What is the mortgage interest in August 2024

Several large Russian banks have announced an increase in mortgage rates this week. Starting on August 6, the minimum rates for the market mortgage programs of Sberbank and VTB will be 20% and 20.5%, respectively. In Alfa-bank, the minimum level for a basic mortgage from August 5 is 21.09%.

So, Sberbank has been raising rates on housing loans since August 6, the minimum rate for buying an apartment on the secondary market will be 20%, taking into account the use of life insurance, the purchase of real estate on the Domklik showcase, the use of the Legal Verification service, the Mortgage Plus promotion and with an initial payment of more than 20% of the real estate value.

VTB Bank has also been raising rates on market mortgage programs since August 6. The increase will range from 0.5 percentage points to 1.7 percentage points, and the minimum rate for buying an apartment will be 20.5% and will be offered to future salary clients of the bank subject to comprehensive insurance, proof of income and employment, a down payment of 30% and a large loan amount.

Since August 5, Alfa-Bank has increased rates for basic programs by 1 percentage point to 21.09-21.99%.

At the same time, a number of large banks have already adjusted mortgage rates over the past week. So, on August 1, Gazprombank increased the cost of mortgages by 1.4 percentage points, the minimum rate there is now 22.5%. Sovcombank increased interest rates on basic programs by 1 percentage point on July 21, the credit institution does not plan to further increase rates, the bank's press service assured.

Recall that at the July meeting, the Board of Directors of the Bank of Russia raised the key rate for the first time since December 2023 — from 16% to 18% per annum. At the next meetings, the regulator will consider the expediency of further raising the key rate.