The mortgage has already firmly entered our lives, and this is not a secret. Many families, especially young ones, resort to this service, which allows you to purchase real estate under favorable conditions. The main advantage of a mortgage is that the cost of the apartment, together with interest for a kind of loan, is divided into 15-20 years, which allows you to make an acceptable amount every month.
Today, Russia presents various types of mortgage lending, which differ in their terms. First you need to consider the concept of "mortgage": what does it mean and where did this word come to us?
What is a mortgage?
This term has its roots in the VI century BC. e. At this time, the concept of hypotheca appeared on the territory of Greece, meaning the debtor’s liability to the creditor related to land ownership. In Roman law, a mortgage was the key to real estate.
In our country, this term first appeared at the end of the XIX century and was borrowed from Europe. Mortgages at that time were synonymous with the word "collateral." In Soviet times, there was no law on mortgage lending, since no one needed it.
In 1998, the President of the Russian Federation signed and enacted the Law "On Mortgage", which is the first to regulate collateral activities. Currently, the term "mortgage" means a pledge agreement.
Mortgage objects and subjects
As already noted, mortgage lending implies that the purchased property will be pledged at the time of loan repayment. A mortgage is a contract, the parties to which are the object and subject of legal relations. The following are the possible objects of mortgage lending:
- apartments, houses, as well as separate rooms;
- a land plot that does not belong to the state and does not belong to municipal property, and also exceeds the minimum allowable area;
- garages, summer residences, as well as other structures and buildings intended for consumer use;
- enterprises that find application in entrepreneurship;
- sea vessels.
An important role in the design of the mortgage plays the lender. This may be a bank or other legal entity that will keep records of loan repayments. Mortgage lending to individuals is carried out only after making the down payment.
In addition to lenders, the subject of the agreement may be an investor who buys securities that are secured by mortgage loans.
Mortgage device
To implement a mortgage loan, special securities are issued, called collateral. A sale by a bank of these securities provides the funds necessary for issuing mortgage loans. This is a very reliable type of securities that brings solid interest. The collateral paper indicates the property that relates to it.
Mortgage lending in Russia is becoming increasingly popular, and people who decide to take this step should clearly know how the mortgage system works. The coupon book, which reflects the amount and date of payment of mortgage interest, must be mandatory contained in the pledge paper. People who have taken advantage of this kind of loan, first pay interest, and then the main debt.
The fact that a mortgage is taken for a long term, greatly facilitates the repayment of the loan. However, if the loan debt is not fully paid, the property will become the property of the mortgage bank. That is how the mechanism of mortgage lending currently works.
State assistance
Since 2009, there has been a state support program for mortgages aimed at people who are unable to improve their living conditions due to low incomes. However, only in 2015 this program became popular. About 250 billion rubles were allocated to improve the living conditions of citizens.
State support for mortgage lending consists in the fact that the payment of a certain part of the debt is undertaken by the state. However, taking a loan under such a program is not easy, since far from all banks agree to such conditions. You can use such a program only in the largest banks of the country.
The essence of state support is the contract between the bank and the state. The bank reduces its interest rate to 11%, regardless of what it was originally. The difference between the initial and final rates (11%) is paid by the state. To become a member of this program, it is not necessary to belong to the social category of the population. Anyone can take a loan under such conditions.
Mortgages
Currently, due to the fact that the number of such loans is growing, there are many different types of mortgages. Mostly, commercial banks issue loans, the main purpose of which is to make a profit.
All types differ among themselves in terms of lending, the features of their receipt. At the moment, mortgage lending to individuals can be divided into two segments:
- acquisition in the primary real estate market;
- purchase in the secondary real estate market.
The whole variety of types and types of mortgages will be discussed below.
Apartment in a new house on credit
This species is especially popular at the moment. However, despite all the visible advantages (a new apartment, no one had lived before), there are a number of disadvantages. Very often a situation arises when a house does not rent out on time or for a long time is not registered with a certain state body.
Also, one of the main disadvantages of the new building is a long registration in the property. In addition, it is quite difficult to get a loan to buy a new building, since not all banks are involved in this. If, nevertheless, the bank accepted the application, each case is considered separately. A lot of factors affect the final decision, among which are finding out who is the builder, investor, what are the deadlines for renting a house, etc. Apartments in new buildings can be purchased quite inexpensively, and a mortgage becomes a good option in such conditions. When choosing a apartment, a young family almost always prefers a new house.
Apartment in the secondary real estate market
Features of this type of mortgage lending include rather quick processing and comparative ease of obtaining. In this matter, you need to contact several banks, even in case of failure. After all, the reason why one bank was rejected will not be sufficiently thorough in another.
As already mentioned, such a loan is easier to obtain than in a new building, in particular because there are few reasons for refusal. Among them:
- the seller redeveloped the apartment and did not register this fact;
- legal cleanliness of the house, perhaps someone lived there with an unfavorable history.
Social Type of Mortgage
This type of mortgage lending is intended for socially unprotected sections of the population, as well as people on the waiting list who do not have the opportunity to buy property on ordinary conditions. There are two types of social mortgages:
- intended for the waiting list when the down payment is provided by the city in the form of a subsidy;
- a loan is provided at construction cost prices; six months later, the recipient of this loan can pay the debt without any interest.
In the future, it is planned to purchase real estate under the social program from the developers themselves at market prices. But the waiting list will also be able to take advantage of this by paying subsidies for the apartment. The longer you stand in line, the greater the amount of subsidies. The waiting list is also able to buy real estate, which was built not only by the city.
Type of mortgage for young families
The problem of acquiring real estate for newly-married spouses is especially acute. Banks do not want to take risks, and the interest is quite high, since the future of young professionals is unpredictable. Recently, however, some banks are moving towards the young and are creating new programs.
Basically, mortgage lending programs of this kind are aimed at reducing the down payment and at the maximum loan term. If one of the spouses is not 30 years old and has a child in the family, the initial payment may be 10%. If the young specialists are already arranged for promising work, the down payment becomes even 5%, and the mortgage is issued for 25-30 years.
Of course, in modern conditions, one of the most realistic options for buying a home is a mortgage. A young family is looking for different ways to improve credit conditions. The main problem is to prove serious intentions to the bank. If this can be done, the bank will not refuse.
Build Together Program
The types of mortgage lending are very diverse, and in each of them certain programs are created. The essence of “Building Together” is a long installment plan, which is repaid at the expense of the population.
The task of the person who is going to buy housing is to save about 40-50% of the cost of the apartment, and the cooperative adds the rest. As soon as real estate is acquired, it becomes the property of that person, but on bail. The part that the cooperative gave away must be paid within a maximum of 20 years. Then the deposit is withdrawn, and the person becomes the full owner.
Military Mortgage Program
All mortgage lending programs are aimed at improving loan conditions, and this is no exception. This is a funded housing system for military personnel.
Features of the mortgage lending of this program are that the military, who concludes the first contract, has the right to a certain kind of deductions. Every year on average about 250 thousand rubles are credited to a soldier’s account. He can use this amount after the expiration of the old contract and when signing a new one. The amount that has accumulated over several years goes as a down payment.
The rest of the loan is paid by the state while the military is contractually serving in the army. As soon as it ceases to be a military, the state ceases to pay, and the rest of the loan must be paid on its own.
The project "Affordable and comfortable housing - for citizens of the Russian Federation"
The aim of this project is to increase the availability of mortgages for residents of Russia. Everyone knows that for many people, the only chance to purchase housing is a mortgage. Young families are no exception. They are mostly denied a mortgage.
Project participants have no problems with this. In addition, the percentage of mortgages is reduced. This project was developed as part of the social type of mortgage lending. Its main difference from the commercial one is the special (preferential) cost per square meter. As part of the social mortgage, the bank is obliged to insure the borrower and the housing area itself, as well as maintain a certain rate until the end of the loan.
The development of housing mortgage lending is possible thanks to such types and programs that are aimed at improving housing conditions, both for young families and for socially vulnerable segments of the population.
The advantages and disadvantages of mortgages
Types of mortgage lending, regardless of each other, have their pros and cons. This is characteristic not only for mortgages, but also for any loans. So, the advantages:
- for a large number of people, a mortgage is the only chance to purchase their own housing;
- a mortgage is issued for a long period, and people have the opportunity to pay small amounts;
- in the apartment you can register your relatives, as well as make repairs to your taste, in general, give money for your potential housing.
The disadvantages include:
- formally, an apartment taken on a mortgage belongs to a bank, and a person cannot sell it or donate it;
- during the loan a person pays the cost of 2 or even 3 of these apartments, as the term is too long;
- if a person stops paying, the bank takes the apartment and puts it up for sale in order to cover its expenses, the rest is returned.
Most people at one stage or another in their lives wonder about whether to take an apartment on credit. Mortgage lending in Russia has many shortcomings, but still in the modern world this is one of the few chances to buy your own housing. The main thing is stable work, which will help to gain the trust of the bank, as well as improve the conditions of the loan. The state has recently been creating many programs that are designed to facilitate payments and help people to purchase housing.