OREANDA-NEWS. October 14, 2010. Raiffeisenbank is introducing a new approach to the formation of mortgage rates, and is significantly reducing the rates on all of its lending programmes. Now the interest rate depends not only on how the client verifies his income and the currency in which the loan is issued, but also on the home equity of the client, reported the press-centre of Raiffeisenbank.

In the new programme, the mortgage rate for purchases on the secondary housing market has dropped to 12.25% per annum in roubles, and 9.25% in U. S. dollars. The mortgage rate for purchases on the primary housing market has dropped to 13.75% per annum in roubles (until property registration is completed, when it drops to 12.25%).

The rate on home equity loans has dropped to 12.75% per annum in roubles and 9.75% in U. S. dollars. The rate on multi-purpose home equity loans has dropped to 13.25% per annum in roubles. For these rates to apply, an insurance policy must be taken out to cover death and disability, destruction, loss, damage to property and loss of property rights.

In addition, the difference in the rate of the mortgage programme that does not require a comprehensive insurance policy is only 0.3 percentage points (previously it was 3.5 percentage points). Property insurance is required in 100% of cases.

Raiffeisenbank is making changes to its mortgage programmes simultaneously across all regions in which the Bank operates.