Russian President Vladimir Putin has cautioned banks against imposing obscure fees that could increase costs for citizens taking out mortgages. This warning was issued during a meeting on July 29 with German Gref, the head of Sberbank.

Gref mentioned that mortgages are currently yielding minimal or no profit for banks. Despite this, banks are willing to provide housing loans with zero profitability to support the housing construction sector.

According to the Kremlin press service, Gref stated that they are trying to create conditions to stimulate the growth of mortgages, noting that the bank has already lowered mortgage rates, following the Central Bank’s key rate reduction.

Putin emphasized the importance of banks avoiding the introduction of hidden fees that could burden citizens with unexpected additional expenses when issuing mortgages.

Gref assured the President that Sberbank does not engage in such practices.

In April 2025, Putin directed banks to eliminate commissions for developers related to preferential 6% family mortgages. This instruction was given because developers were passing these costs onto consumers, ultimately raising housing prices. In May, major mortgage lenders Sber and VTB removed these commissions. However, bankers have stated that preferential housing loans offer near-zero income and are unprofitable. Gref noted at the Financial Congress that the elimination of commissions has had a negative impact on banks, builders, and consumers alike, with housing becoming more expensive for consumers after the commissions were abolished.