Mortgage debts of Sverdlovsk residents have soared to a staggering 3.9 billion rubles.
In an effort to curb the rising trend of overdue mortgage debt and improve the quality of bank portfolios, the Bank of Russia has implemented a series of macroprudential measures. These measures, which have been in effect since July 2025, aim to limit the issuance of risky mortgages, particularly in regions like Sverdlovsk.
A year ago, the overdue mortgage debt in the Sverdlovsk region stood at a mere 0.3% of the total mortgage portfolio. However, as of June 1, 2025, this figure has significantly increased to approximately 3.9 billion rubles, representing 0.6% of the region's total mortgage portfolio.
To address this issue, the Bank of Russia has introduced limits on the issuance of risky mortgages. Mortgages with a down payment of no more than 20% and a debt burden over 50% of the borrower's income are now capped at a maximum share of 2% of all mortgages issued. Similarly, mortgages with maturities exceeding 30 years are also limited to 2% of total mortgage issuance.
These measures are designed to reduce systemic risks associated with high indebtedness among borrowers, particularly those with unstable incomes or high existing debt burdens. The Bank of Russia has acknowledged that the volume of such risky mortgages has increased from 10% to 14% over the last two years, necessitating these caps.
Moreover, the average repayment term for mortgage loans in the Sverdlovsk region is 312 months (26 years), and the average check for mortgage loans stands at 4.72 million rubles. The introduction of these measures has led banks to increase the initial down payment for mortgages.
The growth in the mortgage portfolio in the Sverdlovsk region has been driven by targeted programs like the "Family Mortgage" initiative. The volume of issued mortgage loans in the region in March of the current year is 6 billion rubles, and the mortgage portfolio has grown by 6% over the year, from 606 billion to 642.5 billion rubles.
Market loan issuance remains cautious due to high interest rates. However, these macroprudential measures are designed to reduce the potential for overdue mortgage debts by limiting exposure to loans with high risk factors, thereby improving financial stability and borrower resilience across all regions, including Sverdlovsk.
It is important to note that no region-specific deviations for Sverdlovsk were detailed explicitly in the available data, suggesting that these measures apply nationally. In summary, the Bank of Russia is actively limiting the issuance of high-risk mortgages through quantitative caps on vulnerable borrower segments and long-term loan maturities, aiming to prevent a rise in overdue mortgage debts and stabilize the housing finance market in Russia.
[1] Sources: Bank of Russia, Regional Statistics, Mortgage Market Reports.
To combat the rising overdue mortgage debt in the Sverdlovsk region, the Bank of Russia has implemented measures to limit the issuance of risky mortgages. Specifically, mortgages with low down payments, high debt burdens, and long maturities have been capped at a maximum share of 2% of all mortgages issued, aiming to reduce risks associated with personal-finance management and improve the overall business climate.
