The bank raises market mortgage rates for the fourth time since May
VTB Bank has been raising rates on market mortgage programs since August 6. This was told to RBC-Real Estate in the press service of the credit institution.
The increase will be from 0.5 to 1.7 percentage points, depending on the size of the down payment and the customer segment. “The change was dictated by a sharp increase in the key rate of the Central Bank of the Russian Federation at the last meeting and, in general, the continued increase in the cost of funding,” the press service explained, adding that they expect a similar decision from other banks. “In the near future, other players will also make changes to their mortgage programs, as a result of which the average market mortgage rates will exceed 20%,” VTB did not rule out.
Loans for the purchase of housing in the bank will now be available from 20.5% per annum. The bank’s salary clients will be able to count on the minimum rate provided comprehensive insurance, proof of income and employment, a down payment of 30% and a large loan amount. At the same time, borrowers who received approval before the decision on the increase will be able to use the previously valid conditions until August 16 inclusive, the bank explained. The bank will leave the rates on state programs unchanged, they added.
This is the fourth consecutive increase in market mortgage rates at VTB. Since May 29, VTB has already increased rates on market mortgage programs. Then the increase was 1 percentage point. For the second time, the bank increased mortgage rates on June 17 by 0.5 percentage points for market mortgage programs. The bank increased rates for the third time at the end of June. Other major banks also raised mortgage rates even before the key rate increase. In particular, mortgages have risen in price in Sberbank, Alfa-Bank, Dom.RF Bank.
On July 26, the Central Bank increased the key rate by 2 percentage points at once, to 18% per annum. This increase was the first in 2024. Experts interviewed by RBC-Real Estate predicted that many banks would raise rates to 22-23% per annum after the regulator’s decision. The last time the Central Bank raised its key rate by 1 percentage point at once, from 15% to 16% per annum, in December last year. After that, the rate remained unchanged. Despite this, mortgage rates have been rising all this time.
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