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Average mortgage term reached 20 years in Russia
According to Credistory, a smart service for selection of financial services (United Credit Bureau, UCB), the average period of mortgage loans received by Russians changed to reach 20 years in January for the first time ever.
Back in December 2021, the average mortgage term was 238 months (19 years and 8 months), while it had grown to 242 months (20 years and 2 months) by the end of January. In January 2021, Russians took out mortgage loans for the period of 208 months on average (17 years and 4 months).
The average size of a loan for real estate purchase also increased. At 2.73 million rubles in January 2021, the value reached 3.27 million rubles by December and grew by another 140 thousand rubles in January 2022 to amount to 3.41 million rubles.
“As far back as 2019, mortgage loans were taken out for 15 years on average. Since last year, the unprecedented growth in real estate prices has made the average loan size grow significantly. Recently, interest rates have also begun to rise. Meanwhile, salaries, even in nominal terms, increased very modestly, and therefore, borrowers had to extend the loan repayment period to 20 years to keep the monthly payment amount at an affordable level,” said Artur Aleksandrovich, General Director of UCS (Credistory)