Impose your share: banks are forced to take out additional products with a mortgage
Banks impose additional products on citizens when issuing mortgages. They force customers to buy a whole range of services along with housing loans, otherwise they threaten to raise the rate, and in addition to life insurance, this package may include a subscription to an online movie theater, card protection, or a job loss policy. However, according to the law, only housing insurance can be mandatory. Sometimes banks also reject third-party policies and work only with "their own" ones. How much Russians overpay because of such practices is in the Izvestia article.
Why don't banks issue mortgages without life insurance
Russians are being forced to apply for additional products along with a preferential mortgage, Izvestia found out. Users of the <url> National Rating complain about this.
For example, such practices are often reported by clients of Sberbank. Users of the National Rating say that they were forced to buy a subscription to Domclick Plus when applying for a mortgage. The credit institution explained to them that the low rate on the preferential program depends on this — unsubscribing automatically leads to its increase by 1 percentage point. At the same time, in addition to life insurance, the subscription includes a number of non-mortgage services, such as an online cinema and a music service.
The information was confirmed by an eyewitness contacted by Izvestia. A bank client applied for an IT mortgage, but along with a housing loan, she was persuaded to buy insurance for 25 thousand rubles. They explained to the Muscovite that this was a prerequisite for lowering the rate.
Moreover, the client later clarified that in her terms and conditions, in principle, there was no information that life insurance was necessary to preserve the terms of the loan, although the staff assured her otherwise. As a result, she managed to get rid of insurance without losing the discounted rate.
Judging by the reviews of the Bank's users.<url>, in some cases, the price of the imposed products can reach up to 30-50 thousand rubles. You need to pay for insurance once a year.
A client of DOM Bank.The Russian Federation also complained about the imposition of a whole package of insurance, according to the National Rating data. It cost 22,000 rubles, half of which was spent on additional products such as job loss insurance, family insurance, and card protection.
In addition, Alfa-Bank's clients reported that they were not allowed to apply for a housing loan with a life and health insurance policy from a third-party company. The Bank offers a choice of only "its" accredited organizations.
One of the Bank's users.VTB warned about the requirement to pay 35 thousand rubles for life and property insurance three days before the transaction was completed — the client would hardly have had time to get a policy from another company during this period. Izvestia sent inquiries to all the banks mentioned.
Do I need to insure my life when applying for a housing loan
— It is forbidden for banks to make the issue of a loan dependent on the purchase of life insurance. This applies to any additional paid services and goods offered for lending," the Central Bank said.
Banks understand this principle in a peculiar way. The borrower can decide for himself what is more profitable for him — to take out an insurance policy or pay increased interest, said Vitaly Kostyukevich, Director of Absolut Bank's Retail products department. Novik Bank also uses this principle, as do many other market participants.
However, customers are often forced to agree to buy life insurance, even with a package of other additional services, in order to maintain a discounted rate. It turns out to be really more profitable than paying even 1 percentage point more on a mortgage.
For example, under a family program at 6% for an apartment for 12 million rubles with a down payment of 20% and a term of 25 years, the monthly payment will be approximately 62 thousand rubles. Life insurance costs about 10,000 rubles a year, which is about 800 rubles a month. If the rate increases by only 1 percentage point, the payment will increase to almost 68 thousand rubles per month, and this is 6 thousand more than initially, that is, if the client refuses such an additional package of services, he will overpay about 72 thousand rubles per year.
The law also allows the borrower to independently choose insurance if it meets the requirements of the bank, the press service of the Central Bank said. In this case, the credit institution should reduce the loan rate in the same way as if the client had taken insurance from the bank itself.
If these rules are not followed, people can complain to the Bank of Russia, including anonymously. The regulator will check the complaints and take action if it finds violations.
In general, the actions of banks can be explained by the desire to reduce the risks for themselves in the event of death or disability of the borrower, said Vladimir Chernov, analyst at Freedom Finance Global. In addition, there is now increased competition for reliable customers in the market. Only half of the applications receive approval, said independent expert Andrei Barkhota.
Why do banks impose insurance
In 2024-2025, the quality of borrowers and their solvency deteriorated sharply, leading to an increase in loan delinquencies and defaults. The main reasons are the decline in welfare due to inflation, which reached 9.9% in May 2025, forcing people to spend more on basic needs and less on debt repayment. This forces banks to actively cut off risky borrowers, leaving only the most reliable ones.
— The average term of a mortgage loan in 2025 exceeded 30 years. Even in shorter periods, there can be many events in the life of absolutely every person that can affect their ability to pay," said Evgenia Lazareva, head of the Popular Front for Borrowers' Rights project.
At the same time, life insurance when applying for a mortgage in any case allows banks to receive additional income, said Vladimir Chernov.
— They also refuse to accept policies from other insurance companies that are not part of the partner pool. Unfortunately, this is a widespread practice," Valery Tumin, Director of Russian and CIS Markets at fam Properties, confirmed.
Banks motivate the refusal by saying that third-party companies do not meet their requirements, the expert said. The real reason is that credit institutions receive commissions from affiliated companies for each insurance product issued, which means it is simply unprofitable for them if the borrower buys a policy elsewhere.
However, insurance from a third-party company can be much cheaper, and there is no real reason not to accept the policy from the bank. In this case, you should file a complaint with the Bank of Russia.
It is necessary to strictly control which services go along with the mortgage, and prohibit the addition of unnecessary services such as subscriptions, Andrei Barkhota emphasized. It will be more honest and understandable for everyone, both for banks and for customers.
Until then, additional services can be dealt with through a written waiver of an incorrectly calculated mortgage, concluded Valery Tumin. With this document, you can then file a complaint with the Bank of Russia, the Federal Antimonopoly Service or Rospotrebnadzor. This will draw regulators' attention to the problem, but it does not guarantee a reduction in the loan rate after such proceedings.
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