It’s official: the number of mortgage refinancing refusals is growing

The Central Bank has tightened requirements for borrowers. The percentage of mortgage refinancing refusals will increase, but interest in this product will increase against the backdrop of lower mortgage rates. Demand for refinancing will increase significantly if mortgage rates drop to 12% per annum in the future.

It is important that mortgage borrowers understand that they may be refused, noted Sergei Gordeiko. According to the expert, demand for mortgage refinancing will continue to grow in 2026, especially when home loan rates drop to 18% per annum or lower.

Compared to the beginning of 2025, the number of applications for mortgage refinancing has increased three to seven times, said Dmitry Dolzhenko, head of consumer lending development at Ingo Bank. People are looking to change the terms of mortgages that were taken out at the peak of interest rates to reduce their monthly payments. When refinancing a mortgage at 28-30% per annum, you can reduce monthly payments by 25%.

Mortgage refinancing is economically justified if the new rate is lower than the old one by at least 2-3 percentage points, the expert recalled. If the difference is smaller, the cost of home appraisals, commissions and insurance may reduce the benefit to zero.

source: CYANOGEN