Gref promised Putin the decline in mortgage rates to historic lows

Vladimir Putin and German Gref (left to right)

Photo: Alexei Druzhinin / TASS

Now mortgage rates in Russia reached historically low levels, while in 2017 are expected to further lows, said German Gref at a meeting with Vladimir Putin. On 20 February the savings Bank has reduced the rate by 1 PP.

The head of Sberbank German Gref at the meeting with Russian President Vladimir Putin predicted the decline of mortgage rates to historic lows in 2017.

“Mortgages today we have the historically lowest rates. This year, given the fact that there are very ambitious plans to lower inflation, rates will fall, of course. So I think this year we will reach the historical, the lowest levels mortgage rates”, — he said (quoted by TASS).

Earlier, Gref said that since February 20 of this year, Sberbank reduces mortgage rate by 1 percentage point In the case of acquisition of property directly from the developer the minimum mortgage rate will be 10.9% per annum, the purchase of housing on the secondary market — from 10,75% to 12,25%. In addition, customers have the opportunity to lower the rate (0.5 percentage points), using the electronic registration of the transaction when buying a new property from the developer.

Sberbank also reported that simultaneously with the reduction of interest rates will be substantially simplified the range of interest rates on housing loans. As a result, the level of rates will depend on the type of loan and category of customer at any level of the down payment and the loan term.

In February, the Agency for housing mortgage lending (AHML) has predicted that in 2017, mortgage rates in Russian banks drops below 11% per annum. The volume of mortgage loans will rise to a record 1.8 trillion rubles.

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