Russia: Mortgage Rate Goes Up to 10.31% On Average

UrBC, Moscow, January 22, 2019. The average interest rate on a mortgage on an existing home rose to 10.31% on average in December 2018 (compared with 10.21% in November 2018), Rusipoteka’s research findings indicate.

The average interest on a mortgage on a new home is now up to 10.18% a year; the average offer on other banks’ loans’ refinancing rate is now 10.23%.

‘Based on our analysis of interest rate dynamics in December, 9% a year appears to be the best offer one can find advertised on the banks’ websites. These appealing-looking ‘best rates’ usually only apply to limited borrower categories such as families with three or more children or those who get their paychecks in the same bank’s accounts. Also, such a rate can be offered on limited-period loans, on a very large mortgage amount, and on a mortgage with a big down payment (50%+ of a home’s overall cost). Still, these quotations can be seen as the signposts indicating the overall market dynamics,’ Rusipoteka’s analysts say.

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