Russia’s largest state-controlled bank raises mortgage interest rates again

Effective today, Sberbank is raising its average weighted interest rates on loans under Russia’s family mortgage program by 1–4 percentage points above the government-set limit. The exact hike on a particular loan will depend on the loan’s amount. Sberbank said its new policy responds to the Central Bank’s recent decision to raise its key interest rate to 21 percent. Earlier this month, the company already raised the rates on its market mortgage programs by three percentage points.

Under Sberbank’s latest interest hikes, the minimum rate available under its “DomClick” program in the Moscow and St. Petersburg regions will be 9.4 percent for home loans starting at 12.5 million rubles (about $130,000). In other regions, the minimum interest rate will be 10 percent for loans greater than 6.5 million rubles ($67,000).

Meanwhile, loan amounts within the government-set limit for Russia’s family mortgage program will remain at the preferential rate of 6 percent, while amounts exceeding this limit will be subject to the bank’s new rates. Since the start of 2024, Sberbank has issued more than 173,000 loans under Russia’s family mortgage program, totaling 862 billion rubles (almost $8.9 billion).