The average mortgage term and size reached record levels in June

By the end of June, the average loan amount for housing amounted to 4.74 million rubles, the term was 24 years and 5 months, the United Credit Bureau (OKB) calculated

The average size of a mortgage issued in Russia in June reached the highest value in the entire history of mortgage lending — 4.74 million rubles, an increase of 21% over the year. Such data is contained in the study of the United Credit Bureau (OKB) received by the editorial board.

It is noted that the previous record for the average size of a mortgage loan was recorded in December last year and amounted to 4.45 million rubles. The record was then recorded by the Bureau of credit histories of the OKB and the Scoring Bureau. According to their data, the average size of a mortgage loan in December 2023 in Russia amounted to 4.4 million rubles, which was at that time a record figure for the last 15 years.

In June 2024, along with a record increase in the amount of the loan issued, the period for which Russians take out a mortgage also increased to maximum values. According to the OKB, in June, the average term of a housing loan was 293 months (24 years and 5 months). For comparison, in June 2023, this figure was 42 months less — 251 months (20 years 11 months). “This is the third peak value of the indicator for the current year. In April 2024, the first maximum was reached in 274 months (22 years 10 months), in May the second — 282 months (23 years 6 months),” the analysts said.

Back in 2023, the Bank of Russia drew attention to the lengthening of the average mortgage term and the risks associated with it. Market participants note that by choosing a longer loan term, borrowers reduce the monthly payment amount to a comfortable level. 

In total, according to the OKB, in June, banks issued 172.19 thousand mortgage loans totaling 815.92 billion rubles. The number of disbursements increased by 2% year—on-year, and by 24% in monetary terms. Compared with May, the increase in mortgage issuance turned out to be higher — by a third in quantitative terms and by 40% in volume.

Change in the average check and mortgage term for the year

Data: OKB

In Russia, by the summer, the share of mortgage refusals had sharply decreased. Until spring, the opposite trend was observed — refusals became more frequent, By summer the situation had changed. According to the National Bureau of Credit Histories (NBKI), the share of mortgage refusals from January to May 2024 decreased by 12 percentage points and amounted to 44% of the total number of applications, and in the market of new buildings decreased by 20 percentage points to 49%.

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