All possible mortgage conditions for secondary housing and bank interest rates

Presence of factors influencing the interest rate

Ready-made apartments in the Russian Federation are no less common than new buildings. This popularity is due to the opportunity to move into a new apartment immediately after completing the documents.

ATTENTION : For families who rent housing and need their own home, this is the most profitable or even the best solution to the housing problem, and it is also cheap.

It is a mistake to believe that only apartments in old buildings are considered secondary. Property in a new building for which ownership has already been obtained will be considered a secondary housing market.

Rates set by banks in our country can range from 7 to 12% in foreign currency and from 8 to 14% in ruble programs.

The final decision on the accepted rate is made based on the following factors:

• income provided to the bank as confirmation, a 2-NDFL certificate or according to the bank’s form is used;
• the cost also determines the percentage of overpayments;
• the secondary market is less liquid compared to new buildings, so the rate on it is much higher;
• term of the requested loan;
• the amount of the down payment made when applying for a mortgage;
• promotions and special offers often make the rate lower than competitors.

Step-by-step instructions for obtaining a mortgage for a secondary home

Choosing a bank and apartment for a mortgage

Where to start applying for a mortgage? There are 2 main stages:

• Selecting a bank. Contact the bank to apply for a mortgage loan. Having received a positive answer, find housing.

But if the decision period (usually 2 months) expires before housing is found, you will have to submit a new application.

• Choosing an apartment. After finding a housing option that suits your needs, contact the bank with an application. This is where the problem will arise if the loan is denied.

To choose a suitable financial institution, you will have to study a lot of information. Most borrowers consider the interest rate to be the main criterion. This is right. A difference of 1% per annum will result in 30,000 per year from an apartment costing 3,000,000 rubles.

Also, there are several other important factors to consider:

• hidden bank fees (for early repayment, for opening and maintaining an account, for issuing a loan). Sometimes this adds up to a significant amount. It is better to find out in advance what you will have to pay for;
• convenience of refund. In large cities such problems will not arise, but residents of the outback need to find a convenient way to repay;
• availability of a down payment for an apartment. The lower the amount of this contribution, the worse the conditions;
• availability of insurance. The amount of payment for it is quite large, but this insurance is needed not so much by the bank as by the borrower himself.

Preparation of mortgage documents

In order to obtain a mortgage for a secondary home, you will have to collect a sufficient number of documents. It is also necessary to provide the bank with security - guarantors or collateral.

If your income is not enough, you can attract a co-borrower - a spouse, parents, close relatives. Both guarantors and co-borrowers must have official income. However, large banks also make concessions if the client agrees to an increased rate or a high down payment.

For the initial application you will need:

• passport with registration stamp;
• second official document to choose from;
• marriage certificate (if available);
• income certificate (2-NDFL, 3-NDFL, according to the bank form);
• copies of the work book.

Sample of filling out certificate 2-NDFL.
After a positive decision is made and housing is found, the following documents must be provided to the bank:

1.Documents for the purchased housing:

• purchase and sale agreement (preliminary);
• basis of ownership of the purchased housing (purchase and sale agreement, exchange agreement, gift agreement, etc.);
• certificate of ownership or an extract from the Unified State Register certified by a notary;
• document on the estimated value of housing;
• notarized consent of the seller’s spouse for the alienation of property;
• consent of the guardianship authorities when selling property owned by a minor;
• Documents from local housing authorities, BTI and other documents at the discretion of the bank may be required.

2. A document confirming the payment of the down payment (if provided).

After complete collection of documents, the bank will again consider the possibility of lending.

The cost of appraising an apartment for a mortgage

One of the important points in applying for a mortgage is the appraisal. It is needed in order to determine the cost of the housing being financed.

The assessment takes into account a lot of factors - area, availability of repairs, location, area infrastructure, problems in paperwork and others. Many large banks and real estate firms have such an employee on staff, or work with a company that provides similar services.

What is the procedure for an independent assessment of an apartment for a Sberbank mortgage - find out in the article at the link.

The appraiser can indicate the cost of housing that does not correspond to the real one - underestimate it by 20-40%. This is the trend. The bank issues mortgage loans based on the appraised value of the home.

And if ownership transfers to the bank (if the borrower is unable to repay the loan), it will sell the housing at market value. Having received the difference between market and assessed values ​​as income.

The average cost of appraising an apartment for a mortgage is from 2,000 to 6,000 rubles. The appraiser's work will require some documents; it is better to check their current list with the appraisal firm when calling a specialist.

Mortgage home insurance

This point usually causes a lot of questions and indignation among borrowers. But it is necessary.

Banks require mandatory insurance of mortgage housing against damage and destruction. It is also very advisable to take out life and health insurance. If you don’t do this, then at best, the rate will increase by 1-2%. At worst, you will be denied a loan.

Early repayment of a mortgage at Sberbank: conditions, procedure, documents and other important points were discussed in detail in our new article at the link.

Nobody wants to think about the bad in advance, but life sometimes brings unpleasant surprises. It is not the bank that needs insurance, but primarily the borrower himself. If an insured event occurs, he and his family will not remain in debt to the bank for a huge amount.

How to transfer money for a mortgaged apartment?

Transfer of money

Payment for the purchased apartment can occur after the bank transfers bank funds to the borrower's account. There are 4 ways, which is better, it is up to the parties to the transaction to decide:

• through a depository box in a bank;
• transferring funds to the seller’s account;
• cash (the riskiest method);
• letter of credit.

Is it possible not to pay a mortgage loan to the bank legally? Find out here.

Conditions of banking organizations

The rate chosen by the bank for the client is at the discretion of the bank. This will depend on the above circumstances and the desire to take out life and health insurance of the borrower. If you refuse this procedure, the rate is increased by one percent.

For the bank, the fact of monthly receipt of funds into the account is important. In the event of illness or death of the borrower, payments most often stop due to the low solvency of the relatives of the deceased person. This is an extra risk for the bank.

In general, rates for secondary housing are kept within the same limits , but there are also differences that the borrower must take into account when choosing a financial institution for a mortgage.

Read about whether it is possible to buy a secondary home with a mortgage and which banks approve a loan here.

Social mortgage

Programs for the purchase of housing with government support - this is a mortgage for secondary housing at the lowest interest rate: from 9.9%. In addition, the contribution can be only 10%, and maternity capital can be used to increase the loan amount.

Social mortgages on such favorable terms are provided, in particular, by Interkommerts Bank and Rosenergobank.

Social borrowers are:

• citizens eligible to participate in the “Housing for Russian Family” program;
• citizens with 2 or more children;
• military personnel;
• employees of defense industry organizations;
• disabled people or families with disabled children who officially need improved housing conditions.

You can clarify your affiliation with social borrowers, a complete list of banks providing social mortgages, and the procedure for obtaining such a loan on the AHML website.

There are many mortgage offers for the purchase of used housing - we have highlighted the most interesting ones, from which you can choose the one that suits your particular borrower.

Preferential conditions

Some of the funds accrued by the state do not reduce the rate on the upcoming loan, but reduce its amount. The benefits provided by the state are designed to support young families and public sector workers. However, only those who decide to buy housing in a new building can count on help. For the secondary housing market, only rates established by banks can be provided.

The most common benefit when obtaining a mortgage is the use of maternity capital.

Sberbank offers young families to purchase a home loan at an interest rate of 8.6% . This applies to borrowers under 35 years of age. Compared to other rates for similar programs, this one is the most profitable.

The rate will be half a point, and sometimes one digit less, when applying for a loan for a client using a bank card to deposit wages. VTB24 is ready to offer a regular rate of 14.05%, and for salary clients one point less.

On average, home loans for finished housing start at a rate of 12% per annum . There are profitable offers limited to a certain period of time. If the borrower managed to use them, then he will get profitable housing at an attractive interest rate.

Advantages and disadvantages of purchasing real estate on the secondary market

Transactions for the purchase of housing on the secondary market have certain advantages. The following should be noted here:

1. The client has the opportunity to view and evaluate the property, talk with neighbors living in the house about the quality of services provided, heat and sound insulation, etc.
2. Possibility of choosing an area for future residence.
3. Sellers themselves set the price of the apartment, and you can negotiate with them to reduce it.
4. It’s easier to resolve the issue of the nuances of moving to a new home.
5. Almost all banks that provide mortgages have lending programs for the purchase of housing on the secondary market.
6. You can move into your new home immediately after the deal is concluded. The apartment is already equipped with plumbing, utilities connected, etc.

It is the above factors that influence the fact that secondary mortgage lending is a popular way of buying a home.

The disadvantages of the deal include:

1. The need to monitor the purity of the transaction so as not to fall into a deal with scammers.
2. The interest rate under the programs is not the minimum in banks. Programs for the purchase of housing in new buildings built by the bank's partners have lower rates.
3. The purchased housing will not be new.

Where better not to go?

When choosing a suitable credit institution, the future borrower should pay attention, first of all, to the rate and amount of the proposed down payment. So today there are offers from banks in which the borrower is offered a home loan at 18% per annum, and without a down payment.

Transcapitalbank has such conditions. In this case, the term of the mortgage loan can reach no more than ten years . This is beneficial for those borrowers who want to purchase a home without making a down payment.

FC Otkritie Bank is ready to offer borrowers a loan at an interest rate of 13.25% if the loan is taken out without a down payment. This is a high percentage when compared with other financial organizations. However, if the apartment is purchased with a contribution of 15%, then the rate will be significantly lower (from 10%).

How to choose the best mortgage loan?

You can get a loan to purchase real estate from different banks. But not all institutions offer low rates.

The minimum percentage on the market is 6% (“Family Mortgage”), and the maximum is 18% (Rostfinance Bank).

You need to carefully read the current programs and choose the most profitable one. There is no need to rush into making a decision. This is not a loan for goods, but a mortgage. The contract is concluded for a long period, and the amount of debt is very large.

When choosing a loan, you should pay attention to the following indicators:

1. The interest rate and whether it can change.
2. Loan terms. To protect yourself, you need to take out a loan for the maximum period, but try to repay the debt ahead of schedule.
3. An initial fee. The more advance the client makes, the less interest he will pay to the bank.
4. Insurance. Only property is obligatory. Title and personal – at the discretion of the bank.
5. There is a commission for issuing a loan and servicing it.
6. If possible, take advantage of preferential programs. They are valid for young people, military personnel and other categories of the population.

Applying for a mortgage involves certain costs for the client. First, you need to pay a down payment. Maternity capital can be used for these purposes. Moreover, there is no need to wait until the child reaches the age of three.

Secondly, payment for the services of an appraiser and notary. Thirdly, insurance. If there are no funds for these purposes, then the conclusion of the transaction should be postponed. You should not take out a consumer loan to cover all costs. It will be very difficult to cope with such a debt load. In this situation, the client risks going into default and losing his property.

Having studied the lending market in Russia, we can draw the following conclusion. Today, a mortgage is a real chance to purchase your own home.

Beneficial federal programs are in place and maternity capital is paid. The minimum rate is 6%. But certain categories of borrowers can receive it. When receiving a mortgage on standard terms, you will have to pay from 9.5% per annum.

What mortgage programs do banks offer, what to do if you have no money at all, watch the following video:

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Discussion: there is 1 comment

1. Ivan says:
   05/17/2019 at 19:00

   Are there any social programs that involve not partial, but complete subsidization of interest payments on mortgage loans for certain groups of the population?

   Answer

Advantageous offers from banks

1. A rate reduced to 10%, like VTB24 , undoubtedly attracts potential borrowers and intrigues with its conditions. The advantage of such a mortgage is the requirement for a down payment, which should be only 10%. Another undoubted advantage is the absence of conditions for confirming income.
2. Another advantageous offer on the mortgage real estate market is an offer from RosEvroBank at 10.75% per annum. In this case, the minimum contribution should reach only 15%.
3. Many borrowers still prefer Sberbank .
   This is due to the developed network of branches of this organization. Sberbank has been engaged in mortgage lending for many years and selects reliable objects for collateral real estate. This justifies the trust of many borrowers in this particular bank. IMPORTANT : The minimum rate here is only 12% per annum, but the organization itself, by design and structure, inspires greater confidence among visitors who want to get a mortgage.

Choosing a bank is a difficult process, involving an analysis of advantageous offers and the size of the contribution. It is also necessary to take into account the number of years for which a residential mortgage on a secondary home can be concluded. A term that is too short may not be sufficient to pay off long-term loan obligations.

Buying a ready-made apartment involves more hassle than purchasing a new building. In addition, the interest rate on such housing is always higher. If the borrower has firmly decided to purchase this particular type of mortgage, he needs to analyze all offers in the banking industry and choose an organization that is distinguished by customer loyalty and an interest rate that will be significantly lower than that of its competitors.

Reduced loan rate at the expense of the state

We have already repeatedly said in our articles, including this one, that you should not rush to get a loan, otherwise you will not see success - you will miss out on good conditions. First, you need to check whether you belong to any social category of citizens. If so, then you can safely count on a more favorable percentage , all other things being equal. Programs for citizens can be both regional and federal. Today, a limited number of categories of citizens are under state protection. It is they who are provided with a mortgage on more favorable terms. The programs are very diverse, some help with the down payment, while others help with repayment of part of the loan, and still others actually reduce the interest rate.

So what categories of citizens are eligible? Today, these include military personnel, families with four children or more, young professionals, law enforcement officers, the Ministry of Emergency Situations, as well as scientists and teachers. Some preference is also given to those families where the second, third and subsequent children were born. This is the so-called family or maternity capital. It can be used not only to improve living conditions, a child’s education or a mother’s pension, but also to fully/partially repay debt obligations to banks.