Housing mortgage lending tops 1 trillion rubles

Between January and August 2017 banks extended over 600 thousand housing mortgage (HM) loans worth more than 1 trillion rubles.

HM lending rates continue to decline for a sixth consecutive month. August saw the average HM loan interest rate decrease 0.36 pp to 10.58%.

With the interest rate at a record low in the last month of the summer, as many as 90 thousands transactions worth 174 billion rubles were funded (up 10 thousand and 19.5 billion rubles vs the month before). This takes August’s share of the total amount of HM loans to 16% since the start of the year. Both the number and the volume of HM lending in August 2017 against the same period last year grew 29 and 39% respectively.

As of 1 September 2017, HM borrowers’ aggregate debt to banks totalled 4.8 trillion rubles. Overdue HM loans were unchanged at 1.5%.