Our next business Breakfast was visited by the Manager of VTB Bank in the Rostov region Yuri Avdeev.At the meeting, we discussed the development of the mortgage market and refinancing programs, the nuances of opening escrow accounts, as well as plans for 2019.
Alexey: Yuri, tell us what has changed in the sphere of mortgage lending of VTB Bank in 2018?
Yuri: At the end of last year, the mortgage has become one of the most popular retail products of VTB in the region. Every fifth loan issued by the residents of the region in our Bank, mortgage. In total, more than 7 thousand such loans were issued in 2018. At the end of the year, we managed to increase the market share to 24% (a year earlier it was at the level of 17%). If we talk about the dynamics relative to 2017, the issuance of VTB in the Rostov region doubled, their volume amounted to 12.2 billion rubles.
We pay special attention to digitalization and simplification of the procedure for obtaining a housing loan. Even now, borrowers can remotely apply for a mortgage, when making a transaction to provide an electronic report on the assessment of the apartment, to register a contract of participation in shared construction without a personal visit to Rosreestr.
Alexey: What kind of demand You are in the program of mortgage refinancing?
Yuri: Refinancing was another driver of growth in the mortgage market last year.
Compared to 2017, the volume of issuance increased 3.5 times. In total, more than 2 thousand customers used this program in 2018, and the total amount of loans exceeded 1.7 billion rubles. The share of refinancing in our mortgage transactions was about 14%.
At the end of 2018, we expanded the terms of the refinancing program, and now the offer applies to the mortgage, which was issued for the purchase of real estate in houses under construction.
In addition, VTB has significantly simplified the procedure of refinancing. The client no longer needs the consent of the current lender on the transaction, but can confirm the quality of service on the primary loan by an extract from the Internet or mobile Bank.
Alexey: What is the current situation with mortgage rates and can we expect them to change this year?
Yuri: the Loan for the purchase of real estate in the framework of standard VTB programs is available at a rate of 9.7% per annum in the presence of comprehensive insurance.
Refinancing of loans from third-party banks is available at 10.1% for employees of municipal and state institutions under the "People of business" program, for salary customers – 10.2%, for other categories of borrowers – 10.5%. In addition, there are special price offers from developers.
For customers who prefer spacious accommodation, the Bank has a program "More meters – lower rate". When buying an apartment from 65 sq. m. rate will be equal to 10.1%,and from 100 sqm to 9.7 per cent.. By the way, a large area of real estate accounts for about 15% of the total volume of loans.
Further possible changes in price parameters in 2019 will depend on the movement of the Bank of Russia's key rate, macroeconomic situation and market conditions.
Alexey: One of the sensational topics of 2018-2019 is the opening of escrow accounts of developers within the framework of changes in 214-FZ. What load did the banks get? Is the process of opening such an account difficult?
Yuri: the Main change is that in the framework of settlements under equity contracts (DDU), the letter of credit has been replaced with escrow accounts. The Bank will now act as an escrow agent and monitor compliance with the terms of the escrow account agreement.
For individuals, we have developed a convenient account registration process. Its opening is carried out at the request of each of the shareholders. To do this, you need to have a passport and a contract for participation in shared construction, which is signed with the developer. The account will be opened within a few minutes. Funds placed in such accounts are insured by the Deposit insurance company in the amount not exceeding 10 mln rubles for each contract.
The use of escrow accounts for settlements under equity contracts protects individuals participating in shared construction: funds are transferred to the developer only when the object is actually completed. Until the building is put into operation, the developer is not entitled to use the funds placed on escrow accounts. If the house is not completed on time, the funds are returned to shareholders.
This scheme of financing developers - an additional tool to support and develop the construction industry. It makes projects more attractive for investors, providing high reliability of investment in housing under construction. This allows partners to reduce the cost per square meter, and the Bank – to offer the most comfortable interest rate on the loan.
Alexey: What are the plans of VTB development of mortgage lending in 2019?
Yuri: In 2019, in our opinion, the popularity of mortgages with preferential terms will grow. For example, employees of budgetary organizations, the Bank offers the program "business People". Employees of education, health care, tax and other authorities can apply for a mortgage loan with a special discount. Also, we are the only in the country to provide and refinance a mortgage with state support at 5% to customers at birth in the family of the second and subsequent children from 1.01.2018.
Another significant step towards the digitization of mortgages will be the possibility of using electronic mortgages. P We have already launched a pilot project on registration of mortgage transactions with electronic mortgages in several regions. The documents are signed with the digital signature of the transaction participants. After replication of the project to the entire network, the mortgage can be issued in documentary or electronic form at the client's choice.
This year we are facing ambitious goals to increase the volume of housing loans by more than a third. In addition, we plan to strengthen our position in the region by opening new mortgage departments. According to our forecasts, the growth of the mortgage market in our country will be about 17%, and in the Rostov region it will not be lower than the all-Russian.
Alexey: Yuri, thank you for a pleasant conversation.