Rus Articles Journal

Whether it is worth entering a mortgage now?

Some time ago owing to family circumstances became interested in a mortgage, began to look for materials about conditions of granting a loan and responses of the people who felt all delights of mortgage lending on own experience.

Questions without answer collected. As a result came to a conclusion that now this useful banking service is in our country in the state close to rudimentary. Bank rates are unfairly high, it is unclear from where quotations on " undertake; additional payments . The borrower, bringing in the considerable income to bank at the minimum risk from the last, is still in situation asking if not begging.

1. The interest rate pays off, probably, only for mercenary reasons of the management of bank. I will explain. Until final settlement on the credit the apartment, actually, is in property of the creditor, i.e. not to sell as - or differently the borrower cannot dispose of it. Housing prices steadily grow. Legally the bank is very well protected from risks on non-payments. So, quite really to hold an interest rate at the level of 5 - 7% that would attract the much bigger number of potential borrowers, and the bank would get the profit on a turn.

2. Advertizing loudly shouts of the credits for a young family . In practice leaves that the initial contribution will make 10 - 30%, or 0% at the interest rate raised for 2 - 4 points.

3. The insurance from loss of the right of possession is proved? Riyeltorsky firm, taking the apartment on realization, carefully checks its legal purity. Then the same is done by security service of bank before issuance of credit. And after all this the borrower on own account has to insure, probably, dishonesty or a carelessness of two above-stated offices.

4. What the interest rate raised by on housing under construction is connected with ? Not only that the borrower risks the nerves and time depending on conscientiousness of the builder, so also the negligence of a civil engineering firm can strike his purse mighty well.

5. Why consideration of the application costs to about 100 - 200 c.u.? It is unlikely the call by the place of work and inquiry to bureau of credit histories costs such sum. And often this payment is taken regardless of result of consideration. Besides - greed.

6. Why needs notarially the spouse`s consent (-gi) for which also take money? Would be to come quite reasonable, for example, to bank together and to deliver to the signature in the corresponding column.

7. In what support of the transaction which costs much too consists if all expenses and insurance of risks and so lays down on the borrower? Besides the most part of bustle behind references even in this case - his care.

8. The bank is insufficiently competent that it was not necessary to be spent for notarial certificate of the transaction ?

9. What is insurance upon destruction if the swagger - a major like an earthquake or a flood is not included into the list of insured events? Besides, payments for insured event go not to the person who signed the contract of insurance, and bank minus already extinguished sum. It simply is not logical since the term of final settlement according to the loan agreement can be not soon and the borrower has the right to dispose of the received means at discretion. The borrower remains without apartment, having incurred at the same time costs of repayment of percent.

10. Strange selectivity . Many banks work only with certain builders and insurers that, in turn, strongly limits the borrower in the choice and can generate a certain speculation. Naturally, argument is the trust from bank to these firms as to the partner`s constants, but who in our country does not know about kickback as means of increase of trust to to the partner ? The question is rhetorical.

There is a lot of questions, it is a lot of misunderstanding, but I all the same believe that in the next 2 - 3 years the situation with mortgage lending is normalized that people will have a real opportunity to provide itself and the families with necessary square meters available already. For now council: do not hurry!