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The average size of mortgages in Russia reached a historic high
The average size of a mortgage loan in January of this year grew by 11% and reached a historic maximum of 2,64 million rubles. According to experts, the main reasons for the growth are the increase in real estate prices and the decrease in banks' requirements for the down payment.
As the RIA News" referring to the data of the credit bureau, the previous record of 2,6 million rubles was recorded in October 2019. After that, the price of mortgage loans gradually decreased and by the end of the year decreased to 2,57 million rubles.
According to the Central Bank, the average mortgage rate in January dropped to 8,84% and reached a new low in the entire history of monitoring the value. In the first month of the year, banks provided 80,6 thousand mortgage loans worth 192,8 billion rubles, an increase of 14,5% compared to the same period in 2019.
A few years ago, the average down payment was 20%, but in 2019-2020, many lenders lowered the bar to 5-10%. As a result, the share of mortgage loans with an initial installment of less than 20% exceeded 45% of all loans issued. The loan processing period has also changed - in 2019, on average, 16 years and 9 months, by 2020 the value has decreased to 15 years and 11 months.