The Central Bank reducing the key rate to 4.25 per cent, which was a new historic low, will help to reduce the mortgage rate to 7.5% in 2020. This is stated on the website of the financial institution “House.Of the Russian Federation”.
The Russians this year promised an average rate of 7.5-7.8 percent. According to experts, it will allow people to realize pent-up demand for housing loans. As a result, in 2020, will be issued about 1.2 million mortgages with a total worth up to three trillion rubles, which corresponds to level of last year.
The average rate on loans at market conditions for new buildings as of July 24, amounts to 8.16 percent for finished housing — 8.41 percent. A year ago mortgage rates were at least 10-10. 5%”, — stated in the analytical centre “the House.Of the Russian Federation”.
Previously, the Central Bank approved the concept, according to which the Russians intend to deliver from the insurance of mortgage payments — banks issuing home loan to insure the purchased property, life and health of the borrower.