Banks cut rates below the maximum because they receive subsidies from the state to cover the difference with market rates.
The maximum interest rate on preferential mortgages has decreased from 12% to 9% per annum since May 1, while the previous limits on loan amounts have remained the same. But some banks have gone even further and cut interest rates even further.
The preferential mortgage mechanism is as follows: the state reimburses the bank for the difference between payments at a preferential rate of 9% and the market rate, which is calculated as a key plus 2.5 percentage points. Accordingly, the state considers the market rate at 16.5% per annum, but banks are already ready to issue mortgages outside state programs at 14% per annum and even cheaper.
Therefore, in order to make it easier to compete for customers, banks reduce mortgage rates below the maximum. VTB was the first to do this, starting to accept applications for loans at 8.7% per annum. And now at least three banks have announced that they will issue preferential mortgages cheaper:
- Promsvyazbank – reduced the minimum rate on preferential mortgages to 8.59% per annum. There are no additional conditions, except for a personal insurance policy – without it, the rate will be 1 percentage point higher. This is important because in the past, the PSB gave low wages only to employees of defense industry enterprises and budgetary institutions;
- Uralsib – began to issue preferential mortgages at a rate of 8.69% per annum. The conditions are exactly the same – in order to receive a reduced rate, it is enough for the client to take out a personal insurance policy, in his absence, the rate increases by 1 point;
- Sberbank – from May 4, reduced the minimum rate to 8.7% per annum. But in this case, the client must already conduct a transaction using the electronic registration service from the bank. This service is paid, so the final benefit of the client may be slightly less.
All banks have standard requirements for purchased housing – it must be an apartment in a new building (according to DDU or in a finished house, but owned by the developer), with a down payment of 15% and for a period of up to 30 years.
Government regulation allows banks combine several programs in one loan – for example, preferential mortgages from a market or family, but banks have not yet added the corresponding changes to loan calculators on their websites.