Russian banks have started accepting applications for Arctic mortgages
VTB Bank has become the first to start accepting applications for Arctic mortgages; the first transactions will begin in early November after the relevant Russian government resolution is signed and comes into force.
"OnSince October 24, VTB becamehas been the first Russian bank to start accepting applications for Arctic mortgages. From today, borrowers can apply for a housing loan at just two percent. VTB will start conducting the first transactions in early November after the Russian government resolution is signed and becomes effective. The implementation of the Arctic mortgage is supported by the Far East and Arctic Development Corporation," the bank's press service reports.
The bank anticipatesplans that for the entire term of the loan, favorable сconditions for the entire term of the loan will be available for the purchase of real estate located in the Russian Arctic zone. Residents of the Murmansk Region, Nenets and Yamalo-Nenets Autonomous areas, as well as a number of areasterritories inof the Arkhangelsk Region, Krasnoyarsk Territory, the Republic of Komi and the Republic of Karelia can apply for a mortgage with a minimum rate. At the first stage, customers will be able tocan apply for Arctic mortgages at VTB's contact centere. In early November, loan applications will be available through partners, the website and VTB offices.
Note that borrowers will be able to obtain funds from VTB for the purchase of apartmentsflats and townhouses on the primary market. In rural settlements and single-industry towns it will beis possible to purchase properties on the secondary market. The cost of one square meter of purchased property may not exceed the average market value for the relevant constituent entity, as determined by the Russian Ministry of Construction as of the date of the mortgage agreement. The terms of the program do not apply to refinancing of previously issued housing loans.
As specified byin VTB, at the end of the first nine months of 2023, 214,000 borrowers receivedtook out housing loans fromin the bank worthfor 1.1 trillion rubles. This surpassesIn terms of amount it exceeds the result for the whole 2022 and is comparable to the historical historical figure forof 2021. At the end of September, the bank's share in the housing lending market was 24 percent. VTB actively participates in state-supported mortgage programs.