Mortgage rates are falling, but so far more profitable to rent an apartment

04.08.2011 10:29
Articles about real estate | Mortgage rates are falling, but so far more profitable to rent an apartment A growing number of Ukrainian banks offer loans for home purchase, but the conditions are very heavy for ordinary citizens.

August is always preceded by mass migration. Students admitted to college, travel to major cities, and in anticipation of the start of the business of the season mid-level managers are looking at new housing.

Related article: In Ukraine, disappearing mortgage


In recent months the mortgage market was just a few positive changes. First, several dozen big banks offer loans for a period of 15-20 years. Second, simultaneously with the "lengthening" the terms of mortgage loans are continuing to gradually become cheaper. Thus, the average real interest rates on loans for 15 years over the past two months, fell by 0.5% to 17.48% per annum for 20 years - by 0.3% to 17.51% per annum.

Experts say that some banks have already reached the rate of pre-crisis levels. It is true, then the borrower could choose - the currency of a loan. Now there is no choice - for the Ukrainians only available torque. Therefore it is not entirely correct to compare rates now and then.

As for the down payment, most banks it is 30-35%. There are options for mortgages at 10% per annum, but this is more the exception than the rule. Well, no down payment mortgage, which was so popular three years ago, do not wait at least another two or three years. According to bankers, it is only possible if the Ukrainian real estate market will begin again planned price increases.

More active banks provide loans for new housing. There may be advances in the 15% and 20%.


Now lending institutions have decided to change the rules for granting loans. More and more banks offer their customers enter into a contract with the so-called floating rate, which is bound to return the deposit.

- A bank may offer the borrower a loan to value of the index rate plus a margin deposits - said the NBU. - This credit rate will vary depending on the cost of deposits.

How to tell the respondents "Komsomolskaya" experts, with a floating rate loans is particularly advantageous to investors in times of financial stability, when deposit rates are coming down. But in times of economic turmoil, when resources are becoming more expensive, and the rate will rise along with interest on deposits.

Perhaps the biggest drawback of these loans is the fact that the depositor can not know how much it should be attributed to the bank next month, and, accordingly, will not be able to predict their costs in advance.


Interest will be reduced

- All greater tendency to mitigate credit terms on mortgages, if the fall of last year, the average rate was 19-21%, now - 18-20% - said the deputy chairman Vladimir Yatsenko Privatbank. - We expect that within a year the average rate on loans to purchase real estate continues to fall and by December may reach 16%.

Experts say the bank, some positive trends in the mortgage market. In particular, more banks willing to lend at 30 percent down payment (before the initial payment for most banks was 50%). In addition, the increased number of financial institutions willing to lend for 20 years. And in 2012, banks are likely to prefer to lend to the secondary real estate.

- The reason is that a large part of banks to actively finance before the crisis, because of bad loans today are not willing to lend to the sector of primary residence - the expert speaks. - The exception is real estate, where the bank is partnering with the construction. In this stable is the demand for apartments in the regional centers, where prices are kept at pre-crisis level, and in some cases even grow.

Experts also expect the bank this year, the gradual resumption of construction, especially in Kyiv, Dnipropetrovsk, Odessa, Kharkiv, Lviv.

Rhyme "KP"

Loan or lease?

Let's calculate that today is more profitable to buy: a real estate loan, or rent it. Flats, of course, good, only the builder sometimes have very unexpected problems at a stage of documents. Even if the apartment will pass in time, about a year the house will be under active repair - around the clock will run drills, lift off, etc.

So pay attention to the housing on the secondary market. For example, consider a one-bedroom apartments in the capital. More or less decent odnushka near the underground shall now for 3000 USD. per month. To buy it, need about 60 thousand dollars, or 480 thousand UAH.

In order to take credit for such housing, you have to make 30% of its value, which is 144 thousand hryvnia, and a loan at 17% per annum for 20 years on the remaining amount of 336 thousand hryvnia.

About 5% of the purchase price can go to design - like banks to introduce charges for lending, the seller may offer to share payment of taxes in half, and a notary will have to pay.

In this case, the standard scheme of repayment of the first payment will amount to 6160 UAH., More than twice the cost of rent. In this case only after 12-13 years of payment will decrease to the size of the current lease. During the whole period of using a credit your overpayment will be almost 574 000 hryvnia.

In the scheme of redemption annuity overpayment amount to almost 846 000 hryvnia.

The advantages of a mortgage loan is the fact that you will not depend on the price of the rental market, which, despite the post-crisis conditions, are constantly increasing. And living in the apartment, you can make repairs to your taste, buy furniture and appliances. In general, feel the rightful owner of his own apartment.


Commission for early repayment - outlaw

Even before leaving for vacation parliament passed a bill that made changes to the relations of banks and their customers. This document prohibits banks charge clients an additional fee for early repayment of consumer credit. Especially since he has no right to deny the consumer in making the payment in case of early repayment.

Also, now the client before the transaction shall inform all its future expenditure - the bank representative would paint him approximate the total cost of the loan, including interest rate on the loan and the cost of all services (registrar, notary public, the insurer, appraiser, etc.) associated with obtaining the loan and signing of contract for the provision of consumer credit. At the same time forbade banks to write these conditions type, which smaller font the basic contract.

In the mortgage lending bank may require the debtor to start repayment in full if the contract so provides, no earlier than three months after the delay. Also banned banks to dispose of housing for those families with minor children and one or both their parents die or are the first group of disability.

On the downside from the standpoint of ordinary citizens can be attributed the fact that in cases related to mortgage debt, the court now has the right to evict the debtor. If the court began to consider the bankruptcy case, then the next day it should be published on the website of the Supreme Economic Court of Ukraine.

Komsomolskaya Pravda v Ukraine

Content tags: Rent Mortgages Housing
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