In Russia, it is planned to introduce another measure that simplifies the construction of private houses (individual housing construction, individual housing construction). Mortgages for house kits and their construction on land plots will be issued by banks without additional collateral and bank guarantees. This was stated by Deputy Minister of Construction Nikita Stasishin in response to a question from Izvestia on the sidelines of the Russian Construction Week on February 28.
This is another measure that will make individual housing construction more accessible and support the construction industry, the deputy minister said.
Previously, all existing preferential mortgage programs have already been extended to IZHS, and a law has also been passed allowing developers to build private houses according to FZ-214 – like apartment buildings, Stasishin recalled.
Now the purchase of land plots for construction with a mortgage is in most cases complicated by the lack of a suitable collateral commensurate with the amount of the loan, explained Tatyana Reshetnikova, deputy head of the mortgage department of the federal company Etazhi. It is also not always easy for potential borrowers to find a guarantor with a sufficient level of income, the expert added.
Stasyshyn also noted that the discussed restrictions on subsidized mortgages by developers together with banks could “lead to a multiple reduction in housing construction over the next two to three years, as demand will decrease.”
“At the same time, we also support that in no case should there be a mortgage at 0.01%. But there are other opportunities to keep mortgages more affordable and support demand for new buildings,” he stressed.
Earlier, on February 17, it was reported that the Central Bank of Russia will increase the burden on banks that issue mortgages at low rates as part of partnership programs with developers. On February 22, it became known that the regulator will increase premiums on mortgage risk ratios from May 1, 2023. The Central Bank will also set a premium for loans secured by residential real estate.
