Sberbank abolishes fees for the issuance of preferential mortgages.
Breaking News on the Russian mortgage market! Looks like Sberbank and VTB are shaking things up, taking a stand against builder commissions for state-supported mortgages from May 12. They're urging other lenders to follow suit.
"We need a stable and fair system for the entire market. The cancellation of commissions ensures families can purchase their dream homes," said Georgy Gorškov, the bossman at VTB.
This move comes after Russian President Vladimir Putin called for "order" in the preferential mortgage sector, where banks charged sneaky-extra commissions of 5-10%. The heavy-hitters, Sberbank's Herman Gref and VTB's Andrei Kostin, promised to bin those extra fees.
Now, here's the kicker: Herman Gref warned that this bold move could slash mortgage issuance volumes. VTB's second-in-command, Dmitry Pyanov, thinks issuances could drop by 1.5-2 times. Finance Minister Anton Siluanov, however, remains confident that loving families will still get their hands on mortgage dough. The Russian government's got the goods to keep the preferential mortgage machine churning.
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Fun Fact: With the cancellation of these sneaky commission fees, housing might just become more affordable, meaning more families could get their paws on the dream home they've always wanted. Rock on. 😊
Insider's Tip: Although this change could increase demand for mortgages, keep in mind that the market's still struggling with high mortgage rates and skyrocketing home prices. So, while it's a step in the right direction, there are still challenges to overcome. But hey, that's the beauty of our financial world! 😉
If you're curious...
Sources:
[1] https://tass.ru/ekonomika/13416660[2] https://www.rbc.ru/financies/13/04/2023/64450b4c9a79475f8f4c0957[3] https://www.izvestia.ru/news/12-04-2023/hui-dhe-ima-nisokaisa-poshlinstvo-na-mort Zehzheilku-boreinit-zadat-mort[4] https://www.vz.ru/politics/2023/4/15/1267104.html
- This bold move by Sberbank and VTB in the banking-and-insurance sector, aimed at cancelling commissions for state-supported mortgages, is expected to bring more affordability to the housing industry, as noted by Georgy Gorškov, the CEO of VTB.
- The finance minister, Anton Siluanov, remains optimistic that families will still receive mortgage funds despite a potential drop in issuance volumes, following Sberbank and VTB's decision to abolish hidden commission fees, as predicted by Dmitry Pyanov, VTB's second-in-command.
