The document is intended to minimize the spread of high-risk mortgage lending schemes and should force credit institutions to inform borrowers in more detail about the terms of the loan and the risks.
The standard will have to prevent cases in which banks send mortgage money not to an escrow account, but to a letter of credit, where the funds are not used for their intended purpose. A ban on long-term placement of borrowers’ money in letters of credit will reduce the risks of citizens, since in letters of credit, unlike escrow, funds are not protected by the deposit insurance system.
The down payment cannot include the amount that will be returned to the buyer after purchasing the apartment (cashback). The ban is needed so that the buyer pays the down payment with his own money. The less of it, the higher the risk that the buyer will overestimate his capabilities and lose his money and housing, the Central Bank emphasized.
The standard will prohibit banks from receiving compensation from developers for setting a lower mortgage interest rate if this leads to an increase in the value of the property.
The document will describe what the lender must take into account when determining the mortgage amount, term, fees and other parameters. The standard recommends issuing a mortgage for no more than 30 years and for an amount no higher than 80% of the fair value of the property.
The document will apply to contracts concluded after January 1, 2025. From this date, banks will be required to honestly inform the borrower of the difference in the total cost of the loan when receiving compensation for a reduced interest rate from the borrower. This is done so that when making a decision, the borrower understands whether this service is beneficial for him. In case of early repayment, the credit institution will be obliged to return the unused portion of such compensation.
Cover photo: jcomp /
Source: rb.ru
