How do banks make loans for housing purchase

06.11.2010 19:17
How do banks make loans for housing purchase Four of the top 20 banks in terms of the mortgage portfolio in the III quarter were able to build.

At the disposal of "cases" were these mortgage portfolios of Ukrainian banks in early October. According to these statistics, of the 20 largest mortgage lenders of the population, four were able to ramp up their loan portfolios.

Changes in the 3%
In particular, a leader in the growth of the portfolio with index 2,8% (34,8 mln.) Turned bank Pyvdenniy. And this despite the fact that now the financial institution mortgages en masse does not provide. "Bank loans are issued on an individual program. Mass housing, we do not lend ", - told the press service of the bank Pyvdenniy.

Increased their mortgage lending also Universalbank - 1,73% (30,8 mln.) Kreditprombank - 1,31% (18,1 mln.) And the bank "Forum" - 0,43% (7,200,000 . UAH).. The remaining 16 banks showed the reduction of portfolios from 0,3% to 2,6%.

Among the banks whose portfolios have declined in the three banks a significant amount of leader-mortgage lending. So, OTP Bank for three months portfolio has become thinner at 234.2 mln. (1,8%), Raiffeisen Bank Aval - at 170.5 mln. (1,6%) and UkrSibbank - 133 mln. (1,1%).

Moreover, OTP Bank, its performance on the size of the portfolio since November is going to improve. The fact is that by the end of this week he intends to resume mortgage lending to households.

According to "Delo", Raiffeisen Bank Aval is planning to launch a massive mortgage early next year, and UkrSibbank - in the second half of 2011.

Available credit is not far off
Bankers say their loans under the 19-24% APR few want to take. To make loans more accessible to lower interest rates on deposits. "Comfortable rate mortgage now stands at 18%. All that is higher - this is not the market.

In order to provide loans under this bid, we need to attract deposits by 14-15%. Once we reduce interest rates on deposits of up to 14%, and I predict it will happen by the end of February - beginning of March next year, then we can seriously talk about the renewal of mortgage lending, "- said the director of retail lending Bank Finance & Credit Shevchenko.

Recall that a financial institution for the past 4-5 months has lowered interest rates on loans for housing an average of 4.2 percentage points. "Bank" Forum "in July reduced the rates on all its mortgage products (secondary mortgage from 23,5% to 19,5%, primary - from 17.95% to 17.25%). In the near future loan rates may fall further on 1,5-2% per annum in UAH the average for the market "- suggests a board member of the retail business of the bank" Forum "Krzysztof Kuzhbik.
Content tags: Mortgages
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