Variable Rate Mortgage Loan

This is a special mortgage loan with no fixed rate for the whole lending period as with a classic loan but is corrected twice a year and is dependent on the refinancing rate of the Bank of Russia. The Bank of Russia’s refinancing rate is a monetary regulation tool used by the Russian Federation Central Bank to influence the interbanking market rates as well as corporate and retail deposit rates and those relating to loans issued by lending institutions. It is always expressed in annual percentage which is the basic market index. You can be absolutely sure not to overpay for a mortgage loan as your rate will always be within the market frameworks.

From a variable rate to a profitable mortgage.

Understanding Variable Rate Formation Method

Mortgage loan variable interest is attached to the refinancing rate which is a balanced market rate set depending on the current economic situation in the country. So you can feel protected from any surprise and will also fairly win should the economic situation change for the better.

The VTB24’s variable rate is formed by adding a fixed premium (a fixed premium is determined depending on the amount of the initial contribution, employment type and form of income confirmation) for using the loan to the refinancing rate.

So, the lending rules are quite simple and transparent.

Variable Rate Mortgage Loan Merits

• The amount of the mortgage loan variable rate for the first year is fixed and starts from 13.10% p.a. in RUB. The variable rate for the first lending year is substantially lower than under a classic lending programme with a difference reaching up to 2% p.p. Accordingly, your family budget burden will also be considerably lower.
• The variable rate amount does not depend on the lending period which makes long-term loans extremely attractive.
• You need not refinance the loan to save on interest. The fall in the refinancing rate automatically results in reduction of the variable rate.

Lending Terms and Conditions

• A variable rate loan is granted for purchasing an apartment on the secondary housing market.
• Loan currency: Russian roubles.
• Loan term: up to 50 years.
• Loan amount: starting from RUB 300,000.
• Initial contribution amount: starting from 20% of the purchased realty cost.
• Rate review frequency: twice a year.
• Rate alteration moratorium: within 1 year since obtaining a loan.
• Application review fee: starting from RUB free of charge.
• Loan issuance fee depends on the fulfilment of the terms and conditions relating to the placement of the initial contribution into the VTB24 Mortgage deposit:
  • RUB 20,000 in case of placing the initial contribution into the deposit.
  • 1.5% of the loan amount but not less than RUB 40,000 and not more than RUB 120,000 in case of non placing the initial contribution into the deposit.

Annual Interest Rates

First lending year

Initial contribution, %	Lending period
	Up to 7 years	Up to 15 years	Up to 25 years	Up to 50 years
over 40	from 12.60	from 12.60	from 12.60	from 12.60
less than 40 but more than 20 (inclusive)	from 13.10	from 13.10	from 13.10	from 13.10

Further lending periods

Initial contribution, %	Lending period
	Up to 7 years	Up to 15 years	Up to 25 years	Up to 50 years
over 40	RR + from 3	RR + from 3	RR + from 3	RR + from 3
less than 40 but more than 20 (inclusive)	RR + from 3.5	RR + from 3.5	RR + from 3.5	RR + from 3.5

RR: the Bank of Russia’s refinancing rate.

The interest rate depends on the type of income confirmation.

For borrowers whose income is confirmed by a personal income statement issued by his/her employer organization using the bank approved form the interest rate shall increase by 1.0% across all currencies, lending periods and initial contribution amounts.

For borrowers undertaking business without forming a legal entity and/or being corporate members (shareholders) the rate shall increase by 1.5% across all currencies, lending periods and initial contribution amounts.

Under the loan issuance terms and conditions you must obtain an insurance policy for three types of risk:

• borrower’s life and working capacity insurance;
• insurance of the purchased apartment from risk of loss or damage;
• insurance of the purchased apartment title loss (within the first three years from purchasing the apartment on credit).

Loan Repayment

Throughout the first lending year when a fixed interest rate amount is set you will need to monthly make an annuity payment provided for by your loan agreement. Upon expiry of the first lending year the rate will be reviewed twice a year from time to time since April 3 to October 3. In this regard, the refinancing rate index effective as of April 1 and October 1 each year will be regarded. Upon rate review the monthly payment will also change.

You will need to make an annuity payment from the 2^nd and until the 10^th day of each month.

You can prepay the loan free from any fees or penalties as soon as 3 months after its issuance.