The National Commission on Financial Market (NCFM) has submitted for discussion a draft of a new law on mortgage loans, which should significantly change the rules of the game in the real estate market. The initiative is aimed at increasing transparency and strengthening consumer protection in mortgage lending.
The main provisions of the bill expand the scope of application and extend the rules to loans for the purchase, construction or renovation of housing, as well as loans secured by residential real estate. Stricter standards for assessing a borrower’s creditworthiness are introduced to prevent over-indebtedness.
One of the bill’s major innovations is the sale of homes while retaining the mortgage. One of the main proposals is to allow owners to sell condos even if the loan is not yet paid for. The buyer would be able to “roll over” the mortgage on the same or updated terms, making it easier to switch homes.
The new bill enshrines the right of the borrower to early repayment of the loan before the deadline with clearly defined rules of compensation to the lender and the ability to change the method of repayment. For example, in another currency or against the pledged real estate. In other words, it provides for the possibility for borrowers to sell mortgage real estate before full repayment of the loan in certain situations.
Another innovation is the verification of “hidden” conditions. The NCFM has previously repeatedly pointed out bank “tricks” that can artificially increase the cost of a mortgage loan for the client. Lenders will be required to provide a standardized sheet of European information (ESIS), which allows easy comparison of offers of different banks. And borrowers will be given the right to “reflect” (7 days) before the final signing of the contract.
From the end of 2025, regulations requiring banks and non-banking organizations to disclose the full cost of credit (DAE) in large print in all advertising and contractual materials will come into force.
The draft law also introduces control of mortgage brokers. The activities of intermediaries will be licensed and inspected to exclude the imposition of unfavorable schemes and hidden commissions, to ensure transparency of conditions and protect consumers from “financial traps”.
