In a recent report on consumer lending, the Russian Central Bank proposed capping the provision of mortgage loans for terms longer than 30 years.
Officials noted that Russian banks extended loan terms to reduce average monthly mortgage payments.
Over the past year, the share of mortgage loans in Russia with terms exceeding 30 years has increased from 10 to 20 percent. However, these longer time horizons increase the risk that borrowers will encounter unexpected difficulties repaying their debts.
In the near future, lawmakers in the State Duma are expected to consider the second reading of legislation authorizing the central bank to set a maximum limit on mortgage conditions. The law may enter into force as soon as April 1, 2025.
