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Three Ways Russians Can Cut Mortgage Rates Without State Programs

Borrowers can cut market mortgage rates by up to 2.5 points by combining salary accounts, life insurance, and large down payments, a property sales specialist says.

Three Ways Russians Can Cut Mortgage Rates Without State Programs

Russian borrowers can reduce their market-rate mortgage by as much as 2.5 percentage points by combining three conditions, according to Tatyana Stenina, head of sales at property company Dar, speaking to Gazeta.ru.

Stenina said that holding a salary account at the lending bank yields a discount of around one percentage point. Purchasing life insurance adds another one point, and making a down payment of at least half the property’s value brings a further 0.5 points.

She noted that not all banks allow the discounts to be combined, as some offer only one option. On a six-million-ruble loan, a one-point reduction saves roughly 5,500 rubles a month, and on a ten-million-ruble loan about 8,000 rubles, with the total difference running into millions of rubles over a 20-to-30-year term.

Developer-bank partnership programmes offer a separate route, with discounts of 0.1 to three percentage points for one to five years before the rate reverts to the market level.

Stenina advised buyers not to delay purchases in anticipation of a central bank rate cut, warning of the risk of rising prices or losing access to current mortgage offers. She also recommended making extra repayments in the first seven years, when interest charges are highest.

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