The share of refusals on mortgage loans exceeded 46%

In Russia, for the third year in a row, the number of refusals on mortgage applications has been growing. At the beginning of 2020, banks turned down approximately one in four potential borrowers. By the beginning of 2023, the failure rate increased to a record 46%.

One of the reasons for the increase in the number of rejected applications was the increase in demand for mortgages. Rates close to zero, no down payment, family mortgages – the emergence of these programs has increased the availability of loans and expanded the audience of borrowers. Banks have got a lot of new clients, not with the best credit rating, which were most often denied by credit organizations.

Refusal of a mortgage application directly depends on the credit rating of the borrower. For example, customers with a rating of over 900 have a mortgage rejection rate of 27%. Borrowers with a rating of up to 200 points are denied in 80% of cases.

The borrower’s credit rating is calculated by credit bureaus, which store information about payments on loans issued by him.

When calculating the rating, the following parameters are taken into account:

– the presence or absence of loans in the past;

– the age of the history of payments on loans;

– the presence of delay in payments;

– volume of debt load;

– the frequency of requests to check your own credit history.

You can check your credit score through the State Services. On the site you can order a list of those credit bureaus where data on your payments is stored. Then you need to contact these bureaus directly.

Each citizen has the right twice a year to request a history of payments on loans in each bureau free of charge. Requests can be submitted in person or through an intermediary.