On the website of the Central Bank of Russia reported that the country’s citizens will not pay insurance payments on the mortgage. Now, banks that issue mortgages, will insure the acquired property, life and health of the borrower.
the provisions of the approved concept of mortgage insurance will not apply to previously signed contracts, but will be used to refinance the mortgage.
At this point, insurance becomes the borrower and the Bank acts as agent, leaving a larger share of the insurance premium.
according to the CBA, the new scheme will make mortgage transactions more transparent, and reduce the cost of the product. For example, if the proposed approach was applied now, the full mortgage cost in 2019 would have been lower by 0.15 to 0.67 percentage points.
