Some banks avoid disclosing TCC under subsidised mortgage programmes
Ranges of the total cost of credit (TCC) for subsidised mortgage loans posted by 16 banks on their websites do not factor in a possible rise in the interest rate. The Bank of Russia has identified these violations during its inspections.
The law obliges banks to calculate the TCC based on the maximum possible loan costs. This information should be available to borrowers on websites and in offices of credit institutions.
In some cases, a lender may increase an interest rate on a subsidised mortgage loan if it becomes aware that a borrower is no longer eligible for a subsidised mortgage loan or has already taken out such a loan.
The regulator sent an order to the violators demanding that they promptly adjust the TCC ranges in accordance with the law.