Banks are once again ready to risk lending to home buyers. However, on a much more severe conditions than before the crisis.
Domestic banks resume mortgage lending. According to the Director of the Ukrainian National Mortgage Association Paul Matiyasha today mortgage loans offer about 30 fininstitutov, says expert.
And in this list appear as a small institution like the Bank of Cyprus and Piraeus Bank (which recently entered the Ukrainian market and did not manage to get a "poser"), and barely survived the crisis, major players like Ukrgazbanka and Bank Finance and Credit ". Referring to the largest retail lenders, a columnist for "Expert" decided to find out, does the massive renewal of mortgage programs, real estate loan is available again.
Bets are made
According to CEO, KreditSvіt Love Slobodenyuk, today the effective interest rate on mortgage loans is on average 28% per annum. Average nominal interest rate (excluding commissions and additional fees) ranges from 20-21,5%, while inflation for the year barely make it to 10%. And although the last three months rates declined by about two percentage points, they are high (the credit is doubled in less than four years), but because it is not surprising that people are not lining up for a loan.
According to Andrei Yatsura, chairman of the Unex Bank, now the mortgage market is worth. "Today, the borrower can not show the normal income. In addition, difficult to credit in the face of uncertainty around the price of collateral. Therefore, the current mortgage loan - a piece the product under a specific borrower," - says Yatsura. According to the observations Slobodenyuk, now people if they choose to purchase on credit apartment, it is usually small and relatively inexpensive (up to 80 thousand dollars) somewhere in the residential district of Kiev. And buying this do for themselves and not for resale.
To promote the mortgage banks are increasingly resorting to cooperate with realtors who send their borrowers to certain lenders. Some banks such as VTB Bank customers friendly real estate agents promised loans at reduced rates. In addition, the financial institution reopens mortgage centers. For example, the same VTB Bank plans next year to build a network of mortgage units in all regional centers on the existing branches - in the Russian subsidiary of claim that the number of applications and mortgage loans is growing every month.
Mass non-payment should have taught banks to inform potential borrowers about the real conditions of lending. However, this is still not observed. For example, employees of credit departments of banks either intentionally, or unknowingly is not called the effective rate on the mortgage. Konsultantku bank "Forum" my question about the effective rate stumped, so she called a more experienced employee, who is also rounded eyes: that what you mean by effective rate?
After I conducted literacy classes, the older konsultantka hastened to assure: "We will specify the effective interest rate, do not hide anything from customers." However, it later became clear that in addition to interest on the loan (19.5% APR) will have to shell out more for insurance assets - 0,3% of the price, accident insurance - about 0,25-0,35% of the value, the assessment Apartments (about a thousand hryvnia) and the notary (up to two thousand hryvnia). Plus contract fee mortgage, pension fund, credit card charges (three percent of the loan amount), the commission for transfer of funds to a bank account. All this information somehow to pull ticks from employees financial institutions.
Some banks offer mortgages for so-called floating rate, which depend on the interest rates on deposits. These floating rate, usually four to five percentage points below the bare fixed but fininstituty warned that they would change them. "Deposit rates recently dropped significantly, and I assure you, will fall even more. And the same pattern is observed with respect to interest rates. Therefore, the floating rate is more attractive," - tried to convince my manager, Erste Bank.
Employee Ukrgasbank, conversely, did not advise contact with floating interest: do you know what country we live. And the Index-Bank offered loans at floating rates, which consist of a fixed margin of 11.25% (no change during the entire loan period) and the NBU discount rate. By the way, floating rates also suggest the commission and charges.
It turns out that most banks are still trying to get the customer at any price, and therefore concealed from him the whole truth. However, since they are at risk of joining portfolios of troubled loans.
Has taught crisis
Before the crisis, some financial institutions to issue mortgage loans, without requiring even a down payment. In addition, many banks have not really paid attention to the client's solvency. So, in 2005, journalist Tatyana, to get credit in UkrSibbank, the questionnaire did not just greatly exaggerated their salary, and filed a false income certificate unemployed at the time of her husband. In 2004, the sales manager Irina too pririsovala yourself a few hundred dollars of income in the application for a loan in Ukrsotsbank.
Bank in the financial condition of the client's particular did not penetrate, but she herself was punished. After the State Fund of promoting youth Lending has ceased to pay compensation of interest rates, Irina was nothing to live - the entire salary went to paying the bank.
Today, financial institutions insist that tightened requirements for borrowers. In UkrSibbank I was warned that a loan will be very difficult: the service of the bank carefully recheck my income. True, this institution still offers mortgages only to corporate clients (and staff) and employees of the bank. By the way, the employees of companies, corporate clients - is the target audience of many banks today. For example, VTB Bank promises to clients such more favorable terms.
In fininstitutah already give housing loans to all comers, and also the first step for official income potential borrower. In addition, they all require an initial payment of at least 30% of the price. Official borrower's income must cover all his obligations and daily needs, "- says the director of retail business of Erste Bank Tatiana Nadtochy.
Before the crisis, almost all banks agree to deal with the borrowers under the age of 21 years. Now, many financial institutions have raised the minimum age threshold. For example, Erste Bank prefers to lend to customers at the age of 23 years, Universal Bank - 24, Index-Bank - by 25 years. Piraeus Bank may issue a credit to the borrower, and in 1921, but necessarily require a third party guarantee - from all the clients who are under 25 years.
When it comes to mortgage bank officers respond that such would be only purchased on credit apartment. True, they would among other things, asked about the potential borrower's existing assets. "Do you have a car, cottage or apartment?" Do you want this report? " - Tried to find the manager INDEXBANK.
Apparently, the banks are now trying to play safe. In which case they will be able to deprive the borrower not only mortgaged the apartment, but additional assets. They are, according to bankers who can become a powerful argument in deciding whether to grant credit, even if the official salary of a potential borrower does not fully cover its obligations under the loan. For example, if a person wants to prove to the bank that he was in addition to a low of "white" salary is still quite good 'envelope' income, it would be desirable to have a deposit or securities, or a good car, villa, land, etc.
During the crisis, all banks are faced with writing off the difference between the price of the apartment, stated in the loan agreement, and its real price. For example, the borrower owed 50 thousand dollars, after which the bank took away his apartment. Realize it, he was able to just 30 thousand dollars. The idea is that the remaining 20 thousand dollars in debt financial institution should be written off.
By law, however, these 20,000 are considered income, so the bank must pay with their 25% income tax, and the borrower - 15% of the income tax. Since the borrower is insolvent, then pay again to the bank account - all 40%. It is clear that in this case the financial institution is very profitable to write off the formed difference. If the loan agreement was indicated some more property, the bank could sell it and cover the difference.
True, the mechanism of bankruptcy physical persons in Ukraine, in practice, does not work (although in theory this procedure, implying cancellation of debt available to private entrepreneurs). "Our bank has fixed a few attempts to use the scheme of so-called lzhebankrotstva with a business entity. True, we have avoided the conflict by offering customers the best of restructuring their debt," - said the head of the mortgage VTB Bank Alexander Borsevici.
According to observations by Lyubov Slobodenyuk, today banks in new mortgages, tend to underestimate the price of collateral by 10-15%. "Thus, financial institutions reduce their risks, because property prices are unstable," - she said. Banking officials have warned that a decision on a loan shall be made only after an independent valuer (by such means a company or natural persons with which the financial institution) to calculate the cost of mortgaging homes. "The cost of the mortgaged property appraiser determines the accredited bank.
In reviewing the application for a loan this amount prove management staff to work with software, "- explained the director of retail business BM Bank Ella Dembowski. VTB bank manager was with me more openly:" An appraiser determines the market value of the apartment, which may differ from prices seller. As a general rule, expert evaluation below the asking price, because sellers are usually somewhat overstate the value. "(Incidentally, this same expertise is in production and transaction costs: the financial institution requires that a contract of sale and mortgage agreement was listed price that the appraiser has determined .)
In this scenario, a potential borrower is in a situation where he either has to pay a large sum as a down payment, or take a big loan or lengthen the loan term. None of these unprofitable customers, especially at the present rates. According to Paul Matiyasha now appropriate to take credit for no more than three years. Banks today do not penalize customers for early repayment of the loan.
Loans for the elite
Most bankers are sure that in the next year or two we should not expect a sharp drop in mortgage interest rates. "I think by the end of the year interest rates will drop insignificant. More interesting from the standpoint of the consumer pattern will occur in the next year. I believe benchmark for 2011 will serve the interest rate on mortgage loans in the range 18-19 per cent per annum, - says Sergei Shevchenko , director of retail bank lending, "Finance and Credit".
Today, banks are lobbying the idea of returning to the foreign currency lending, which could revive the market. It would be beneficial as potential borrowers (interest rates on such loans is much lower hryvnia) and banks (they have now accumulated a large amount of currency as they continue to receive from the public deposits in foreign currency). But most likely, the NBU will not back down. "Product of the National Bank - a hryvnia. Why would he push the dollar here? Regulator contrary, seeks to oust him from the market", - assures financiers.
Chairman of the Board of Privatbank Alexander Dubilet difficult to answer, but when mortgage lending reached pre-crisis volumes, or at least close to it. "This question must answer the market. Shall be restored and the purchasing power of people, and the number of newly constructed facilities, and number of transactions in the market should bounce back. You also need to adjust the many legislative issues.
For example, our judicial system is not configured to protect the rights of creditors. Today it is very difficult to withdraw the collateral. Until this situation changes, the resumption of mortgage lending can be no question, "- says Dubilet. According to Andrei Yatsura, the recovery in the mortgage market will not happen before 2012.
Which customers are most desirable?
• Age 32-45 years
• Residents of the capital or megacities
• Married, but he does not have small children
• Has a formal proof of income over eight thousand hryvnia per month
• Works in a large stable company with at least one and a half years
• Do not take loans or already repaid their
• owns the property (car, garage, summerhouse, securities, etc.)
Willing to give credit
According to legend, I intend to buy for 46 thousand dollars (or 368 thousand hryvnia) one-bedroom apartment in a residential area of Kiev. The bank would like to receive a loan of half its value, which is about 184 thousand hryvnia. It turned out that I can completely rely on such a loan if my official income is ten thousand hryvnia per month.
However, many financial institutions were also interested in how stable my present place of work, that is how long I work there. The answer is "more than a year was counted as satisfactory.
Most banks have assured me that the salary of ten thousand hryvnia I do not even need a guarantor. Only in Ukrgasbank and Bank Finance and Credit "(who tend to experience for themselves the effect of the crisis), I asked about the surety. It must be insolvent (ie, to have roughly the same revenue as the borrower), the age of 50 years (in the case of credit for ten years), and is very desirable that this person is a close relative of the borrower. However, if the guarantor will make a good friend who not only makes good, but also has assets (property, car, shares, private business, etc.), the bank is unlikely to give up on him.
Financial institutions today are interested to borrower's credit history. Almost all the banks that I visited, I asked about the availability of loans in other fininstitutah. According to the head of risk management Dіamantbanka Dmitry Wasylyk, if a person ever take the collateral loan in any of the banks, its credit history can be found in a special bank registry. So to hide the sins of the credit in this case is unlikely.
Another thing, if the potential client hangs consumer credit. Keep track of his credit history more difficult, although the names of the recipients of unfair consumer loans should be blacklisted. Wasylyk said that today in Ukraine there is no single list, but with a strong desire to get information from disparate sources: the National Bank, Privatbank, Nadra Bank, collection companies.
95% of financial institutions "compute" problem clients and prefer them not to get involved. "However, if consumer credit was taken in a shallow pot or liquidated Ukrprombank, information and could easily get lost" - admits Wasylyk.
Interestingly, in some financial institutions are strongly advised not to rush into a loan. "The stakes are not the most suitable, it is better to wait until they were reduced to at least pre-crisis level," - recommended me to a bank clerk, "Finance and Credit".
Mortgage come back only in UAH
Natalia Bazarov, head of retail lending bank Pivdennyi:
- The main approaches to credit and the criteria for making the loan does not fundamentally changed. However, if the earlier we can take into account the total family income of the borrower to repay the debt on the loan, but now takes into account only the personal income of the prospective client. In turn, the bank is developing a loan program, allowing you to select a convenient way and the term of the loan to the size of payments were adequate revenue potential borrower.
Typically, a floating interest rate applied in the context of high inflation. Using this percentage rate is the risk of the borrower. Today, our bank uses fixed rates, but the client has the right to request a review of conditions under the loan agreement in the event of significant changes, in particular, with a significant reduction in rates in the financial market. We believe that we should expect reduction in interest rates by several percentage points in the near future.
Given the continuing need for public housing and hence the resumption of construction of residential complexes, there is a real possibility of a gradual return to mortgage lending. Monetary loans to individuals, judging by the changes in legislation in the near future will not be reopened.
Loans for expansion
Dmitry Musiyenko, a board member and director of the Department of Piraeus Bank's branch network in Ukraine:
- Piraeus Bank did not stop mortgage lending, even in times of crisis, and since September 2010 suggested that an enhanced program of mortgage lending. Unfortunately, because of the crisis was considerably less high-quality borrowers, and banks' claims have increased, so to speak of large volumes of mortgage lending is premature. The greatest demand mortgage enjoys in Kiev (ibid. best offers on the real estate market), as well as in the eastern region of Ukraine.
The main part of Piraeus Bank borrowers - people who want to improve their living conditions by selling an existing property and taking credit for the expansion of living space. Now bought an apartment with a view to resale - a rarity. According to our information, 99 percent of customers today buy real estate for further stay in it. The average age of the borrower - over 35 years, the average amount of requested credit - about 300 thousand hryvnia.
Customer's credit history as verified by the internal security service financial institution and involving a credit bureau and information from the register of debtors of the National Bank.
Pre-crisis hype will not be
Bogdan Gaponyuk, head of products for wealthy clients Ukrsotsbank:
- Undoubtedly, the crisis gave the banks some lessons. All financial institutions have become cautious about mortgage lending in general, and especially in the primary market. Banks have tightened requirements for potential borrowers in the confirmation of solvency. Now they are anxiously looking at the "gray income". In addition, fininstituty increased prepayments of mortgage products.
In recent years there has been a trend to reduce the cost of resources for banks, gradually lowered the rates on deposits, and, respectively, and the loans. Excess liquidity in the banking system, and increased selectivity of the financial institutions in the selection of borrowers would lead to a gradual reduction of lending rates.
Ukrsotsbank is counting on a smooth activation of mortgages, including the primary market for a very limited number of projects. Being realists, we understand that the pre-crisis hype will not be on many economic reasons. Partly the situation with mortgage loans will depend on the involvement of the state programs for construction and implementation of affordable housing, which are now forecast in the market do not.
We do not expect a return in the near future lending in foreign currency, in any case, direct foreign currency lending in the banking system. Although precedents for binding of loans in UAH to the exchange rate is already there.