Sberbank and VTB 24 increased rates on the mortgage with state support

Banks, VTB24 and Sberbank raised rates on the mortgage with the state support by 0.6 percentage points — from 11.4% per annum to 12% per annum. The decision entered into force on 1 March 2016.

“Minor adjustments rates linked to the Ministry of Finance announced new rules of subsidizing of loans issued from 1 March. For loan agreements concluded until 29 February 2016 inclusive, the product is available on the old terms (11.4 per cent per annum),” — said “Interfax” the Director of Department of retail non-transactional products Sberbank Natalia alymova.

The state program of subsidizing of mortgages was launched in March 2015 in order to help citizens in home buying after a sharp rise in interest rates on loans due to the increase in the key rate in December 2014 to 17%.

Under the program, the state compensated the banks for the difference between the rate granted in the framework of credit and market interest rates to the banks. The interest rate on concessional loans should not exceed 12% per annum.

VTB24 began to issue loans on favorable terms in March 2015, and at the end of August of the same year, lowered it to 11.4%. Earlier similarly lowered the rate on loans with state and savings Bank.

“The state program for subsidizing mortgage loans showed a high demand and by the end of 2015 she took in the savings Bank more than 108 thousand families”, — said Tuesday alymova.

Earlier it was reported that the Russian government has decided to extend the program of subsidizing mortgages through the end of 2016, reducing the amount of payable to banks payments. In mid-February 2016 alymova warned that if the extension of the program of preferential mortgage rates for the savings Bank will change the rate on loans.

“Once inside the Bank official decision, we will let you know. We will change the rate,” said alymova, explaining that the new rate may be slightly higher then in effect at 11.4% per annum.

The program of government support of the mortgage used to purchase real estate in the primary market, the amount of the loan must not exceed 8 million rubles for Moscow, the Moscow region and St. Petersburg and 3 million rubles — for other regions, and the initial Deposit should be not less than 20%.