Concessional refinancing of mortgaged loans in CHF and JPY

Advice on all mortgage matters

(495) 925-80-00 — Moscow

8-800-200-23-26 — other regions
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What to do?

Reduce monthly loan payments

But how?

Reduce the principal
Reduce the interest rate
Extend the maturity period
Combine the above

What does the Bank offer?

Three special options for borrowers applying for CHF or JPY loans.

Duration of the concessional programme

The deadline for applying for the special beneficial programme for restructuring/refinancing of loans in Swiss francs and Japanese yen has been extended until 30.06.2012.

From 1 July 2012 , the Bank will stop accepting any applications for beneficial programmes for restructuring/refinancing, whereas all approved applications submitted before 30 June 2012 will be refinanced and, after that date, within the term determined additionally by the Bank of Moscow.

After 1 July 2012, borrowers will retain the possibility of submitting applications for standard (non-beneficial) programmes for restructuring/refinancing of loans in the given currencies (payment holidays, extended loan term, refinancing into roubles at current market rates).

Determining the loan restructuring/refinancing terms and conditions

The loan restructuring/refinancing terms and conditions for a borrower are determined individually. When restructuring/refinancing a loan the Bank does not warrant satisfaction of all the borrower’s wishes and requirement.

N.B. BORROWERS!
The terms for restructuring/refinancing may be determined by the Bank only after the borrower has submitted the requisite documents. The calculation performed by the Bank on the basis of the information provided by the borrower, either verbally or in writing, before the relevant documents are submitted, is a preliminary one and may be adjusted when the presented documents have been considered.

Refinancing in roubles on beneficial terms

After considering the documents submitted by the borrower, the Bank may pass a decision on refinancing in roubles at the Central Bank exchange rate.
The interest rate on a rouble loan is set at the same level as that for the currency loan. Whereat the new rouble interest rate might prove substantially lower than the current average market interest rates on rouble loans.
If the reduction in the interest rate proves inadequate, the loan term may additionally, on agreement with the borrower, be extended up to a maximum of 50 years.

Beneficial interest rate on a current loan

After considering the documents submitted by the borrower, the Bank may pass a decision to set a beneficial rate on an existing currency loan.
The beneficial interest rate is set for a period of one year from the time of execution of the loan documentation and, on expiry of the year, the original interest rate on the loan is reinstated.
If the reduction in the interest rate proves inadequate, the loan term may additionally, on agreement with the borrower, be extended up to a maximum of 50 years.
If the borrower’s situation does not improve during the grace period, if the borrower submits a relevant application, the Bank is prepared, after considering the documents presented, to consider extending the grace period and the amount of the interest rate for this period.
If the its financial status deteriorates at any time during the grace period, the borrower is entitled to submit documents analogous to the first consideration, requesting the Bank to consider an additional cut in the beneficial interest rate.
In the event of an additional reduction in the franc/yen during the period of the beneficial interest rate, the borrower receives the following benefits:
- an additional reduction in the rouble equivalent of the payment during the period of the beneficial interest rate;
- equalisation of the ratio of the current value of the apartment and the equivalent of the rouble debt;
- the possibility of refinancing the loan in roubles at a more attractive exchange rate.

Calculation example

Refinancing in roubles at a beneficial interest rate

After considering the documents submitted by the borrower, the Bank may make a decision on refinancing in roubles at the Central Bank exchange rate.
The beneficial interest rate on the rouble loan is calculated so that the monthly payment is as close as possible to the what the borrower would have paid if the loan had been extended initially in roubles for an analogous period.
If the reduction in the interest rate proves inadequate, the loan term may additionally, on agreement with the borrower, be extended up to a maximum of 50 years.