Adjust rates: demand for mortgage refinancing has increased in Russia
Russians began to actively apply to banks for mortgage refinancing, market participants told Izvestia. Individual players see a sevenfold increase in demand for this service. Borrowers tend to replace loans issued during a period of high interest rates with new ones. The mechanism is becoming more relevant as the key interest rate decreases, which has dropped from 21% to 16% per annum since the beginning of the year. If a person refinances a loan that they took out at the peak of interest rates, their monthly payment may decrease by 25%. When it is better to resort to this method is described in the Izvestia article.
Does it make sense to refinance the mortgage now
The demand for mortgage refinancing has increased sharply in Russia, the largest banks told Izvestia. The average level of housing loan rates has dropped by more than 7 percentage points over the year — borrowers who took out loans at 30% per annum are now seeking to reduce their debt burden.
Refinancing is the replacement of an existing loan with a new one on more favorable terms.: with a lower interest rate, a lower monthly payment, or a longer term. For example, if you have a mortgage at 30% per annum, and the bank offers refinancing at 21%, you apply for a new loan, close the old one, and as a result save significantly on interest.
In VTB, the demand for mortgage refinancing increased by 40% in the third quarter, and in Novik Bank it tripled, the press services of the organizations reported. The growth of interest is also recorded in Dom.RF bank. In PSB, the average monthly number of applications for this operation jumped seven times in July – September compared to the beginning of the year. The representative of Absolut Bank also reported a threefold increase in indicators in the incomplete fourth quarter compared to the previous one.
Mortgage services "Banks.<url>" also records the interest of Russians in mortgage refinancing in the second half of 2025, said Inna Soldatenkova, head of expert analytics at the financial marketplace. In the third quarter, a third of all requests in this area were processed in 2025. By the end of the year, the demand remains.
— The growing popularity of mortgage refinancing is a natural response of the market to the reduction of the key interest rate. Since the beginning of the year, the Central Bank has lowered the rate five times in a row, and now it stands at 16% versus 21% in January," Igor Rastorguev, a leading analyst at AMarkets, recalled.
People see a real opportunity to ease the debt burden, the expert emphasized. The average market mortgage rates for the year decreased from 28.5% to 21.2% in November. Although this is still a high level, Russians still have the opportunity to pay less on housing loans than before.
Such a reduction in rates reduces the size of the monthly payment by about a quarter, explained in Absolut Bank. Due to this, overpayments are also reduced, so refinancing now makes a lot of sense.
The average level of overpayment on a market mortgage decreased by a third over the year, Izvestia reported earlier. If in November 2024, Russians on average overpaid 470% of the initial loan amount (that is, for almost five apartments), then a year later the figure dropped to 324%.
The mortgage refinancing process cannot be called easy, said Vladimir Chernov, analyst at Freedom Finance Global. It makes sense to start it only when mortgage rates drop by 2-3 percentage points lower than in the current loan. It's not worth it earlier — when reissuing, the bank charges fees for evaluating the facility and insurance again, and the associated costs may simply eat into the benefits.
However, it is far from certain that the financial institution will approve the refinancing. For example, according to the results of the third quarter, about 56% of mortgage renewal applications were approved at Novik Bank, while only 10-15% of applications were approved at Absolut Bank. Back in August, banks refused 80% of refinancing applications.
Izvestia sent a request to the Central Bank about the proportion of applications banks are approving now.
How to get approval for mortgage refinancing
If you have a desire to refinance your mortgage, you should first check the underlying reasons why you may face rejection.
The loan must "live" for a minimum period of time — usually from two to six months from the date of issue, and during this time there should be no delays, said Anastasia Kapralova, head of the Department for work with partners at Absolut Bank. Even short payment delays are the most common stop factor, said Inna Soldatenkova from <url>.
When refinancing a mortgage, the bank will re—check the borrower's income - it must be officially confirmed and sufficient to service the loan, said Igor Rastorguev, a leading analyst at AMarkets. At the same time, the debt burden should not exceed 50% of income, optimally — about 30%.
When calculating the debt burden, banks take into account all the client's obligations, Anastasia Kapralova clarified. If a borrower has a credit card limit, the bank will account for it as a valid debt, even if it is not in use.
Refinancing may also not be approved if new debts have appeared during the mortgage period — a reduction in the housing loan rate may not compensate for the increase in the overall burden, added the Deputy Chairman of the Board of Dom Bank.Russian Federation" by Alexey Kosyakov. Before applying, it makes sense to close or reduce other loans in order to improve the calculation of solvency, <url> noted.
Banks give priority to borrowers with a good credit history and stable income, especially in the context of stricter regulation and rising delinquencies, Inna Soldatenkova noted. However, each case is considered individually: strong indicators by most criteria sometimes make it possible to compensate for individual weaknesses, Alexey Kosyakov added.
However, if the current bank refuses, in practice it is often easier to apply to another credit institution than to try to change an already made decision, Igor Rastorguev added.
— In addition, it is often economically unprofitable for a bank to voluntarily reduce the rate to its client, — said Vladimir Chernov from Freedom Finance Global.
In general, the trend towards stricter requirements for financial institutions is noticeable, the expert concluded. In its reviews, the Central Bank explicitly sets out a tougher approach to approving loan applications.
When is it more profitable to refinance a mortgage?
The refinancing mechanism is important primarily to reduce the debt burden of borrowers who applied for a mortgage during a period of high interest rates, said Vladimir Chernov. Such clients will show interest in refinancing in the first half of 2026, mainly people who were in dire need of better housing conditions, the press service of the PSB explained.
— The growing demand for mortgage refinancing is likely to increase competition in the banking sector. This may encourage market participants to offer more attractive conditions and services, which will allow them to increase their customer base and market share," said Anna Zemlyanova, Chief Analyst at Sovcombank.
According to forecasts, a noticeable easing of mortgage conditions will begin no earlier than the end of 2026 or the beginning of 2027, <url> expects. By this time, the rate may drop to 12-13%, which will make refinancing a massive tool.
"We should expect a real surge when the key rate drops to 10-12%,— the VTB press service is confident.
At the same time, credit institutions are ready to develop mortgage refinancing programs to meet the demand of Russians for this mechanism, Absolut Bank said. The market expects further growth in demand for it, which it will prepare for.
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