the Russians decided to get rid of insurance payments on the mortgage now banks are giving home loan to insure the purchased property, life and health of the borrower. This concept in the final version approved by the Central Bank after the discussions. This was reported on the website of the regulator.
Such insurance is mandatory, its amount will include the cost of the mortgage. Currently, insurance is buying the borrower and the agent most often is a Bank, leaving a larger share of the insurance premium.
According to the regulator, such decision will make mortgage transactions more transparent and will help to reduce the cost of the product. However, the Central Bank admitted that the new rules could lead to an increase in interest on housing loans.
it is Also reported that the provisions of the adopted concept of mortgage insurance do not apply to previously concluded transactions, but apply when refinancing your mortgage. In the near future the Central Bank will hold meetings with industry representatives to clarify the new standards.
