Tightening of family mortgage rules will hit families, developer says
Starting 1 February, the most popular preferential mortgage program will introduce the rule of «one family—one mortgage». If previously spouses could take out two separate loans, now they automatically become co-borrowers and jointly use the right to preferential lending.
Vladimir Gorodenker, General Director of Atlas Development, explained how these changes will affect buyers and the construction business.
«Tightening the conditions will have a negative impact; it will limit people. Why did people take two mortgages before? Not because everyone is cunning, but because it is impossible to buy an apartment with a limit of six million rubles (about $66,700 at current rates). In Yekaterinburg, the average price is from 8 to 11 million rubles (about $88,900 to $122,200 at current rates). If you have two children, then you need at least a two-bedroom apartment, or better three—and you can»t buy one for six million. That«s why people took two loans,» explained Vladimir Gorodenker.
In addition, the possibility of introducing differentiated interest rates depending on the number of children in the family is being considered. However, the businessman believes that such an approach will create additional difficulties. In his opinion, the key change in the family mortgage should be an increase in limits.
«Changing rates depending on the number of children will limit families with one child and will not help those with three children. Yes, of course, people will continue to take these loans anyway, because it is the only way to save at least something and not overpay on a market mortgage. But again, it»s about the limits. They need to be made at least 12 million rubles (about $133,300 at current rates) for families with two and three children in the regions, then it would make sense,« the businessman believes.
According to Gorodenker, banks are now far from approving market mortgages to all potential borrowers, even if they agree to high interest rates. Difficulties in purchasing housing negatively affect the situation of development companies as well.
«Without support for buyers, the industry will feel very miserable. Such programs are needed; it is impossible to live and buy real estate without a mortgage. Without this tool, it will be quite difficult for us and our buyers,» emphasized Vladimir Gorodenker.
Since last year, a family mortgage can be issued for the purchase of housing on the secondary market, but not in all cities.
