The involvement of the Government in the process of reducing the mortgage rates can make housing more affordable, I told FBA “economy today” Head of the Department of Financial Management REU them. gv. Plekhanov Konstantin Ordov.
Russian government officially began its work to combat the high cost of mortgages on behalf of Prime Minister Mikhail Mishustina. First Deputy Prime Minister Andrei Belousov and Deputy Prime Minister Marat Khusnullin together with the head of the Central Bank Elvira Nabiullina proposed to 16 March to present the idea to reduce the size of the mortgage payments of citizens. This is stated in the list of the government's decisions on the results of the meeting of the 13 February.
"It is important to understand, that the government has a regulatory impact ways using a variety of subsidies and incentives. And the system, which may in the short term to reduce the percentage of. Macro situation confirms, Inflation in Russia is less than, than in the US, but mortgage interest rate is higher. All this makes the discussion about reducing the mortgage rates are fully justified ", - said the expert.
To date, the rate is about 9% for the most reliable borrowers. therefore, He considers Ordov, lower level - quite expected and could reach 8%.
"The Central Bank is conservative in its actions. If we talk about, that he manages inflation, but it is not them, the Central Bank has to readjust its 2,4%. This indicates, that the main controller does not modify the pace of reduction of the key rate, that already could be done even less. But then aggravated drawback - the decline in interest rates on bank deposits ", - he added.
The only difficulty, interfering produce fast decline - is the lack of legislative power influence on central bank policy. therefore, says expert, the government needs to establish cooperation in order to achieve a significant reduction in rates.
"Who understands the power of, that the question of mortgage credit availability is necessary to work out very carefully in order to avoid potential problems. The mortgage market is growing and requires greater attention on the part of credit institutions, and from the government ", - said Konstantin Ordov.
Recall, The central bank has lowered its key interest rate for the sixth time in a row to historic lows - 6%. Under the percentage of all Russian commercial banks borrow from the main regulator and implement these funds business and the public at retail. Respectively, drop in the key rate leads to a decrease in lending and deposit interest rates.
Reduced mortgage rates: How will the construction market
Statistics in recent years shows, that banks are working in a new system of financing real estate developers - they switched to a special escrow account.
"This method has secured citizens, purchasing a house in mortgages, but increased risks for banks. Escrow account - it is a novelty for credit institutions, which are not yet sure of its effectiveness. Therefore, banks are in no hurry to cut rates on mortgage loans ", - noted Ordov.
Despite this, expert believes, reduction will be considerable and will be reflected in the construction industry, which always has a multiplier effect on the entire economy.
"Lowering mortgage rates will lead to the expansion of the construction market. Increase the pace of construction of new housing, open jobs. It will become a confident driver for economic development and GDP growth. Besides, improve housing conditions - flats will become more accessible. Cheap mortgages could also improve living standards and address some of the social problems of citizens ", - said Konstantin Ordov.
AT 2019 year expert community there is concern in reducing the volume of construction in the territory of the Russian Federation in connection with their decline in 20% at 2017 year. It was triggered by the reduction of the population's income, which, in its turn, could not afford to buy housing in the mortgage.
"At the same time the Central Bank to tighten the requirements for mortgage borrowers and increased the percentage of down payment. Today banks issue mortgage loans provided, that the borrower will 20-30% of the total cost of housing ", - the expert.
If, after the government intervention the central bank will be decided together with the lower mortgage rates and the percentage of down payment, then buying an apartment for the Russians will lose the status of a serious problem. it, said Konstantin Ordov, lead to an increase in demand and an increase in the volume of construction.
refinancing mechanism will help to reduce the mortgage interest
It is important to note, that the decline in mortgage rates will affect not only those, who are planning to take shelter, but also citizens, who have already paid for it. Lower rate allows the refinancing mechanism.
"Despite, about this practice is already well known to Russians, banks are reluctant to implement it. However, the mechanism works and its effects experienced those citizens, who have been able to obtain from credit institutions the percentage difference.
Previously, such a legislative initiative came to the State Duma. Now, Prime Minister Mikhail Mishustin instructed to simplify the procedure for refinancing of mortgage loans and to establish to inform bank customers. But reality shows that, that credit institutions and customers need long to purposefully seek to replace existing debt obligations to new in accordance with market conditions ", - stated Ordov.
Alexander Melnik
