Russian Bank Imposes Limits on Mortgage Lending Operations
Falling Mortgage Market in Tomsk Region:
Things aren't looking peachy for the Tomsk region when it comes to the mortgage market. By April 2025, the mortgage market has taken a massive hit, with the volume of housing loans decreasing by a whopping 47% compared to the same period last year. Recently, Tomsk residents have signed 1,300 mortgage contracts worth 5.2 billion rubles over an average loan term of 26 years with an average loan size of 4.1 million rubles.
Elena Petrochenko, the head of the Tomsk branch of the Bank of Russia, has issued a stern warning that from July 1 the Bank of Russia will introduce restrictions on mortgage lending. With these new measures, it'll become challenging for those with high debt loads and small down payments to secure mortgages.
These regulations aim at safeguarding citizens from drowning in excessive debt, where their monthly loan repayments consume more than half of their income.
The luxury sector still carries the market, accounting for 3.1 billion rubles in issuance, with "Family Mortgage" making up 92% of this sum. Thanks to government support, the average mortgage rate has fallen from 8.29% in January to 7.68% in April. Still, this hasn't been enough to offset the decline in demand - the volume of loans for new buildings has dropped by 46%, and the total mortgage portfolio of banks in the region has decreased by 1.4%, amounting to 114 billion rubles.
As we previously reported, the national mortgage market has collapsed by a staggering 60% over the year.
While no specific restrictions on mortgage lending imposed by the Bank of Russia from July 1 have been detailed for the Tomsk region yet, general knowledge suggests that the Bank of Russia has previously implemented measures aimed at reducing risks linked to high debt burdens and insufficient down payments. These measures typically include tightening Loan-to-Value (LTV) ratios and Debt-to-Income (DTI) limits for borrowers. These regulations usually work by requiring larger down payments or setting limits on total monthly debt obligations relative to income, thereby curbing high-risk lending. However, without official updates or announcements from the Bank of Russia regarding new rules taking effect from July 1, we're still waiting for the precise details of any new mortgage lending restrictions that might affect the Tomsk region or borrowers with high debt loads and small down payments.
Finance and business sectors in the Tomsk region are dealing with significant challenges due to the falling mortgage market. Starting July 1, the Bank of Russia plans to introduce restrictions on mortgage lending to protect citizens from excessive debt, potentially making it challenging for those with high debt loads and small down payments to secure mortgages. These regulations commonly involve tightening Loan-to-Value (LTV) ratios and Debt-to-Income (DTI) limits for borrowers, requiring larger down payments or limiting total monthly debt obligations relative to income, thus curbing high-risk lending.
