The Central Bank noticed an increase in the number of home purchases in installments instead of mortgages

11:13; 10 February 2025 year

The Bank of Russia has noticed an increase in the number of home purchases in installments instead of mortgages, discussing with relevant agencies the regulation of this practice, RBC reports. The representative of the regulator identified three main risks associated with installments for housing.

Thus, buyers may not realize the full extent of their debt burden. The debt owed to the developer is not included in the credit history, which can lead to an incorrect assessment of financial capabilities and even default when applying for other loans. Another risk is the lack of transparency of the rules for the sale of real estate and the deterioration of the financial conditions of projects and increased risks for developers due to the lower abundance of escrow accounts.

As the representative of the Central Bank noted in an interview with RBC, a possible expansion of the practice of selling housing in installments may require the introduction of regulation. This issue is currently being discussed with various concerned agencies. The goal is to ensure that the debt burden of buyers is taken into account, reducing the associated risks, as well as transparency and clarity of installment payment terms for buyers, excluding hidden payments and commissions.

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