Mortgage refinancing in Russia surged dramatically in 2026, with applications increasing sevenfold compared to the previous year. This spike coincided with a series of interest rate cuts by the Central Bank of Russia (CBR), which saw the key rate drop from 21% to 14%.
The M2 real estate platform reported that the initial significant response to the rate cuts was observed in September 2025, when the key rate was reduced to 17%. At that time, refinancing applications rose by 21% compared to 2024. By October, the growth rate had tripled, and by February 2026, applications had peaked at a 13-fold increase year-on-year. Although the pace has since moderated, the demand remains robust, with a threefold increase noted in August 2026.
According to Dmitry Smirnov, head of analytics and data at M2, refinancing has become a stable trend. He emphasized that the market's reaction to the CBR's actions was a key driver of this trend, as lower interest rates made refinancing more attractive to homeowners.
Changes in Housing Market Dynamics
The reduction in the key interest rate has not only spurred refinancing but also altered the structure of housing transactions. Data from M2 and Roskadastr indicate a shift towards mortgage-backed purchases. The share of mortgage deals in the overall housing market increased by 7 percentage points year-on-year.
- 53% of transactions involved secondary housing without mortgages, down from 59% the previous year.
- 23% of deals were mortgage-backed secondary housing transactions, up from 16% in 2025.
- 13% involved mortgages for new constructions, a 1 percentage point increase from the previous year.
- 11% were primary housing transactions without mortgages, a decrease of 1 percentage point.
The increased accessibility of mortgage loans, driven by the lower key rate, has been a significant factor in these changes. Additionally, ongoing support for the new housing market through family mortgage programs, despite several adjustments to their terms, has played a role.
In September, mortgage issuance in Russia reached a new high, marking the largest volume of housing loans in 2026 and the second-largest since the end of the universal preferential mortgage program. The only time more mortgages were issued was in January 2025.
The sustained demand for refinancing and the shift in transaction structures highlight the significant impact of the CBR's monetary policy on the Russian housing market.
