Bank of Russia, the number and amount of loans, both in rubles and in foreign currency, are rising steadily since the end of winter last year. Interestingly, in April 2010, the volume of issued currency loans in the mortgage market, have increased almost twice. The weighted average interest rate on ruble housing loans since the beginning of the year was 13.6% -13.9% on a currency mortgages – 11.1%.


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