Average mortgage loan size hits 11-year high

The volume of mortgage issuance decreased drastically after the end of the preferential state program and in a context of high rates. In September, banks granted mortgage loans worth 365 billion rubles, 1% less than in August and 62% less than in the same period last year.

According to independent expert Dmitri Tarasov, the volume of emissions can decrease by up to 300 billion rubles per month. He points out that two contradictory factors are at work in the market: high rates and the desire of buyers to obtain a mortgage before a possible tightening of conditions and further rate increases. “Perhaps the stable, although low, level of emissions in July-September is the lowest level that everyone expected. The fact that these are probably the “last attempts on the market” is demonstrated by the record level of the average check,” Tarasov considers.

A representative of VTB Bank told Vedomosti that since 2013 the average size of mortgages has increased due to the increase in real estate prices. In several regions, the cost per square meter has more than tripled. Russians increasingly began to choose more spacious apartments, especially within the framework of the family mortgage program, which in the second half of the year accounted for almost half of all transactions.

Experts note that due to high rates and the reduction in the share of preferential programs, it is not yet possible to talk about a growth in mortgage lending. Many buyers are considering alternative options for purchasing a home, for example, installment payment plans from developers.

According to the Accounts Chamber, at the beginning of 2024 in Russia there were about 115,000 borrowers who obtained two or more preferential mortgages for a total amount of 1.11 trillion rubles. About 34% of these funds came from general prime mortgages, 62% from family members. About 1,500 people were recorded as having taken out five or more prime mortgage loans.