On Oct. 10, RUS CB decided to cancel total cost of credit limit.
RUS CB board of directors decided not to limit the total cost of credit (TCC) for consumer mortgage loans for the purchase of housing or land for credit institutions.
Summary
This decision applies to mortgage loans for the purchase or construction of housing.
The measure allows banks to reflect changes in the financial market, including those influenced by key interest rate decisions, without violating the legal requirements.
It was noted that risks of increased debt burden for mortgage borrowers are mitigated by existing macroprudential add-ons and as a result the regulator is considering the possibility of permanently removing total credit costs limits on mortgages.
TCC limits remain in place for other products offered by credit institutions, as well as for all loans from microfinance organizations, credit cooperatives, and pawnshops.
