Annuity and differentiated mortgage payments - what are they?

What is the difference between differentiated and annuity payments

The graphical diagrams show that over time, loans from Sberbank are repaid in different ways. If this is an annuity loan, then in the first months the borrowed amount is practically not repaid. A large share of the funds goes to the bank's profit. Differentiation assumes that from the first payment more funds are used to repay the debt, and a small part is charged as interest.

Everything is designed to ensure that during the repayment period the monthly payments are the same. This is convenient for Sberbank borrowers. There is no need to constantly clarify the amount. Users of their personal account set up automatic payment and never forget that it’s time to pay. A differentiated system works differently:

1. In the first payment, the borrower pays part of the body of the differentiated loan. It remains constant throughout the loan period, but the interest in the first month is high.
2. Over time, the body's share remains the same until the last payment. When closing contractual obligations, the borrower pays a minimum of interest, and the total payment amount is insignificant.

Sberbank recommends the annuity method by default. Differentiated credit is not available to everyone. Income is assessed and must be sufficient to pay large payments in the first 6-12 months.

You will have to prove that your income is stable. There is no point in hoping that relatives will become guarantors. Sberbank is extremely reluctant to take this factor into account when issuing approval. But if the salary is decent, stable, regular, a differentiated loan is issued without problems. But what to do if the agreement has already been signed, a differentiated loan has been received, and the conditions are annuity, but I would like it to be the other way around?

Annuity payment and differentiated: the difference

Financial experts agree that if the borrower expects to pay off the loan in a short period of time (up to five years), then it is better to give preference to an annuity. However, there is controversy regarding medium- and long-term loans.

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For example, if a borrower takes out a long-term loan, say $100,000 for 10 years with an interest rate on the loan of 10%!g (MISSING)annual, then a differentiated payment is more profitable, and significantly. In our conditional example, the interest payment for ten years with differentiated payments will be $50,416.67, and with annuity payments - $58,580.88. Accordingly, the overpayment under the differentiated scheme will be less: by $8,447.53.

But let’s not forget that the example is conditional, and in practice everything does not look so simple. A number of banking experts do not hide that the idea of ​​a significant financial advantage of differentiated payments is largely a marketing myth. The bank will never miss its profit. It is only important for him to convince the borrower that he can really save by choosing one or another payment plan.

“Credits.ru” note: the main thing you need to understand is that the method of calculating interest for both forms of payments is the same. In both cases, interest is calculated on the remaining balance of the debt.

Which payment method is better?

If we compare two loan repayment schemes, borrowers tend to choose the differentiated one because they see the following advantages in it:

1. Saving money. If we take two schedules calculated for the same amount and repayment terms, then a differentiated loan from Sberbank is cheaper for the client. When the interest rate is identical, commissions and other fees are the same, the difference is significant. The longer the repayment period, the more noticeable it is.
2. Ability to plan your personal budget. The main borrowers who are satisfied with differentiated loans are middle-aged people when it comes to mortgages. It is easy to calculate that by the time you retire, payments will become insignificant, and the apartment will be ready for renovation, as liquid funds will appear.
3. Benefit on early repayment. Every month the amount required to fully close the differentiated loan decreases. Interest takes up a smaller share and is easier to repay. By deciding to repay a differentiated Sberbank loan ahead of schedule, the borrower collects a smaller amount than when repaying an annuity loan, which makes this opportunity accessible.
4. Simplicity of calculations. You can always see exactly what the money is being paid for. In some cases, there are different accounts: credit and interest. The amounts in the chart are located in different columns. The receipts are separate, and at any time you can calculate how much money goes to repay the body of the differentiated loan, and how much goes to pay interest.
5. Saving on insurance. The policy is issued for 12 months. Insurance premiums are calculated depending on the balance of the differentiated loan. At Sberbank, with a differentiated credit scheme, after this period the amount will decrease, and you will have to pay less than with the usual debt repayment system.

Regarding the differences in the amount of overpayment, it should be noted that if the loan is repaid halfway through the term, then with a regular loan ¾ of the amount is paid due to high interest. A differentiated schedule involves contributing 50% instead of 75%, and this is significant for the family budget.

When choosing between loan types, you need to be guided by more than just this. Make sure that Sberbank provides this opportunity. Check again whether you have enough money for the first months, the most difficult ones. Calculate how much money will actually remain, whether it will be enough for a normal life. Consider the need to leave funds in case of illness of family members. Weigh the pros and cons.

What are the types of mortgage payments? What are their differences?

Most Russian banks today offer credit programs to individuals that provide for a type of mortgage payment in equal installments (annuity payment).

One of the main advantages of this method is its ease of use:

• The borrower repays the same amount every month.

Annuity payment

Despite the fact that the payment amount remains unchanged throughout the entire period, its structure changes - in the first months, most of the payments are used to repay interest on the loan (in the first years, the payment consists of approximately 80% interest), and at the end of the term - to repay principal debt.

Those. The annuity system (scheme) of payments for early repayment is not so profitable.

To calculate the payment, you need to know the borrowing period, the rate and the annuity coefficient (a derivative of the number of periods for which the payment is made and the loan rate). The formula for calculating the annuity payment on a mortgage is as follows:

• Annuity amount = annuity coefficient * monthly payment amount.

There are several ways to calculate the coefficient. The most commonly used formula is: KA=(j*(1+j)m) / ( (1+j)m– 1 ) , where KA is the annuity payment coefficient, j is the loan rate, m is the number of payment periods. Banks use the following formula for calculation: Аn = Sk * (j / (1 – (1+j)-m)) , where Sk is the total amount of the loan.

Differentiated payment

However, in addition to annuity, there is another repayment method that many borrowers do not know about - differentiated payment. Its feature is a gradual reduction in payments.

This happens because, with a constant amount of payments on the principal debt, the amount of interest that accrues on the balance of the principal debt becomes less with each repayment.

Calculation of the amount to be repaid for differentiated payment is carried out in two stages:

1. First we determine the amount of the main payment. To do this, divide the initial loan amount (the one specified in the loan agreement) by the loan term (in months). The resulting figure will be the amount that the borrower needs to repay. The calculation formula itself looks like this: b=S/N, where b is the principal payment, S is the loan amount, N is the number of months;
2. After that we calculate the interest. You can calculate the accrued interest by multiplying the loan balance for the period by the annual interest rate, after which we divide the result by 12 (the number of months in a year). Thus, the differentiated interest rate is: P = Sn * P / 12, where p is the accrued interest, Sn is the loan debt for the period, P is the annual loan rate.

To calculate the debt balance for a period, i.e. To find the value from the above formula, you should multiply the amount of the main payment by the number of past periods and subtract all this from the total payment amount. The calculation is carried out using the following formula:

• Sn = S - (b * n), where n is the number of elapsed periods.

The frequency of debt repayment with a differentiated type of payment can be different (once a month, once a quarter, etc.), but the most common is the monthly schedule.

A differentiated loan repayment schedule has one significant drawback - the amount to be repaid changes each time. This needs to be remembered.

There is one more nuance that those wishing to apply for a loan need to know about - because. The amount to be repaid in the first months is higher, and the bank also imposes higher requirements on the client’s solvency. In addition, with the same income of the borrower, the estimated loan amount for an annuity will also be greater.

Which banks issue (offer) mortgages with differentiated payments in 2020

There are traditionally few banks that offer mortgages with differentiated payments in 2020. Of the largest, at the moment you can get such a mortgage at Gazprombank and Rosselkhozbank.

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You can view the current terms and conditions of the mortgage programs of these institutions here:

As part of the loan products of Rosselkhozbank and Gazprombank, clients have the opportunity to choose a mortgage repayment scheme (annuity or differentiated).

In addition, financial institutions provide special lending conditions for young families, including the possibility of using maternity capital.

When analyzing the conditions of mortgage programs, it is difficult to ignore the largest banks. The selection of annuity and differentiated loans at Sberbank is not traditionally presented to its clients - the bank still works only with an annuity repayment scheme. The structure of mortgage payments at VTB 24 also does not provide for differentiated payments.

Which payments are more profitable for a borrower to pay a mortgage?

Since most borrowers repay their mortgages ahead of schedule, differentiated payments are considered to be the most profitable repayment method. At the same time, if repayment is planned to be made in the first five years of the loan, calculations should be made that will confirm the real benefit for the client.

For example, having taken out a mortgage in the amount of 2 million rubles. for 10 years at 14% per annum when repaid in equal installments (annuity method), the borrower will pay 1.7264 million rubles for the entire loan period, and with a decreasing payment schedule (differentiated method) – 1.4117 million rubles. As can be seen from this example, the benefit in the second case will be about 300 thousand rubles.

However, it is also not worth focusing only on estimated figures - the maximum loan amount for loans whose repayment scheme provides for an annuity will be greater than when using a differentiated payment.

The real savings when choosing a differentiated payment will be if early repayment is not planned.

Is it possible to change the annuity payment to a differentiated one?

Many borrowers who want to switch from an annuity payment method to a differentiated one encounter misunderstandings on the part of bank personnel.

This is due to the fact that such a request contradicts the very terms of the contract, which indicate how the borrower needs to repay the loan.

To change the essential terms of the contract, it is necessary to renegotiate the contract itself. Those. carry out refinancing. It is worth noting that refinancing a mortgage with differentiated payments in favor of an annuity is especially interesting if reducing the loan burden is important to the borrower. https://ipoteka.finance

Underwater rocks

There may be pitfalls in a mortgage:

1. Banks may include clauses in the agreement that are extremely disadvantageous to borrowers.
2. The ability to unilaterally change the mortgage interest rate leads to the fact that if it increases, the payment amount increases.
3. The agreement may set a minimum threshold for the amount of money for early repayment. If the amount is significant, then it will be very difficult to accumulate it.
4. There may be fees for early repayment of the loan or additional documents.

Important! The real estate is the subject of collateral under a mortgage agreement. If it is damaged or lost, for example by fire, the bank has the right to demand another collateral from the borrower or early repayment of the mortgage. . The benefits of credit institutions and their clients do not always coincide

There is no clear answer to the question of which payment scheme is more profitable. You should always weigh the pros and cons of payment schemes against your priorities, desires and capabilities.

The benefits of credit institutions and their clients do not always coincide. There is no clear answer to the question of which payment scheme is more profitable. You should always weigh the pros and cons of payment schemes against your priorities, desires and capabilities.

Didn't find the answer to your question? Find out,

How to make a calculation

A differentiated mortgage is not always easy for the client to understand, because he is not able to calculate the payment amount on his own. In principle, this is not necessary insofar as the bank attaches a schedule of monthly payments to the loan agreement; if you want to read the mortgage according to the differentiated system yourself, then there is nothing complicated here. Let's give an example with calculations; to do this, consider a mortgage with the following parameters:

• amount 1,800,000 rubles;
• annual interest – 8.9%!;(MISSING)
• loan term – 120 months.

To begin with, let's calculate the constant part of the monthly payment as follows: 1,800,000/120 = 15,000 rubles - this is the amount of the principal debt divided by the number of payment periods. Next, you should calculate the amount of the monthly payment, taking into account interest:

• 1 month 15000+(1800000*0.089/12)=28350 rubles;
• 2nd month 15000+((1800000-15000)*0.089/12)=28238.75 rubles;
• 3 month 15000+((1800000-15000*2)*0.089/12)=28127.5 rubles;
• 4th month 15000+((1800000-15000*3)*0.089/12)=28016.25 rubles;
• 5th month 15000+((1800000-15000*4)*0.089/12)=27905 rubles;
• 6 month 15000+((1800000-15000*5)*0.089/12)=27793.75 rubles;
• 120 month 15000+((1800000-15000*119)*0.089/12)=15111.25 rubles.

Please note that independent calculation of the monthly loan payment amount is preliminary insofar as these calculations involve not the nominal annual interest rate, but the effective one.

As you can see, it is quite possible to calculate the loan yourself; from this example it follows that the amount of the monthly payment will decrease with each period. This is truly beneficial for the client, especially given the long mortgage term. But, unfortunately, not all banks are ready to provide a mortgage loan using a differentiated system for calculating monthly payments.

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Mortgage with differentiated payments

This repayment scheme is somewhat more complicated than the previous one.

In practice, the monthly payment under a differentiated scheme consists of two components:

1. fixed loan body size,
2. interest calculated based on the length of the month and the amount of remaining debt.

Each month the amount of the monthly contribution will be different, for example, the payment for February will be less than the payment for the following March, although the amount owed will decrease slightly. This is due to the fact that February simply has fewer days. The differentiated mortgage repayment scheme has a number of features, in particular:

• the monthly payment at the initial stage will be quite large, therefore the borrower choosing such a scheme must have a good level of income,
• by the end of the loan term, the amount of interest on the loan decreases and the monthly payment itself becomes smaller,
• the total overpayment on such a loan will be noticeably lower than in the case of annuity payments.

Differentiated mortgage payments: advantages and calculation formula

Mortgages are traditionally the longest repayment period and largest type of consumer loans on the market. Each potential borrower looks through dozens of offers in an attempt to choose the optimal one and one of the most difficult to understand loan terms that must be taken into account is the repayment system.

The relative profitability of a particular proposal may ultimately depend on whether the mortgage is repaid with annuity or differentiated payments.

What are differentiated payments

Any loan with any repayment system consists of two parts:

• loan body - the amount received by the borrower;
• interest on the loan.

Differentiated payments is a loan repayment system in which the borrower pays the principal portion of the debt in equal installments, and interest is charged on the unpaid portion of the loan.

The difference between annuity and differentiated payments is how interest is paid:

1. In the case of annuity payments, interest on the loan is paid unevenly: in the first payments, most of the interest is taken up, and the loan body takes up a smaller part. Therefore, by the middle of the loan repayment period, the borrower repays significantly less than half of the loan itself. However, the monthly payment does not change from the beginning until the mortgage is paid off. In case of early repayment of annuity payments, the entire overpayment goes to the principal amount of the loan;
2. The payment structure under the differentiated method is simpler: the loan body is repaid in equal parts, and the amount of interest gradually decreases, since they are accrued on the balance of the debt - and it is gradually reduced. As a result, the monthly payment will be different every month. In the early years, the borrower bears a significant debt burden, but over time it becomes easier to pay the mortgage.

Due to the complex formula, calculating the annuity payment is quite difficult. It is problematic to say how the overpayment will ultimately differ on loans with the same amount but different repayment systems. But in most cases, the overpayment on a mortgage with differentiated payments will be an order of magnitude less.

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You will find all possible types of loan repayment in our material.

Mortgage payment calculation and formula

How to calculate the annuity payment is described in detail in our previous article.

Calculating the monthly mortgage payment with a differentiated approach is completely different. The calculation formula is simple:

E = b+p

Where E is the monthly payment, b is the principal payment, p is the interest on the loan. Wherein:

b = S/N

Where S is the total mortgage amount, N is the loan repayment period in months.

p = Sn*P/12

Where Sn is this debt balance for the billing period, P is the annual interest rate, it must be divided by 12, since we are counting the monthly payment, accordingly, the rate should be in the form of monthly interest.

Sn = S - (b*n)

Where n is the number of past months of loan repayment.

This formula does not change depending on the bank, so it is easy to calculate the monthly payment with a differentiated system manually.

Payment calculation example

For example, if the mortgage amount is 10 million rubles, the loan term is 20 years (240 months), the differentiated interest rate is 12% (1% per month). First payment: 41,666.66 (10,000,000 rubles/240 months) + 100,000 (10,000,000 rubles*1% per month) = 141,666.66 rubles. After ten years, the monthly payment will decrease significantly: 41,666.66 + 50,000 (5,000,000*1% per month) = 91,666.66 rubles. For “long” mortgages with a maturity of more than 20 years and a larger amount, the difference between the first and last payment will be very significant.

The payment schedule when using a differentiated system is as follows:

Which payments are more profitable for the borrower?

This question is of primary interest to a potential borrower. Under ideal conditions (not taking into account penalties, legal or not, inflation and many other factors), these two systems should be equally beneficial. But in reality, the total amount of mortgage payments with annuity payments will be higher than with a differentiated approach. Differentiated payments have several more advantages:

1. gradually the debt burden decreases and paying off the mortgage becomes easier;
2. with early repayment, the borrower saves significantly by not paying interest on the remaining portion of the differentiated loan;
3. the payment structure itself is more transparent and understandable;
4. the cost of insurance is lower, since the amount of debt to the bank decreases faster.

Here are the main disadvantages:

1. To obtain a mortgage you need a higher level of income, so with equal income you can count on a smaller amount;
2. in the first years, mortgage payments will be significantly higher than under the annuity system;
3. in the first 6-7 years (until the payment is equal to the payment that would have to be made on the same loan, but with an annuity system), the risk of delinquency is increased if the financial condition of the borrower worsens.

But it should be noted that Russian banks do not offer much choice, using a more advantageous system of annuity payments in 99% of cases. Only in a dozen banks throughout Russia can you find a mortgage with differentiated payments.

Which banks issue mortgages with differentiated payments?

Here is an almost complete list of such banks:

1. Gazprombank offers several mortgage programs. Under the program “Purchase of finished housing on the secondary market,” the interest rate is set from 10.5 to 14.5% (depending on the currency and the size of the down payment), the maximum amount is 45 million rubles, the loan term is up to 30 years, the down payment is 15%. You can choose to use a system of annuity or differentiated payments;
2. Surgutneftegaz Bank also provides the opportunity to choose between two mortgage repayment systems. The maximum loan amount for purchasing an apartment on the secondary market is 8 million rubles, the interest rate is from 12 to 13%, the loan term is up to 30 years, the down payment is from 15%;
3. Bank Russia offers mortgages with differentiated payments only for the purchase of housing under the shared construction program. The maximum loan amount is 20 million rubles, the interest rate is 16.5 to 20%, the loan term is up to 20 years, the down payment is from 20%;
4. Nordea Bank is ready to issue a mortgage in the amount of up to 1 million euros (or the equivalent in rubles or dollars) at 6.5-13.25% for a period of up to 20 years, down payment - 10%.

Finding a bank that offers borrowers the opportunity to repay their mortgage in differentiated payments can be extremely difficult. The reason is simple - it is more profitable for the bank to first receive most of the interest, and then the body of the loan, since with early repayment (and in a stable financial situation, any borrower tries to repay the mortgage ahead of schedule), the borrower saves much less on interest payments, but in any case must repay the principal part of the loan - early repayment does not relieve this obligation.

In any case, the choice of the optimal mortgage payment system depends on each specific case. Therefore, the proposals of different banks should rather be evaluated, although in general the differentiated payment scheme is more profitable for the borrower due to a gradual reduction in payments and savings in case of early repayment.

Types of planned mortgage payments

According to the lending conditions, banks are ready to offer an annuity or differentiated method of repaying housing loans.

Depending on the chosen method, the size of the monthly payment and the speed of interest repayment will vary.

Annuity payment

This is the most common type of mortgage repayment, for example, at Sberbank. It comes down to depositing an equal amount every month. In this case, initially, mainly the interest on the loan is repaid, and then the principal debt. The longer the client takes to make payments, the more funds are spent on paying off the principal debt on the mortgage.

The main advantages of this method are as follows:

• Equal monthly payment for the entire loan term.
• Possibility of repaying the principal debt by making partial early repayment.
• The ability to predict your solvency over a long period.

However, you must understand that it is the interest that is initially repaid. Therefore, at the initial stage, it is especially beneficial for the client to make payments ahead of schedule to reduce the amount of the principal debt.

Differentiated payment

This type of payment comes down to the fact that each month you will need to pay a different amount

Therefore, it is important to study the repayment schedule so as not to fall behind. Its main advantages are as follows:

• More prompt repayment of the principal debt.
• Every month the amount required to pay will decrease.
• Significant savings on interest payments.

Here you need to know that initially the monthly payment amount will be overestimated. It will be 20%-30% higher than with an annuity payment.

This type of repayment is most attractive to people with high incomes who are confident that they can easily make payments according to the repayment schedule. If there is a risk of being unable to make the first payments according to schedule, it is worth abandoning this repayment method in favor of an annuity.

What to choose: annuity or differentiated repayment scheme?

We have already described what an annuity scheme is. Now, for comparison, let’s give the concept of a differentiated payment scheme - this is a type of installment on a loan or mortgage, implying a systematic repayment of the debt, in which the loan balance is paid in equal amounts, and the interest rate becomes lower every month.

Calculation example: Mortgage amount – 1 million rubles, interest rate – 10%, loan period 5 years. The size of the first payment will be 25 thousand rubles. For the second, the debt balance will become smaller and a lower rate will be charged, the contribution amount will be 24,861 thousand rubles. According to the same principle, calculations will be made every month. The last payment will be the smallest - 16,806 thousand rubles. The total overpayment on the mortgage will be 254.167 thousand rubles.

Despite the fact that the overpayment under a differentiated payment scheme is less than under an annuity scheme, its use is not always profitable. In the initial period, a large financial burden is placed on the borrower’s budget. His earnings may not be enough to pay off his debt. This may lead to a reduction in the loan amount or refusal of it altogether.

The main advantage of an annuity is the larger loan amount. If the borrower’s earnings and expenses are the same, the lending limit under this scheme will be greater than under a differentiated scheme. This is especially important for people who need the maximum amount of funds to purchase real estate.

The largest banking institutions in Russia - Sberbank, Alfa Bank, Tinkoff Bank, VTB, UniCredit Bank - use only the annuity scheme. In rare cases, a potential borrower is asked to choose the type of payment schedule.

Annuity and differentiated payments: what are they and what are they, their pros and cons

When choosing a particular payment system, it is necessary to understand that the choice will have a significant impact on the final cost of the mortgage.
It is important to have a clear understanding of how much you will ultimately have to pay on the loan, what an annuity payment and a differentiated payment are, and what the difference is between them. . Let's try to figure out what the advantages and disadvantages of each are.

Let's try to figure out what the advantages and disadvantages of each are.

Annuity system

This system itself assumes that mortgage payments will be made evenly, at specified periods, throughout the entire period required for calculation.
If the borrower pays 25 thousand rubles for the first month, then in subsequent months until the end of the term the payment amount will be similar.

Many people really like this stability in payments. However, few people understand that such a formula does not always lead to absolute benefit for the person who took out the mortgage.

The calculation of annuity payments involves the difference in the ratio of accrued interest on the repaid service of the principal debt and the interest that the bank receives for the entire repayment period of the loan.

In fact, if the loan interest itself is included in the payments during the initial period of the mortgage, then the total debt will be repaid only to a small extent. In fact, this occurs before the halfway point of the mortgage term.

After the so-called middle of the period of use occurs, the main part of the total debt begins to be repaid.

Useful video:

https://www.youtube.com/embed/MOsIbIKqZHM?rel=0 It is necessary to understand why this happens. The fact is that the annuity scheme assumes that at first only interest is paid for using the loan, and payments are made for the entire period.

After paying off the interest, the borrower begins to pay the principal amount. Banks receive their benefits in advance, without waiting for the mortgage to expire.

If you try to pay off your mortgage ahead of schedule, for example, after two and a half years out of the five that were originally agreed upon, you may encounter the following problem: it may turn out that only 20-25% of payments were made for the period passed.

Thus, the negative aspects of annuity payments include:

• Inability to repay the full term in advance;
• Initial payments are a payment to the bank for using a mortgage.

This schedule also has positive aspects. For example, a person with a stable salary will be much more comfortable paying the same amount every month.

In short, the advantages of annuity payments include:

• Possibility of equal payments stretched over the entire period;
• The ability to calculate your own strength for several years;
• Reducing the burden on the borrower to make payments;
• The ability to count on receiving a larger loan amount.

Annuity and differentiated payment - what is it and how to calculate it

When applying for a mortgage loan, the future owner of the property can choose a number of financial conditions for servicing the debt:

• the amount of the advance payment and the required amount of credit funds;
• amount and terms of insurance;
• collateral options for the transaction;
• interest rate and alternatives to reduce it depending on the lending program.

In some banks, this list is expanded by choosing one of two debt repayment schemes: annuity (equal payments) or differentiated (equal parts of the principal amount of the loan). Depending on it, a debt repayment schedule is constructed and the full cost of the loan is determined in accordance with current legislation. These conditions are fixed in the loan agreement. In both options, the periodic payment amount combines two components: part of the principal amount of debt and part of interest and commission charges.

Annuity payment is more common around the world; the alternative is used by individual organizations. Previously, a third scheme was also used: one-time loan repayment at the end of the loan term, but in modern conditions it practically does not work.

In Russia, a differentiated mortgage rate at Sberbank was used at the beginning of the development of long-term lending. Its appearance was due to an insufficiently developed legislative framework, the rapid growth of income among the potential segment of clients of these loans, and the ability to regulate the bank’s profitability due to high interest rates in a low competitive environment.

Annuity payment

An annuity is constant periodic payments in equal amounts at regular intervals.

When using this option, the contract specifies a clear payment amount (for example, 15 thousand rubles), which must be paid continuously without changes throughout the entire period of debt servicing.

Schematically, to calculate the annuity, proceed as follows: the amount of loan funds is increased by all commissions and interest charges, and then divided by the number of months depending on the contractual loan period. The exact amount when signing documents will be determined by the lending institution’s software (it may depend on the conditions and formula for calculating the interest rate, the number of days in a year and month accepted for calculations, actual rounding conditions, etc.).

When deciding on making payments on a Sberbank mortgage ahead of schedule, what an annuity payment is, the borrower realizes, being surprised at the slight decrease in the amount of the principal debt in his credit statement.

This is due to the fact that at the beginning of the mortgage agreement, the portion of the monthly payment to repay the principal debt is minimal, but gradually increases as the accrued additional cost of the loan is returned. The part to compensate for the cost of banking services, on the contrary, is maximum in the first half of the repayment period; over time, its share in the payment decreases.

Such a financial instrument is convenient due to its stability and easy forecasting, therefore it is widely used.

Differentiated payment

These are monthly payments that change in amount and gradually decrease at regular intervals.

When choosing such a refund alternative, the mortgage agreement will be accompanied by a debt repayment schedule calculated by the bank, which indicates all monthly payment amounts. Many institutions also have this information on their website in the personal accounts of e-banking clients or in mobile applications.

Schematically, such a payment is calculated as follows: the amount of loan funds allocated to the borrower is divided by the number of settlement periods during the loan term. The amount of interest and commissions accrued on the debt balance (if they are charged according to the terms of the agreement) is added to the resulting value.

Thus, the payment reaches its maximum value in the first months after the conclusion of the transaction, and then gradually decreases to a minimum during the last repayments.

Sberbank mortgage specialists derive a general market pattern indicating that it is more difficult for a borrower to pay differentiated payments, since the first payment amounts are large and can be an unbearable burden for the family budget.

Therefore, the bank does not apply a differential settlement scheme when concluding mortgage agreements, taking into account the legal requirement that the amount of mortgage payments should not exceed 50% of the family’s total cash receipts. If a payment goes beyond these limits, it leads to an increase in the level of problems associated with the obligations assumed.

This financial instrument is more economically beneficial for the borrower, but less transparent.

Is it possible to change the annuity payment to a differentiated one?

Under existing and newly concluded mortgage agreements, Sberbank does not provide for the possibility of changing the repayment option with an annuity to paying the monthly installment with a differentiated payment.

If the borrower wishes, it is possible to increase the payment by making a partial early repayment of the loan.

It is carried out without prior notice at a bank branch on the current date upon an application containing the amount and the account from which funds will be transferred. The minimum portion of the loan to be repaid ahead of schedule is not limited.

The date of execution of the application for early repayment of the loan may fall on any day (working day/weekend/holiday). In this case, interest is paid for the actual period of use of the loan.

There is no fee for early repayment.

Any such additional contribution will be used to repay the main part of the debt taken, and this will have a positive effect on the total cost of the loan towards its reduction.

What are differentiated transfers of funds when applying for a loan?

A differentiated payment is a payment of funds under a mortgage agreement in an arbitrary amount.

As a rule, the client must pay the largest part of the installments during the first years of the mortgage agreement. The size of payments each month differs from the previous payment period - and decreases towards the end of the loan.

With differentiated payments, the share of the principal debt in the amount of the monthly installment remains unchanged, and the amount of the obligatory payment depends on the percentage, which decreases in direct proportion to the term of the mortgage agreement. That is, every month the client repays the principal debt in the same amount, depositing less and less money every month (interest and monthly payments gradually decrease).

A feature of the differentiated payment schedule is large amounts in the first part of the term and insignificant amounts towards the end of the contract.

At the end of the contract, the client actually pays only the principal amount, since the interest was transferred to the bank at the beginning of the mortgage.

What are differentiated payments

In banking practice, two main loan repayment schedules are used:

• annuity;
• differentiated.

The first obliges the debtor to repay the bank a fixed amount every month, while the peculiarity of the second is the unequal size of the monthly contribution.

A mortgage with differentiated payments, just like a loan with an annuity schedule, provides for monthly repayment:

• loan body;
• accrued interest.

But, unlike an annuity, here the amount is divided into equal parts in proportion to the duration of the contract. That is, each month the amount of payments on the principal debt is the same, with the exception of the last, where the payment may differ slightly due to rounding.

Main difference

The main difference between a loan with a repayment schedule for the loan body in equal parts and an annuity loan is the following:

• The annuity scheme is structured in such a way that the accrued interest is paid off first. And since at the beginning of using the loan their size is largest, interest prevails in the structure of the monthly payment. The body of the mortgage is repaid minimally. Gradual repayment of the principal debt leads to a reduction in accrued interest. As a result, the share of payment that falls on the body of the debt increases every month. The situation changes dramatically after half the contract term has passed. After the “equator” of the mortgage, the loan body is already closed more, and the interest decreases faster. The formula for calculating the annuity scheme is more complicated than the one where a differentiated mortgage appears. It has the following form: Р=k*S, where
  • P – monthly payment amount;

  k – annuity coefficient;

• S – mortgage amount.

In this formula, it remains to figure out how to calculate the coefficient. To find it, you need to use the following task:

Banking programs with differentiated repayments

For obvious reasons, today most financial institutions in our country issue loans with annuity payments. But there are banks with differentiated mortgage payments. Their names and conditions of the programs are presented in the table.

You should know that in all these financial institutions you can take out a loan for housing and with an annuity scheme.

An important factor that you should pay attention to when looking for an answer to the question of which bank has the most profitable mortgage with differentiated payments is the size of the down payment. To get an idea of ​​the current figures, check out the data in the table

Please note: Surgutneftegazbank has developed a differentiated mortgage program without a down payment (this is shown in the table). But it applies to the purchase of residential real estate from certain developers:

• GC "Severstroy"
• Samolet Development LLC.
• GC MIC.
• GC TIS.
• FSK "Zapsibinterstroy"
• LLC "Brusnika" Tyumen".
• OJSC "AHML".
• LLC "Promstroykompleks"
• Stroyinvest LLC.
• Stroy Mir LLC.

All of the above banks require the client to provide collateral as security for the loan. This could also be the property being purchased.

In addition, bankers have certain requirements for the age of the client applying for a mortgage, including differentiated ones. At the time of termination of the loan agreement, the borrower must be no older than 60 (Surgutneftegazbank) or 65 (Petrocommerce Bank) years. But Gazprombank demonstrated some loyalty in this matter. It consists in the fact that it is allowed to exceed the age by no more than 5 years. However, the borrower will have to provide additional security as collateral if it was not provided for in the loan agreement.

In conclusion, we should point out one negative aspect of differentiated mortgage payments. This method is not very convenient from the point of view of planning personal financial expenses. Knowing the size of your monthly regular income and using the annuity method of loan repayment, it will be easier for the client to predict his budget.

Annuity and differentiated loan payments (difference)

Today, a huge share of apartment purchases involves obtaining a mortgage. At the same time, when taking out a mortgage loan, it is important to choose a repayment option. There are annuity and differentiated mortgage repayment options. Each option has both its pros and cons; you will have to choose on your own. In the article we will understand what annuity and differentiated mortgage payments are, as well as which of these options is better to choose.

Mortgage loan repayment procedure

First of all, both the procedure and conditions for repaying a mortgage loan will depend on the credit institution in which it was issued. When applying for a mortgage, an agreement is signed, the terms of which will determine the procedure for repaying the loan. Today there are a huge number of banks with mortgage programs they offer. However, there is no need to rush into making a choice. First, you need to understand existing banking terms in order to avoid situations where the loan payer does not even understand what he is paying money for (

Specifics of mortgage lending at Sberbank

A home loan has a number of characteristic features that distinguish it from other financial instruments. Housing loans are large in volume and require the presence of co-borrowers and guarantors. Money is provided on the security of real estate for a long time (up to thirty years).

Security issued as collateral must meet the following standards:

• The building has no wooden floors;
• The house is not in disrepair or dilapidated condition;
• There are no strangers registered in the apartment;
• The house was built in a microdistrict with a favorable environmental situation;
• There are no encumbrances placed on the housing (seizure, rent, etc.);
• The rooms have electricity, heating, hot water and cold water;
• The age of the building does not exceed 30 years;
• The premises are in satisfactory sanitary and technical condition (no insects, mold, mildew, etc.);
• The apartment building is located in an area with developed infrastructure (there are schools, hospitals, shops and public transport stops within walking distance);
• Depreciation of the housing stock cannot be higher than 70%;
• The apartment is not located on the first or ground floor.

Calculation of mortgage payments with differentiated payments

Applying for a mortgage loan is a responsible step that places a financial burden on the borrower. Therefore, many clients prefer to calculate the loan themselves so that the bank does not impose additional expenses on them (insurance, commissions or possible fines).

The calculation procedure is presented below:
Calculation of payments using a differentiated formula

As you can understand from the diagram, calculating differentiated payments is a very labor-intensive task. First, the borrower is required to calculate the “body” of the mortgage loan, divided into payment periods; then - interest accrued on the balance of the debt. It is not possible to calculate the contribution amount one-time, as with an annuity; recalculation is required for each subsequent month.

Luckily, you don't have to calculate your mortgage manually. Typically, a preliminary schedule is proposed by bank consultants after processing the client’s application. Even earlier, calculators will help you “estimate” the size of the payment: they are available on the website of each credit institution. In them the client enters:

• Loan size and interest rate;
• Date of registration of the mortgage and repayment period;
• Procedure and frequency of payments;
• The amount of one-time or periodic commissions.

Having processed the request, the program instantly produces a detailed payment schedule. Thus, a potential borrower, even at the deliberation stage, can assess the profitability of the offer and make the right choice.

Review of banks providing mortgages with differentiated payments

To assess the profitability of current offers on the market, for example, let’s take a family that wants to take out a mortgage loan of 5 million rubles for a period of 10 years. The initial payment is 2.5 million rubles. Given the initial data, what rate, monthly payment and final overpayment can borrowers expect?

Mortgage conditions from leading Russian banks are presented below:

Looking for which bank has a mortgage with differentiated payment, you can notice: this calculation scheme is the lot of large financial institutions. This is due to certain risks borne by the credit institution. Since the main burden with a differentiated schedule falls on the start of payments, banks evaluate a person’s profitability based on the maximum tranches. For a mortgage, they often amount to 50% of the client’s earnings, and issuing a loan on such terms is prohibited by law.

As a result, market leaders (Sberbank, Unicredit, Gazprombank, etc.) are ready to take risks. For a mortgage with differentiated payments, they offer the same conditions as for an annuity. In other banks the formula is of little use: these are the realities of the national economy.

Differentiated method of mortgage repayment - advantages and disadvantages

The main disadvantage for the borrower arises from the payment structure. Even with a profitability assessment from the bank, the client runs the risk of overestimating his capabilities. It's all about high contributions at the start, which exceed annuity payments by a third. A significant reduction in the load on a differentiated mortgage should be expected no earlier than the first 5-6 years of payments. As a result, delays and non-payments from clients occur at the beginning of lending - at the most critical stage of loan repayment.

Otherwise, the formula is the best option for long-term and large loans. A simple calculation shows: with differentiated payments, the borrower overpays less than with an annuity. In addition, it is profitable to repay such a loan ahead of schedule.

However, the advantages of a differentiated scheme always depend on the risks of banks. The latter tend to offset them with loan conditions - for example, a higher rate. That’s why experts often call this method of calculation a marketing ploy. When attracting a borrower with a formula, organizations do not talk about costs. To avoid pitfalls, calculate the payment schedule in advance. With a mortgage, it’s better to do this years in advance. 09:48 06/27/2018

What is better for the borrower: annuity or differentiated mortgage payments

The article was prepared by Mortgage Live. If you need help with your mortgage, please contact us. You can also take a quick test to assess your chances of getting a mortgage. Thank you, useful reading.

According to statistics, it is easier to get approval for an annuity , since payments are the same throughout the entire period and it is not difficult to calculate the client’s income required to repay the loan. However, the second option has its significant advantages. What is more profitable - a uniform payment for an annuity or differentiated interest accrual? To understand this, you need to consider not only the numbers, but also the risks of these types of mortgages.

Pros and cons of different calculation methods

To objectively choose one of the two, you need to take into account the advantages and disadvantages of each method. In this case, the final decision remains with the borrower, since much depends on his income level and mortgage plans. Let's start with the definitions:

1. The annuity payment consists of principal and interest. The banking formula for calculating annuity can be found in Article 6 of Federal Law No. 353-FZ “On Consumer Credit”. The peculiarity of an annuity is that in the first payments the share of remuneration may exceed the share of repayment of the principal debt. For example, if you calculate an annuity payment schedule for a loan in the amount of 100,000 rubles for a year with an interest rate of 10%, in the first payment of 14,700 rubles, 10,000 rubles will be used to pay off interest. In the last payment, 1,300 rubles will be required to pay off interest, the remaining 13,400 rubles will cover the principal debt;
2. differentiated calculation implies that the amount of the principal debt is divided into equal parts according to the number of payment periods. If you pay your mortgage monthly for 10 years, the principal is divided into 120 equal payments. Interest is charged on the balance of the debt. Since the size of the principal debt decreases every month, the amount of remuneration in the payment also decreases. As a result, at the beginning the payments are maximum, and at the end of the term the amount of payments approaches the share of the principal debt.

At the beginning of 2020, the law does not in any way affect the ability to get a mortgage with one or another type of payment calculation. Facts about different interest calculation methods:

1. The availability of a loan for a client depends on the ratio of the monthly payment and the income of the future borrower. From this point of view, annuity is more accessible, since payments are equal throughout the loan term. To get a loan with differentiated interest charges, you need to have an income higher than when paying an annuity with similar starting loan conditions;
2. If you take out a loan with an annuity, it is easier for you to plan your own expenses. This is especially important for those who have a stable income;
3. several years ago, Russian banks actively approved differentiated mortgages. However, during the mortgage crisis in 2008 and 2020, these loans became the riskiest. In 2018, according to the Central Bank, the number of mortgage loans issued with a down payment below 20% increased sharply. This means that the risk of a recurrence of the mortgage crisis is growing. Against this background, loans with annuity look more reliable and less risky;
4. If you pay off your mortgage early, the difference in overpayment may become minimal or disappear altogether. Russians are actively trying to repay loans ahead of schedule: the average mortgage term is 15 years, and full repayment most often occurs 7 years after the loan is issued;
5. Even in banks that offer clients a choice of one of two payment methods, annuity is more popular.

Comparison in numbers using a mortgage calculator

For calculations, we will use the calculator on the Rosselkhozbank website. This credit institution gives its clients the right to choose regarding the mortgage payment system. When calculating, we identify an overpayment without taking into account insurance costs and other additional costs - only interest on the loan.

Starting opportunities for the borrower:

• down payment 500,000 rubles;
• the cost of the apartment is 2.5 million rubles;
• monthly income 60,000 rubles.

A differentiated mortgage for 10 years is possible at a rate of 10.5% per annum, taking into account complex insurance payments. The payment amount in the first month is 34,166 rubles, in the last - 16,812 rubles. According to the payment schedule, over 10 years the amount of overpayment at the interest rate will be about 1 million rubles. If we calculate the same mortgage loan with an annuity schedule, we get a monthly payment of 26,987 rubles, an overpayment for 10 years of 1,238,000 rubles. This is almost 300,000 rubles more than in the first calculation.

If we compare the overpayments in both cases as a percentage, it turns out that for the client the differentiated calculation of the mortgage is 30% more profitable than the annuity. If the term of the mortgage increases, the gap between the two types of payments becomes smaller. However, differentiated payment is still more profitable for the borrower.

Where to get a mortgage with differentiated payment

If you decide to take out a home loan not with an annuity, but with a differentiated interest system, you will have a small choice of credit institutions. Sberbank, VTB and Absolut Bank offer clients only annuity mortgages. Mortgage conditions with differentiated interest accrual at Rosselkhozbank:

• rate from 10%;
• term up to 30 years;
• down payment from 15% for new buildings, from 20% for town houses from the developer, from 25% for houses with land, from 30% for apartments;
• you can buy an apartment, apartments, a house with a plot or a separate plot of land;
• You can confirm your income using the bank form;
• you can use maternity capital to repay the loan;
• mortgage amount from 100,000 rubles to 60 million rubles;
• only ruble mortgage;
• possibility of purchasing new buildings by assignment of rights.

A similar mortgage program from Gazprombank:

• rate from 9.5%;
• down payment from 10%;
• loan term up to 30 years;
• minimum amount of 500,000 rubles (not less than 15% of the value of the property);
• The borrower's age is from 20 to 65 years at the time of loan repayment.

In 2020, a military mortgage can only be issued with an annuity payment. This is reported on the website of Rosvoenipoteka, where the terms of lending using NIS funds are indicated. Currently, 15 banks are accredited to issue military mortgages, and none of the lenders offers differentiated payment systems to military personnel. There is an alternative among additional lending offers for the military: Gazprombank offers a consumer loan with differentiated payments on the following terms:

• amount 50-500,000 rubles;
• rate 13.75-15% depending on the availability of loan collateral;
• loan term up to 3 years;
• Participants can only be military personnel included in the NIS register.

Despite all the benefits of differentiated charging of payments, banks do not strive to provide their borrowers with an alternative. In February 2020, deputies prepared for the first reading bill No. 364312-7 “On Amendments to Article 819 of the Civil Code of the Russian Federation,” which obliges creditors to give clients the right to choose. The legislative initiative belonged to the deputy from United Russia Andrei Baryshev and the chairman of the State Duma Committee on the Financial Market Anatoly Aksakov. The deputy noted that the choice between annuity and differentiated payments is needed by individuals to secure mortgage and consumer loans, and not by entrepreneurs. However, Aksakov’s idea did not find support among deputies and representatives of the banking sector. One of the reasons is that the mandatory introduction of differentiated payments will lead to the need to rebuild the IT system in a number of credit institutions. Therefore, in 2020, even if you have the desire and opportunity, it is quite difficult to get a differentiated mortgage.

Which bank is better to get a mortgage from? list of the best

You should pay attention to such a moment as life insurance of the borrower. If, when obtaining a consumer loan, banks often impose insurance services together with partner insurers, then here this procedure is necessary and forced

It is unlikely to be possible to refuse it in the cold period after the transaction is concluded, so it makes sense to consider how the size of the payment for this type of insurance will affect the entire loan, since this agreement is concluded for the entire duration of the loan.

• Revival - 12% per annum. Support for government programs;
• Unicredit Bank - with a contribution of 15%, you can initially get a loan of up to 15,000,000 rubles;
• RaiffeisenBnak offers loans at a base rate of 11%;
• Gazprombank issues up to 1,000,000 at 14.5% per annum.