Massive preferential mortgage programs are appropriate only as an anti-crisis measure, but with constant use, such programs increase housing prices and people are forced to take out large loans. This was stated by the head of the Central Bank, Elvira Nabiullina, at a conference following the meeting on the key rate, RBC reports.
According to the regulator, over the past three years, housing prices have increased by 90%, which is significantly higher than the growth rate of inflation and household incomes. “This can cover up the positive effects of preferential mortgages. Therefore, preferential programs on a broad front are appropriate only as anti-crisis measures, and as they are phased out, this unfair situation will go away,” said Elvira Nabiullina.
In addition, the regulator is concerned about the situation when Russians with sufficient savings put their money in deposits at a high interest rate, and themselves take out a preferential mortgage. Thus, some people make money on preferential loans, while those people who really need apartments suffer, because massive preferential programs increase real estate prices, the head of the Central Bank noted.
Let us recall that it was previously reported that the Central Bank proposed to the Russian government to again increase the size of the down payment for a preferential mortgage.
Source: Rosbalt
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