Mortgages in 2016 through the eyes of a borrower

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

If you have not yet had time to purchase a home or are planning to expand, this article will be useful to you. In it, we talk about all the nuances of mortgages in the current changing conditions and about ways to save a lot of money when buying a home.

The crisis is sweeping across the world, but you still need to live somewhere. Of course, you should have bought a home a little earlier, when the credit conditions were better. But, on the other hand, the housing market is now in deep stagnation. And right now you can win in price: discounts and promotions from developers are just beginning. Summer, more significant ones will soon replace the current ones (no one buys apartments in summer, but it is necessary to sell and continue construction).

If there is not enough money to buy an apartment for cash or in installments, you will have to take out a mortgage. We have already written about it, but new time - new rules. Now we will consider the main points that are worth paying attention to (and if we miss something, we will wait for comments and correct them).

What is a mortgage

At the moment, there are several main types of mortgage lending: standard, with state support, the Russian Family program and a special offer of banks for military personnel.

Standard mortgage

A conventional mortgage is an extremely difficult loan. In the past, obtaining mortgage funds required a down payment of 13% of the purchase price. Now - at least 15% for primary housing and 20% for secondary housing. The real conditions of Sberbank are as follows:

An initial fee	Credit term
	up to 10 years	from 10 to 20 years old	from 20 to 30 years old
from 20 to 30%	13, 5%	13, 75%	14%
from 30 to 50%	13, 25%	13, 5%	13, 75%
from 50%	13%	13, 25%	13, 5%

»

In this case, the rates are valid if:

• the credited real estate object was built with the participation of bank loans, otherwise a surcharge of 0.5 percentage points is applied;
• the borrower insures his life and health, otherwise a one percentage point premium is applied;
• until the mortgage is registered, a surcharge of one percentage point is applied.

Many banks have tightened requirements for borrowers. If you play with the Sberbank loan calculator, you can find out that for the initial approval of a loan, a young family of two will need at least 40-50 thousand of the personal income of each spouse. Moreover, a confirmed income, so that those who receive a salary in "black cash" may find themselves in an unpleasant situation.

The average interest rate at the moment (real, not advertising) is about 15-16% per annum. Why? Even the base rate for secondary housing starts at 12, 5%. The rate for new buildings is on average 13%. Rates for suburban real estate and the construction of a private house are even higher.

Military mortgage

For the military, a military mortgage used to be a rather acceptable option. Back in 2015, the interest rate on this type of mortgage was 8% per annum. Today it is already 12.5% and more.

Mortgage with state support

The best option at the moment is a government-backed mortgage. It is a loan for the purchase of housing under construction or housing in a finished new building. Due to state subsidies, the bank provides a rate reduced to 12% (this is the minimum threshold, which in reality will be higher - about 13-13.5%).

However, this program does not apply to all housing. Mainly on the one that is being built or built with the participation of the bank's funds. In this case, the developer must be in a certain trusted list.

There is also a limit on the maximum loan amount:

• 8 million rubles - for Moscow, the Moscow region and St. Petersburg;
• 3 million rubles - for the rest of Russia.

The minimum down payment for a mortgage with state support is 20% of the cost of the acquired housing.

In this case, the interest rate of the loan is fixed - 12% per annum in large banks. However, this type of mortgage includes compulsory life insurance of the main borrower. Moreover, the amount of the annual fee is calculated from the residual value of the loan and is 1% of the amount remaining at the time of payment, which the borrower owes (interest is not taken into account). In case of refusal from insurance, the bank offers an increase in the rate to the standard, and this point is spelled out in the mortgage agreement. Accordingly, it will not work to pay in the first year and then refuse - the entire mortgage will be recalculated from the moment of refusal of insurance. You also need to remember that all mortgage apartments must be insured, and this is still about 0.4% of the unpaid amount.

It is worth paying attention to: at the time of this writing, the interest rate on mortgages with state support here started at 11, 9% per annum.

Russian Family program

It is called "" in official documents. The term of this program was supposed to expire in 2015, but in 2014 the program “Providing affordable and comfortable housing and communal services to citizens of the Russian Federation” was adopted, due to which it was actually extended until 2020.

The program covers the entire territory of Russia and is aimed at providing assistance to young families who need to improve their living conditions. However, all regulatory acts are issued by the regions themselves. In order to participate in the program, a young family must meet the following conditions:

• at least one of the family members must not be over 35 years old (a family of one person can also become a member);
• those who wish must have Russian citizenship;
• the family must live in conditions unsuitable for life (cases when the area of the premises for one person is less than that established in the region; living in communal apartments).

According to the terms of the program, a young family is given a state subsidy, which should be used to purchase housing or share construction. For a family without children, this subsidy is issued in the amount of 35% of the appraised cost of housing, and for couples with children, including single-parent families consisting of one parent and one child, in the amount of 40%. Families with many children are provided with additional benefits, while they are provided with material support in full.

In some regions, target prices per square meter of housing and reduced interest rates are in place instead, and the apartments on offer are sold finished.

Loyalty programs for developers

In the current situation, many developers have rushed in advance and entered into partnership agreements with large enterprises. Their essence is as follows: the company gives a kind of subsidy to the employee in exchange for the obligation to continue working, and the developer, in turn, offers a discount on housing. In some cases, the agreement is tripartite. The third in it is the bank that offers a reduced rate.

By the way, I took advantage of this offer when purchasing an apartment. The developer's discount was 8% of the total cost of housing, and the interest rate of Sberbank is fixed at 11.4% per annum without changing the conditions.

What you should pay attention to

1. It is better to take a mortgage from a bank where a salary card is issued. This will minimize the risk of refusal to issue a mortgage, including in the absence of income confirmed by certificates. But it is worth paying attention: banks consider salary transfers to be the salary. Also, such a step will reduce additional interest rate markups.
2. Many regions offer additional programs for the purchase of housing. So, in my native Ulyanovsk there is a "Governor's Mortgage": the borrowers participating in the program, the municipality pays the interest of the loan for the first three years.
3. Similar programs may operate for some labor specialties (for example, doctors) or businesses.
4. Banks are much easier to approve loans for the purchase of a new building. It is worth paying attention to the connection between the developer and the bank and go for initial approval with the apartment already chosen. This will reduce the likelihood of refusal without explanation and increase the chances of getting a mortgage.
5. Shares in an apartment must be drawn up in accordance with current income: the higher the taxable income, the higher the share should be. Thus, thanks to the tax deduction, it will be possible to return part of your funds much faster. Recall that this is not only the cost of the apartment itself (more precisely, its part taken on credit), but also part of the interest paid under the contract. This will allow you to pay off part of the loan a little earlier.
6. Any payment in excess of the monthly installment must be paid through a bank clerk. Check the fact of debiting a larger amount from the account. The extra 500-1,000 rubles play a role, no matter how ridiculous, because any overpayment goes not to pay off interest, but to pay off the principal debt.

Take it or not?

Despite a lot of difficulties, nerves and significant overpayment, the mortgage is the only real chance for many residents of our country to acquire housing. Real estate rises in price much faster than the welfare of society grows. And the average monthly payment for a mortgage apartment is comparable to the rent.

In order to make a precise decision, you need to go a serious way. We'll have to consult with a lot of different specialists. Try to find out information about all offers in your area before going to the developer. Calculate the maximum number of repayment options and settle on the one that is guaranteed to pay off the mortgage in case of force majeure. It is better to pay more and return to a quick repayment that way than to be unable to pay the monthly rate at a difficult moment.

You can find out about the current state programs in the municipality. Banks' offers are always available on their websites, but you should go in person. The same applies to developers: sometimes the last unsold apartments in a house right before its delivery are much cheaper than at the excavation stage.

And, of course, remember that you can and should complain about problems. For builders, the threat is to contact various government agencies. And if problems have appeared at the bank, you can contact the employees of the Central Bank.