How many years is a mortgage loan for?

What is the minimum mortgage term?

Many borrowers who take out a mortgage from a bank try to shorten the term of the loan.
This desire can be understood, because every borrower who takes out a mortgage wants to quickly become a full-fledged and full-fledged owner of a home. On the other hand, if the mortgage term is minimal, then the monthly payment will be much higher. Then what period will be optimal? Currently, banks offer mortgage loans for terms from 1 year to 50 years. It is believed that the best lending conditions are provided if the loan is issued for a period of five to ten years. With this term there will be a minimum interest rate and the down payment will be minimal.

Experts say that borrowers generally take out loans for a period of ten to twenty years, but the average loan repayment period is seven years. It turns out that many borrowers pay off their debt ahead of schedule.

According to experts, you need to choose the most suitable mortgage term based on the borrower’s income. This is the most important criterion.

Ideally, the monthly mortgage payment should be up to 30% of the borrower’s total income (earnings). Based on this, even if the borrower's income decreases, he will still be able to continue to fulfill his loan obligations to the bank.

Many banks, moreover, the overwhelming number of credit institutions, determine the terms of a mortgage loan based on the fact that the borrower must pay a monthly portion of income, which ranges from 40 to 60% of the borrower’s total income or the amount of income of all members of the borrower’s family.

It is worth recalling that there is another factor that limits the maximum term of the mortgage - the age of the client; the mortgage loan must be fully paid until the borrower reaches retirement age.

Analysts advise taking out a mortgage loan for a minimum term if:

• An alternative transaction with housing, that is, the client can repay his debt ahead of schedule; • Income will allow him to repay the loan ahead of schedule.

There is no need to shorten the loan term if a promotion at work or an increase is only planned. Always think about repaying the loan, because if you fail, you may simply lose the home you purchased with the loan funds.

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Minimum term

Let's now consider what the minimum mortgage term is. You can take out a home loan for a period of at least 12 months. That is, the mortgage term should not be less than one year. But this is a rather arbitrary meaning.

By law, please note that the bank does not have the right to prohibit its clients from repaying loan funds ahead of schedule, and the lender does not have the right to charge an additional fee for this. By the way, if in the process of paying off a housing loan you received the right to maternity capital. You can cover the principal debt with these funds. In general, you can even reduce the minimum term of your mortgage at Sberbank if you repay the loan early.

How much does a housing loan cost?

Clients, when contacting a bank to conclude a mortgage agreement, always consult with specialists to obtain additional information. One of the most frequently asked questions is what is the validity period of the loan agreement? This article will discuss what the minimum mortgage term is.

Description

The minimum term for which a mortgage is provided is one year. Considering the cost of the simplest one-room apartment, there are unlikely to be people who can pay off the entire mortgage within such a short period of time. Only if an initial payment of 80-90% has been made. In all other scenarios, clients take out a financial loan for at least 10 years.

As statistics have shown, the most optimal term of a financial loan for the purchase of residential property in Russia is 15 years. This is due to the fact that most citizens of the Russian Federation initially contribute on average 40-50% of the cost of the residential premises they need. The maximum term of a mortgage loan in the country is usually 30 years, but in some financial institutions it can reach 50 years.

The longer the loan term, the lower the monthly payment. Any client who has contacted financial institutions at least once knows this truth. But at the same time, the amount of overpayment on the loan increases. Of course, for any bank it is beneficial for the client to take out a financial loan for the maximum period, then interest payments will make a good profit for the bank. It is for this reason that almost all banks refuse short-term loans to clients.

Criteria for calculating the loan term

How can a borrower choose the optimal loan term for himself? So that the monthly payment does not burden the budget too much, and the overpayment is as small as possible? There are some tips that you can follow to approximately select a favorable period for yourself.

1. First, the total mortgage payment should not exceed 30% of the client's income. This is a very important point - it is on the remaining free funds after the monthly payment that the client will live.
2. Secondly, in any case, there will be an overpayment on the loan. But it can be minimized by early repayment of the principal debt. It is worth calculating in advance how much monthly the client is willing to set aside for early repayment.
3. Another important factor is the level of inflation in the country. It’s worth factoring it into your budget in advance.
4. Fourthly, force majeure happens in every person’s life. The client could simply be fired from his job or laid off. In this situation, it will be almost impossible to immediately find a huge amount of money for a monthly contribution.
5. And finally, it is necessary to find the “golden mean” between the financial loan rate and the loan term. For example, 10% per annum for 30 years may be less profitable than 12% for 20 years.

Loan terms from major banks

Let’s consider what loan terms top banks are willing to provide to their clients when drawing up a mortgage agreement and under what conditions.

Sberbank

The most popular bank in Russia. He is ready to provide a mortgage loan for a minimum period of 1 year. The official website has a link to a loan calculator for calculating a mortgage. That is, when applying for a mortgage for 1 year, the client is required to make a mandatory contribution in the amount of 33.5% of the value of the residential property. Most citizens will not be able to afford this amount of monthly payment.

Using the loan calculator on the bank’s website, you can pre-select the most optimal loan conditions for yourself. And only then, with a ready-made decision, contact the bank.

The maximum loan term at Sberbank is 30 years.

VTB 24

The VTB24 group of companies is very famous in the financial sector for its innovations. So, for example, they were the first to propose introducing insurance payments after the end of the loan agreement.

The minimum term for a mortgage loan is the same as at Sberbank, but the maximum amount varies. In the “Purchase of Secondary Housing” program, VTB24 is ready to provide a financial loan for 50 years. This is a very long period of time, during which the client will overpay at least twice the amount of the lawsuit. But with such a term, the monthly payment is minimal and the client can pay off the mortgage early.

Gazprombank

Gazprombank issues mortgage loans for at least three years. This is due to the bank’s main activity – investment and development of mutually beneficial relationships in the gas industry. Another feature of Gazprombank is additional fees for any transaction with a loan: filling out an application, issuing a loan, making a monthly payment. The maximum possible loan term is 30 years.

Alfa Bank

The conditions for issuing a financial loan are almost the same as in other banks. The minimum mortgage period is 3 years, and the maximum is the same as in Sberbank, that is, 30 years. The bank provides preferential rates for its loan products for salary card holders.

Conclusion

Depending on the borrower’s income level, this loan term is chosen by him independently. In Russia, this average is 15 years. It is believed that this is the most optimal option, which makes it easy for the client to repay the mortgage loan.

Most banks adhere to a maximum mortgage term of 30 years. The exception is the VTB24 group of companies, which, in the program for the purchase of secondary housing, is ready to enter into a loan agreement with the client for 50 years.

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For what period is it best to take out a mortgage?

When a goal related to the immediate purchase of real estate appears on the horizon, most Russian families do not consider it important to familiarize themselves with and analyze information about banks and proposed mortgage programs. For some, information about the maximum period and at what percentage can be taken out for a mortgage is enough to accept solution.

The material in this article will allow you to weigh the pros and cons and choose convenient mortgage loan conditions for every citizen of the country and his family.

For what period is it more profitable to take out a mortgage loan?

The bank client has the right to independently choose the term for repaying the housing loan. But financial institutions provide for calculations for the terms of mortgage lending, which directly depend on the solvency of the borrower.

To choose the optimal loan term, it is enough to be guided by the basic criteria:

1. An unstable financial situation of the borrower can lead to a delay, therefore, choosing a short term, there is a significant risk of receiving fines and additional charges;
2. Registration for a long time from 15 to 30 years provides for repayment in loan installments, and due to this, the final overpayment is reduced;
3. The possibility of early repayment generally operates without penalties or commissions.

The average repayment period for a mortgage is 10 to 15 years. All banking institutions have a rule from which it follows that the shorter the loan term, the less the overpayment.

When choosing a loan repayment period, you must first consider your capabilities. If in the near future there is a possibility of receiving a decent amount for early repayment, it is more profitable to take out a loan for a shorter period.

Length of mortgage and age of borrower

Most banking institutions use a standard mortgage term, which can be adjusted and depends on such an important factor as the age of the borrower.

The age criterion for purchasing a home on credit has been in effect since the beginning of the mortgage loan program. Despite the fact that age is one of the main factors, bank employees are more interested in official employment, income level and health status of a potential client.

Most institutions focus on the age of the borrower, which should not exceed 55–60 years on the expiration date of the mortgage agreement.

Most often, citizens between 28 and 37 years old purchase housing with a mortgage. In practice, there have been cases of mortgage lending by citizens aged 65–70 years, but subject to the presence of a younger co-borrower.

According to the law of the Russian Federation, mortgages can be issued to persons over 18 years of age, but in fact, most banking institutions provide housing loans exclusively to citizens who are at least 21 years old and have a permanent place of employment with at least 1 year of experience.

Name of bankAcceptable age of borrower (years)

The main reasons for taking out a long-term mortgage

Choosing a long-term mortgage loan is advisable if:

• It is planned to purchase a land plot with unfinished construction;
• The reconstruction of the construction site with the expansion of living space is being considered;
• Housing is purchased in a new building during the construction phase;
• The borrower's income is unstable or very low;
• There are fixed costs for existing obligations.

When taking out a mortgage for a long term, it is worth considering that circumstances may change for the better, and repaying the loan ahead of schedule is always possible.

Types of mortgage programs based on validity period

The duration of the mortgage is calculated based on the individual characteristics of the borrower, and depends on the conditions and requirements of the individual banking institution.

Types of mortgage lending based on the validity period:

1. Short-term mortgage lending for a period of 5 to 10 years;
2. Medium-term mortgage with a validity period of 10 to 20 years;
3. Long-term lending is provided for a period of 20 years.

It should be noted that in Russia the most popular type of medium-term mortgage lending.

Maximum and minimum mortgage terms in different banks

It is not profitable for absolutely any credit institution to use minimum terms, since this is one of the most important factors in making a profit. Theoretically, the repayment period for a mortgage loan is provided for from 1 year, and in banking practice it is exclusively from 3 years.

It is worth considering that early repayment can be made at any time.

Regarding the short-term type of mortgage lending, the bank does not particularly accommodate the client in meeting the terms of the loan within a period of 1 year, or increases the interest rate. In this situation, it is preferable to give preference to a cash loan for the purchase of real estate.

The main pros and cons of short-term mortgages

Advantages and disadvantages

The main advantage of long-term mortgage lending is the reduced interest rate compared to short-term loans.

The main pros and cons of a long-term mortgage loan

Advantages and disadvantages

Regardless of the loan period, each borrower can use the early repayment service, thereby reducing the total amount of overpayment.
According to statistics, the average mortgage term in Russia is 15 years.

Comparative analysis of short-term and long-term mortgage agreements

Loan criterionShort-term repaymentLong-term repaymentAdvantage under the agreement

In early repayment according to the table above, preference is given to “short” lending, due to the fact that in some financial institutions, long-term mortgages involve a reduction only in monthly interest, and not in the total term.
Other banks are ready to reduce the total loan term, but then there will be practically no difference between the two types of mortgages. A table reflecting information about the maximum and minimum mortgage terms provided by popular Russian banks.

Bank nameMinimum period (years)Maximum period (years)

The maximum mortgage loan term is: Sberbank, VTB 24, Otkritie and is 30 years.

Everyone chooses loan terms based on their goals and capabilities. Of course, a short-term loan will require a significantly smaller amount of overpayment, but you can choose it only if you have the opportunity to pay fairly large monthly sums of money.

The majority of Russian citizens prefer medium-term mortgages, and the actual repayment period for such loans is up to 10 years. Armed with the necessary knowledge and correctly assessing your capabilities, you can reduce all possible risks to a minimum.

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Minimum mortgage amount

There are pros/cons in both cases. The bank will not give a large loan to a citizen whose solvency the institution doubts. Therefore, you have to use the options offered by organizations. The shorter the mortgage term, the less the client will overpay in interest. It's convenient and profitable.

Before finding out the minimum mortgage term, it is recommended that you familiarize yourself with the lending threshold. Any bank will not give a loan for housing less than 300 thousand rubles. This is the lowest offer. Moreover, no program can influence the organization’s decision.

As for the maximum amount, the figure varies. As a rule, the ceiling is 50 million rubles. Getting a loan is quite difficult. It is necessary to provide evidence that the client is able to pay it.

Minimum mortgage term and minimum amount - frequently asked questions. It is quite obvious that taking out a debt of 300 thousand rubles for housing is unprofitable; it is difficult to buy an apartment for that kind of money. This will be a profitable solution if you make a first payment of 80-90% of the cost of housing.

Not every resident of the country can afford this. The down payment must be 20% (or more) of the total cost of the property purchased by the borrower. It is difficult to accumulate such an amount. Therefore, the state has developed special programs for different categories of citizens that simplify the procedure.

For what period is it better to take out a home loan?

Shortest mortgage period

When it comes to this type of loan, the client assumes that he will be paying off for a long time. In most cases this is what happens. Based on the borrower's solvency, the bank sets a payment period. Typically from 10 to 15 years. In some cases up to 25-30 years. This is influenced by factors:

• Client's age. The older the person, the more difficult it is to obtain the optimal loan repayment period;
• Family status. The bank is more willing to accommodate spouses than clients without a husband/wife;
• Position held;
• Income.

Each of the nuances can play a key role. Do not forget about the presence of a co-borrower/trustee. With their help, you can get more favorable credit conditions.

The minimum mortgage term is issued based on the borrower’s funds, desired debt, and profitability. The lowest threshold is 12 months - exactly a year. Of course, not a single bank will agree to issue an annual mortgage for a large amount. It will be very difficult to convince employees that the borrower will pay off so quickly.

If Sberbank or another financial institution does not approve the issuance of a loan for the minimum period, you can accept the bank’s offer for a longer loan and repay early

However, this figure is quite conditional. Even if you take out a debt of 300 thousand rubles, the bank will try to set terms longer than the minimum. This is primarily beneficial to the institution itself. The longer the client pays, the more the organization will earn from interest.

However, the client can set his own minimum mortgage term. The law does not prohibit making early payments. That is, the borrower will not incur fines from the bank for violating the payment schedule.

The faster the loan is closed, the less the financial institution will earn. Of course, some organizations resort to cunning and stipulate this clause in the contract itself, or rather the impossibility of its implementation. The client needs to carefully study the document. The minimum mortgage term cannot be less than a year.

Starting term of a mortgage at Sberbank

A large number of clients come to this institution every year. The bank has an excellent reputation, is loyal to regular users of its products and, in general, as one of the largest organizations is not going to lose its position.

Banks are not willing to issue mortgage loans for a short period due to the fact that they receive less income from such transactions

The minimum mortgage term at Sberbank is also one year. This bar is set by law. But even here it is difficult to obtain such conditions. Again, you can pay most of the amount with your down payment. Conditions depend on the same factors as described above.

Detailed consultation can be obtained by calling: 8 (800) 555-55-50. Employees will answer your questions and tell you in detail about various nuances, opportunities/offers. Sberbank cooperates with the state and supports social programs.

For how many years do they give a mortgage at Sberbank: requirements and terms

Sberbank invariably sets the trend for the entire Russian banking sector. The bank is focused on borrowers with a stable income and provides them with the most favorable lending conditions. The article describes in detail how many years a mortgage is given at Sberbank.

Maximum loan term by law

The mortgage law does not specify the maximum period for which a mortgage loan is granted. Based on the duration of the loan, it is customary to divide the mortgage at Sberbank and any other credit institution into:

1. Short term.
2. Medium term.
3. Long-term.

The bank's profit is directly proportional to the term of any loan, therefore, with partial early repayment of a mortgage loan, banks prefer to reduce the monthly payment, but not the loan term. The only restriction on a mortgage is the working age of the borrower.

Up to what age can you take out a mortgage for the maximum period?

Working age is considered to be the age before the borrower retires. According to statistics, a pensioner in Russia still works after reaching retirement age for several years. Therefore, Russian banks are increasing the lending period to 30 years. Each bank determines for itself how many years a mortgage on an apartment is given. In Europe, it is possible to take out a mortgage for up to 40 years, since in most Western countries people retire at 65–70 years.

The most important condition for obtaining a mortgage is the age of the borrower at the time of repayment of the loan. In Sberbank, it should not exceed 75 years. This means that if you take out a mortgage for 30 years, then the optimal age for getting a loan is 35 -39 years.

Which loan to choose

The question of how many years you can take out a mortgage is relevant when the size of the monthly payment matters. Despite the significant overpayment, long-term mortgages are easier to service. This is clearly visible when comparing the same loan amounts issued for 20 and 30 years, at 11.75% per annum in Sberbank.

The shorter the loan term, the higher the monthly payment will be. If the borrower knowingly takes out a mortgage with the intention of repaying it early, then it is better to opt for a long-term loan. If the situation changes and finances to close the loan do not appear, this will give time to find a solution to the financial issue.

The disadvantages of a long-term mortgage loan include the inability to predict the economic situation in the country. As an example in Russia, we can cite the situation of foreign currency mortgage borrowers who took out loans counting on the strengthening of the national currency. As a result, the ruble lost ground, which led to disastrous consequences.

For an example abroad, we can cite the US market and the situation with cheap mortgage loans, which led to the crisis in 2008. As a result of the lowering of interest rates, which was deliberately done by the US Federal Reserve, many borrowers lost their homes. It was impossible to foresee this event. These are the most striking examples of the risks associated with mortgage lending.

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Mortgage terms in various banks

Many banks in the Russian Federation work with mortgages, which set their own conditions, differing in terms, amounts and rates.

Mortgage housing must meet bank requirements

Sberbank

The most popular institution is Sberbank. This organization operates under a system of government subsidies and provides mortgage loans with government support to various categories of the population: young families, military personnel, young professionals.

The main parameters of the program are as follows:

• amount from 50,000 rub. up to 10 million rubles;
• 5 loan programs;
• the maximum mortgage term at Sberbank is 30 years;
• interest rate – from 9% per annum.

Sberbank works on special programs, such as military mortgages and housing for young professionals. In this case, not only the borrower who fills out the application has obligations under the contract, but also the state, since it is the guarantor of the payment of money and also provides the client with funds for the down payment.

VTB 24

Many new houses are being built under the logo of this bank. Basically, mortgage loans at this enterprise are issued to salary clients, since VTB 24 carries out large-scale connections of enterprises to its own services.

Program parameters:

• for salary clients, the mortgage rate does not exceed 9%, for other categories – from 12%;
• terms – up to 30 years;
• amount – up to 25 million rubles.

The bank partially participates in the government subsidy program, which allows clients to take out preferential mortgages on those properties that were built jointly with partner companies. These are mostly standard apartment buildings. The share of private real estate and cottages in this category is small.

Today such organizations are Gorstroyzakazchik, ZhilRemStroy and so on. If an apartment is purchased in one of these buildings, then VTB24 makes a big discount on the mortgage interest rate, and also allows you to take out a loan with a 0% down payment.

Banks have a wide range of mortgage programs

Raiffeisenbank

A mortgage from Raiffeisenbank involves collecting a large package of documents , which, in addition to a typical passport of a citizen of the Russian Federation, will include:

• income certificate;
• copies of the work book, employment contract;
• educational documents;
• Statement from the pension account for the last year.

Raiffeisenbank selects mortgage clients quite strictly. Offers mortgages only to persons over 25 years of age and with at least 18 months of work experience in their most recent position. The main parameters of the programs are:

• interest rate from 12% per year;
• amount up to 15 million rubles;
• Mortgage loan term – up to 30 years.

Thus, Raiffeisen allows you to take a larger amount, but it must be fully covered by the cost of housing. In other words, it is impossible to take out a loan of 15 million rubles if the collateral costs 10 million rubles.

Raiffeisen does not allow the purchase of country real estate or land plots.

Thus, of the banks presented, Sberbank offers the longest history of mortgage lending and the widest list of programs. In addition, Sberbank participates in the government subsidy program, which allows it to ensure a dense client flow.

How many years is the mortgage valid for?

All banks issue mortgage loans with different terms and duration of lending.

If we consider the main proposals of companies, we can find that the average loan period is considered to be 15 years.

At the same time, the maximum terms for issuing a loan in most companies are set from 30 to 50 years. And at the time of full repayment of the loan, the citizen must be no more than 70 years old.

The procedure for registering and obtaining a mortgage is determined by Federal Law No. 102 of 1998.

How is the loan calculated?

How many years is the mortgage for? The bank approaches this issue comprehensively and carefully considers the borrower’s personality.

The Bank takes into account the following factors:

1. Property value. The more housing costs, the longer the term will be.
2. An important condition is the ability of a citizen to make a down payment. If there is no first payment, the loan term increases.
3. Solvency of the potential borrower. To do this, the citizen provides a certificate from his place of work and confirms the level of his official income, which the company always strictly checks. If the official salary level is insufficient to obtain a loan, the borrower may be refused or the loan period may be extended.

Who can take it?

Usually you can get a mortgage from the age of 21, but if an adult citizen has a stable income and a decent salary, then in some banks you can take out a loan from the age of 18.

The maximum period for drawing up a mortgage agreement is determined by the retirement age limit, however, here too, banks allow the limit to be expanded for working pensioners.

A prerequisite for obtaining a mortgage is to have an official salary; freelancing or salary in an envelope are not considered by large banks.

In the absence of confirmed income, it makes sense:

• contact microfinance organizations;
• get a loan at a higher interest rate.

Also, most banks issue loans with a total work experience of at least one year and work experience in the last place of 6 months.

When making a decision to issue a loan to a specific citizen, banks carefully check his credit history and the presence of debts.

If in the past the applicant has often been late with loan payments, or he has a significant debt with another company, then he may be denied a loan.

How many years is the mortgage for?

The solution to the question of how many years a mortgage is given largely depends on age, government program and other important conditions.

To buy an apartment

If the borrower is able to make a down payment and meets certain conditions of the banking company, the mortgage is provided for a period of 10 to 25.

The exact loan period is calculated depending on:

• housing costs;
• the size of the down payment.

Most large banks provide for the possibility of early repayment, therefore, when a citizen is able to pay the debt in full before the due date, the agreement with the bank can be terminated.

However, some companies impose a ban on early repayment or set a minimum amount for making monthly payments.

For housing

In the case of obtaining a loan for housing, there is also no specific period; each situation is considered individually.

Terms can vary from 15 to 30 years.

Military

The specifics of obtaining a mortgage under a military program are regulated by Federal Law No. 117.

The essence of the program is that during a man’s service, his personal account receives deductions from a special military fund, which he can then use to pay the down payment or part of the loan.

Depending on the amount of accumulated funds, the loan duration will be calculated.

Young family

For what period is a loan issued for Young Family participants?

The most popular program is the mortgage for “Young Family” from Sberbank:

• according to the conditions, spouses can receive it if one or both have not reached the age of 35;
• The maximum loan term is 30 years.

No down payment

Large banks do not issue mortgages without a down payment.

Therefore, if an applicant wants to apply for a loan and cannot provide a down payment, then it is better for him:

• contact microfinance organizations;
• apply for a consumer loan.

However, the terms of such a loan require a smaller amount and a short loan period, which is usually set at up to 5 years.

For pensioners

Most banks prescribe certain conditions for pensioners to obtain a mortgage.

Full payment of the debt must occur no later than 65 years for women and 70 years for men.

Moreover, non-working pensioners are unlikely to be able to get a mortgage in their name.

Minimum and maximum

The minimum age for obtaining a loan is 18 years, but most companies only issue loans from 21 years of age.

The maximum period for obtaining a loan is set upon reaching retirement age; for working pensioners, the period may be slightly extended, but only slightly, usually no more than 5-10 years.

The longest loan period is usually set for up to 50 years, and the minimum period is 5 years.

Conditions in large banks

To determine the duration of the loan, you should consider the conditions of popular banks.

Sberbank

The maximum validity period of a mortgage agreement with Sberbank is 30 years.

The duration is calculated depending on:

• selected program;
• borrower's solvency.

There is a possibility of early repayment.

VTB 24

This bank provides the possibility of issuing mortgages for a period of up to 50 years, subject to the payer making a down payment of 10% of the value of the property.

Gazprombank

The maximum term of the mortgage agreement is set to 30 years.

The exact mortgage period is calculated depending on:

• selected program;
• making a down payment and other conditions.

There is a possibility of early repayment.

How to minimize risks?

Most borrowers, when receiving a mortgage, are interested in what term is considered the most optimal and profitable for the payer.

Professional realtors agree that it is best to take out a mortgage for a period of at least 15 years, since in this case the overpayment will not be so huge, and the borrower has time to slowly repay the loan.

Moreover, if a citizen has the opportunity to pay the mortgage ahead of schedule, he will be able to do this at any time.

Many banks do not discourage early repayment and do not charge fees for this.

The loan period should be determined before the contract is drawn up; it is better to take legal advice or use the online calculator service, which is available on many websites of banking companies.

Calculating the conditions and choosing the appropriate program will help the payer determine the optimal term of the mortgage.

You should also consider the possibility of making a down payment; if the contribution is more than 30% of the cost of housing, then the loan term may be significantly reduced.

Video about the terms of a mortgage loan

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How to choose the right mortgage term

One of the most important issues that a future mortgage borrower must decide is the choice of a suitable loan term. You can extend the loan over a long period of time, achieving a suitable monthly payment amount, or you can shorten the term and the final overpayment on the loan - all according to your wishes and capabilities.

A good help when making a decision would be a consultation with a mortgage broker - a competent specialist can bring you up to date. It is also worth visiting the website of the bank chosen as a future lender and using the special program offered to clients - a mortgage calculator that will clearly show all commissions and overpayments. Before this, it is advisable to already decide what kind of housing you want to purchase with a loan, and how much you can pay as a down payment.

TOP mistakes of mortgage borrowers

It is worth warning a potential banking client about the most common mistakes made by average mortgage borrowers.

"Immediately to the queens"

Striving for the best is admirable, but when it comes to taking out a mortgage, such aspiration can let you down. This happens when a borrower with an average income chooses luxury, expensive real estate to purchase on credit. In this case, the term and, accordingly, the overpayment become maximum. Experts advise not to rush things and choose the type of housing, starting with the required minimum, so as not to add to the list of problem borrowers and not to overpay the bank twice.

Minimum down payment

Of course, saving 10% of the total amount for a down payment on a mortgage is easier than paying the bank a third or half of the cost of housing at once. In the first case, you will quickly receive a loan, but the interest rate will be higher, and the total overpayment will not please you with its size. By paying a larger down payment, you can count on benefits from the bank, which also includes a lower interest rate.

Unmanageable monthly payments, hope for the future

Many people expect that things will get easier in the future and do not hesitate to agree to monthly payments of more than 30% of their monthly income. Such expenses are not designed for possible force majeure and very soon can become unaffordable - and from there it’s not far from being included in the debtors and foreclosure of the mortgaged apartment.

Optimal mortgage term

Despite the fact that most housing loans in our country are taken out for 10-15 years, they are paid off faster - usually borrowers try to meet the deadline of 5-8 years. No bank can prohibit you from repaying the loan early in part or in full, so there is a real opportunity to close the loan in a much shorter time.

As for the initial choice of the mortgage term, 15 years was unanimously recognized as the optimal figure. A longer term slightly reduces monthly payments, but provokes a considerable overpayment. Therefore, if the mortgage calculator shows that your income does not allow you to take out a mortgage for up to 15 years, you should choose a cheaper property or collect more money for the down payment.

For how many years and to whom is a housing mortgage granted?

Hello, Nadezhda!
Your desire to learn about the ins and outs of home lending is commendable. Thanks to this, you can choose and apply for a profitable loan.

Therefore, we will carefully analyze your question: for how many years can you take out a mortgage?

A mortgage is a type of loan, the main difference of which is its long term. For how many years is it issued?

On average, a mortgage is issued for 5-15 years. This is due to a large loan amount, which is intended for the purchase of housing. Mortgages are not issued for 1-6 months.

Remember!

The longest mortgage term is 30 years. Most Russian banks issue loans for this period. The minimum term ranges from 5 to 10 years.

Nadezhda, to your question about how many years a mortgage is issued for the purchase of an apartment, there is no definite answer. Because the loan term depends on a number of factors. Let's take a closer look at them.

What determines the term of a mortgage loan?

• Type of housing; • Type of mortgage; • Age of the borrower.

Housing type

For how many years are they given a mortgage for an apartment and to whom?
It all depends on the availability of a down payment and meeting the bank’s requirements. If you have made a down payment and meet all the criteria, you will be issued a loan for 10-25 years. Also, the exact period will depend on the cost of the apartment.

It is important to know!

According to experts, the ideal period for paying off a mortgage is 10-15 years. The longer the period, the higher the amount of overpayment.

80 percent of Russian banks provide for early loan repayment. Therefore, even if you take out a mortgage for 20 years, you will be able to pay it off 5-7 years earlier.

A loan to purchase a house is issued for a period of 30-50 years. Banks consider all applications individually. Therefore, there is no definite answer for how many years you will receive a loan to buy a house or build it, no.

Types of mortgage

The term of the mortgage loan also depends on the program.
Namely: • Military; • For a young family; • No down payment.

The parameters of loans (term, amount, rate) for the purchase of housing under the military program are regulated by Federal Law-117. The essence of the program is that during the period of service, funds from the military fund are transferred to the military’s personal account, which can be used to apply for a loan.

Remember!

The term of the military mortgage loan is affected by the amount of accumulated funds. However, all cases are individual.

Loans for the purchase of housing are given to young families for different periods. Maximum - 30 years. Spouses whose age does not exceed 35 years can receive a loan.

Several banks issue mortgages without a down payment. According to the terms, it is issued for a period of no more than 5 years. This way the bank compensates for the risks associated with non-repayment of funds.

Conditions for purchasing a home

The condition for issuing a loan to purchase a home is a down payment. Its size must be at least fifteen percent of the total loan amount in case of confirmation of regular income and at least fifty percent in the event that the client cannot confirm his official income. If all the bank’s requirements are met, the client can expect to receive a housing loan for a period of ten to thirty years.

The exact amount and conditions that Sberbank will be able to offer during the application period will also depend on the subject of the application. The bank collects such data based on general information provided by the client. Also today, Sberbank is holding a promotion for the purchase of housing in a new building. There is a reduced interest rate here, but the loan term is twelve years, and the rate can be subsidized by the developer.