Features of mortgage housing loans. The concept of mortgage: essence, types, participants and algorithm for providing Social type of mortgage

15.02.202427.05.2017

At the moment, there are several points of view about the concept of mortgage. The Law of the Russian Federation dated May 29, 1992 No. 2872-1 (as amended on December 30, 2008, as amended on November 21, 2011) “On Pledge” (Pledge Law) (Article 42 “The Concept of Mortgage”) states: “Mortgage is recognized as pledge of an enterprise, structure, building, structure or other object directly related to land, together with the corresponding land plot or the right to use it.” In the Mortgage Law, “mortgage” means “mortgage over real property.” It is important to note that according to the Mortgage Law, a mortgage can be secured not only by the obligation to repay the loan, but also by a loan, lease, contract, damage and other obligations.

Special literature provides a wide range of definitions of this term - mortgage. In some cases, this definition, in contrast to the Mortgage Law, consists of several concepts: mortgage is explained as a pledge of real estate; a loan issued against such collateral, as well as the corresponding document (mortgage). This expanded interpretation of the term obviously reflects its practical use in speech and business, mainly in Western countries. In practice, we are talking about the translation of a concept inherent in the original words (the English words “hipothecation” and “mortgage” are translated into Russian by one word “mortgage”, and in the sense of “pledge” both words are used with some legal differences, and in the concept mortgage - "mortgage" only).

Other sources give a narrow concept of mortgage as “a pledge of real estate for the purpose of obtaining a loan, a mortgage” or, even more specifically, necessarily a “long-term loan.” It seems that in such definitions there is an unlawful limitation of the concept under consideration, “cutting off” part of its essence and making it difficult to consider.

The legal component of a mortgage is not always clearly defined. Thus, the Russian Banking Encyclopedia contains the following definition: “Mortgage (English: Hipothecation) is a form of pledge of goods in which the borrower retains possession and ownership of the pledged object." This interpretation is not typical for civil law countries (Russia is one of them), in which the concept of “mortgage” refers only to real estate.

Sometimes a mortgage is defined as a type of real estate pledge: “Mortgage is a type of pledge of real estate for the purpose of obtaining a loan.” Omitting unnecessary clarification of the purpose of a mortgage, we note that in Russia only one type of collateral is applied to real estate - a mortgage; Thus, at present there is no need to define a mortgage as a type of real estate pledge. However, in some civil law countries there are several types of rights to mortgaged real property.

It is necessary to distinguish between the concepts of “mortgage”, “mortgage lending”, “mortgage loan”.

Mortgage lending is an integral element of commercial bank operations. Mortgage lending aims to meet housing needs as a component of the standard of living of the population.

A mortgage loan is a long-term loan issued by a bank to a borrower for the purchase of real estate on its security or for participation in shared construction of a real estate project on the security of rights to participate in shared construction, issued in the manner prescribed by law, with the subsequent registration of a pledge of the real estate after commissioning.

The basis for the emergence of a mortgage is an agreement on the pledge of real estate, according to which one party - the mortgagee, who is a creditor under the obligation secured by the mortgage, has the right to receive satisfaction of its claims against the debtor under this obligation from the value of the pledged real estate of the other party - the mortgagor preferentially before other creditors of the mortgagor. It is necessary to distinguish a mortgage loan from the loan itself. A loan means the lending of money or goods on the terms of repayment and, as a rule, with the payment of interest. A mortgage loan is a way to attract financial resources in the form of loans secured by real estate. According to the Pledge Law, collateral for a mortgage loan can be: buildings and structures, institutional units of all sectors of the economy, considered as unified property complexes, residential buildings, apartments, parts of residential buildings, etc. The subject of collateral cannot be: state and forest funds, lands adjacent to the state border and other objects, the pledge of which is prohibited by federal law. Thus, a mortgage loan is a loan that is distinguished by a number of features related to the need to provide additional protection of the rights of the mortgagee through state registration of the mortgage and its ability to maintain consumer properties as a real estate object for a long time.

Traditionally, mortgage lending is considered a less risky business compared to conventional lending to businesses and individuals. At the same time, the main argument in favor of this statement is the “reliability” of collateral for loans - real estate, which is “always in value.” The risk does not really disappear when property is accepted as collateral, even if the value of the loan payments significantly exceeds the amount of payments on the loan: it can depreciate very quickly, while demand will react unpredictably, which increases the risk of difficulties with the sale of the collateral. The risks of mortgage activity are presented in table. 1.2 and in Fig. 2.

Table 1.2 - Mortgage risks on primary housing

Insurance risks	Possible consequences of risks for mortgage holders
		Developer	Investor
1. Reduced loan rates				Loss of part of the investment. income due to a concomitant decrease in investment. rates
2. Increase in loan rates	Loss of some clients	Inability to pay a mortgage loan	Increasing construction costs and increasing time
3. Increase (decrease) in the ruble exchange rate		Profit or loss depending on the loan currency denomination	Losses or profits depending on the loan currency denomination	Losses or profits depending on the investment currency denomination
4. Reduced liquidity and loss of collateral	Loss of credit		Loss of income
5. Increasing the time frame for registering property	Loss of part of the loan income	Additional expenses	Loss of part of income	Loss of part of investment income
6. Reduced solvency of borrowers	Loss of income, loss of credit	Loss of acquired property, additional expenses	Loss of some or all income	Loss of part or all of investment income

There are four main actors in the mortgage market: the borrower, the lender, the investor and the government. Borrowers (mortgagors) are individuals and legal entities who applied for a loan and received it. Borrowers voluntarily provide housing they already own and purchased with loan funds as collateral. Lenders are banks (credit organizations) and other legal entities that provide mortgage loans to borrowers in accordance with the procedure established by law. Investors are legal entities and individuals who purchase mortgage-backed securities imitated by lenders or secondary market operators. These include investment funds, insurance companies, and mutual funds. The government creates conditions for the reliable functioning of the mortgage lending system, supervises the activities of lenders, and assists certain groups of the population in purchasing housing.

There are also many secondary participants in the mortgage loan market, such as home sellers, operators of the secondary mortgage loan market (home mortgage lending agencies), state registration authorities of rights to real estate and transactions with it, insurance companies, appraisers, and real estate firms. Housing sellers are individuals and legal entities who sell residential premises that they own or belong to other individuals or legal entities. Secondary market operators are specialized organizations that refinance loans. Insurance companies provide property insurance (mortgaged housing insurance), personal insurance for borrowers and civil liability insurance for mortgage market participants. Appraisers are legal entities and individuals who have the right to carry out a professional assessment of residential premises that are the subject of collateral for mortgage lending. Real estate firms are legal entities, professional intermediaries in the real estate purchase and sale market. Infrastructure links of the mortgage lending system - notaries, passport services, guardianship and trusteeship authorities, legal advice, etc.

The Russian mortgage lending scheme is close to the American two-tier model (discussed above), although it cannot be said that it completely copies it. However, shortly before the onset of the global crisis, dangerous trends began to appear in our country, for example, the offer of mortgage loans for 100% of the value of the collateral. We were saved from a situation similar to the American one by the fact that in Russia the volume of mortgages is only 2-3% of GDP, while in the USA it is many times more.

If we evaluate the mortgage loan system as a whole, we can highlight the following advantages: ? the opportunity to immediately live in a new apartment or house; ? housing immediately becomes property, you can register in it; ? security is ensured by insurance contracts; ? the borrower is provided with a property tax deduction; ? a long loan term makes payments not too large; ? In some areas there is a social mortgage. The disadvantages of a mortgage are: ? overpayment for an apartment can reach 100% or more (annual amounts of compulsory insurance, services of appraisal companies, notary, fee to the bank for processing the application, fee for maintaining a loan account, etc.); ? there are many requirements of mortgage banks for the borrower (confirmation of income, registration and citizenship, guarantors, a certain length of service in one place, etc.); And yet, the advantages of mortgage lending allowed this sector of the market to actively develop until September 2008. The global financial crisis that occurred in September 2008 primarily hit mortgages. Many banks curtailed their mortgage programs, those that continued to work with mortgages significantly revised the terms of the programs (rates and the size of the down payment were increased, requirements for the borrower were tightened, mainly only secondary market objects were financed, etc.). However, the state supported mortgage banks, which enabled banks to resolve the liquidity crisis and led already in 2009-2010. to the revival of mortgages as a tool for solving housing problems.

During the crisis, the share of housing purchased under mortgage programs on the primary market “fell” significantly: from 16-18% in 2008 to 8-10% in 2009. According to the AHML analytical center, now this ratio is 13-15%.

Currently, we can observe a steady upward trend in mortgage lending volumes. Now we can say that the pre-crisis level has not only been achieved, but also exceeded.

This growth is due to several trends at once: psychological tension has disappeared in society, people have become more confident in looking into the future, developers are increasing construction volumes, and financial institutions are bringing more and more new offers to the market. For example, in Volgograd alone, about 30 banks promote mortgage services, and most of them have several loan programs. Another factor that directly influenced the increase in the volume of mortgage loans issued was the easing of the requirements for borrowers. Among the new trends in the residential mortgage lending market, it is worth noting the fact that for the first time in quite a long time, the ratio of demand for primary and secondary housing is being compared. This is largely due to the aging of the secondary housing stock, and people, having decided to take out a mortgage, are increasingly choosing new apartments.

Based on the above, we come to the following conclusions.

The defining content of the concept of “mortgage” is “real estate pledge”, since the rest, both broad (“mortgage”, “loan secured by real estate”) and narrow (“pledge of property to secure a long-term loan”) interpretations are derivative actions or aspects of such content . Therefore, the most correct is the legally established concept of mortgage, and in the future in this work, when considering a mortgage loan, the legally established definition of mortgage as a pledge of real estate to secure any obligations will be used. Currently, the development of the mortgage lending system is the most promising way to solve the housing problem. A mortgage is a type of property collateral that serves as security for the use of the main monetary obligation; its subject is always real estate. Most often, mortgages are used to secure loan agreements with banks.

Unfortunately, only a small number of families can purchase housing with personal funds. Many people think about applying for a mortgage loan. What requirements must be met, and on what conditions can you get a mortgage in Russia? Of course, each loan for the purchase of housing from each bank has its own characteristics, but general points can still be highlighted. So, today we will talk about the main conditions for providing a mortgage loan.

Citizenship and registration

Almost all banks are ready to lend only to citizens of the Russian Federation. The first document that is contained in all lists of required documents is a passport. Having a permanent residence permit is not always a requirement. The mortgage loan itself implies the fact that the borrower will change his place of residence after the loan transaction. However, many lenders require at least temporary registration in the region where the bank's structural unit operates.

Age

On average, the borrower must be at least 21 years old and no more than 65 years old. But there are banks that are ready to expand these age limits. For example, you can get a loan from Sberbank even before your 75th birthday. But it is worth remembering that age restrictions apply to the expiration date of the loan agreement, and not to the date of its conclusion. Thus, if a borrower wants to get a loan for 20 years, then on the date of receiving the loan he should not be more than 45 years old.

Seniority

The requirements for length of work experience are related to the fact that the bank wants to assess the stability of the borrower’s income. Typically, the length of service in the last position should not be less than 6 months. The total length of service and its continuity are also important. This information gives the lender an understanding of the nature of the potential borrower's work history.

Income level and its documentary evidence

The required income depends on the amount of the loan requested. In this case, lenders can set a minimum threshold. You can often find a number in size 30,000 rubles.

The bank may require confirmation of wages both in the Personal Income Tax Form-2 and in its own form. The borrower must confirm his pension with a certificate from the pension fund. The only exceptions can be cases when transfers are made to a card opened in the same bank.

Other income may also be considered. For example, if we are talking about a lease, then it is necessary to provide a corresponding agreement. If there is a deposit with monthly interest payment - a bank deposit agreement. Banks can consider the client’s income on an individual basis, and also request additional documents.

The lack of official income is not an insurmountable obstacle to obtaining a mortgage. But in such a situation, as a rule, the bank will not provide more than 50% of the cost of housing.

Guarantors and co-borrowers

To increase the chances that the bank will approve the loan, it is better to involve co-borrowers or guarantors. Any solvent person who meets the bank’s requirements can act as a guarantor. As a rule, only a close relative can be a co-borrower. If the potential borrower is married, then drawing up a guarantee agreement or signing a loan agreement as a co-borrower for the spouse is mandatory in almost all banks.

An initial fee

IN The average down payment on mortgage loans in Russian banks is 20-30%. There are separate offers with a contribution of 15%. It is very difficult to get a classic mortgage in the amount of 100% of the loan value. Most likely, we will be talking about separate programs related to the purchase of an apartment in a new building, the construction of which took place with the participation of the same bank or affiliated structures.

The potential borrower may be offered an alternative option. The most common way to get a mortgage without personal funds is to provide additional collateral. This option is more suitable for people who already own some real estate, but want to improve their living conditions using credit funds.

The second option is to take out a consumer loan to pay the fee. This method requires a considerable amount of income for the borrower and his family members, since they will have to service two loans for several years.

Interest rate

The interest rate is on average in the range of 12-14%. Banks offer lower interest rates as part of individual promotions, which mainly provide the opportunity to purchase new housing.

Today, the lowest interest rates can be found in banks that operate under the government support program for mortgage lending.

Credit term

The maximum possible loan term that Russian banks offer today is 30 years. But the borrower has the right to choose any term that corresponds to his age, and at which the size of payments is correlated with income. Typically, banks enter into agreements only for periods divisible by 12 months.

Insurance

According to current legislation, the borrower must insure only real estate. The list of risks usually includes fire, flooding, destruction under other circumstances, as well as illegal actions of third parties.

Also, almost all financial institutions require the conclusion of a life and disability insurance agreement for the borrower. He has the right to refuse this. But then the bank issues a loan at a higher interest rate. Usually we are talking about 1-1.5% difference.

The third agreement that the bank may require to conclude is title insurance. It provides protection against loss of title to real estate. The question of such insurance arises when the statute of limitations has not passed after the acquisition of ownership by the seller.

Real estate

The most popular mortgage loan object is an apartment on the secondary market. The large and varied supply of such housing has led to the fact that potential borrowers most often turn to the bank specifically for the purpose of such a purchase.

There are also many banks operating in the primary real estate lending market. Moreover, we can talk about both houses that have been put into operation and those that are under construction. In the latter case, the bank will most likely offer a limited list of developers with whom partnerships have been established and who have been vetted.

A loan for purchasing a house with land is not so popular among Russian banks. The only exceptions are new houses in cottage villages with fully completed documentation. The reluctance to lend to private buildings is largely due to land issues. Upon closer examination of the documents, problems often emerge that increase the risk of loss of collateral for the bank.

Special cases

In addition to the usual mortgage on an apartment or house, money can also be taken to purchase other real estate. We are usually talking about purchasing a garage, a parking space, a room in a communal apartment or a share in an apartment. Few banks offer such programs. Obtaining them involves a lot of paperwork, since the credit transaction cannot be called standard, and the bank can review the documents for a long time.

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The term “mortgage” comes from the Greek language and means collateral. If we talk about a mortgage in relation to real estate, then we are talking, first of all, about a loan that is issued on the security of real estate. If the loan is not repaid, the bank sells the collateral and returns its money.

Positive aspects of a mortgage

If your goal is to purchase a home, then naturally you need money for this. When you don't have enough money, you need to take out a loan. When you turn to a bank for money, you can receive an offer of both mortgage lending and non-mortgage lending. With a real estate mortgage, the apartment is immediately registered as the property of the person who purchases it. Even if the payment is not made in full, the bank cannot take away this property from the borrower.

When purchasing an apartment on credit, you can receive additional tax benefits. Benefits are paid to the borrower for the fact that the loan is spent on the purchase or construction of housing and is a targeted loan.

Features of obtaining a mortgage

The bank needs guarantees that you will be able to return the amount lent to you and interest on the loan. That is why, before the bank gives money, you will have to go through a whole procedure and answer many questions. After all, the bank is taking risks. First of all, the lending bank will be interested in what the borrower’s income is. The borrower will have to spend about half of your income to reduce the debt to the bank and pay monthly interest. And the higher the salary on the day the loan is received, the larger the loan amount the borrower can receive.

The bank will also ask: “What price do you want to buy for an apartment, and how much per day can you pay as a down payment?” And the less money the borrower can put down for the down payment, the higher the percentage payable on the mortgage.

Some banks that deal with mortgages take into account only those incomes that are officially received. Other banks are ready to include all additional earnings in your total income. For example, if any real estate is rented out, such income can sometimes exceed your basic income. But if at the time of the loan, the borrower does not work anywhere, he will definitely not receive money from the bank, even if there is additional income. You need to be formal at work in any case. But, if he works for less than six months, then he is also not included in the scope of receiving a mortgage loan.

In addition, many banks require guarantors to obtain a mortgage. If the borrower cannot repay the loan, the bank will collect it from the guarantors. And if nothing can be taken from them, then the apartment will be sold through the court. And with the funds received from this sale, the bank will cover its losses. The number of guarantors directly depends on the amount of the loan taken out. And the higher the income of the guarantors, the larger the amount of the mortgage loan you can receive.

The surest step to start with is visiting a real estate company, which acts as a kind of intermediary in the real estate market. By concluding an agreement with her, the client will receive an experienced and competent professional to help. The realtor will accompany the transaction and warn about all possible “undercurrents”. It is the realtor who will be able to advise the right bank that will suit the particular client and tell him how to behave in order to be sure to get a loan.

Very often, banks provide a mortgage loan, taking into account the amount of funds received not only for the borrower himself, but also for the income of his entire family. In accordance with the Family Code, when applying for a mortgage, banks consider spouses as co-borrowers, or one of them may be a guarantor for the other. This is beneficial for the one who takes out a loan, since the total income is always higher than the income of one of the spouses and, accordingly, the bank will be able to provide a larger loan amount. But, if at the time when you want to apply for a mortgage, one of the spouses does not have income, then the bank has the right to consider him a dependent and deduct the minimum subsistence level per person per month from the income information provided. And based on the amount received, the amount of the mortgage loan provided will be calculated. The total loan amount is calculated taking into account the borrower's income, the cost of living is deducted for each dependent per month, which means a decrease in the loan amount by 3-5 thousand dollars on average.

In addition to all of the above, the amount of the mortgage loan provided by the bank can be affected by the length of work in the last place, the borrower’s education, age and much more.

Risks of a mortgage loan

Mortgage in our country is not only profitable, but also risky. Moreover, this is a risky business not only for those who borrow money, but also for those who are creditors. After all, Russian legislation in matters relating to mortgages is still imperfect and requires improvement on certain legal issues. Inflation and changes in the exchange rate add to the unpredictability of the economic situation in our country even in the coming years, not to mention the next decades. To apply for a mortgage loan from a bank, you need to assess your own strengths and capabilities in advance, and it is better to insure yourself against various types of risks.

Borrower risks. If market prices for housing suddenly decrease, then, no matter how strange it may sound, this is not always good (market risk). Including for you as a borrower. After all, when purchasing an apartment with the help of a mortgage, you do not expect that the price will fall. In this case, you have to overpay quite a lot for the living space you receive. In this case, the bank is also not satisfied. If for any reason you find yourself unable to fulfill your mortgage obligations, the bank will not be able to make up for the costs it incurred in issuing the loan, since the price of the mortgaged property will also decrease significantly.

Another risk that awaits you when applying for a mortgage is associated with changes in the exchange rate. In the Russian mortgage market, all loans are given in dollar terms. You take out a loan in dollars, and you must repay it in dollars. However, few people in our country receive salaries in this currency, and the law of our country prohibits this.

It is almost impossible to independently calculate the possibility of this kind of risk, and therefore it is also quite difficult to protect your income. In most such cases, it is recommended to address this issue to special brokerage firms. Lender risks. First of all, when applying for a mortgage, lenders face the risk of changes in interest rates. And this is quite possible. This happens because the inflation rate can constantly change. For the lender, this risk is that the profitability of the mortgage is reduced. Firstly, rising inflation “eats” part of the profit that the lender expects to receive. Secondly, the bank’s risk is expressed in the possibility of early repayment of the mortgage loan by the borrower.

In the standard mortgage option, the interest paid on the loan received is fixed for the entire term. But this option is the best if the inflation rate is low. If during the entire loan period there is an increase in the level of inflation, then the lender may not return the money that he lent to the borrower.

In this option, banks insure themselves against any risks associated with possible inflation. In this case, various loan options are used, in which there are variable interest rates. But such rates are very difficult to calculate and do not always accurately reflect the level of existing inflation. It is for this reason that in order to attract borrowers for this type of loan, the interest rates on it are set lower than on a loan with a fixed interest rate.

The risk of non-payment or late payment, the so-called credit risk, is naturally dangerous for the lender. After all, it is he who may not receive his income on the mortgage if the borrower turns out to be uncreditworthy.

Specialists calculate this risk at the earliest stages of applying for a mortgage, determining the terms of the loan and the amount of expected payments. You can anticipate all future surprises with the help of special services that check the creditworthiness of a person who wants to apply for a mortgage loan from a bank. In order to reduce credit risk, certain restrictions are used. For example, the monthly payment should not exceed 30-40% of the borrower's monthly income, even though the loan is issued with collateral. Although collateral significantly reduces the risk that the bank will lose its money. But there are pitfalls and currents here too. In our country there is a law according to which debtors cannot be evicted from an apartment that is collateral if this living space is the only one the borrower has.

The risk of early repayment of a mortgage loan is also significant for the bank. In most cases, banks allow you to repay the loan early. Although some of them stipulate certain deadlines during which early repayment of the debt is impossible for you. After all, early repayment entails the lender receiving a large amount of money that must be reinvested. The lender cannot know in advance when early repayment will occur. And this, as a rule, occurs just at the moment of the lowest interest rates.

Property risks belong to the conditional group of risks, that is, these are risks that are related to the object of collateral. For example, the risk of property damage. If the apartment that was pledged, for example, suffers from a fire and becomes uninhabitable, then in this case the borrower’s obligations under the mortgage will not cease. In this case, the risks of property damage are subject to insurance, and in the event of an insured event, the money is paid not by the borrower, but by the insurance company in which the latter is insured.

Calculation of financial possibilities for a mortgage loan

Firstly, the borrower must have sufficient funds of his own to make a down payment for the purchased home. The amount of this contribution can range from 10 to 30% of the cost of the apartment. If there is no such money, then you can still get a mortgage loan, but the interest rate on it in this case will be 1-2 percentage points higher, and, therefore, you will have to count on higher monthly loan payments.

Next, you should balance the size of future monthly payments with your actual income. And although the bank will also be interested in the size of the borrower’s income, it is necessary to estimate whether it is possible to afford a normal life with the funds that will be available after paying the monthly mortgage loan installment. In addition, everyone knows that currently wages are paid “in an envelope,” that is, they are not officially registered anywhere. On the one hand, this is not bad for the borrower, because the real amount of his income is higher than that indicated on the salary certificate and he can afford to live comfortably on this money. On the other hand, the bank will not issue the desired amount if the borrower’s official income is considered insufficient to repay the mortgage loan. True, in this case there is a way out. The bank can issue you a mortgage loan, even without confirming your official income, but in this case the interest rate will be higher by the same 1-2 percentage points.

In addition, you should expect to have to pay for various procedures when applying for a mortgage loan: commission for transferring money, insurance payments, notary services and others.

Mortgage loan to increase income

A mortgage loan is always long-term. It is issued for several years or even decades. Therefore, in addition to financial capabilities, you should evaluate other life circumstances, for example, think about your job. And although it is impossible to foresee the future, especially the distant one, it is important to correctly assess your prospects here too.

First, it is necessary to determine how stable the work is. How reliable is the enterprise or how stable is the business. After all, if the place of work is a potential “one-day company”, then after some time the borrower may lose his job, livelihood, as well as the ability to repay the mortgage loan, and, as a result, the recently purchased housing.

It is quite possible that the borrower is counting on a quick promotion up the career ladder, and therefore an increase in his income. Or, let’s say, according to calculations, his business will have to bring in fabulous profits in a year. But in business there are many pitfalls and anything can happen, and promotion up the career ladder may not take place for many reasons. You need to think about what will happen if your dreams don't come true. After all, living only by dreams and fantasies is, to say the least, unreasonable.

Mortgage loan for family

It is also important to correctly assess the prospects for family life when deciding to obtain a mortgage loan. After all, if the borrower lives with his spouse, then by spending almost his entire salary on repaying the loan, he does not jeopardize the family budget, because and his other half earns something. But if the marriage, God forbid, is in jeopardy, then not only the division of property threatens, but also the inability to repay the mortgage loan with all the ensuing consequences.

Or, say, the borrower is waiting for a new addition to the family. This fact must also be taken into account, because a child is a new member of the family, and the costs for him are even higher than for an adult household member.

There may also be a situation where the borrower is helped financially by his parents, and he counts on their help in the future, so he does not worry about not being able to repay the mortgage loan. But life circumstances may change, parents may, for example, retire and will no longer be able to help.

Here again, it is impossible to foresee everything several years in advance, but you need to at least look at things realistically.

Obvious ways to save money when taking out a mortgage loan

When completing a package of documents, the borrower will have to pay for a number of additional services. You can save a considerable amount of money by paying for these services. For example, processing an application for a mortgage loan in different banks costs differently: from 100 to 200 dollars. The loan origination fee can also vary from 1 to 4%. Therefore, if possible, you should choose a bank where these and other services are cheaper.

The interest rate on a mortgage loan in different banks can again be different and it is wise to choose a bank where this rate is lower in order to ultimately save on loan interest repayments. The same can be said about the services of a notary, independent appraisers, and insurance services: their cost in different institutions may vary. But these saving methods are obvious, so let’s take a closer look at other, less obvious ways to save.

When looking for a suitable apartment, many people use the services of realtors. These services, it must be said, are not cheap, up to 4% of the cost of the apartment. However, you can search for suitable housing yourself. To do this, however, you need to have a sufficient amount of free time, as well as spend some effort, but it will pay off with interest. Since, as you know, a mortgage loan is issued for a long period, it makes sense to look for ways to reduce monthly payments; this can save a significant amount. And such ways exist.

The mechanism for repaying a mortgage loan is such that the interest on the loan is repaid first, and only then the loan itself. Consequently, if from the first months you pay as a monthly payment an amount greater than what is stipulated in the contract. The difference will go towards repaying not the interest, but the mortgage loan itself, which will lead to a reduction in the amount of the principal debt, and, consequently, the interest on it. The interest rate depends on the size of the down payment and whether there will be a down payment at all. Therefore, the more you put down as a down payment, the more you will save on monthly payments later.

The term for which the loan is issued also plays an important role. The longer the term, the higher the rate. Therefore, here we need to weigh everything carefully. You should not strive for the maximum period. After all, if you take, for example, a loan for 10 years, then the monthly payments will be, say, 1000 USD. If we take out the same mortgage loan for 20 years, then the amount repaid monthly will be 800 USD. (the figures are conditional, but in general they show that the difference in the amount of payments will not be very significant). But 800 USD you will have to pay over twenty years, and 1000 - only ten. As a result, we find that in the case of a mortgage loan for 10 years, the total amount of payments will be 120,000 cu, and with a term of 20 years - 192,000 cu.

Bank selection

The first thing you should pay attention to when choosing a bank where the borrower will take out a loan is, of course, the interest rate on the mortgage loan. Of course, the lower it is, the better. This has already been discussed in previous articles and we will not dwell on this in detail. However, there is one important point: the interest rate can be fixed or floating, that is, it can change over time. Don't be fooled by this opportunity. After all, if, say, a floating interest rate is set in the range from 11 to 15%, the borrower subconsciously counts on the lower level of interest, and the bank, naturally, on the upper one. And although the lower level of interest rates in this case often looks very attractive, such a transaction can be very risky.

An important factor when choosing a bank is the size of the down payment. World practice is that its size is usually 30% of the cost of housing. The same amount is established by the Government of the Russian Federation. However, many banks, in order to attract customers, reduce the amount of the down payment. In this case, as a rule, the interest rate on the loan becomes higher. Therefore, when choosing a bank, you should compare the size of the down payment and the level of the interest rate.

In addition, different banks have different amounts of additional costs for applying for a mortgage loan (review of the application, real estate appraisal, opening a loan account, etc.).

When choosing a mortgage bank, you should also keep in mind the fact that not every bank works with mortgages on the primary real estate market. This is understandable: when investing money in a new building, the risks increase many times over. After all, a house may take quite a long time to build, or may not even be completed at all; during the construction period, the cost of apartments in it may change, both up and down. Therefore, most domestic banks prefer to work in the secondary real estate market, as it is more reliable.

When choosing a mortgage bank, you need to ask whether such an operation is possible in the future, or at least whether early repayment of the loan is possible. If there is a moratorium on early repayment, for how long is it valid? The period for which the bank is willing to issue a mortgage loan is also an important factor. Not many domestic banks will agree to issue a mortgage loan for a term of more than 20 years: times of change and general instability have had their effect. Therefore, such long-term financial investments are generally unpopular in our country. The maximum term that can realistically be expected is 27 years. But most often the term for which a mortgage loan is provided is from 10 to 15 years. But since we’re talking about deadlines, it’s worth mentioning that when choosing between different mortgage banks, you also need to pay attention to the period for reviewing an application for a loan. It can range from 1 day to 1 month.

Mortgage loan repayment terms

Repayment of a mortgage loan can occur either in equal parts throughout the entire payment period (annuity loan) or in decreasing installments over time (differentiated loan). In the case of a differentiated loan, the first payment on it (not to be confused with the down payment) will be the largest. Then, each month the mortgage repayment amount will be less and less. If the borrower is able, according to his financial capabilities, to pay monthly the amount that he paid in the first month, then he can safely pay this amount on an ongoing basis, despite the fact that he is already obligated to pay less. This will shorten the repayment period of the mortgage loan. In addition, the total amount of payments will be reduced due to the fact that not only the interest on the mortgage loan will be repaid, but also part of the principal debt. Of course, the payment mechanism described above is only possible if the bank does not object to the early repayment of the mortgage loan.

In general, the practice is that banks, as a rule, oppose it, because in this case, by reducing interest, they lose part of their profit. But, nevertheless, recent studies show that early repayments of mortgage loans in Russia are widespread.

Typically, when applying for a mortgage loan, the borrower receives a loan payment schedule. Different banks may have different attitudes towards meeting repayment deadlines, but it is unlikely that anyone will like it if payment deadlines are systematically violated. Violation of mortgage loan repayment terms may result in penalties. Therefore, it is important to always remember these deadlines and strictly adhere to them. At the same time, in order not to find yourself in an unpleasant situation, do not forget that late in the evening or on weekends the bank’s cash desk may not be open. To avoid such incidents, it makes sense to conclude an agreement with the employer to withhold the amount of the monthly payment from the salary and transfer it non-cash to the lending bank, if, of course, this is possible.

Tax deductions

In addition to your own income, you can use other sources to repay your mortgage loan, for example, tax deductions. Its essence is that the income of a Russian citizen can be exempt from income tax in the amount allocated for the construction or purchase of finished housing. The amount of tax deduction can be quite significant.

To obtain a tax return, you need to submit the relevant documents to the tax office (a purchase and sale agreement for residential premises, receipts for loan repayments, etc.), after which the borrower will be refunded the amount of income tax overpaid in the past calendar year. And, of course, tax deductions are relevant only for citizens receiving a “white” salary, since recipients of a “gray” salary do not pay taxes anyway.

Maternity capital is an alternative source of mortgage loan repayment

As you know, since January 1, 2007, the law on maternity capital has been in force in Russia. According to this law, a woman who gives birth to or adopts a second and subsequent child after January 1, 2007 receives maternity capital in the amount of 250,000 rubles. In subsequent years, this amount will change to adjust for inflation. So, this same maternity capital can be used in whole or in part to repay the mortgage loan. True, it will be possible to take advantage of this opportunity only after January 1, 2010, since the law provides for the provision that the use of maternity capital is possible only after the child reaches 3 years of age. But this method of repaying a mortgage loan should not be written off.

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:

Federal Law of the Russian Federation “On Mortgage (Pledge of Real Estate)” dated July 16, 1998;
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.