SberBank: average IHC mortgage borrower age now two years younger

Oct 14, 2021

According to SberBank data, demand for mortgage loans for detached houses is continuing to grow. Over the eight months of this year, 5,631 loans totaling RUB 15.025 bn were issued, which is a 4.5-fold increase y-o-y in qualitative terms and a 4.25-fold increase y-o-y in cumulative terms. If the average age of a borrower receiving a loan for IHC in 2019 was 38, it is now 36.

Nikolay Vasyov, vice president, Sberbank, director of the DomClick Division:

“SberBank is constantly working on making mortgage programs more accessible to Russians. We recently carried out a small study that revealed that more young people are applying for mortgages for individual construction than a few years ago. We have been seeing the age of this type of borrower go down steadily for a few years now. The proportion of borrowers who are married is also increasing. In 2019, 76% of borrowers were married, in 2020 the figure was 82%, and this year it is 86%. The average IHC mortgage period is rising and, according to mortgages issued in January-August 2021, is 19 years (a year ago, the nominal term of a residential property loan was about 18 years, in 2019 it will be 16 years). We attribute the increase in demand for IHC mortgages to the launch of various programs at the bank, favorable rates, and the expansion of government projects to support this area.”

The contribution of government programs to the demand for mortgages for detached houses is increasing. In 2021, almost 1,500 loans worth RUB 6.6 bn have been issued under them, 26% of issuance since the start of the year in quantitative terms and 44% in cumulative terms. These programs include Far Eastern Mortgage and Family Mortgage, following the expansion of the terms of the latter in 2021.

Under the program for families with children, clients can build a house or buy land and build a house on it, with rates starting at 5.3%. The Far Eastern Mortgage, a loan for a completed house, is available at a rate of 0.1% per annum and for a detached house at a rate of 1.3% per annum. SberBank offers mortgages under the Housing Construction and Suburban Real Estate programs for the purchase or construction of a garden house or dacha. If the house is intended for permanent residence and is registered with Rosreestr as secondary real estate, it qualifies for the Completed Housing loan program.

The preferential mortgage program for building a house on a plot of land with proven contractors is popular. The interest rate starts at 6%.

SberBank also launched a comprehensive solution for the individual housing construction in 2021, including project financing for developer construction of residential housing via escrow and offering preferential mortgage terms for people buying housing in these buildings. Mortgages under this program are available from 4.6% per annum. Apply for a residential mortgage remotely at DomClick.ru.