Mortgage Lending in the Russian Federation

Abstract

Relevance. Today in Russia, more than half of the population feels the need to improve their housing. However, the opportunity to purchase housing without the help of borrowed funds is available only to a small group of citizens. Mortgage lending is the only way that allows you to purchase your own home and make it affordable for the population in Russia. The purpose of the study is to study the current state of mortgage lending in Russia, in particular, changes in average terms, interest rates on mortgages and leaders in the mortgage lending market.Objectives: to identify the role of mortgage lending in the Russian Federation; reflect the features of mortgage lending in Russia; analyze the mortgage lending market and its participants.Methodology. During the research process, general scientific methods were used: scientific abstraction, analysis and synthesis, generalization of scientific practice, deduction, induction.Results. The study shows that mortgage lending in Russia is actively developing. The availability of mortgages depends on the relationship between the level of income of the population and housing prices. The Russian market is now experiencing high real estate prices and, accordingly, high rates for this type of lending. All these factors hinder the development of the mortgage lending market, which is why the growth rate of mortgage lending has been declining in recent years.Conclusions. The increase in the volume of issued loans largely depends on the weighted average interest rate on mortgage loans. At the beginning of 2023, the weighted average rate on mortgage loans in Russia was 6.65% per annum, which was lower than at the beginning of the previous five years. In 2020, new types of preferential categories were introduced, which had a positive impact on the mortgage market as a whole. From an analysis of data on the issuance of mortgage loans in Russia over the past four years, it is clear that Sberbank and VTB are the leaders in mortgage lending in Russia, controlling most of the market.