All about mortgage loans for young families in Russia through the eyes of the borrower

The post below is devoted to a detailed description of the mortgage lending system in Russia and written by our reader Vitaly Zheltyakovym. The publication will be a good response to our past material, which we call mortgage loans in Russia and Ukraine suicide.

foreword

As it is not repugnant, but the mortgage - this is part of the modern Russian reality. Of course, it is possible to live in Russia, and without it, but sometimes it is difficult.

I ipotechnikam, which has long walked to his one-bedroom apartment and would like to share the experience of going through this way.

What is a mortgage?

Mortgage - a loan with collateral property.

How does mortgage lending in general?

A person wishing to purchase a property, goes to the bank and takes the credit (usually very large loan) and collateral banks provide their housing, he buys on credit money. Then he pays a certain time the loan and eventually gets this accommodation to complete their property.

The first mortgage is a big minus - is that it greatly limits the young family financially

. If you take a mortgage in the short term (5-15 years), then give the bank accounts are usually about half of the family income. Respectively, have to live in the other half. In this scenario, you can forget about major purchases, sea trips and freer life.

If you take a mortgage in the long term (15-30 years), the financial plan will be a little easier, but there is a different second big disadvantage - it is difficult to change mortgage terms. Long-term mortgages harder to prepay in small amounts, as interest are repaid first. As a result, housing, pledged under a long-term mortgage, it is very difficult to change. That is, if for example, a young family took a 1-bedroom apartment in the mortgage for 30 years, it is likely, in this 1-room apartment she will live the next 30 years and to pay bank debts.

It would seem that it is better to take a mortgage for a shorter period, to exist a few years, having tightened the belt, and then happily live in your apartment. But here we are waiting the biggest disadvantage of the mortgage - is difficult to get a mortgage with good conditions. The vast majority of young families about this minus not even think. They usually think in the following way: "banks are interested to give mortgages - it suits them, so they compete with each other for customers, and to get a mortgage with good conditions easily." In fact, banks are thinking not only about the benefits but also the risks. And in view of the fact that he wants to get a mortgage more than enough, the banks rather rigidly restrict the terms of the loan and those who do not fall under these conditions, "punish the ruble." In the end, it turns out that to get a mortgage with good conditions to be almost ideal client.

If mortgages are a big minus, the young family can be better off without it?

It all depends on the situation. I will consider the average young family where the husband and wife do not have rich parents and they are up to 30 years.

Young family can live with their parents, or remove housing. It is cheaper than to get a mortgage, but I must say that is futile. In this situation, a young family expects either to save money or take housing parents. As a result, the young family money in her apartment not accumulate, living hand to mouth until the death of the parents, then the parents gets an apartment and live in it until his own death. Problems of this disposition of obvious: long life on the Rights of the bird, a young family goes to the old parent housing, and most importantly, that their children have nothing left.
Another option - is to get an apartment from the state. There is usually a young family expecting a big bummer. Soviet period was over, and the current president of the more *****. There are several programs, which you can get accommodation.

First, the federal subsidy program. They can make use of the disabled, war veterans and victims of disaster disasters. As you can imagine, a young family is usually a group of people that does not fit.

Secondly, there is the federal program "Help the young family", which provides housing for young families with complex conditions of dwellings. This group includes families with children under the age of 35 years. But the president of the Socrates program in the early 2000s. For example, in Volgograd, about 600 families are now waiting to receive the certificate on the property in the year 30-40 issued certificates. I think it is clear - this is not an option.

Third, municipal housing programs. Typically, these programs are intended to support the officials or the machinations with the ground. What sort of fraud, you can find yourself on the Internet. That is, there is also a young family to do nothing.

As a result, we see that for most young families a suitable option with a mortgage.

Tips and points that can help a young family with a mortgage

What to look for when taking a mortgage

Firstly, the interest rate. Even the contrast rate of 0.5% per cent for large and long-term loan is an overpayment in the tens or hundreds of thousands of rubles. Here, tactics are very simple - to look for the lowest rate.

Secondly, it is necessary to pay attention to the amount of insurance. Very often it is removed from the calculation, although the amounts there are decent. Many banks represent insurance equal to 0.5-2% of the principal debt, divide the amount of data that it seemed small, but the total amount of insurance will be very large. Here, the following advice: consider immediately the amount of insurance for the entire period. Sometimes it is more profitable to take a loan with a higher interest rate and a small insurance than low rate and big insurance.

Thirdly, pay attention to the early repayment scheme. Evaluate how it suits you. Absolutely all adequate family sooner or later begin to repay the loan ahead of schedule.

Sale of property, pledged under the mortgage

Many people think that this is impossible. In fact it is not. Banks allow you to sell / change the property, pledged under the mortgage. Young family or completely extinguishes the loan after the sale, or laying a new living space. Thus to get rid of the mortgage can be fairly easy, though losing housing.

Mortgages and debts

Very often there are stories about how the bank took the apartment for the debts on the mortgage. Yes, it happens, but rarely.

Banks are beginning to take an interest in the debtors with non-payment of the debt within 3 months - starting calls managers. If the debtor still does not pay interest and fines, the bank shall submit an application to the court, and there is the arrest of the apartment. The debtor is subject to criminal liability.

Under such a scenario will only include complete idiots. After all, you can always sell the apartment and get rid of the mortgage. So do not be afraid of bad stories.

Mortgage and child

At the beginning it should be said about the maternity capital. State in order to support the birth rate among the population allows for the 2nd child a little more than 400 thousand. rubles + regional subsidies up to 100 thousand. rubles. For the first, third, fourth and further children are given only a regional grant. This money can be spent to pay off the current mortgage, or use as an initial payment. Of course, not flat as it was under the Soviets, but better than nothing.

If a young family the child gets to obtaining a mortgage (so does the majority), they fall into a very difficult situation. For banks, the child - it is dependent, which dramatically lowers the credit of an attractive young family. family income is just not enough to get your desired loan. Usually this leads to the fact that the family lived for several years on a removable housing, or the parents, until the maternity leave does not end and the mother goes to work.

To give birth to the second child for the parent capital even more worst idea since mortgage you then just to be seen.
If a young family have a child after obtaining a mortgage, it is contrary to the favorable conditions. All municipal and federal grants can be directed to repay the current mortgage. The birth of the second child and receive maternity capital in this case is a very tangible impetus for debt repayment.

Mortgages and shares,

To get a mortgage on the shares, you can not (legally possible, but the banks do not give such loans). But the shares, you can buy a regular consumer credit. In just a few years to pay the loan. Then sell the shares, take a mortgage and buy a full apartment. In financial terms, this is a very profitable scheme, much better than saving money for several years (even in deposits). The downside of this scheme are living in the shares, and additional running with the purchase / sale.

The federal program "Affordable Housing"

Many mortgage holders remember black day in the calendar 04.04.2011When starting a new program "Affordable Housing". For six months after that date mortgage rates have increased by 2%, and housing prices have increased by 15%. But, paradoxically, this program is a loophole to get a mortgage on good terms with the government support. Terms of really enticing - the rate of about 10%.

To get this rate you need to buy an apartment in novostoroyke, take out a mortgage for a short time and have a high initial payment. Under such conditions, only those families can get that have a large savings or used to make another circuit.

Pledge housing parents

As collateral for a mortgage, you can use the property of parents. This is a risky technique since there is the possibility of losing a parent housing. By this reception should be used in two cases.

Firstly, to make another purchase. Mortgage loans more favorable to the consumer and it will provide a good start for a family without savings.

Second, to reduce the required down payment. The initial payment is determined by the ratio of the loan and collateral. Increasing collateral, we reduce the required down payment.

early repayment

Prepayments are most effective at the beginning. The sooner you start to repay the loan ahead of schedule, the less interest you have to pay.

Here lies the most effective method to pay less money for mortgage. If you pay off the next payment on the loan and thrown on the early repayment of any sum, this sum will go entirely to the repayment of principal. That is, on the early repayment of the interest will not be charged.

For example, a loan of 1,000,000 rubles for 15 years at 14% will have a monthly payment to 13.300 rubles. If we are to repay the loan on a monthly basis 15,000 (1,700 rubles as early redemption), then we will pay the entire loan in about 8 years. This is due to the fact that the full amount goes to the early repayment of principal repayment.

afterword

In this article I tried to show highlights and related mortgages for young families. Of course, it's not possible to cover, so do not throw tomatoes.

Finally, I want to ask readers to - if you have a friend of the young family that wants to have a shelter, let them read this article. Perhaps for this they will tell you thank you very much.