The President of the Russian Federation limited the growth of mortgage rates in case of refusal of insurance

President Vladimir Putin signed a law that limits the increase in interest rates on mortgage loans if the borrower refuses insurance.

The Central Bank previously came up with a corresponding initiative. In this way, the regulator is trying to prevent a significant increase in mortgage rates. It is assumed that banks will be able to increase the rate only to the level that was in effect at the time of concluding the agreement for similar loans issued on comparable terms without insurance— reports «Russian newspaper».

The law comes into force on July 1, 2024 and will apply to all loans issued after this date.

source: «Russian newspaper»