This service will allow the complete transfer of a loan transaction into a digital format, without the need for the client to visit the offices of Rosreestr and the MFC (multi-functional service centres). This technology will be implemented by the end of the second quarter and will be available in all regions where the bank operates.

As part of the mortgage transaction, VTB will generate a package of necessary documents, which includes the mortgage in digital form. The parties involved will be able to sign the documents electronically. Bank employees will send the signed documents to Rosreestr, who will register the electronic mortgage and transfer them to the VTB Specialised Depository for storage. The Square Meter real estate ecosystem is the bank's technology partner in issuing digital mortgages.

After the mortgage loan is repaid, the bank, without the participation of the client, removes the encumbrance from the property in Rosreestr. Further, the client will be able to dispose of the property without restriction.

“VTB's strategic goal is to ensure the maximum availability of its products and services in digital format, including services for obtaining and servicing a mortgage loan. An important step was the transition to work with electronic mortgages. Since the launch of the project in July last year, we have already issued about 8,000 such mortgages. The project makes it possible to significantly simplify the process of obtaining a mortgage for a borrower, because it eliminates the need to use a paper document and visit the MFC both when obtaining a mortgage and at the stage of its full repayment. In this case, the removal of the encumbrance in Rosreestr takes place remotely, without the participation of the borrower,” commented Svyatoslav Ostrovsky, a member of the VTB Board.

“DOM.RF is actively implementing digital processes in the mortgage market. In December 2021, together with Rosreestr, we ensured the issuance of the first electronic mortgage in Russia using distributed ledger technology. Together with VTB, we were able to work out processes together, eliminate shortcomings and create an effective model for issuing electronic mortgages, which allows the bank to stop issuing paper mortgages. This work is aimed at creating a convenient digital market for all its participants, and at increasing the volume of securitization, which allows banks to increase the volume of housing lending,” said Nikolai Kozak, Managing Director for Digital Transformation of DOM.RF.

Earlier, VTB launched an initiative to create a service to resolve state-level real estate issues online. The new platform can offer professional market participants and individuals the ability to combine all situations related to finding an apartment or house, conducting a transaction, selecting a mortgage, housing services, paying taxes, etc., in the “one-stop-shop” model. This initiative was unveiled by Anatoly Pechatnikov, Deputy President and Chairman of the Management Board of VTB, at the Finopolis forum.

According to him, the implementation of this project is impossible without the development of online mortgages. At VTB, the share of online mortgage applications exceeded 60% of their total number, transactions with electronic registration account for 64%, and in 2022 the bank will increase this figure to 90%.

VTB is one of the leaders in the mortgage lending market. By the end of 2021, the bank issued a record volume of mortgages: customers issued over 347,000 loans for a total of 1.2 trillion rubles, a 28% increase over 2020 figures.