How do I get credit for housing?
Overview of current proposals on the mortgage market of natural persons in November 2010 includes the average loan rates, standard and special conditions obtaining, as well as a description of "detours" and tricks of the banks.
On the operating conditions of the mortgage loans, the basic requirements for borrowers, as well as ways to lower the rate on the mortgage LІGA.Finansy said Alexander Okhrimenko, president of the Ukrainian think tank.
According to official statistics the NBU, for the period August-October 2010 to individuals byio outstanding mortgage loans of all on 0,5 billion UAH., Taking into account the extended credits. This is a very small, considering that the total amount of loans granted to individuals for commercial banks is more than 217 milliard. What is the reason for such a low level of lending to households to purchase real estate? The reasons are several, and they are in varying degrees affect the lending process.
The fact that banks may lend to people only in the hryvnia, has meant that mortgage rates are very high. One of the largest banks in Ukraine provides mortgage loans for the population at a rate of 28% per annum.
Fairly high rate, but it fiksovannaya and one for all customers. Many banks declare that they give out mortgage loans at rates of 17-19% per annum. But a detailed examination revealed that it is - the minimum rate on the loan. If a particular loan borrower rate can be increased to the extent of its reliability and ability to pay.
For each individual borrower's interest rate may vary - depending on its reliability and платежеспособностиОтдельные banks began offering mortgage loans at floating rate. Indeed, in the U.S. and Western European countries, as a rule, mortgage loans are floating rate. It is already common practice of mortgage lending. But in Ukraine, unlike in developed countries, with a floating rate loan has a significant problem.
In Western European countries as a criterion for assessing the value of money market rate used LIBOR (London Interbank Offered Rate, London Interbank Offered Rate). And then a floating rate for a specific client consists of LIBOR plus a few percent, based on the borrower's credit history.
In the Ukrainian market is not so effective exponent as LIBOR. As a result, banks are using different models for calculating the floating rate. Some banks have a basis for calculations assume the average rate on deposits for a period of one year, which is calculated by the NBU on average in the entire banking sector. Other banks used indicator KIBOR (Kiev Interbank Offered Rate), which reflects the average cost of money in the interbank market.
There are options where the floating rate calculation is carried out on a complex formula which takes into account and the current rates on deposits that the bank attracts. In any case, the variable rate with all the conversions and calculations below 18% does not happen, but it's only for selected clients. The average bulk customers, it stands at 22-26% annually in local currency.
Maximum loan terms
Most banks that issue mortgages, declare the opportunity to receive credit for up to ten years. Four banks promise to issue a credit for up to twenty years. And three banks promised to issue mortgage loans for a period of five years. But all these banks in determining the lending account the age of the borrower.
Most banks are willing to issue a mortgage loan only to the person who has attained the age of 20, though some banks require the borrower at the time the loan was at least age 25 and even 27 years.
Age limit the potential borrower's period of from 25 to 55 letPri that all banks restrict loan age retirement age. A number of individual banks limit the age for all borrowers on the mortgages the 50 th years. Requirements by age can be avoided if the guarantor on the mortgage loan will be a person under the borrower.
The initial contribution are very different in different banks and lending programs. Most banks require the borrower to pay yourself at least 30-40% of the value of the property acquired for the credit funds. In some cases, banks agree that the size of down payment was less than 10% of the value of the acquired property, provided that the borrower will also provide a different voice, preferably liquid real estate.
In assessing the size of the initial contribution should take into account the fact that this size is calculated based on the cost of purchased property, and the size of the loan - the collateral value of real estate. In this case, some banks have established a scale that the loan amount can not exceed 50% of the collateral valuation of property. But in practice, very often the collateral value of real estate is lower than the real value. Therefore, the actual amount of the initial fee is much higher if we consider the size of its mortgage and, accordingly, the size of the loan.
In some cases, banks are willing to make concessions
Almost all banks agree to lower interest rates on mortgage loans if the borrower pays 50% and buy more real estate on their own. One of the banks declared that he agreed to issue a mortgage loan at a rate below 10% per annum, provided that the borrower has to pay for more than 75% of the value of the acquired property. In general, if a mortgage loan to pay for at least 50% of the purchased real estate, you can count on the interest on the loan within 18-23% per annum, depending on the bank.
Lower mortgage rates can be obtained if the loan is taken for a short period of five years. For example, one of the largest banks in obtaining credit for up to 15 years promises to the base rate 22%, while obtaining a loan for up to 5 years - only 18%. Other banks also engage in this kind of privilege, although the reduction rate on the loan may be no more than 2-3 percentage points
Lower the rate can be achieved by reducing the loan period or additional zalogaV rare cases, banks are willing to reduce rates on mortgage loans if the borrower provides additional collateral in the form of liquid real estate. In this case, you can get a discount on the annual interest on the loan at 5.3 percentage points
You can get a mortgage at 18% or even 16% if the borrower of the money will become a bank seized by another borrower's mortgaged property. In this case, the bank agrees that the initial payment may be no more than 30%. Furthermore, in order for such loans are usually not charged additional fees. The problem is only that the borrower has to buy property in the "old" prices, which were before the crisis. And in some cases it is not profitable.
You can get a mortgage at a rate of 14-15% per annum, provided that the borrower acquires property in a newly built house, which is building a captive (affiliated) company of the bank. This kind of preferential credit applies only to individual construction projects, and very often it is real estate, which is still under construction.
The chances of benefits more if you have a deposit in a bank-creditor or flawless credit istoriyaV one of Ukrainian banks can get a mortgage at a rate of 3% per annum. To this end, the borrower or his guarantor must knead the bank deposit an amount equivalent to the amount of the loan. Then the bank ensures that its mortgage will have the size: the rate of deposit +3 pp
By 1-2 percentage points Discounts can expect the borrower to be obtain a mortgage loan at the bank, where he has already paid off the previous mortgage loan - in full, without delays or problems.
Tricks of the commercial banks
Banks fear the decline in housing prices, and therefore the assessment of collateral prices include the prediction of a possible price reduction. As a result, the borrower must at their own expense to cover the difference from a possible decline in property prices.
Also, banks have begun to practice the individual fees for loan processing. Previously, the commission was at 1%, now, as a result of an individual approach, the fee could rise to 5% of the cost of credit.
Several banks have changed the methodology of calculation of fees for processing the loan. If earlier it was considered on the basis of the loan amount, it is now considered on the basis of the loan amount plus the full amount of future interest on the loan for the entire period of its validity.
Among the major banks tricks - additional fees for registration and obsluzhivanieOtdelnye banks charge a percentage or a fixed sum for the maintenance of loan account. As a percentage measurement of this indicator can be no greater 0,1-0,2%. But he is charged monthly and calculated from the amount of loans granted.
One of the most popular tricks of the banks money is credited to the loan account to repay the loan and interest payments. Private banks charge 1% of the repaid mortgage.
Banks are also required to insure the object of a pledge from possible damage. Traditionally offered insurance in case of fire, which usually cost no more than 0,3%. Individual captive insurance companies banks for this kind of insurance required to pay the insurance payment in the amount of 0,5-1%. This kind of insurance premiums collected from the entire amount of the purchase of real estate and are paid by the borrower annually.
Some banks require borrowers to insure their lives in the event of disability and death. The size of this insurance is between 0.3% and is calculated from the sum of the outstanding loan. In addition, these insurances also have to pay annually.