By 2025, 19% of mortgages in Russia will be repaid in retirement

By the end of 2025, nearly one in five mortgage loans in Russia will be closed after the borrower retires at the age of 70-75. The average life expectancy in Russia is 73.4 years, with women living on average 10 years longer than men. Last year, Russian banks issued 966,000 mortgage loans, with about 65% of loans being repaid after the age of 60. The increase in long-term loans is associated with a high base rate of around 19% and low incomes among the population. Even the preferential rate of 6% does not allow most Russians to easily pay monthly installments, leading to attempts to stretch mortgages to 30 years. A mortgage for an apartment costing 6 million rubles at a rate of 6% over 30 years requires a monthly payment of 36,000 rubles, which is critical given the average pension of 22-25 thousand rubles. Mikhail Delyagin, deputy chairman of the State Duma committee, called the current mortgage a ticking time bomb serving the interests of monopolists. The Kremlin proposes to return to the Soviet practice of housing distribution in the form of long-term leases that can be inherited. The crisis in the construction industry continues in Russia, with housing completions falling by 22%, and the construction sector is in deep crisis.

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