The mortgage market is unfolding: Sber and VTB announced a reduction in rates from April 1

On the eve of the second quarter of 2026, the largest players in the Russian banking sector, Sberbank and VTB, announced the long—awaited easing of market mortgage conditions. Official reports from credit institutions on Monday showed a downward trend in the cost of borrowing after a period of tight monetary policy. Since April 1, 2026, both banks have been reviewing rates, but the approaches to correction differ both in the amount of the reduction and in the requirements for the initial payment. VTB: focus on borrower's reliability VTB Bank has relied on clients with maximum financial discipline. According to the statement of the credit institution, the reduction in rates will amount to 1 percentage point, but it applies exclusively to loans with a high down payment — from 50%. After the reduction, the minimum market mortgage rate at VTB will be 18.9% per annum. The bank's logic is that this step is aimed at reducing risks. A borrower who invests half of the cost of housing from his own funds minimizes the risk of going into negative equity (when the debt exceeds the value of the collateral), even with a possible cooling in real estate prices. For VTB, this is a way to build up a portfolio of high-quality loans without increasing reserves for possible losses. Sber: a wide range for the mass segment The country's largest universal bank has chosen a softer reduction strategy, but with a broader range of borrowers. Sber reduces rates by 0.5 percentage points for customers willing to make an initial payment in the range from 20.1% to 50%. As a result, the minimum rates in Sberbank will drop to 15.7% per annum. This offer looks more attractive compared to its competitor due to the lower minimum bar (15.7% versus 18.9% for VTB) and a more affordable entry threshold (20.1% versus 50% for VTB). Context: why did the banks go down? The decision of the two grand banks to adjust the rates from April 1 is not accidental. Experts identify several key prerequisites: 1. Stabilization of the key rate. Although the Central Bank maintains tough rhetoric, the market has already built into prices the expectation that the peak of the current rate hike cycle has passed. Banks, with liquidity, are striving to "unfreeze" demand, which has sagged amid record high rates in late 2025 and early 2026. 2. The struggle for borrowers. In the market mortgage segment (excluding preferential programs), the client is currently in short supply. Lowering rates is a marketing tool that allows you to lure customers away from competitors and load mortgage pipelines that were idle at the beginning of the year. 3. Seasonal factor. April traditionally opens the business season in construction and real estate transactions. Banks are trying to attract customers who planned to buy a home, but postponed it because of the "expensive" money. What does this mean for borrowers? For buyers of apartments on the secondary market or in new buildings (when applying for a market rather than a preferential mortgage), the news is positive, but with caveats. · If you have 50% or more: It is more profitable to pay attention to VTB, since a 1 percentage point reduction provides more significant savings in the long term, although the final rate (18.9%) still remains higher than the Savings Bank's proposals. · If you have 20-30%: the offer of "Sber" looks like there is no alternative. The 15.7% rate is currently one of the lowest among the market mortgage offers in the largest banks. Analysts warn that the indicated rates (15.7% and 18.9%) are minimal. The final rate will be influenced by the individual parameters of the client: the availability of a salary project, life insurance and title, as well as the loan amount. Lower rates from market leaders are likely to trigger a price race among second-tier banks in the coming weeks. However, according to experts, it is not necessary to expect a return to double-digit rates below 10-12% in 2026.