The Ministry of Finance proposed changing the conditions for issuing preferential mortgages, namely increasing the minimum down payment from 20% to 30%. The Central Bank supported this initiative, explaining that this would prevent debt problems for borrowers.
The editors of RuNews24.ru consulted with Gevorg Mirzayan, associate professor at the Financial University under the Government of the Russian Federation, to comment on this situation. Mirzayan noted that an increased down payment may complicate access to preferential mortgages, but such changes will help bring the real estate market to a state of stability. He clarified that the demand for preferential mortgages with low installments leads to an increase in the price of new buildings, and in theory they should cost less than secondary housing.
Mirzayan believes that increasing the starting threshold will reduce demand and increase financial discipline among citizens. The expert also noted that the government should pay attention to the expansion of preferential mortgages on the secondary market in order to prevent abuse and fraud. The expert emphasized that a compromise is needed in order to comply with the down payment requirements and keep prices for new buildings from rising. He explained that with inflated prices for new buildings of 30-40%, a conditional contribution of 30% looks like a more profitable choice for the buyer.
Source: Rosbalt
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.
