What types of mortgages exist and which one is better to take

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Absolutely every person needs housing. But not everyone can afford to buy it right away, without getting into loans. That's why you have to take out a mortgage. The solution, of course, is not the best, but very common. But every person who is not enlightened in the subject is first interested in: what types of mortgages exist in principle? And, since the topic is relevant, it is worth talking about it in a little more detail.

The most common option

Talking about what types of mortgages exist in principle, it is worth first of all to pay attention to lending in the secondary market. Because this is the most popular option. The principle is simple. A person must find an apartment that other people are selling and draw up a mortgage loan agreement. After that, he buys housing for the bank's money, which he then gives to them.

There are some peculiarities here. First you need to find the most suitable bank according to the conditions. The best in this regard are those whostate. They have a mortgage loan system worked out to the smallest detail.

After a person chooses the most favorable mortgage offer for himself, and finds out the amount that can be given to him, you can start looking for housing. And before the contract is drawn up, you will need to pay the bank a commission and insurance.

About conditions

Talking about the types of mortgages, it is impossible not to pay attention to the purchase of which secondary housing it can be issued.

So, the apartment should not be located in a building to be demolished or requiring repair and rebuilding. It is desirable that it be in good condition. After all, a mortgage is issued up to 30 years, and the bank is obliged to make sure that if a person cannot pay the debt, then he will be able to compensate for the losses by selling housing.

An apartment should also be residential. That is, to be in an ordinary house, and not belong to a hotel or communal complex. And it should also have a standard layout that matches the BTI plan. By the way, banks rarely give mortgages for the purchase of apartments located on the ground or first floors. And on "Khrushchev".

The borrower must also meet certain conditions. He must be a solvent citizen of the Russian Federation with at least one year of work experience. And it is better to refrain from a loan if the salary is low, since every month you will have to pay up to 45% of your salary.

Equity

In the list of types of mortgages, this particular one takes the second place. There istheir reasons. An equity mortgage is essentially a loan to buy a home in a home under construction. And, due to the fact that the building has not yet been put into operation, the prices for such apartments are 20-30% lower than for ordinary ones.

The principle in this case is somewhat different from the previous one. To begin with, a person must choose a developer. He will send him a list of banks that cooperate with him. And among them, a person chooses the one that offers the most favorable lending conditions. The second option is similar, but exactly the opposite. First, a person determines the bank, and then chooses the developer - from the list that was handed to him there.

True, there are also disadvantages in this case. For example, a higher interest rate (by 1-2%), a delay in the commissioning of an object. However, there are cons everywhere.

For a young family

In recent years, this particular type of loan is gaining great popularity. Mortgages help out many, especially if a young family needs housing. The bottom line is that local authorities allocate a subsidy, with which people pay the first installment. Thus, it turns out to reduce the loan amount.

A childless family is given 30% of the cost of the apartment. People who have a child - 35%. To get a preferential mortgage, you need to get on the waiting list. When the turn of this or that family comes, they are given a certificate for the purchase of an apartment. This is the way to the first payment to the bank for a loan.

You should know that couples in which each person is not older than 35 are considered a young family. Mortgages are given for up tothirty years. But delays are possible (this is another plus of concessional lending), and together with them it turns out about 35. However, even to get such a mortgage, you must meet several conditions. First, each spouse must be a citizen of the Russian Federation. And officially employed, with a source of income that can be confirmed by a certificate. The minimum age for each person is 18.

Home Improvement Loan

This topic should also be noted with attention, talking about the types of mortgages. Many people already have housing, but often the family needs either to expand their living space or to improve conditions. These issues are usually easy to resolve. People sell the apartment they have, after which they buy other housing with the proceeds, paying extra with the money issued by the bank as a mortgage.

The main advantage of this type of lending is that it can be issued without collateral and commissions. They also widely practice local and federal programs, providing preferential terms for teachers, for example, for large families, etc. Moreover, a loan for improving housing conditions can be issued even without providing a certificate from a permanent place of work. And interest rates are lower.

Information for foreigners

Many people who are citizens of other countries are interested in the question - is it possible for them to get a mortgage with a residence permit? The topic is interesting. Well, anyone can buy a home in the Russian Federation. But to do it not for the full amount, but by taking a loan,very hard. Financial institutions try to avoid transactions with foreigners, since they do not have Russian citizenship, which means that they can easily leave the country without repaying their debt. In this regard, banks are tightening their requirements in relation to borrowers as much as possible. However, there are also banks that consider foreigners the most conscientious payers. But in general, a mortgage with a residence permit is a reality. But you can tell about the conditions in more detail.

Requirements

Well, if a foreigner decides to take a mortgage with a residence permit, then he needs, firstly, to be officially employed in Russia. Also pay taxes and have at least six months of work experience in the Russian Federation. You will also have to prove the fact that the foreigner will work in Russia over the next 12 months. You can simply provide a contract with the employer and a certificate of income. Age also matters. The most optimal is from 25 to 40 years old.

But some banks have additional requirements. For example, the minimum length of service in the Russian Federation may be not 6 months, but two or three years. And the down payment, which is usually 10%, will increase to 30%. Guarantors or joint borrowers (citizens of the Russian Federation) may be required. And the bank will issue the credited real estate as collateral. And, of course, there will be an increased interest rate. In general, it is quite difficult for foreigners to get a mortgage.

Types of mortgage loans differ in certain nuances, and this situation is no exception. A foreigner will have to collect a whole package of documents, in addition to the standard ones (certificates of income, length of service, contracts with an employer, etc.). You will need your civil passport and a notarized copy with a translation into Russian. Also - permission to work in Russia and to enter the state (visa). You will also need a migration card and registration in the region where the loan is issued.

Bail

Everyone is well aware that in order to get a loan, you need to provide the bank with a certain amount of value, which he can take for himself as compensation for the outstanding debt (if the payer is not able to return the money). Mortgages are no exception. The type of collateral in this case is real estate. Which a person intends to acquire by taking a loan.

It's simple. A person draws up a loan at a bank (or other financial institution), with the condition that the apartment purchased with the allocated money will act as collateral. All participants in the transaction benefit. The borrower finally receives the money and buys the apartment. The bank makes a profit in the form of payments at an interest rate, and due to the fact that the housing purchased by the client is the collateral, it minimizes the risks of non-repayment.

And everything is done in a few steps. First, the client receives the approval of the bank. Then he chooses housing, studying the primary and secondary markets. Then - evaluates and insures real estate. And, finally, he signs the contract, receives the money, pays for the transaction, and then moves in.

About the "pitfalls"

Now it's worth talking about the encumbrance in the form of a mortgage. The word itself already contains the essence of the definition. The encumbrance of an apartment purchased with a mortgage is expressed in limiting the rights of the owner, as well as in imposing duties on him.

To put it simply, a person can transfer his housing for temporary use to others, rent it out, or try to sell it to pay off a debt. But all this - only with the permission of the mortgagee. The role of which in this case is the bank. All encumbrances are removed from a person when he repays his debt. From that moment on, he becomes the full owner of the apartment.

But if, for example, he wants to sell it when the debt has not yet been paid, he will have to take care of the nuances. In addition to the sale and purchase agreement, you will need a deed of transfer, written permission from the pledgee and a statement from the parties to the transaction.

Insurance

It has already been mentioned several times above that the purchased housing will have to be insured. It really is. What types of mortgage insurance are there? There are two of them - mandatory and optional.

So, you will have to pay for insurance anyway. But this is a low cost. By law, the borrower is only required to insure the collateral, that is, the apartment, for the purchase of which the loan is taken. This is usually around 1-1.5% of the total.

By taking out additional insurance, it turns out to protect your home from damage and loss. And also - a title from loss of ownership, which can happen due to fraud or double sales. ATin the end, even the life and he alth of the client will be protected. After all, a loan for the purchase of housing is taken on average for 10-15 years. This is a long time, and anything can happen to a person during this period, because life is unpredictable.

How to benefit?

Well, mortgages bring profit only to banks and developers, but borrowers also want to avoid getting into trouble. And if you want to save money, it is better to apply for a loan for the shortest possible time. The benefit can be calculated using a simple example. Let's say a person takes 1 million rubles on credit at a rate of 13% per annum. If he took this amount for five years, then he will have to pay 23,000 rubles a month, and as a result, the overpayment will be 366,000 rubles. Having issued a mortgage for 15 years, he will pay 13 thousand rubles each. It's less! Yes, but only at first glance. As a result, he will overpay 1,300,000 rubles. So the timing issue needs to be addressed first.

But which of all the options listed above is the best? You can argue for a long time, listing the pros and cons. To each his own. But judging objectively, the option of buying housing under construction is the best. Firstly, you can save significantly - from 1/5 to 1/3 of the total amount. And an overpayment as 1-3% at the rate will not play a special role here. Secondly, you can not be afraid of delays in terms of commissioning. Now banks enter into contracts only with trusted developers, so the risks are minimal. But again, everyone should decide for himself.