Areas Identified with Over 50% of Income Spent on Mortgage Payments
Mortgage Payments Burdening Income in Over Half of Russian Regions
Researchers have uncovered startling figures indicating that mortgage repayments eat up more than half of the average wage in over twenty Russian regions. In contrast, only twelve regions keep mortgage expenses below one-third of the average income.
According to the study, the average mortgage loan in Russia stands at 5.5 million rubles, with an average weighted interest rate of 6.01%. The regions with the highest payments are Moscow and Kalmykia, where borrowers pay around 51,400 and 51,000 rubles, respectively. On the flip side, the lowest mortgage payments are seen in Kurgan, Tuva, and Arkhangelsk regions.
The data reveals that the Republic of Kalmykia leads the regions with the highest share of mortgage payments at 94.6%. Two other regions, Chechnya and Dagestan, see more than 85% of income spent on loan repayment, with above 70% in Ingushetia and Ivanovo region. In contrast, Chukotka boasts the most affordable mortgages, where the average payment constitutes just 17.4% of income.
Analysts attribute this affordability in northern regions to high incomes and the Arctic mortgage program with interest rates of 3% or less. A similar trend applies to the Far East, with high incomes and subsidized mortgages at 2% or less. Across the country, however, the average mortgage payment equals 31,700 rubles, or 41% of the average wage (77,600 rubles).
To control the growth of loan defaults, experts suggest developing more accessible mortgage programs and refinancing options. They believe state initiatives, including subsidized mortgages for secondary housing and programs for families with children under 14, can encourage borrowers to opt for cheaper alternatives with lower interest rates, thereby reducing the risk of default and lessening the share of mortgage payments in income.
Deputy Governor of the Bank of Russia, Olga Skorobogatova, reported that the average term of mortgage loans in Russia has almost reached a record high of 26 years, standing at 309.8 months in February 2025. High interest rates and increasing real estate prices drive this extension, making shorter loan terms unaffordable.
While specific data on mortgage loan terms remains scarce, experts offer insights on market trends. Economic uncertainties, rising interest rates, and reduced real estate sales push borrowers and lenders towards longer-term mortgages to ensure affordability and maintain market activity.
Related context and indicators
- The Bank of Russia's key rate was maintained at 21.00% in April 2025, with estimates for the average key rate between 19.5% and 21.5% in 2025.
- The bank lending rate in Russia increased from 20.55% in February 2025 to 22.23% in March 2025.
- As sales of residential real estate in Russia decline by nearly 40% from April 2024 to March 2025, market conditions pressure banks and borrowers to prioritize affordability.
- As the Bank of Russia's key rate remains high at 21.00% in April 2025, creating an environment with an average bank lending rate of 22.23%, investors might consider reallocating their resources from traditional finance to other sectors, as real-estate investing appears burdensome with mortgage payments averaging 41% of the average wage.
- With the average term of mortgage loans in Russia reaching 26 years in February 2025, prospective real-estate investors may find longer-term financing options more attractive given the current financial landscape, in which high interest rates and decreasing sales of residential properties push lenders toward more extended mortgage investments.
