Banks should communicate government mortgage assistance programme more extensively

The Bank of Russia recommends credit institutions that have joined the government programme for subsidising interest rates on mortgage loans to publish information in the special section on their official websites about preferential loan terms, including about borrower and collateral requirements.

The regulator notes that the level of public awareness about this government programme and participating banks is not high enough, due to which some consumers could be unable to use preferential loans.

The Bank of Russia suggests that credit institutions provide information on the programme in easy?to-understand form — as a special information sheet, as well as provide regular training to loan officers.

In addition, the banks should not proactively offer any additional fee-based services to clients that are not directly specified in the government programme and could increase loan servicing costs. The Bank of Russia points out that this programme is of high social importance.

The regulator recommends that the banks should complete the required organisational and technical measures as soon as possible (among others, they should adjust their internal documents and software) to enable borrowers to conclude credit agreements and addenda under the programme.

The government programme is being implemented in accordance with the Rules for Subsidising Mortgage Loans Granted to Russian Citizens Having Children approved by Resolution of the Government of the Russian Federation No. 1711, dated 30 December 2017.