A mortgage loan usually takes more than one year to repay and places a serious burden on the family budget. A small difference in interest, commissions or insurance payments results in a considerable overpayment over the period of validity of the loan agreement. How to find the best lender for purchasing a home? Today we are talking about how to choose the right bank for a mortgage.
Wishes and possibilities
The conditions for issuing a loan for the purchase of an apartment on the secondary market, new buildings and houses may be different even from the same lender. There are also restrictions on the technical characteristics of the object. This may be the year of construction, materials of walls and ceilings, number of floors, etc. Often such requirements are different for Moscow and the regions.
Next, the borrower must decide on the size of the down payment and, accordingly, the loan amount. It must be remembered that Buying a home with a mortgage requires a number of additional costs and you should not expect that all the available money can be spent on paying the fee.
The next step is to correctly assess your personal budget. The borrower must understand how much he is willing to pay monthly. It is not recommended to apply for a loan on conditions where the obligatory payment is on the “border of the possibilities” of the budget.
A potential borrower must evaluate his attractiveness to the bank. If there are no official incomes or their amount is insufficient, then it is difficult to count on low interest rates. This also applies to borrowers who have little work experience, less than ideal credit history, or have debt from other banks. Age also plays a role. It is worth noting that the maximum number of years that banks indicate in their requirements means the age of the borrower at the end of the loan agreement, and not at the date of its conclusion. Therefore, not all borrowers can count on receiving a long-term mortgage, even if the bank declares it.
Once the potential borrower has figured out his wishes and capabilities, he can begin searching for the optimal lender.
Stability and reputation
It is better to take out a long-term loan in banks that have been operating in the market for many years and have a good reputation. You should start your search with large financial institutions. Their rates most likely are not the lowest, but the client will have more confidence that there will be no unpleasant surprises during the process of obtaining a loan and servicing it. Of course, no one can guarantee that the bank will not go bankrupt in the long term. But this probability is much less in relation to large market participants.
In addition to large banks, It is worth paying attention to credit institutions that specialize in mortgage lending. They, as a rule, have several programs and are ready to select the optimal conditions for each client. The procedure for approving and issuing a loan in such banks usually goes very quickly.
A good sign for choosing a bank is that it has a large number of different mortgage programs, partnerships with developers and realtors. Sometimes banks have their own database of housing that is put up for sale. All this indicates that banks are very attentive to the direction of mortgage lending.
Finding reviews about the bank on the Internet is not difficult, but it is difficult to assess their credibility. A good and laudatory review may be ordered, but a bad review could be written by an offended client who himself did not fulfill the terms of the contract. It’s better to try to talk with real bank clients who have taken out a mortgage loan before and can tell you about all the nuances of the financial institution’s work.
Real cost of loan
Very often on websites or in bank advertising brochures you can see the preposition “from” next to the interest rate. Its size can be very attractive, but in practice this is not always the case. That's why, Before choosing a bank to get a mortgage loan, you need to find out its real cost, which depends on:
- interest rate;
- the presence and size of additional commissions;
- the amount of insurance payments;
- schemes for calculating the repayment schedule.
The bank usually offers the lowest rate to existing clients with a good reputation. Therefore, you should start your search for a lender with the bank where the potential borrower has previously been successfully served.
The bank does not always give the client the right to choose a repayment schedule. As a rule, the annuity schedule is used more often. If, due to personal circumstances, it is more convenient for the borrower to repay the debt according to a differentiated scheme, then it is worth clarifying this possibility at the first consultation with the bank.
According to current legislation, Only real estate insurance is mandatory, which acts as collateral. But very often banks also require that you conclude a life and health insurance agreement, as well as title insurance. If the borrower refuses, the interest rate increases. This point must also be taken into account when choosing a bank, since additional insurance payments make the loan more expensive to service. Banks very often impose certain insurance companies on the client, whose tariffs are sometimes not the most interesting on the market.
Special conditions
Banks often offer special conditions for certain groups of clients or for the purchase of a certain type of housing. For example, if a family has the right to maternity capital, then you can use the certificate when applying for a mortgage loan. It is necessary to find out which banks accept certificates, as well as the conditions for providing such loans.
There is also Government program, according to which banks are able to provide mortgage loans at lower interest rates. The peculiarity is that the apartment can only be purchased in a new building. If the borrower wishes to purchase such housing and meets all other requirements that are put forward under the subsidy program, then such a mortgage will be the best lending option.
There are also programs for young families, military personnel, public sector workers. If a potential borrower falls into one of these categories, it's worth looking for these special offers.
It is also necessary to pay special attention to the promotions carried out by banks. Their action is aimed at attracting new customers. Such conditions can be very interesting, but require very careful study. Attractive rates may hide fees or restrictions on early repayment.
Ease of receipt and service
Of course, the size of the costs associated with servicing the loan plays a primary role, but do not forget about convenience. All other things being equal, it is better to contact a bank that is geographically easily accessible. Not all issues in the process of servicing a mortgage loan can be resolved over the phone or through Internet banking. The presence of a large network of branches also plays an important role. If you are in another locality, you can easily pay a loan or get ongoing advice.
Personal visit
Almost all information can be found on the bank’s website and by telephone. But it is better to visit the branch of several banks with the most favorable conditions in person. First of all, this will allow you to get an idea of the format of working with clients, because the borrower will have to communicate with employees of the financial institution for more than one year. It is worth paying attention to how qualified the specialist is in answering your questions. If he cannot clearly answer questions, or his information differs from that posted on the bank’s website, this may indicate possible problems in issuing and servicing mortgages.
It is worth asking for a preliminary calculation of the schedule and additional costs in writing.. It is also necessary to read the text of the loan agreement. If it is difficult to figure out individual points on your own, it is better to consult a lawyer.
Currently, the issue of purchasing housing is very acute. An apartment is expensive, and there is often not enough cash to buy real estate.
And here banks come to the rescue, helping to purchase housing by providing...
What is the essence of mortgage lending?
Mortgage presents cash loan, the main conditions of which are the impossibility of paying the amount in full. The bank has every right to take away the property that is pledged.
A mortgage can be issued not only for the purchase of a house or apartment. It can also be given for other needs, for example, for the purchase of luxury jewelry or for other needs, the main thing is to make a deposit in the form of real estate.
Mortgage lending differs from the mortgage itself in that in the first case the bank issues a loan for the purchase of an apartment, which is already will be collateral.
If for some reason a citizen is able to make payments, then the bank has the right to dispose of the property at its discretion.
This type of loan is issued for a period from 5 to 30 years, and all this time is divided into equal payments after the same period of time.
One of the advantages of a mortgage is that it comes with a reduced interest rate.
Which program is more profitable to choose?
Having decided to purchase a home with a mortgage, the question immediately arises: which program is better to choose so that the overpayment is as small as possible and the interest rate is not too high?
Firstly, you need to decide what is a priority: deposit a large amount of money, but pay off in a shorter time, or pay for quite a long time, but small payments.
It is this question that a citizen must decide for himself first of all before getting a mortgage.
Russian banks offer a fairly large number of programs for. They all differ in the interest rate, as well as the period for which it is issued.
In order to choose a loan with the most favorable conditions, It is best to contact large banks, which have existed for quite a long time and cooperate not only in Russia, but all over the world. It is here that the interest rate will not be high enough, and the conditions for issuance are not so strict.
To find out which bank is the most profitable to take out a mortgage, let us compare the conditions in the largest Russian banks:
Speaking about mortgages and its programs, first of all you need to weigh all the conditions, calculate possible situations and decide which offer is the most profitable.
How to choose a reliable bank?
When choosing a bank from which a person wants to get a mortgage, many conditions must be taken into account:
Differences in the package of necessary documents and guarantees in different banks
For any bank there is a certain package of documents that is mandatory when providing mortgage lending. These documents include:
- a form to fill out to receive a loan;
- passport;
- a copy of the work book;
- income certificate.
Some banks ask to provide an employment contract and a certificate of state pension insurance.
In addition to the required documents, there is also a package of additional ones that are provided if there is not enough information in the first one. These include:
- documents for the purchased apartment;
- circuit with ;
- characteristics of the living space;
- real estate seller's passport;
These documents are not requested by all banks.
It is also possible that they will ask for a document that confirms graduation from educational institution. Certificates that state that there is some other real estate, as well as property that is owned by a person.
There are banks that require the following:
- military ID;
- marriage or divorce certificates;
- marriage contract;
- children's birth certificates.
To the package of documents Each bank has its own requirements. Therefore, they differ from each other in quantity.
What should you pay attention to when concluding an agreement with a bank?
When signing the contract, you must carefully study this document:
It is important to pay attention to all the conditions under which any change to the contract is possible.
How is the risk of issuing a loan assessed?
After the borrower has submitted all the necessary documents to the bank to apply for a mortgage, the latter begins verification. First thing the accuracy of all data is checked which the citizen stated.
Then The bank starts calculating risks, in the event of which a person will not be able to make scheduled payments. They are accounted for by special programs that analyze absolutely all cash payments for previous loans, borrowings and other transactions related to funds.
A special role is played by the credit history, which is formed for every person who has taken out a loan at least once.
After calculating all possible options, assessing the applicant’s income, and also checking the credit history, the bank decides to issue a loan.
What to do if a loan is refused?
Banks have many reasons for refusing - it could be fear of contacting scammers, or insufficient income to receive the required amount.
If a citizen is denied a loan, you can try to apply for a smaller amount, or change the time period for which the loan is taken. In this case the bank must reconsider the application.
If you refuse, you need to ask for a credit history, maybe it’s all about it. If you have a bad credit history, the bank is unlikely to issue a loan.
They can also refuse if there are debts on utility bills. In this case, it is necessary to close all debts and apply for a loan again.
What is more profitable - rent or mortgage? A detailed review is in the video below.
Before applying for a mortgage loan from a bank, it is important to study the available lending programs and assess your own solvency.
Remember, these are long-term commitments (minimum 10 years), so it is very important to choose a reliable bank with a good reputation.
What should you pay attention to first?
First, you need to evaluate the interest rate on the loan offered to you, on the basis of which you can judge the profitability of the offer. It can be fixed or floating, but don't get too excited if the second option is offered. The fact is that most likely it will not decrease, because this will lead to a decrease in the bank’s earnings.
Make your choice of bank based on the size of the down payment that needs to be paid.
The legislation of the Russian Federation establishes a standard contribution amount of 30%, but some organizations, in order to attract more clients, began to slightly reduce the percentage, thereby making offers more affordable.
Others offer to take out a mortgage without having to make a down payment. Be wary of such offers; most likely the interest rate will be too high and you will not receive any imaginary benefits.
Important point! When thinking about which bank to choose for a mortgage, ask in advance whether there is a need to additionally pay for insurance, notary services, appraiser, and whether there are any hidden fees.
Analyze which option is preferable for you: first save money and make a large down payment, or take out a mortgage, under the terms of which the interest rate will be inflated.
Find out in advance what the maximum available amount can be received. Otherwise, it will turn out that the bank operates with completely different amounts and these funds will not be enough for you.
Technical issues
Are you wondering how to choose a bank for a mortgage? Another important aspect that is worth considering: not every organization can take out a loan to buy an apartment on the primary market.
There are many explanations for this, and the key reason is unjustified risks. If an organization issues funds for the purchase of housing in a house under construction, then it already has verified developers whose reliability there is no doubt about. This is also convenient for the client, because there is no need to be afraid of freezing construction for an indefinite period.
Each person must choose which bank has the best mortgage, taking into account their needs. Find out about the possibility of refinancing a loan and early repayment of debt.
There is always a possibility that the financial situation may worsen, and the debt will need to be repaid at the same rate.
Early repayment is another stumbling block, because some organizations impose a moratorium on this. Ask what penalties will be applied to you if the payment is not made on time. This could be either a simple fine or unilateral early termination of the contract.
Finally, here are a number of criteria for choosing a bank to apply for a mortgage:
- on the availability of various mortgage programs. It’s not bad if he has already concluded partnership agreements with developers;
- Are there various types of benefits, which is especially important for people who have subsidies or plan to use maternity capital to pay the down payment;
- What penalties will follow for delays? If you miss this moment, then you will have to pay a serious amount for inattention. Ask the consultant whether early repayment of the mortgage or the possibility of restructuring is allowed - in a word, everything that is called customer loyalty;
- study the website of the selected bank. Every self-respecting company has its own resource; information about the bank itself is posted here and all the requirements for a potential borrower are described. This way you can find out in advance whether you are suitable and whether it is realistic to get a mortgage.
Create a table in Excel in which you enter all the potential partner banks you have selected. In the adjacent columns, make a simple comparison of the terms of the loan program: interest, fines, commission amounts, the amount of the monthly payment, which we recommend calculating in advance.
Don’t rush to choose the one with the lowest interest rate; carefully compare all the parameters. It is likely that the overpayment in this case may be greater than in the others, and will be compensated by insurance and various types of overpayments.
Good reputation and stability above all
It is best to apply for a long-term mortgage loan from time-tested banks that have earned a good reputation and value it.
Start with the largest financial institutions; they usually offer the most suitable programs and there will be no unnecessary problems in the loan application process.
Pay attention to those market participants whose main specialization is mortgage lending. Usually in such companies the procedure for issuing money is very fast, and the client will be helped to choose a program that is ideally suited to his requirements, of which there are many.
Some banks enter into agreements with developers and realtors and offer housing for sale from their own database. This means that the organization is responsible for its work, cares about its reputation and clients, and therefore it is safe to take out a mortgage here.
As for reviews about a specific institution, we would not recommend focusing on this parameter as the only correct one.
Today it is not difficult to order positive reviews about a company from fake people, and negative ones could also be written by a close competitor or a client who himself was unable to fulfill the terms of the contract.
It’s better to pay attention to what your friends and acquaintances, as well as real clients who have used mortgage lending services, say about the chosen bank. In any case, you need to approach the choice of a lender thoroughly, because this cooperation will last for at least 5-10 years.
More about the map
- Duration up to 5 years;
- Loan up to 1,000,000 rubles;
- Interest rate from 11.99%.
| Loan from Tinkoff Bank | Apply for a loan |
More about the map
- According to the passport, without certificates;
- Loan up to 15,000,000 rubles;
- Interest rate from 9.99%.
| Loan from Eastern Bank | Apply for a loan |
More about the map
- Duration up to 20 years;
- Loan up to 15,000,000 rubles;
- Interest rate from 12%.
| Loan from Raiffeisenbank | Apply for a loan |
More about the map
- Duration up to 10 years;
- Loan up to 15,000,000 rubles;
- Interest rate from 13%.
| Loan from UBRD Bank | Apply for a loan |
More about the map
- The solution is instant;
- Loan up to 200,000 rubles only with a passport;
- Interest rate from 11%.
 | Loan from Home Credit Bank. | Apply for a loan |
More about the map
- Duration up to 4 years;
- Loan up to 850,000 rubles;
- Interest rate from 11.9%.
 | Loan from Sovcombank. |
Today, the housing issue for Russian citizens is still acute. To solve this problem, new housing is constantly being commissioned in different price categories. But the level of earnings of the majority of residents of our country does not allow them to purchase their own housing for cash. Therefore, people use the services of banks in terms of mortgage lending.
However, the variety of offers and the number of banks sometimes leads to confusion and makes you think about where it is better to get a mortgage so that the process of repaying borrowed funds is not too burdensome.
Bank selection
There are no clear and specific criteria for choosing where to get a mortgage on favorable terms for a secondary home or a new building; each case has its own specific nuances. Therefore, it is worth relying on publicly available information.
Sama is a type of lending that is carried out secured by the property purchased by the borrower. To do this, the legal purity of the property being purchased is checked, because it can be not only a new building, but also real estate from the secondary market.
Advice! To decide how to choose a bank for a mortgage, it is recommended to find out which of them cooperate with construction companies. In such cases, the buyer may be provided with bonuses or discounts. In such cases, shares are a minimum interest rate on a loan or a longer repayment period. Sometimes a small down payment is provided.
Mortgage rates
The amount of interest that will be paid on the loan depends on loan duration, down payment amount, as well as the total price of the property being purchased. In addition, special attention is paid to the currency in which the loan is issued. However, after the crisis, banks try to issue only ruble loans due to the large number of cases of high non-repayment of funds in foreign currency due to exchange rate fluctuations.
Basically, what percentage will be pledged depends on the type of bet, which is divided into 3 types:
- Fixed rate is the most common option. Its use allows a person to immediately understand how much money he will spend monthly for a loan, as well as the interest rate will not fluctuate based on the changing economic situation. Therefore, if the situation in the country worsens, the borrower is left with a minimum interest rate.
- Loans with a floating rate are usually tied to a certain parameter, for example, to the key rate of the Central Bank. In Russia they are not widespread due to the uncertainty of the future cost of the loan.
- The mixed bet has average popularity. The meaning of this option is that the % part is constant and unchanging, and the second part changes if there is a change in indicators to which she is attached. For example, the ruble exchange rate, the inflation rate in the country, or the average rate among all banks.
In addition to rates, there are several other important parameters that should be taken into account when choosing a bank:
Where to get a mortgage
To determine how beneficial it is for each specific case, it is worth analyzing the existing offers that are provided by construction and real estate companies. They often have good housing options on favorable terms.
Important! We must not forget about the requirement that the borrower have a stable and constant income. If it is absent, in most cases banks refuse to issue a mortgage.
Purchasing on the primary market
Purchasing apartments in new buildings allows you to save money if the deal is finalized at the excavation stage. The following banks have the best offers for such purchases today:
- Sberbank has a program for purchasing housing under construction. According to it, a mortgage is issued in the amount of 300 thousand, but not more than 85% of the housing price at a rate of 7.4% per annum. The first payment is 15% if documents confirming income are presented, without them from 50%. The duration of such lending is up to 30 years;
- VTB 24 offers clients to purchase housing at a rate of 9.1% with an amount ranging from 600 thousand to 60 million rubles. The maximum length of the mortgage is 30 years, and the down payment amount is only 10%. But a prerequisite in this case is comprehensive insurance.
Secondary market
When a buyer is interested in the opportunity to take out a mortgage for a secondary home, especially when a specific apartment or private house has already been selected, they use lending for the secondary market. Here are some current and profitable offers from the following banks:
- Sberbank allows you to get a mortgage for secondary housing for up to 30 years at 80% of the property price. The annual rate starts at 8.6%. But for this is mandatory.
- Rosselkhozbank offers the purchase of real estate on the secondary market under the following conditions: the size of the first payment is from 15%, the maximum mortgage amount is 3 million rubles, and the rate is 8.85% per annum. The maximum loan term is 30 years.
- Raiffeisenbank has a mortgage for the purchase of real estate on the secondary market for clients with a good credit history of up to 26 million rubles at an annual rate of 9.5%. The amount of the first payment in this case is 15%, and the loan duration is limited to 25 years.
The best banks for mortgages
To understand how profitable it is to take out a mortgage, you should carefully analyze current bank offers. The main indicator that you need to pay attention to is the interest on the loan. The lower its value, the less the overpayment will be.
Today there are state support programs for young families, which allow you to reduce the amount of overpayment on your mortgage. Current banking offers:
- At Sberbank it has been 6% since the beginning of 2018;
- In Rosselkhozbank 6%;
- At Tinkoff, its size under the same program is also 6% until the end of 2022.
It is also allowed to purchase housing using maternity capital funds as a down payment. In this case, banks offer the following lending rate:
- Rosselkhozbank from 8.85%;
- Sberbank from 8.9%;
- Tinkoff from 6%.
An option like construction of a residential building, is available to all categories of citizens. It allows you to receive funds for the construction process of your private residential building. Banking offers for them are as follows:
- Sberbank from 10%;
- Tinkoff from 9.5%;
- VTB 24 from 9.1%.
Many banks give the opportunity purchase of real estate for military personnel. Mortgage terms in this case are developed specifically for this category of borrowers. The down payment is paid from a savings account, where a certain amount is transferred from the state every month. Due to the presence of government guarantees, banks issue such loans without problems. The following offers are on the market today:
- Gazprombank – 9.0%;
- VTB 24 – 9.3%;
- Sberbank - 9.5%.
Today in Russian banks is 7.5–9%, which is quite high compared to the European average of 3%. However, starting from 2018, preferential lending has been available for young families with children, which allows you to reduce the interest rate to 6 in any of the banks in Russia. If we talk about what percentage banks have for ordinary citizens, then there are the following proposals:
- Rosselkhozbank from 8.85%;
- Sberbank from 7.4%;
- VTB 24 from 9.1%;
- Gazprombank from 9.0%.
Important! The most profitable mortgage is one in which monthly payments do not place a heavy burden on the shoulders of future homeowners.
Useful video: features of obtaining a mortgage
Choosing the best mortgage depends on each person's specific situation. Based on the person’s situation and the type of housing purchased, you can choose the best option. The main indicator of the profitability of a loan is the interest rate at which overpayments occur.
More than 80% of residential real estate transactions are carried out using a mortgage. Therefore, you should be careful when choosing a bank with which you will have to deal in the next N years.
Reading time: 10 minutes
How to choose the right bank for a mortgage for a specific developer?
Today, about a third of all housing is purchased using mortgage funds. This is understandable - not all families, especially young ones, have the money to buy housing. For many, this is almost the only chance to get their own roof over their heads or improve their existing living conditions.
If at a family council you came to the decision to purchase an apartment with a mortgage, do everything to ensure that this difficult stage of life passes for you painlessly and with the least possible losses (primarily material). Carefully weigh your options and discuss the nuances of your future venture. Decide whether to buy an apartment on the secondary market, decide on a realtor who will help you complete the transaction, and, finally, choose the bank with which you will cooperate throughout all the years of the mortgage epic.
What to pay attention to first
The choice of a credit institution is of paramount importance, since it determines how large the overpayment on the loan will be. Today in Russia dozens of banks offer mortgage programs. They have quite a lot of differences, so carefully study the offers before settling on one option or another. Remember that the well-being of your family largely depends on how balanced this decision is. First of all, you should pay attention to the following points:
- interest rates;
- the possibility of using maternity capital and subsidies for young families;
- the amount of the down payment;
- conditions for early repayment of the loan;
- penalties in case of late payments;
- commissions and other overpayments;
- loan terms;
- ease of service, including Internet banking capabilities, opening hours, availability of a sufficient number of branches in your city, etc.
Quality of the bank's work
When choosing, be sure to go to its official website. Here you can find out about loan programs, the latest changes, promotions and news from the institution. Also, do not neglect word of mouth. Surely one of your acquaintances and friends (or friends of acquaintances) already has mortgage experience and will be happy to share it with you. No one can tell more and better about a credit institution than a person who has encountered a banking machine in action. Try to involve as many people as possible in your investigations - this way you will collect as much information as possible.
Do not draw conclusions based on the terms of operation of a credit institution, but be wary of banks that have recently appeared on the market. Compare information that can be gleaned from different sources. If the website says one thing, they tell you something else over the phone, and the manager tells you something else, then misunderstanding and even mistrust can easily arise between the parties. Incompetence of employees will negatively affect further interaction.
It is more convenient for borrowers to work with those banks that have an extensive branch network and convenient work hours. Pay attention to such little things - they play a significant role in everyday life. It is necessary that repayment of the loan be comfortable, and even better if it is possible to make payments via the Internet.
Interest rate and fees
Banks in Russia offer mortgage loans on average at 11-15% per annum, but there are programs at 20%. The specific figure may depend on the size of the down payment, the volume and term of loan repayment. Of course, the most important factor that interests a potential mortgage holder is the interest rate. It would seem obvious - the lower it is, the more profitable it is for the client. But “not everything is as simple as it seems at first glance.”
Many banks use low rates as a bait for gullible citizens, compensating them with numerous commissions - for processing an application, issuing a loan, opening an account, cashing out money, and processing a mortgage. As a result, a borrower who took out a “cheap” mortgage at 10% may pay more than if he received a loan at 18% without additional encumbrances. Therefore, before formalizing your relationship with the bank, be sure to take an interest in the list and amounts of commissions (if any), so that additional payments do not become an unpleasant surprise for you. All fees are specified in the agreement, so be sure to ask your loan specialist for a sample agreement.
Down payment amount
The higher the down payment, the lower the future payments
When choosing a bank for a mortgage, it is important to clarify the size of the down payment. The Russian government has set it at 30% of the cost of the object. This is how much the borrower must be willing to pay for the apartment out of his own money. But it happens, and often, that the buyer does not have the necessary funds. Banks come to the rescue, offering mortgages for a smaller amount, of course, not for free. In exchange, a higher loan rate is set. Before you grab a “good offer,” carefully evaluate the relationship between the interest rate and the size of the down payment and your capabilities. A mortgage should be a conscious decision with pre-calculated prospects, and not a momentary impulse.
Terms and methods of loan repayment
Not all banks offer long-term loan repayment programs (15-20 or even up to 30 years), and among borrowers there are many who are unable to repay their mortgage within 5-10 years. Obviously, the shorter the loan term, the higher the monthly payments. Therefore, if you cannot count on quick loan repayment, it is better to look for a bank that offers maximum repayment terms.
Loan repayment is possible using an annuity or differentiated system. Annuity payments remain unchanged throughout the entire payment period. When using a graduated system, payments gradually decrease as the mortgage is paid off. Banks usually do not consult with clients about which repayment scheme to use, but if this matters to you, then it is worth looking for an institution that listens to the wishes of borrowers.
Late payments and early repayment
When signing a mortgage agreement, the borrower cannot foresee what awaits him in the future. It is vague and fraught with surprises, not always pleasant ones. It may happen that you will not be able to make payments on time or, on the contrary, you will suddenly become rich and want to pay off your debt early. In this case, it is necessary to clarify the amount of the fine imposed by the bank for each day of delay, and whether the conditions for early repayment are convenient.
We choose, we are chosen...
Studying the contract is the key to transparent work in the future
Remember that not only the borrower chooses the bank, but also credit institutions choose their clients. The thoroughness with which the bank sifts through potential mortgage holders indicates that its management takes its tasks responsibly. The requirements that borrowers must meet are set out on the bank's official website.
Review the list carefully and decide if you qualify. Perhaps not every bank will want you as a client. To make a positive decision, many factors are important, and above all:
- The size of the "white" salary. Citizens who will have to spend no more than a third of their official income on payments can receive an amount sufficient to purchase an apartment.
- Age. Citizens aged 25-60 years have an advantage in obtaining mortgage loans.
- Liquidity and credit history of the borrower. A borrower who has other real estate and/or a car has a better chance of getting a loan. A clean credit history can also have a positive impact when deciding whether to issue a loan.
Mortgage calculation
Based on the results of your research, make a shortlist of several banks offering the most attractive conditions. To make a final and error-free choice, compare the requirements for a mortgage. For greater clarity, you can put them in one table and make calculations using a mortgage calculator. This way you can find out what the overpayment amount will be and the size of the monthly payment for different banks. Focus on large institutions with government participation. They are more loyal to customers, have long-term lending programs and do not abuse commissions.
Choosing a bank is an important step towards acquiring your own home. Only by collecting and comparing all available information about the conditions for granting loans can you make the final choice of a partner bank with which you will have many years of close communication. And how pleasant and mutually beneficial this communication will be depends only on your attentiveness and responsibility.