Dozens of Russian Banks Halt Mortgage Lending Due to Losses

Russian banks have begun to refuse mortgage lending due to high costs and risks. Over the past three years, the number of credit organizations issuing housing loans has decreased by more than 13% — from 249 to 216. 33 small and medium-sized banks have exited the market, although they continue to operate in other areas. Analysts note that smaller banks find it difficult to compete with larger players, leading to increased deposit rates and reduced favorable conditions for mortgages. More than 50% of loans are accounted for by state programs, which do not generate sufficient profit. The top 10 players account for 90-95% of new loans. There is also an increase in overdue debt; as of September 1, 2026, Russians owed 267 billion rubles. This complicates the financial situation for small banks, which need to build reserves. It is expected that by the end of 2027, the number of mortgage banks in Russia will decrease to 200. The consequences will be particularly felt in small towns and remote areas.

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