What is a mortgage? What is a mortgage and how to get one? Documents, down payment, interest, repayment of a mortgage loan. Why mortgage applications are denied

But lending is impossible without seriously ensuring the interests of the lender. The evolution of credit development has shown that the most effective interests of the creditor can be protected through the use of real estate collateral, because the:

• real estate is relatively little exposed to the risk of death or sudden disappearance;
• the value of real estate tends to constantly increase;
• the high cost of real estate and the risk of loss are a powerful incentive that encourages the debtor to accurately and timely fulfill his obligations to the creditor.

One of the tools for protecting the interests of creditors through the use of real estate collateral was a mortgage.

Mortgage - concept and essence

The term "mortgage" in legal terms usually covers two concepts:

Mortgage as a legal relationship is a pledge of real estate (land, fixed assets, buildings, housing) for the purpose of obtaining a loan.

Mortgage as a security- implies: a debt instrument certifying the rights of the mortgagee to real estate.

Mortgage credit lending is lending secured by real estate, that is, lending using a mortgage as security for the repayment of loan funds.

If the loan is not repaid, the lender becomes the owner of the property. Thus, a mortgage is a special form of loan security.

Features of mortgage lending:

• a mortgage is a pledge of property;

• long-term nature of the mortgage loan (20 - 30 years);
• the pledged property remains, as a rule, with the debtor for the duration of the mortgage;
• Only the property that belongs to the pledgor by right of ownership or right of economic management can be pledged;
• the legislative basis for mortgage lending is the right of pledge, on the basis of which a mortgage agreement is drawn up and the sale of property transferred to the lender is carried out;
• the development of mortgage lending presupposes the presence of a developed institution for its assessment;
• Mortgage lending is carried out, as a rule, by specialized mortgage banks.

Participants in the mortgage lending system:

• The mortgagor is an individual. or a legal entity that has provided real estate as collateral to secure its debt.
• Mortgagee (mortgage lender) is a legal entity that issues loans secured by real estate.

Legal basis of mortgage lending in Russia:

1. Federal Law of the Russian Federation “On Mortgage (Pledge of Real Estate)” dated July 16, 1998;
2. Federal Law of the Russian Federation “On Valuation Activities in the Russian Federation” dated July 29, 1998.

The mortgage is subject to state registration by justice institutions in the Unified State Register of Rights to Real Estate.

Mortgages and banks

Mortgage banks - specialized banks providing long-term lending secured by real estate.

Advantages of mortgage lending for banks:

• relatively low risk when issuing loans, since they are secured by real estate;
• long-term lending frees banks from private negotiations with clients;
• mortgage loans provide the bank with a completely stable clientele;
• mortgages can be actively traded on the secondary market, which allows the bank to diversify its risk by selling the mortgage after the loan is issued.

Disadvantages of mortgage lending for banks:

• the need to keep on staff narrowly qualified professionals - appraisers of real estate, which is presented as collateral, which increases the bank’s costs;
• long-term diversion of funds;
• the long duration of the loan period is a big threat to the bank's future profits, since it is very difficult to predict the dynamics of market interest rates decades in advance.

Mortgage lending mechanism

A mortgage is a loan obtained against real estate.

The main documents for obtaining a loan, which determine the relationship between the lender and the borrower, are the loan agreement and the collateral agreement.

Loan agreement determines the purpose of obtaining a loan, the term and size of the loan, the procedure for issuing and repaying the loan, lending instruments (interest rate, conditions and frequency of its changes), loan insurance conditions, the method and form of checking the security and intended use of the loan, sanctions for misuse and late repayment loans, the amount and procedure for paying fines, the procedure for terminating the contract, additional conditions by agreement between the lender and the borrower.

Mortgage agreement determines the form, size and procedure for collateral securing the loan.

Mortgage collateral

The development of mortgages presupposes the existence of specific types of securities - mortgages and mortgage bonds.

Mortgage- this is a legal document on the mortgage (pledge) of a real estate object, which certifies the release of the object as security for loan obligations.

The object of collateral is real estate that serves as security for the borrower’s obligations. The object of lending is a specific goal. for which the loan is provided.

Thus, various combinations of the collateral object and the lending object are possible. For example: a loan for housing construction secured by land.

Mortgage lending mechanism differs significantly from the mechanism for generating credit resources in a commercial bank. In developed countries, the bank generates funds for granting loans mainly by selling mortgage sheets And own capital.

Mortgage sheets - These are long-term collateral obligations of the bank, providing reliable (or aggregate) mortgage loans on which fixed interest is paid.

Mortgage sheets are sold by mortgage banks on the secondary market to investors - other credit institutions (in some countries - to any investor).

The secondary market is the process of buying and selling mortgage securities issued in the primary market. Providing primary lenders with the opportunity to sell the primary mortgage and using the income received to provide another loan in the same market is the main task of mortgage capital.

Investments in mortgage notes are considered a reliable investment of capital, because, in addition to stable interest income, the investor is guaranteed against the risk of a mortgage. Of course, the market value of the pledged property may fall over time, but here banks can offer different hedging options (risk reduction) when selling mortgages.

By selling the mortgages, the lender uses the proceeds to provide new mortgages.

Mortgage repayment associated with the term and interest on mortgages being sold. If the term of the mortgage is 10 years, and the fixed interest rate is 6.5%, then the loan must be issued at a rate of at least 7% per annum to cover the costs of issuing mortgages and paying interest to investors. The interest rate will change depending on market conditions after 10 years if the mortgage term is longer. Repayment is carried out in installments, the interval (month, quarter, half-year, annually) is established by the loan agreement.

Mortgage Loan Scheme

Dynamics of loan balance

The role of mortgages in the economy

Mortgage lending is an integral element. Reflecting the patterns of development of the global banking industry, it is one of the priority development tools.

Mortgage and crises

Global experience shows that mortgage lending has contributed to revival, recovery, overcoming unemployment and, ultimately, way out of the crisis the United States of America - in the 30s, Canada and Germany - in the 40s-50s, Argentina and Chile - in the 70s-80s, as well as the acceleration of economic reforms in a number of countries. Certain hopes are pinned on mortgages as a tool for solving the housing problem in Russia.

Mortgage and the real sector of the economy

The development of the mortgage business has a positive impact on the functioning of industry, construction, agriculture, etc. As world practice shows, the spread of mortgage lending as an effective way to finance capital investments can help overcome the investment crisis.

Mortgage and banking system

Mortgage lending is of great importance directly for development of the banking system countries. A mortgage is the most important tool for ensuring loan repayment. A mortgage credit institution operating within the framework of the mortgage lending system is a relatively stable and profitable economic entity. Therefore, the more such credit institutions in the banking system, the more stable and effective its activities in the economic system of the country as a whole.

Mortgages and social welfare

Mortgage lending, diverting funds from current turnover into internal accumulation, to some extent helps reduceinflation.

In modern conditions, the importance of mortgages for... Residential mortgage lending contributes to providing citizens with affordable private residential property, being a powerful factor in the class of society.

The relevance of a home mortgage loan is due to the fact that its use allows us to resolve contradictions:

• between high real estate prices and current incomes of the population;
• between the monetary savings of one group of economic entities and the need for their use by another.

The absence of an institution for real estate and a mortgage in our country for 70 years has led to negative consequences - the experience of organizing mortgage lending has been largely lost, both at the level of a credit institution and at the level of the state as a whole.

If previously practically the only opportunity to improve housing conditions was to obtain public housing, today this problem is mainly solved by citizens through the purchase or construction of housing at the expense of their own savings. Limited budgetary resources have focused the state's attention on solving the housing problems of only certain groups of the population. However, the majority of them are currently unable to improve their living conditions due to lack of necessary savings.

Creation of a mortgage lending system will make the purchase of housing affordable for the majority of the population; will ensure the relationship between the monetary resources of the population, banks, financial, construction companies and construction industry enterprises, directing financial resources to the real sector of the economy.

Mortgage lending infrastructure

The effective functioning of the system of mortgage credit institutions is impossible without the presence of appropriate supporting elements (infrastructure). The specificity of mortgage lending is its close connection with valuation, insurance and registration of real estate turnover, as well as with the secondary market for mortgage loans. In this regard, the functioning of the system of mortgage institutions is impossible without the presence in the country of:

• real estate turnover registration systems;
• insurance organizations (companies);
• organizations professionally involved in assessing the value of real estate.

The developed infrastructure of the mortgage lending system ensures the efficiency of mortgage operations and increases the protection of the rights of mortgage lending entities.

In modern realities of life, when the world's population is steadily growing, one of the most pressing issues is housing. It is no secret that not every family, especially a young one, can afford to purchase their own home, so more and more people are asking what a mortgage is and how to get one. What advantages does this type of lending have and is it worth the candle?

The essence of a mortgage is that if you do not have good relatives who can lend money for free to purchase housing, and you really want to have your own apartment, you can contact the bank and get the necessary amount. However, this type of loan is somewhat different from the usual consumer loan to which we are already accustomed. We'll find out what exactly it is.

What is a mortgage and how to get one without problems

First of all, you need to understand that a mortgage loan is a targeted loan for the purchase of a specific property, and unlike a consumer loan, you will not be able to use the money at your own discretion. In addition, in this case, the collateral most often becomes the purchased object itself - an apartment, a store, an industrial premises. Therefore, it can be argued that there is a mortgage to secure obligations to creditors. Banks, by the way, accept not only housing - collateral can be a car, a yacht, or a plot of land. However, a feature of this type of lending is that the object acquired in this way becomes the property of the borrower immediately from the moment of acquisition.

In Russia, the most common option for this type of lending is a home mortgage. Moreover, as a rule, it is the purchased apartment that is given to the bank as collateral, although, as an option, you can also pledge existing real estate. This type of service is offered by almost all banks - Sberbank, Gazprombank, Alfa-Bank, VTB. A mortgage to any credit institution is always beneficial, because even if the borrower does not have the funds to pay off the debt, the bank will still have the collateral. That is why the latter willingly issue such loans, vying with each other to offer “favorable” conditions.

Who will get the loan and what is needed for it?

In order for an apartment with a mortgage to become a reality, you will have to “sweat” quite a lot, collecting the necessary package of documents. But we’ll talk about it a little below, and now let’s draw up some average portrait of a potential client who can get a mortgage loan:

1. First of all, age - the ideal range is from 23 to 65 years.
2. Level of Trustworthiness – You will need an impeccable credit history. If you don’t have one, then before applying for a large loan, take a couple of consumer loans and carefully pay them off. Of course, a consumer loan is not as large as a mortgage, and you will pay a much smaller installment, but having two or three loans repaid on time will have a very positive impact on your image in the eyes of the bank.
3. Work experience - more than two years, with at least 6 months at the last place of work.
4. Availability of “white” income sufficient to repay the monthly payment.
5. And, of course, you have to collect a huge list of documents, and the more serious the bank, the more papers, certificates and receipts they will ask you for.

Of course, the requirements described above are a generalized version; in advertising brochures you can find slightly different indicators. For example, some banks state on the pages of their prospectuses that they are ready to issue mortgage loans to persons over 18 years of age. Or another option: supposedly for a positive answer you do not need a certificate of income. So, know: most often this is just a publicity stunt. Clients who know from their own experience what a mortgage is and how to get one say: if you do not meet the above requirements, you will not be given a loan for an apartment. And who can guarantee a positive answer?

So, you are most likely to be given a loan if:

• you have at least 20% of the cost of the purchased home for a down payment;
• your official salary is at least twice the monthly payment;
• the mortgage is issued for an apartment, and not for a plot of land or a private house;
• all able-bodied family members have official employment with a “white” salary;
• there is other real estate that already belongs to you by right of ownership (you won’t need to mortgage it either);
• you have no outstanding loans or other debt obligations;
• you do not act as a guarantor for loans from relatives or friends;
• work experience at the last place of work is more than 2-3 years;
• you can provide one or two solvent guarantors (required quite often, but not always).

Documentation

So, you have decided that the only way to improve your living conditions is a mortgage. Banks will require an impressive package of documents from you. Let's look at it in more detail.

The general list looks like this:

• bank application form;
• application for a mortgage - sometimes you can apply for it online by visiting the official website of the institution;
• a photocopy of a civil passport or a document replacing it;
• a copy of the state pension insurance certificate;
• certificate (copy) of tax registration in the Russian Federation (TIN);
• men of military age will also need a copy of their military ID;
• photocopies of documents about the education received - diplomas, certificates, etc.;
• copies of marriage/divorce and birth certificates;
• marriage contract (copy), if available;
• a photocopy of the work book (all pages) with the employer’s identification record;
• any documents confirming the amount and source of your income - personal income tax form 2, bank statements, receipts for receiving alimony or regular financial assistance, etc.

Some banks have enough of these documents, but most often a mortgage loan requires much more paperwork. For example, you will most likely need to prepare:

• Form 9 - certificate of registration at the place of permanent residence;
• photocopies of civil passports of all persons living with you, as well as immediate relatives (parents, children, spouses), regardless of their place of permanent residence;
• a certificate of pension amount and a copy of the pension certificate for non-working relatives of the corresponding age;
• copies of death certificates of all deceased immediate family members - spouses, parents or children.

And again the documents

If you have any expensive property, then you will need title documents confirming ownership - deeds of sale, deeds of gift, privatization certificates for a dacha, apartment, car, etc. You will also need a certificate in Form 7, characterizing the parameters of the residential property you own. non-residential premises.

If you own shares, bonds, etc., you will have to provide an extract from the register of securities owners.

A home mortgage is a responsible matter. So you definitely need to provide documents confirming your trustworthiness - a credit history, copies of receipts for timely payment of telephone and utility bills, rent for the last few months, or better yet, for a year or two.

If you have bank accounts - card, current, deposit, credit, demand, etc. - you will need documents confirming their existence.

In addition to everything, to apply for a mortgage loan, be sure to have a certificate confirming that you are not registered with a psychoneurological or drug treatment clinic.

When contacting the bank, you will need not only copies, but also originals of the above papers, and if you have a co-borrower, he will have to prepare the same package of documents.

And once again the documents

Additional documents may be needed for those who work for themselves and have their own business. These can be copies of constituent documents, accounting statements about profit/loss for the last few years, staffing tables, copies of main contracts, balance sheets - in general, any documents that can confirm the financial stability of your enterprise and its ability to develop dynamically.

If you are an individual entrepreneur without forming a legal entity, the bank will most likely ask you to provide:

• registration certificate;
• receipts for payment of taxes and contributions to various funds;
• copies of bank statements for the last few years;
• book of expenses and income (if any);
• photocopies of premises rental agreements and other documents confirming your stability and solvency;

As you can see, getting an apartment with a mortgage is quite a troublesome matter. After all the necessary documents have been submitted, you must wait for the bank’s decision to issue a mortgage. Typically, the review period can take from a day to several weeks, but some banks offer an “express mortgage” service, when a decision can be made in two to three hours. Once you have received pre-approval, you can start looking for an apartment.

How to choose a bank: the most profitable mortgage loans

If the long list of required documents does not frighten you, and you have only become stronger in your decision to take out a home on credit, let’s take a closer look at the question of how exactly to choose the best offer. It’s clear that paying off a mortgage is a long and quite expensive process, and, as you know, no one wants to overpay. What should you pay attention to when choosing a credit institution?

1. First of all, you should carefully study the programs offered by banks. At the same time, try to pay attention to institutions that have been operating on the market for several years and have a proven reputation.
2. If you already have a card (any) from any of the banks, and you are generally satisfied with its work, then first of all turn your attention to this company. The fact is that many financial institutions usually offer special, more favorable lending conditions to regular customers than to people who contact them for the first time.
3. Pay attention not only to the interest rate, but also to the likely number of one-time payments, the amount of which in the end can be quite large. Such “commissions” may be charged by the bank for issuing various certificates, insurance and other services.
4. Be sure to explore the possibility of repaying the loan early. For example, in a bank such as VTB, a mortgage can be repaid ahead of schedule without problems, while other credit organizations in this case oblige the client to pay some additional fines and penalties. This may also affect your choice.
5. Almost every banking institution has its own website where you can easily find a mortgage calculator. This is quite convenient: by filling in the appropriate fields, you can approximately calculate how much you will have to pay monthly. Compare these indicators by browsing through the pages of several banks and determine the most advantageous offer.

In order not to get confused with a large number of offers, you can create a small table for yourself, where the columns will be the lending conditions, and the rows will be several banks offering mortgages. Be sure to use a mortgage calculator - it will greatly facilitate your calculations and help you determine the total overpayment and the amount of the monthly payment.

Columns (criteria) can be like this:

• mortgage term;
• interest rate;
• monthly payment;
• third-party commissions, one-time payments;
• the need to confirm income;
• possibility of early repayment;
• the amount of the initial mandatory contribution;
• sanctions for late monthly fees;
• promotional offers.

Of course, you can add to the proposed list of criteria at your discretion. Do not rush to choose the bank with the lowest interest rate - perhaps all other conditions will not be so favorable. So evaluate all points as a whole.

Social mortgage loan

There is one more point that you need to pay attention to when choosing a bank. The fact is that for some categories of citizens a so-called social mortgage is provided - preferential lending aimed at providing housing to vulnerable segments of the population who are simply not able to purchase an apartment under a “commercial mortgage”.

The main difference between this type of lending is the cost of one square meter of purchased housing. In order to take part in the program, you must write an application to improve your living conditions and register with the Administration at your place of residence. There your application will be reviewed and the appropriate decision will be made. One of the main criteria for registration is compliance with the resolution of the Cabinet of Ministers of the Republic of Tajikistan No. 190, from which it follows that the standard for providing a total housing area per person is 18 m2.

For example, public sector employees can become participants in the Social Mortgage program. The loan can be issued at only 7% per annum and for a period of up to 28.5 years, and most often you do not even need to make a down payment.

However, not all banks work with this type of lending. The necessary information about where it can be applied for, as well as whether you can apply for it, can be found in the city (district) administration. Most often there is a department responsible for

Lending to a young family

If people of the older generation mostly received housing back in Soviet times, then mortgages for young families are today practically the only way to acquire their own housing and become independent. Fortunately, this type of lending is also supported by the state.

Every young family can take part in the federal program and qualify for a state subsidy to purchase their own home. The normal area for a family of 2 people is 42 square meters. Such a family can qualify for a subsidy in the amount of 35% of the cost of housing. If a young couple has children, then the housing standard is calculated as 18 m2 per person, and the amount of the subsidy increases to 40% of the cost of the apartment.

State mortgages can be provided to young people not only if they are married - “singles” can also qualify for a preferential loan. To achieve this, the practice of student construction teams, which are being formed in many universities, is being revived throughout the country. After a soldier of such a detachment has worked one hundred and fifty shifts “for the good of the Motherland,” he receives the right to obtain a mortgage for an apartment at cost. Thus, with a little work, you can purchase housing 2-3 times cheaper than its market value.

Mortgage for military personnel

The nationwide Military Mortgage program is another option to support the population. The program is aimed at military personnel through a savings mortgage system. It all depends on the military rank of the participant and the date of conclusion of the first contract for service.

The essence of the “Military Mortgage” program is that annually the state transfers a certain amount to the individual account of each military personnel, the amount of which is regularly revised by the Government of the Russian Federation depending on the level of inflation and other indicators. Over time, the accumulated amount can be used as

Advantages and disadvantages

Now that you have at least understood in general terms what a mortgage is and how to get one, it is simply impossible not to dwell on the main advantages and disadvantages of this method of lending.

Of course, the main advantage of a mortgage is that you can get your own apartment now, and not save for it for many years, “hunkering around corners.” Since the loan is issued for many years, the monthly payment is usually not too large, and the average Russian is quite capable of repaying it.

However, despite all the “rosiness” of the prospect, one should not forget about the shortcomings, among which, first of all, one should mention the huge overpayment of interest, sometimes reaching more than 100%. In addition, almost every mortgage agreement necessarily contains third-party costs - for maintaining a loan account, for processing an application, various insurances, commissions, and so on. All this together can reach 8-10% of the cost of the down payment. And, of course, a huge list of documents, although this is not surprising, because the bank entrusts you with considerable funds, and for a very long period of time.

What is a mortgage and how does it work

Good day, dear readers! It is impossible to count the number of people who have applied for a loan to purchase real estate.

And this is natural, because each of us would like to have our own roof over our heads. Inga and Victor come to us more often than others.

They had already looked through all possible options and finally decided to use the bank’s help. All that remains is to resolve minor issues, after which they will have their own home. Want to know what a mortgage is and how it works? Now I will write everything down for you in detail.

What is a mortgage

Mortgage has been around for decades, but many people still don’t know exactly what a mortgage is and how it works.

A mortgage is a certain form of collateral when real estate owned by the debtor is pledged.

Warning!

The conditions of the mortgage lien are that if the debtor fails to pay the amounts stipulated in the loan agreement, the creditor has the right to sell the pledged property and receive money to pay off the loan debt. In other words, a mortgage is a pledge of any real estate.

It is necessary to distinguish between the concepts of “mortgage” and “mortgage lending”. In mortgage lending, the lender is the bank; it lends, that is, it gives money to the debtor to purchase real estate, while at the same time this property is secured, that is, under a mortgage as a guarantee of repayment of the debt.

Real estate that can act as collateral (mortgage) includes land plots, residential buildings, apartments, cottages, garden houses and any buildings. The list of such objects is determined by the relevant article of the Mortgage Law.

When wondering what a home mortgage is and what it gives, it is necessary to turn to the semantic formulation of the concept “mortgage”.

After all, housing is a general term for real estate. A housing mortgage makes it possible to purchase a residential building, apartment, house, and become the owner of the purchased housing on the terms of lending and pledging this property.

You live in an apartment that is pledged, enjoy all the benefits that come from living in a purchased apartment or house, but over the course of many years you pay the creditor bank a certain amount, namely the loan principal and interest.

Provided that at some stage you will not be able to repay the loan debt, no matter how much you overpay on the mortgage including interest, you will still lose your home, since the bank has the right to sell your home to pay off the loan debt. This is the risk of mortgage lending.

However, a mortgage is the safest and most reliable way to purchase an apartment or any other home.

By receiving a mortgage loan, you transfer funds directly to the home seller for a real apartment, which you can see and inspect. While contributions to shared construction, contributions to a building cooperative provide for the payment of funds to third parties for an apartment or house construction that does not yet exist.

Attention!

In addition, before executing a purchase and sale transaction for residential real estate, the bank, together with the insurance company, carefully checks the legal security of the transaction, because the bank risks its own money and its own license, which costs a lot of money. Therefore, when buying a home through mortgage lending, you are not left alone with the seller, you have guaranteed support from a credit bank.

Some recommendations when applying for a mortgage. Contact only trusted banks with a good reputation and good reviews. You can read reviews on where it’s profitable to take out a mortgage on the Internet, or ask your friends.

Today, fortunately, such information cannot be hidden, and if you become aware that the bank, in addition to the stated interest rate, takes many more one-time payments when applying for a loan, then this must also be taken into account as personal costs.

Pay attention to the terms of mortgage lending, in particular the interest rate, which determines how much you will have to overpay on the mortgage.

It is better to contact several banks and consider several different home loan programs in order to choose the most optimal and suitable option for yourself.

Familiarize yourself with some concepts, such as advance payment and deposit, in order to understand the legal difference and not get into trouble when buying an apartment and drawing up a purchase and sale agreement, as well as a deposit agreement.

What is the mortgage interest rate

The interest rate indicates how much interest on the mortgage you will have to pay on the loan amount per certain calendar period - month, year. Suppose a bank has provided you with a loan in the amount of 2 million rubles at an interest rate of 10% per annum.

This means that in addition to the debt amount of 2 million rubles, you will need to pay 10% of the loan amount per year.

Advice!

Interest rates are:

1. Fixed
2. Floating

The fixed interest rate is set once and does not change regardless of the circumstances. With this rate it is easier to plan loan payments.

A variable interest rate indicates that the bank may reconsider how much mortgage interest the debtor will pay.

The loan agreement describes what indicators can influence changes in the interest rate and this means that over many years of repayment of the loan, the bank has the right to change the interest rate in accordance with certain rules.

• Decursive interest rate
• Anticipatory interest rate

The differences between these types of rates are that in the first case, interest is accrued to the bank and paid at the end, simultaneously with the main body of the loan. And in the second case, interest is accrued and paid at the beginning, during the provision of the loan, that is, in advance.

A simple example: you take out a loan for 5,000 rubles at 10%. If we consider the decursive rate method, then the bank should receive 5,500 rubles at the end of the loan term.

Warning!

And when applying for a loan using an anti-interest rate, the bank at the beginning of the loan process withholds the interest due in the amount of 500 rubles and gives the borrower 4,500 rubles. The bank's income, at the same time, is nominally the same, but differs in the time of income generation.

Paying attention to how much interest a mortgage is given at, it is also important to be familiar with interest rate concepts such as:

1. Nominal interest rate
2. Real interest rate

The real interest rate differs from the nominal interest rate in that it is calculated minus the expected amount of inflation. All these and other points must be clarified when drawing up a loan agreement in order to understand how to pay a mortgage.

What does it mean before registering a mortgage?. Many people ask this question: what does it mean before and after registering a mortgage? We are talking about interest rates. Until the home ownership agreement is registered with the Federal Reserve System, the bank cannot issue a pledge agreement for this home, and accordingly, it risks more.

The bank’s risks are included in the interest rate, namely: before registration with the Federal Reserve System, the interest rate is higher, and after presenting documents from the registration chamber, it decreases.

Who can receive

Despite the fairly high mortgage lending rates, there are quite a lot of people who want to get a loan with which they can buy a new apartment or house. However, not all banks issue such loans, even with a mortgage on the property being purchased. Of course, citizens are primarily interested in who can get a mortgage.

A mortgage loan can be obtained by Russian citizens who have permanent registration (registration) in the country. However, recently banks have begun to issue loans to non-residents.

Who is given preference in the first place, that is, who is granted a mortgage, what requirements are imposed on the borrower?

Attention!

Requirements for work experience: basically, your total work experience should not be less than a year and you must work in one place of work for at least six months in order to be able to apply for a mortgage loan. However, persons with decent work experience in one place of work have preferential opportunities to obtain a loan. The bank regards this as stable income generation.

The profession and position held, as well as the reputation of the company in which you work, are of a certain importance.

Age requirements: priority is given to young people aged 30–35 years. Strictly speaking, a mortgage loan is usually provided to men aged 20 to 60 years and women from the same age to 55 years. Among those who are granted a mortgage, there are also persons who will be 75 years old at the time of full repayment of the loan.

Assessing the borrower's solvency: for this purpose, it is desirable that you have confirmed official income, and quite high one at that. However, even here some banks make compromises, taking into account free sample letters from the head of the company signed by him and the signature of the chief accountant about the actual salary of the proposed borrower.

There are certain preferences for people with higher education or a promising profession, but this does not determine the conditions for those who can get a mortgage.

The social status of the borrower is also taken into account: whether he has a car, apartment, land or any other property, or whether he has additional income.

An important aspect in obtaining a positive response to a loan application is also the amount of down payment available.

The higher the down payment that the prospective borrower is willing to make, the greater the chance of obtaining approval for the loan. The minimum down payment for most banks ranges from 10-30%.

Advice!

Anyone who is entitled to a mortgage must be prepared to take out a life and disability insurance contract, which will need to be renewed annually until the loan is repaid.

The personal assessment of the potential borrower is also important: family status indicates certain guarantees of financial stability, since if there are close relatives, the likelihood of repaying the loan increases.

In addition, there can be several borrowers per agreement, and guarantee agreements can also be drawn up, in which relatives, as a rule, act as guarantors.

A person with an unblemished credit history, good performance at work, and no negative entries in his work record is also someone who can get a mortgage from a bank.

Why are mortgages denied?

By analyzing the requirements for the borrower presented above, you can understand the reasons why a mortgage is denied. Despite the fact that many consider a mortgage to be an unbearable burden, nevertheless, it is extremely unpleasant for people who are determined to buy an apartment when they are refused, because a mortgage is one of the few guaranteed ways to furnish their own home.

The reasons for refusal of a mortgage may be the following:

• The official income is too low, and the bank where you applied does not take into account all kinds of irregular and unconfirmed income.
• Unreliability of the data provided: if you are caught providing implausible information, the bank will doubt your ability to pay loan payments in good faith.
• A bad credit history is a significant negative factor, which can absolutely lead to being denied a mortgage.
• The presence of any type of criminal record does not inspire confidence in the bank.

The listed reasons are the main ones. The bank usually does not disclose why they refuse a mortgage. In recent years, banks have become even more cautious and vet the potential borrower very carefully. After all, the loan must be repaid over decades.

What is needed for registration

If, after submitting your application, the bank made a positive decision regarding issuing you a mortgage loan, then you will be interested in the question of what to do after the mortgage is approved.

After receiving preliminary consent from the bank, you can safely begin the direct search for housing. This most troublesome procedure should not take you too much time, because if you delay this procedure excessively, it is possible that you will need to collect some certificates again.

Ask the bank about the validity period of the permit agreement. Next, after the apartment is found, you will need to collect certain documents.

When wondering what you need to apply for a mortgage, you can immediately expect that you will have to collect a fairly impressive package of documents:

1. Title documents for the apartment to be purchased.
2. Technical passport of the apartment with a plan.
3. Certificate-form No. 9 on housing registration and certificate-form No. 7 on the characteristics of housing.
4. A certificate confirming the absence of arrears in payment of utilities and housing for this apartment.
5. An extract from the State Registration Register confirming that there is no encumbrance on the apartment being purchased.
6. When registering minor children in the apartment you are purchasing, you will need permission from the guardianship and trusteeship authorities.

How is a mortgage divided in a divorce?

If an apartment was purchased with a mortgage during marriage, then such an apartment is considered jointly acquired property, and accordingly, is divided in half, regardless of who the loan agreement was drawn up for.

Warning!

Since the apartment is pledged, the bank must agree to the division of property, and accordingly, the division of the loan agreement. If the apartment is one-room, then due to the fact that the share of the apartment cannot be converted into collateral, the bank may not give consent and then the person for whom the agreement is signed will pay the loan.

If spouses who are divorcing have drawn up a loan agreement as co-borrowers, then if one of the former spouses fails to pay the loan amounts, the second spouse bears the obligation.

Expert commentary

The most common question asked during consultations is whether it is worth purchasing a loan to improve housing conditions, or, as is commonly called in scientific language, a mortgage. It has its own characteristics, let's try to figure it out and disseminate information in which cases it is worth taking advantage of such an offer, and when it is worth thinking about.

Today, few people can immediately pay one hundred percent of the cost of housing (even on the secondary market), and therefore such a legal definition as a mortgage has appeared. If you look in the dictionary, then from Greek it has the translation “pledge”.

By helping you provide housing, the bank also has an advantage and far-reaching plans, but what can the borrower end up with? By purchasing a separate property, you undertake to mortgage it.

The bank will achieve satisfaction of its needs in any case, and the borrower risks ending up on the street for failure to fulfill obligations.

source: http://site/propertyexperts.ru/ipoteka/48-chto-takoe-ipoteka.html

How does a mortgage work?

Today, mortgages are one of the most common cash loans. A mortgage in simple words is a loan, the main feature of which is the collateral of real estate owned by the debtor.

According to the terms of the mortgage loan, if the borrower is unable to repay a certain amount of money within the terms specified in the contract, the lender will be able to legally sell the pledged property and pay off the existing debt.

Attention!

In mortgage lending, the role of the lender is the bank, which issues money to the borrower for the purchase of real estate, which is simultaneously pledged until the debtor fully fulfills his guarantees. The purchased housing automatically becomes a kind of guarantee that the client will repay his debt in a timely manner.

A mortgage allows you to purchase personal square meters for living on the condition that this property is pledged. The borrower can live in the apartment, enjoy all the benefits provided, but for many years he is obliged to pay the bank a monthly specific amount established by the agreement and consisting of interest and the principal of the loan.

If the user at any stage of payment is deprived of the opportunity to fulfill his obligations, he is deprived of housing, because the lender has every right to sell the collateral housing in order to repay the loan debt.

When taking out a mortgage, a kind of offset occurs. The seller of the home receives money for it, and the buyer receives his desired square meters at his personal disposal.

The exception is shared construction. Here, a mortgage represents cash contributions to a certain building cooperative, which provides for the transfer of money to third parties for an apartment or housing construction that does not yet exist.

Before entering into such a deal, the lender, collaborating with the insurance company, finds out how legally safe the deal is. Therefore, when purchasing housing in a new building with a mortgage, the buyer is not left alone with the seller; professional support from the bank is guaranteed.

To qualify for a mortgage, you must have a total work experience of at least one year. You also need to work continuously and officially for the last 6 months. The more work experience in one place, the higher the chances of mortgage approval.

Any banking organization regards this fact as a guarantee of uninterrupted payment of monthly payments. The activity, position held, and reputation of the company where the borrower works are of great importance.

Advice!

Priority is given to people aged 30 to 35 years. According to the rules, mortgages are available to men aged 20-60 years, and women aged 20-55 years. The borrower must be at least 75 years old at the time of loan repayment.

Having a high, stable income will be a big plus. Many banks accommodate clients halfway and accept free sample statements from the borrower from the manager and chief accountant about the actual salary.

Banks also pay attention to the social status of the borrower, i.e. whether he has a car, apartment, land or any other property. Additional income also provides a significant plus.

The down payment is important. The higher the amount a client is willing to make as a down payment, the greater the likelihood of mortgage approval. Its minimum size varies among banks from 10% to 30%.

Once your mortgage is approved, you must obtain life and disability insurance. You must be insured annually until the loan is fully repaid.

Often, development companies enter into cooperation agreements with various banks. And, as a rule, such agreements become very beneficial for clients. For example, thanks to cooperation with various banks, the well-known developer company Samolet Development is expanding the opportunities for clients to purchase quality housing in the Prigorod Lesnoye residential complex.

Among the options for purchasing an apartment with a mortgage, one of the most popular is an offer with a minimum monthly payment of 10,500 rubles.

source: http://site/vidnoeinform.ru/news/3917

What is “Social Mortgage” from AHML, and how does it work?

Last year, the federal program “Housing for the Russian Family” was launched in the Russian Federation, thanks to which it became possible to buy real estate on average 20% cheaper compared to the average market price, but not more than 35 thousand rubles per sq. m. m. At the same time, if you still do not have enough funds, you can use the “Social Mortgage” from AHML.

What it is?

This is a preferential mortgage program, the purpose of which is to help certain social categories of citizens purchase housing. It is issued for a period of 3 to 30 years at 10.9% per annum. In this case, the down payment is only 10% (at least half the market average), and the amount of the mortgage loan can be increased or part of the debt can be covered using maternity capital funds.

Warning!

There is no need to take out any additional insurance - it is enough to insure only the property being purchased and the borrower’s liability under the credit agreement/loan agreement (if the down payment was less than 30%).

Another advantage of “Social Mortgage” is the opportunity to participate in shared construction, but in a specific accredited project. Thus, economy class real estate for a selected category of citizens becomes even more affordable.

For citizens who apply for a “Social Mortgage” from AHML to purchase real estate under the “Housing for Russian Family” program, the total benefit is up to 42% compared to purchasing housing with a mortgage on market conditions.

The minimum loan amount is 300 thousand rubles, and the maximum amount, with the exception of Moscow, the Moscow region and St. Petersburg, is 3 million rubles.

What can you purchase under the program?

This preferential program can be used when purchasing both finished housing and housing under construction, but only from a legal entity and if there is a DDU. You won’t be able to get a loan to build a house on your own or to improve housing according to AHML standards.

Who can take advantage of the Social Mortgage?

• Participants of the “Housing for Russian Family” program
• Families with two or more children
• Employees of the military-industrial complex, provided that this work is the main one and the total length of service in defense industry organizations is at least 1 year
• Disabled people and families with disabled children in need of improved housing conditions (registered for the improvement of housing conditions before 01/01/2005)
• Residents of dilapidated houses and houses subject to demolition or reconstruction
• Citizens who were registered as needing improved housing conditions before March 1, 2005
• Combat veterans
• Participants in the savings and mortgage system for housing provision for military personnel
• Employees of federal and local government and self-government bodies, state and municipal institutions of education, healthcare, culture, social protection, employment, physical education and sports, scientific organizations with the status of state research centers and scientific service organizations, as well as those created by state academies of sciences ( except social)
• Employees of city-forming enterprises and organizations participating in development programs for pilot innovative territorial clusters

At the same time, the requirements for the borrower are quite flexible: he must be at least 18 years old and no more than 65 years old at the end of the loan term; and his work experience at his last place of work must be at least 6 calendar months.

If the borrower is an individual entrepreneur, then at the time of applying for the loan his activity must generate income for at least 2 full years.

To date, more than 7 thousand families have already been registered who wish to participate in the program, and more than 80% of them plan to buy housing with a mortgage.

How to participate in the program?

An application is submitted to local authorities in which the applicant asks to be included in the list of participants.

The basic list of documents for a social mortgage will also include:

1. Papers confirming housing shortage
2. Information about family composition
3. Data on the main sources of income and employment in the family
4. Certificates from the Technical Inventory Bureau and the Registration Chamber
5. Documents about existing real estate or its absence

After consideration of the applicant’s application, they are either included in the appropriate register or issued a participant certificate. Further actions to obtain a social mortgage largely depend on the implementation mechanism used in a particular region.

source: https://www.informetr.ru/journal/ipoteka/6982/

What is a mortgage, its types and how does it work?

A mortgage is a type of lending that will allow a person without enough money to purchase an apartment or homeownership to purchase housing.

Attention!

But the guarantee of payment of the loan will be the property that was the purpose of the acquisition.

The mortgage lending system reduces the risk of the borrower not paying the loan to a minimum, which allows banks to actively invest in the construction of new houses, and therefore improve and update the housing stock of the city, region and state as a whole.

How it works?

The lending mechanism is that the bank issues cash or transfers non-cash funds as payment under a real estate purchase and sale agreement. At the same time, an important condition is to secure the agreement with collateral.

The following can serve as collateral:

• Property to be purchased.
• Real estate that the borrower owned before the mortgage was entered into.

Due to the fact that the loan is secured, banks offer reduced interest rates. This has a good effect on the possible use of this type of lending for the purpose of purchasing housing or other real estate.

However, there are a number of features:

1. the property placed as collateral is encumbered, of which Rosreestr registrars are notified;
2. in case of non-payment of regular payments, the bank will satisfy the requirements at the expense of the pledged property;
3. being the owner, the right of disposal is limited and alienation is possible only with the consent of the creditor;
4. the cost of the property must cover 100% of the amount provided to the borrower;
5. the need to take actions to remove the encumbrance after repaying the loan;
6. until the execution of the agreement, the mortgagee is the bank;
7. duration of the lending period;
8. The collateral remains with the person who applied to the bank for a mortgage.

Types of mortgage

Today there are several classifications and types of mortgage lending. All of them take into account various features such as collateral, purpose of purchase and more.

There is a classification of types of mortgage lending based on the currency in which the loan is provided.

Depending on the currency:

• The money received by the bank client is presented in the national currency - the ruble.
• The funds transferred by the bank to the borrower are a foreign means of payment, dollar or euro.

Depending on what type of real estate is purchased, a classification of mortgage loans is also built.

Advice!

There is a socially oriented variety, where the state provides significant support for the purchase of real estate.

Types of social mortgage:

1. Military.
2. For young families.
3. For persons on a waiting list to improve their housing conditions (at the same time, a regular mortgage loan is not available to them)
4. For graduates of orphanages.
5. For budget employees.

There is no such thing as a current choice of mortgage. In fact, a search is carried out and familiarization with the most advantageous offer and the terms of the loan agreement.

Based on this, you need to compare interest rates on loans and choose the lowest value. This is necessary for saving, so even 0.1% over 20 or 30 years will result in a decent amount. It is also worth familiarizing yourself with possible additional payments under the contract.

The loan must be taken in the currency of the income received. This means that if the salary received is in rubles, then the loan should be taken in rubles. We should not forget and lose sight of the events of the crisis years, when many suffered by taking out a loan in foreign currency. A 40–50% jump in the exchange rate of foreign currencies against the ruble created conditions under which the loan became more expensive by this percentage.

Choice of percentage. There are two types: fixed and floating. The first guarantees stability, and the second depends on the refinancing rate of the Central Bank.

Loan payments should be as small a portion of your income as possible. Ideally, this should be 20–30% of the total family income. This way, relative financial stability will be maintained and the amount spent will not be “affordable”, and therefore you will not have to give up a lot.

It is worth asking the bank for the maximum amount. After all, the acquired property will need to be renovated, furniture, parts and interior elements purchased, etc.

Warning!

When purchasing for the first time, you should consider more modest options in terms of area and number of rooms. As they say “...better a bird in the hand than a pie in the sky...”. It will be possible to pay off the loan for a one-room apartment faster, and if expansion is necessary, you can sell it and receive a decent amount of the down payment.

You need to calculate for what period it will be more profitable to take out a loan. That is, calculate the amount of the monthly payment. Before purchasing, carefully review the offers on the real estate market. This can save you from wasting money on an object that costs less.

It's better to buy in season. It is known for certain that prices on the real estate market begin to rise from the end of summer until the New Year, and then rapidly fall.

Seek meetings with owners. The services of a realtor are also an expense, so why bear this additional financial burden. Inquire about the terms and conditions of insurance.
Do not disregard the advice of a lawyer or real estate specialist.

Requirements for borrowers

It is logical that by providing money for the purchase of real estate, the bank wants to be sure that the borrower meets a certain list of requirements, which include:

• Legal capacity.
• Package of submitted documents.

Legal capacity is a necessary condition for approval of a mortgage, because The bank will never enter into an agreement with a person whose legal capacity is suspect.

The availability of all necessary papers is due to the nature of the contract and the risks arising from it. They are needed to determine solvency and secure the contract with collateral real estate.

Required documents

The package of documents includes various information about the borrower. At the same time, the information of interest concerns both work and personal activities (such as marriage and family).

For individuals this is:

1. Bank questionnaire.
2. A properly completed application for a mortgage.
3. General passport.
4. SNILS.
5. Military ID or registration certificate.
6. Document on receipt of education.
7. Marriage certificate.
8. Child's birth certificate.
9. Labor book.
10. Certificate of income received.
11. Originals and copies of title documents for real estate.

For individual entrepreneurs this is:

• State registration document.
• Receipts for payment of taxes and other deductions provided for by law.
• Copies of bank statements.
• Copies of documents that can confirm the possibility of paying the loan.

What type of housing can be purchased with a mortgage?

This agreement allows you to purchase both new residential and non-residential properties on the market. This allows more citizens to realize their need to purchase real estate.

Mortgage transactions are aimed at purchasing:

1. Apartments.
2. At home.
3. Cottage.
4. Dacha plot.
5. Rooms.

Consequences of non-payment of loan

In case of failure to pay the required payments within the period established by the agreement, penalties are applied to the borrower and so on until the bank takes away the collateral.

However, you should not think that the bank will take extreme measures, because after receiving the collateral, it did not return the money, but on the contrary, there is a high probability of incurring additional expenses.

At the initial stage, bank employees will try to:

• Contact the borrower.
• Find out the reason for the delay.
• Establish the fact that it is possible to repay the debt further.

If this is not enough, the bank will try to direct its efforts to apply penalties. The last resort would be to foreclose on the collateral.

Advantages and disadvantages of a mortgage

This type of lending has both its pros and cons, which may determine whether someone needs to receive it.

1. acquisition of real estate;
2. the opportunity to use the property immediately after purchase;
3. compensation of interest by the state is possible;
4. Income tax compensation and property deduction are possible;
5. The borrower registers the property in his own name and is the owner.

• You cannot alienate real estate without the consent of the mortgagee (bank);
• overpayment of interest;
• long payment period;
• the risk of loss of real estate in case of delay when making the next payment;
• complicated obtaining procedure.

Lending to the population to purchase housing is an important factor in the development of the real estate market. At the same time, banks allow the construction industry to develop and at the same time help citizens acquire real estate.

Today, banks offer a large selection of lending programs that allow them to solve a wide variety of customer problems. Among all existing products, mortgage lending deserves special attention. Most often, a mortgage is used to purchase a home, but in practice it can also be used to implement a number of other tasks.

Subject of mortgage

Mortgage lending covers all real estate: buildings, buildings, houses and structures, cottages, garages, etc. Most often, residential buildings and apartments are purchased with a mortgage.

Individual land plots can also act as the subject of a mortgage and perform the functions of ensuring the repayment of loan funds by the borrower, i.e. collateral

A mortgaged apartment can be used as collateral for a loan. If the borrower has other real estate in his possession, it can also be used as collateral. Non-residential objects, for example, office premises and other commercial real estate, vehicles, and land plots, can also be used as collateral.

If the borrower uses the funds received under a mortgage loan to purchase real estate, he receives ownership of the property from the moment the relevant agreement is concluded.

Thus, a mortgage allows, first of all, to solve housing problems that are relevant to many citizens.

A mortgage allows you to own an apartment or even a whole house without wasting time on accumulating the required amount - this is its main advantage.

At the same time, the property purchased with a mortgage can be used at your own discretion immediately after the conclusion of the relevant agreements - there are no restrictions on the use of housing, except for the moments established by the contract.

Mortgage lending programs are designed so that the borrower is insured against possible risks (loss of property rights, loss of ability to work, etc.). The procedure for action in such situations is established separately by banks and is additionally regulated at the legislative level.

An important advantage for the borrower is also the presence of the so-called. tax deduction, according to which money spent on the purchase of real estate, as well as interest on such a loan, are not subject to taxation. This lowers your mortgage interest rate.

Also, the inherent advantages of a mortgage include long loan terms, due to which the amount of regular mandatory payments is relatively low.

In addition, there are special mortgage lending programs for certain categories of citizens, for example, young families, for maternity capital, etc. The features of such programs should be studied separately.

The main disadvantage of a mortgage, like any loan, is a fairly serious overpayment. In total, the amount of the overpayment may even exceed the amount of the loan itself. At the same time, the overpayment takes into account not only interest, but also mandatory annual insurance, payment for the services of specialists hired to evaluate real estate and support transactions for its registration, etc.

Also among the disadvantages is the difficulty of obtaining such a loan. Banks that issue mortgages have very serious requirements for potential borrowers. They may differ in different institutions, but general provisions such as citizenship and registration, income certificates, certain work experience, positive credit history, etc. remain the same for all financial institutions.

The standard procedure for obtaining a mortgage loan is as follows:

• A search for a bank with a suitable lending program is carried out. At this stage, you need to pay attention not only to the features of the available products, but also to your compliance with the requirements of the financial institution;
• documents are prepared about the loan recipient and his guarantors (at the request of the bank). The list of required documents is established by the financial institution. Based on the data received, the lender will be able to establish the maximum loan size and the conditions for its issuance;
• an insurance agreement is concluded that provides protection for the borrower and the mortgaged property;
• a mortgage loan agreement is concluded. At this stage, it is necessary to carefully study all the provisions of the document so as not to encounter unexpected problems in the future.

As a rule, after studying information about the borrower and making a positive decision, the bank informs the client about the maximum possible loan amount and gives a certain period (set by the financial institution) to search for an apartment or other object to purchase with a mortgage.

Having found a suitable property, the client notifies the bank. Next, the necessary contracts are concluded. The bank pays the real estate seller, and the client receives information about the procedure for repaying the debt.

The package of documents may vary depending on the requirements of a particular bank, but in general it remains standard. In total, you need to prepare two sets of certificates: the first - about the potential client, the second - about the property that you plan to buy with a mortgage.

The standard set of documents about the borrower includes:

• basic documents: passport, tax payer code, military ID, marriage certificate, etc. The full list is reported separately by the bank;
• documents on employment and income. This category, first of all, includes a standard 2-NDFL certificate or a document on a bank form, copies of employment contracts, documents from the place of employment, information about other regular earnings, etc.;
• documents confirming the presence of valuable assets in the borrower's property. This includes: documents for vehicles, real estate and other expensive things, statements of cash deposits, accounts and deposits, documents on shared ownership, availability of land shares, securities, etc.;
• information about guarantors. Typically, the list of documents regarding these persons is similar to the package for a potential borrower.

Real estate documents usually include:

• standard title documentation (certificates of registration, purchase and sale transactions, etc.), as well as documents of property owners;
• extracts from the cadastral or technical passport. Also, if necessary, an extract from the land registry is submitted;
• certificates confirming the absence of possible encumbrances. For example, the bank may require confirmation that the apartment is not pledged, the owner has no debts for various types of obligatory payments, etc.

The lists of documents provided may differ from the package specifically requested by your bank. Therefore, it is better to clarify the required list of certificates individually. Bank employees usually do not refuse assistance and explain in detail where you can obtain certain necessary documents.

When can a mortgage be refused?

After the borrower submits all the necessary documents and certificates, the bank will carefully check the information provided for accuracy.

For example, authorized employees can submit a request to the Pension Fund to clarify the amount of contributions made by the borrower, etc. If deliberately false or erroneous information is discovered (if the inaccuracies are the fault of the client), the bank will refuse to issue a cash loan.

The most common reason for refusals to issue a mortgage is the discrepancy between the borrower’s income and the size of the requested loan. In such situations, the bank either refuses to issue a loan or offers its own conditions to the potential client.

An aggravating factor when applying for any loans is the presence of a damaged credit history. To clarify such information about the client, banks contact the authorized organization - the Credit History Bureau. The base is common to all banks, so past violations of the terms of cooperation with one financial institution may make it impossible to work with another organization.

You can also get information about your credit history and assess your chances of getting a mortgage before visiting the bank. To do this, personally appear at the representative office of the Credit History Bureau and write an application there, or send an online request through the official website of the Bank of Russia.

Citizens who have had their mortgage application rejected have the opportunity to resubmit it after a time set by a specific bank. Most often it is 2-3 months.

Welcome! Today we’ll talk about a mortgage loan to purchase a home. You will learn what a mortgage for the purchase of a home is, what is needed to purchase a home with a mortgage, how to choose the right bank, and how an apartment purchased with a mortgage is properly registered.

Housing is one of the basic needs of a modern person. Every adult often faces the question of how to buy it if prices are prohibitively high and there is no such amount on hand. An alternative in this case is mortgage lending.

Purchasing a home with a mortgage implies a targeted bank subsidy issued for a long period. In this case, the borrower undertakes to return to the bank the amount of the principal loan plus the interest rates established by the bank for the use of funds. Loan terms for this type of service range from 5 to 30 years. In this case, the purchased object remains pledged to the credit institution for the period of lending.

Those who have decided to take such a step will have to make an in-depth analysis of the parameters of the upcoming mortgage according to several criteria and make a choice. This choice will accompany the potential borrower at all stages of applying for a loan. These are the following parameters:

• Type of mortgage. Today in Russia, mortgages are sold by commercial banks and with government support in the form of special programs. Participation in government programs is available only to certain categories of citizens: employees of budgetary organizations, military personnel and young families. A loan with government participation has lower interest rates. So, in 2017, rates vary within 12%, as opposed to bank rates of 13-17%.
• Housing type. Here you have to choose between new construction and secondary housing. The type of housing directly affects the formation of the mortgage interest rate. A building under construction in which apartments have not been put into operation is considered a risk factor for the bank. The lender takes into account the fact that construction may stop at any stage or may not be accepted for operation at all by state supervisory authorities. If the borrower defaults, the bank will not be able to sell such housing and will lose funds.

The way out of this situation is to choose apartments from those developers who cooperate with the bank.

As for secondary housing, each bank has its own map, according to which the property being purchased should be located. There are a number of requirements for technical condition: emergency buildings that may be demolished in the near future are not accepted.

• Payment type. There are two main types: annuity and differentiated. The first option involves repaying the loan in equal amounts until the end of the term, and the second differs in that interest rates will be paid at the beginning of the loan, and at the end only the body of the loan remains to be repaid. By default, almost all banks in Russia use the annuity type of payments. But if the borrower has the right to initiate a differentiated type. The question is which option is beneficial.

It should be borne in mind that the profitability of a loan consists of many factors and is determined only relatively. But other things being equal, differentiated repayment is more profitable.

• Loan currency. We should not repeat the mistake of those 600,000 citizens who took out mortgages in foreign currency in recent years and found themselves in a very difficult situation. Exchange rate fluctuations in recent years have played a cruel joke. In 2014-2015, due to the difference in the ruble exchange rate against foreign currency, monthly repayments of borrowers almost doubled. Only banks emerge as winners from this situation, and borrowers lose not only their housing, but also the funds previously paid for it.

As a rule, foreign currency loans are always offered at significantly low interest rates. But as practice has shown, the risks are prohibitively high. Therefore, the choice must be made clearly in favor of the ruble.

Banks agree to issue funds after they are fully convinced of minimizing their own risks. This indicator is expressed in the solvency of the potential borrower and the liquidity of the purchased housing.

What can you buy with a mortgage?

With borrowed funds you can buy residential and commercial premises, country houses or cottages, land plots and even objects under construction.

Each bank puts forward its own strict requirements regarding the housing purchased. They should be clarified with each financial institution separately. But the common denominator of the requirements is identical. Real estate assessment criteria generally relate to the following characteristics:

• legal “purity” of the object;
• specifications;
• liquidity.

A residential mortgage on a property requires compliance with the following legal requirements:

• The apartment or house should not be the subject of collateral or legal proceedings;
• If the owner is elderly or a minor, or they have a share in the property;
• Privatized housing is also subject to thorough inspection. If there are people who have their share, then they can present their right to part of the property at any time;
• The owner of a residential property must have legal capacity;
• An apartment or house is put up for sale immediately upon the commencement of the right of inheritance;
• Sale of an object by proxy.

Detailed information about the alienation of real estate, the existence of rental obligations or judicial arrest can be obtained through the MFC or by contacting the Unified State Register of Real Estate. Title documents are issued in the form of an extract from the relevant registers. They are collected by the seller himself before the transaction.

An indicator of the technical condition is the year the housing was built. Banks give preference to buildings no older than the 1990s. But “Khrushchevkas”, despite their practicality and quality, have less and less consumer interest, since after just a few years they can be considered dilapidated and lose that small share of liquidity. In general, the technical wear and tear of the house should be no more than 60%.

Some banks do not accept studio-type apartments for financing. In this case, you will have to find housing with a separate kitchen. Also, real estate that does not have communication networks is not eligible for financing.

Houses under construction have high consumer attractiveness.

You should also be attentive to apartments where conversion has been carried out. Changing the original layout of an apartment in a multi-storey building requires technical approval and the availability of permits. In practice, not all owners comply with these rules.

If you are betting on housing under construction, you should choose from the proposals of the construction company that is accredited by the selected bank. Otherwise, there is a high probability that the bank will not want to risk investing.

Liquidity of housing means its marketability today and over the coming decades. This parameter is determined based on the expert opinion of a licensed real estate appraiser. Financial institutions tend to trust their own appraisers over those preferred by the client. On this point, it is advisable to rely on the recommendations of a potential lender.

How to choose a bank

Russians do not experience difficulties when choosing banking services and products. The number of licensed banks as of 2017 is 623. The choice of bank in such cases is determined only by individual parameters. What are these parameters? Let's list them in order.

1. Interest rate. Regarding this point, specialists’ forecasts for 2017 are very optimistic. In particular, it is worth recalling the speech of Russian Finance Minister Anton Siluanov. According to his opinion, in the next 2 years interest rates are expected to decline to 7-8%. And already in the current 2017, the population can pay 10% per annum on housing.

Favorable conditions for this should have been oil prices and the stagnation of the real estate market observed in recent years. However, oil prices have not reached the expected level and the situation remains unstable.

But, nevertheless, one can notice a positive trend in the mortgage offers of the country's leading banks.

1. An initial fee. Typically this amount ranges from 10 to 30% of the cost of the purchased object. But what if there is no such amount?

A number of banks are ready to pay the entire cost of real estate. In this case, naturally, interest rates will be much higher. For example, Metallinvestbank offers mortgage products with the same name. Such financing is available to those who are employed. Interest rates are 14% per annum. There is an important condition - the borrower’s income must exceed the amount of monthly mortgage payments at least twice.

Vozrozhdenie Bank and Promsvyazbank offer similar offers at 13% per annum.

1. No proof of income. The next nuance concerns those 30% of Russian citizens who work in the shadow sector of the economy. Such citizens receive salaries in “envelopes”, so they do not have the opportunity to confirm their income with official certificates. Some banks take these realities into account. Banks provide a mortgage based on two documents or a certificate in the bank’s form.

Use our “ ” service to make the right choice among the best bank offers.

Stages of a mortgage transaction

When all the analytical part of the work on choosing a mortgage has been done, it’s time to start the practical part. A mortgage transaction consists of several stages. The obtaining process may take several months.

Collection of documents

The basic package of documents includes the following papers:

• civil passports of the parties to the transaction: spouses and guarantors (if applicable);
• document confirming marital status;
• certificate of income or 2-NDFL;
• documents confirming work activity.

Each bank has its own set list of documents, so in practice you will have to collect much more documents. You should go to a loan specialist with these documents. At the bank you will need to fill out a simple form and sign the application.

Review of documents

The bank accepts documents for consideration and within the next few weeks makes a decision: positive or refusal. In the first case, the loan specialist will announce the maximum amount that the borrower can count on and provide the parameters purchased housing. The bank's decision is usually valid for 2-6 months. During this period, it is necessary to find suitable housing.

If you refuse, do not give up. Most of the certificates received are valid for 6 months. The application should be submitted to other banks.

Selection of real estate

When suitable housing is found, the borrower will need to obtain a copy of the following documents and take it to the bank:

• title document for real estate: contract of sale, exchange, donation, right of inheritance or other;
• extract from the house register;
• an extract from the Unified State Register on the legal purity of the object;
• copies of personal accounts;
• consent of the co-owners to the sale;
• owners' passports;
• cadastral passport;
• conclusion of an independent appraiser;
• technical certificate;
• certificate from the BTI.

The point about evaluation is especially worth noting. It can be carried out by a specialist with the appropriate license. In practice, banks have their own staff specialists or accredited companies. The opinion of an outside specialist may be rejected. Here it is advisable to use the services of an appraiser recommended by the bank.

Deal

There are three parties involved in the transaction: the seller, the borrower and the bank representative. The borrower signs the mortgage agreement. A purchase and sale agreement is signed between the seller and the buyer. The seller will receive his money from the account where the money from the bank will be received. But he will be able to use the funds no earlier than 5 days from the date of the transaction.

All costs associated with the transaction are borne by the buyer. This may include notary services, insurance, state registration fees, etc.

How to close and early repayment

The mortgage is given for an average period of 5 to 30 years. In practice, on average, a mortgage is provided for 15 years. According to experts, too long terms (more than 20 years) are fraught with large overpayments. Short deadlines put a strain on the family budget and increase the risk of delays.

In any case, every borrower believes that the sooner the financial burden is removed from the shoulders, the better. This right is provided for at the legislative level. If an initiative is taken for early repayment, the bank does not have the right to refuse. Financial institutions are also legally prohibited from imposing additional penalties or penalties for early repayment. It should be borne in mind that banks by default practice annuity payments, in which the risk of loss of profit has already been taken into account.

Repayments are of the following types:

• full repayment of the mortgage. After paying the debt, the bank issues the appropriate certificate and documents for the purchased property. The history is entered into the credit registry. The transaction is considered completed;
• partial repayment of the annuity. In this case, the borrower has the opportunity to reduce the term or amount of payments;
• Partial early repayment involves a reduction in differentiated payments: interest and the principal of the loan.

The borrower must inform the bank of his intention to make an early payment. This can be done in different ways, from a simple call to visiting a branch. It all depends on the bank and its capabilities.

conclusions

Mortgage is, first of all, a valuable financial lesson, an experience in social discipline. For those who have decided to take this step, it will be useful to study the entire financial and legal part of the procedure. Consultations from independent specialists and the experience of other borrowers will not be superfluous.

It is important to calculate all development options. The legislation provides for various alternative options in case of aggravation of mortgage obligations: refinancing, on-lending, bankruptcy of individuals, or a simple application to the bank management to extend the term or reduce payments. Such rights of borrowers are delegated by law.

If you need legal support for a mortgage and a solution in a difficult situation, be sure to sign up for a free consultation with our lawyer in a special form.

You will also find ours useful, which will allow you to calculate your mortgage payment.

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