The regulator may limit the term for which a mortgage loan is issued.
In 2025, this period may be limited to 30 years.
The Central Bank’s website notes that the number of ultra-long-term loans increased from 10% to 20% over the year.
The regulator emphasizes that banks are making this decision in order to reduce monthly payments for borrowers.
But this approach has its own nuances, the Bank of Russia points out.
“Over such a long horizon (30+ years), the borrower may face difficulties in servicing the debt,” the regulator’s representatives emphasize.
Analysts note that banks are not able to give an accurate forecast for such a long period.
The Central Bank believes that measures need to be taken to reduce the debt burden on citizens.
To achieve this, it is proposed to introduce limits on mortgage terms.
The corresponding decision may be made from April 1, 2025. It is also planned to introduce a similar restriction in the area of car loans.
