Mortgage loan rates drop to minimum

The average weighted rate for ruble-denominated mortgage loans issued over the month continued to decline to 11.11% in June 2017. It thus dropped again to its historical low, the Bank of Russia’s statistics suggest.

Banks have extended 423.5 thousand mortgage loans in the first half of 2017, worth 773.0 billion rubles, including 84.9 thousand in June this year, to a total of 157.6 billion rubles. As interest rates continue to fall, ruble-denominated loans increased by 9.1% in June.

The housing mortgage loan portfolio increased overall by 11.6% compared to the same period of the previous year, and stood at 4,670.9 billion rubles as of 1 July 2017. The proportion of overdue housing mortgage loans remains low at 1.5% (71.6 billion rubles).