Types of mortgage lending in Russia

10.11.2010 19:38
Types of mortgage lending in Russia The most common mortgage program in Russia is a credit to purchase finished apartments, as they are called the banks to describe their products - "the secondary housing market."

Today, however, range of offerings of key market players are pleased potential mortgage borrowers a variety of proposals.

Almost everywhere, offered loans to buy apartments under construction, some less, but more often come across offers pawn loans - secured by existing real estate loans for the purchase of country houses, plots of land.

Individual banks in pursuit of a client willing to lend to such an unknown in the pre-crisis period as the acquisition of exotic rooms, shares in housing, garages, cars, commercial real estate. For example, loans to purchase a garage offers VTB24, parking - the Savings Bank.

Moscow Bank for Savings Bank of Russia in August, announced his readiness to provide loans for the purchase of shares in the housing. In particular, get a loan for the purchase of commercial real estate secured by real estate can be purchased in Absolut Bank, Credit Bank of Moscow, Rosbank URALSIB Bank, Khanty-Mansiysk.

Still reluctant to offer refinancing recovery (lending) of loans to other, more favorable terms. Most of the currently programs in terms of attractiveness for borrowers to look dubious, and in some cases, is simply meaningless, since the proposed rates are higher than the average. However, refinancing program before the crisis were not the most popular product.

It was offered mainly the most aggressive players to a period of sharp decline in interest rates to prevent the outflow of borrowers in the banks with more favorable terms and at the same time to increase its mortgage portfolio, peremanivaya foreign borrowers.

Not particularly common and pre-crisis loans for the purchase of land and today issued a few banks.

Unveiled in August, a mortgage product HMLA "Low-rise housing" allows you to get credit for the purchase of a dwelling house with land or land with the condition of building on it a dwelling house on the security of the acquired property.

However, this program has several restrictions: the construction of homes must be maintained to an agreed standard design and in an organized low-rise buildings, which entered the list approved by the HMLA. Now this list is only five territories, and five more requests are pending in the Agency.

New credit products with a social component, the proposed HMLA - "New", "mother's capital", "Military mortgage", "Variable Rate", "Low-rise housing" received a good response from both partners, and from the borrowers. For some programs, even inflamed hype.

For example, in terms of HMLA for "Military mortgage" for this year to 4 billion rubles for the supply of mortgage applications received by 13 billion rubles and the Agency had to revise the business plan and increase the volume of refinancing to 10 billion rubles. For "maternal capital" limit funding partners has been selected by early August.

The financial crisis in 2009 gave birth to two new mortgage programs: loans for housing from under the mortgage from insolvent borrowers restructure loans to new conditions in order to reduce the credit load.

Loans for purchase of flats under construction

Currently, almost all banks offering mortgages, make loans to buy apartments in buildings under construction on the security of claims to the purchased apartment. But often the choice of housing for the borrower to limit the supply of contractors from among the bank's partners. The banks have an average hand in the same city, as a rule, only two - three residential complex, but large banks can be seen fairly rich set of options - Sberbank and VTB 24 in big cities are dozens of homes. The banks almost daily report on the accreditation of more and more new construction projects.

Because in times of crisis it offers loans to purchase housing in new buildings have disappeared from the market almost completely, the current increase in lending in the primary market is particularly noticeable. Experts believe that in the first half of 2010 the share of mortgage loans granted for the purchase of apartments in buildings under construction amounted to about a quarter of the total volume of mortgage loans.

In this case, the banking community said a serious effect on public support for the mortgage lending focused on new buildings - it's titled mortgage product HMLA with low interest rates and preferences for members of public and social housing programs, its the same incentive program for bank lending developers - Stimulus and program redemption of mortgage bonds VEB.

In accordance with the terms "vebovskoy" program loans for the purchase of apartments in new building at a rate of 11% per annum, which by today's significantly below the average rates can be obtained from VTB 24, the bank's partners "GPB-Mortgage" in Sobinbank.

However, there is a nuance: the term "new development" is interpreted arbitrarily and do not necessarily have in mind an apartment in a newly built house. For example, VTB24 until recently gave out loans under the terms of "vebovskoy" program only on the purchase of flats from the developer with an already issued them the right to property.

Today the bank provides loans and the purchase of apartments under construction, but prior registration of the borrower the home ownership rate is higher - 13% per annum. But even this rate can be considered a very good deal against the vast majority of similar programs in other banks. In addition, VTB 24 in issuing loans for "vebovskoy" program does not charge loan fees.

Part of the bank is ready to issue a credit for purchasing an apartment in any well reputed real estate developer, but rather many restrict their offers affiliate programs with companies whose business is clear and transparent. On the other hand, considering the unprecedented number of partnership programs with builders, banks clearly want the expense of the mortgage to solve the problem of its customers - builders and developers.

If housing is not acquired from partners of the bank, in most cases a mandatory requirement for obtaining credit is the willingness of the house no lower than 50%. At the same time, after the crisis, borrowers who take out a loan for the purchase of housing under construction, mostly prefer to choose the objects of high degree of readiness, keeping in mind the risk of unfinished and an increased rate on the loan prior to the registration of home ownership. Thus, the limit on the degree of preparedness at home for the borrower is not so important factor.

But the affiliate program credit conditions may be even softer than the purchase of finished housing - below the initial payment or the interest rate. Striking example of this - the Savings Bank, which is on the program "Mortgage +" extends credit in rubles for the purchase of apartments from their partners atypically low rate: up to registration of the mortgage from 11.65% to 14% per annum, after the registration of a mortgage from 10.4% to 12,75% per annum.

No less indicative of the minimum value of the initial contribution - 10% of the cost of purchased housing. At the same time as collateral for the loan before the registration of mortgages are property rights of borrowers to buy housing, and after registration of the mortgage - the acquired property.

Another example - VTB24 grants loans for the purchase of apartments in residential complexes of "Don Story" by a single interest rate for the entire crediting period, with no standard for banks on such programs allowances for the period of construction to the registration of ownership. Minimum fixed rate in rubles is 13,1%.

SMP Bank on one of the affiliate programs for sale of apartments in residential complex in Moscow is ready to provide loans in U.S. dollars only by 6.75% per annum and in rubles - at 10.75% per annum with an initial payment of 20% of the value of the acquiree apartment. Bank "Revival" by 0,5 percentage points reduces the interest rate on loans to borrowers who purchase new buildings for its partners.

Due to the unstable economic situation, banks have significantly narrowed the range of potential borrowers, and among businesses and individuals, so they tend to use all available opportunities to earn in the retail lending sector, including providing loans for the purchase of housing under construction. In this crisis has shown that concerns about the quality of loans for housing during the construction phase have been exaggerated.

As you know, when issuing just such loans to banks has always been characterized by an increased fault-finding, which, as can be seen, and has brought good results. Elena Tarasova, senior vice president of VTB 24, speaking Russian conference "Mortgage Lending in Russia - restart the market in December 2009, noted that the mortgage portfolio VTB 24 Bank loans for housing is fixed the lowest level of delinquency.

Mortgages for the purchase of suburban housing

Mortgages for the purchase of suburban housing back on the market a little less active than the lending of apartments in buildings under construction. Loans for the purchase and construction of villas and townhouses offers a large number of federal bank: Alfa-Bank, Moscow Bank, Banque Societe Generale Vostok (BSGV), Barclays Bank, Bank "Revival", VTB 24, Gazprombank, Bank Intesa, KreditEvropa Bank, Bank Moscow Mortgage Agency (MIA), Nordea Bank, the Bank "Russia", Russian Agricultural Bank, Savings Bank, Communications Bank, Bank Uralsib, UniCredit Bank.

In addition, some banks offer loans for land acquisition, in particular, BSGV, Bank Zenit, RosEvroBank, RAB, Khanty-Mansiysk. Bank of Moscow takes the land as collateral for loans to purchase homes with land (the program "Quick House").

Increased activity in the suburban housing market and stabilize the housing market as a whole has reduced the risks of lending transactions involving the acquisition of cottages, townhouses and other low-rise properties. Interest rates on loans for the purchase of suburban housing are beginning to decline. Banque Societe Generale Vostok (BSGV) in June and decreased the rate and magnitude of down payment for borrowers who buy on credit suburban housing, with 40% to 30%. Since the beginning of summer in suburban housing loans fell in the Khanty-Mansiysk Bank, Intesa Bank, Agricultural Bank.

The main difference between mortgage programs on the acquisition of country houses in most cases manifests itself in the largest initial contribution. To get a loan for a vacation home, in most cases to be invested 10% more equity than buying on credit apartments - from 40 to 50%.

Unspecified mortgage loans secured by existing real estate

Unspecified mortgage loans secured by existing real estate (Secured Loans) shall include in their line of more banks. Moreover, if the rate of non-earmarked loans can be called acceptable (on average, they range from 14 - 15% per annum), the size of the loan is still sadly small, 50 - 60% of the value of the underlying property.

On the general background stand offers HSBS, VTB 24, Nordea Bank and RosEvroBank, where you can get a home equity up to 70% of its value. It is worth noting that the purpose loans secured by real estate with a few exceptions are granted for a shorter period than loans for purchasing real estate - from 10 to 15 years.

The subject of pledge may be ready apartment or a house, land. Moreover, if the collateral for the loan is a house or land, the loan will provide for a smaller share of the value of the property than the pledge of an apartment, for example, secured an apartment will give 60% of its value, and the bail house - only 50%.

Property rights to real estate under construction in the provision of inappropriate mortgage banks do not accept, although the Russian mortgage law allows it.

Refinance loans for borrowers

Program of refinancing mortgages (the loan to repay previously issued mortgage loan) will reduce your monthly payments by lowering interest rates, as well as adjust the timing, amount and currency of the loan.

Today refinancing remains a rare, not too attractive and therefore - not enough popular demand. Such products included in the mortgage line of Bank Societe Generale Vostok (BSGV), VTB 24, Gazprombank, Bank ZhilFinans, Bank of Moscow, the bank "Moscow Mortgage Agency (IEA), the Savings Bank.

Interest rates at which borrowers of other banks is invited to refinance loans to purchase housing on the secondary market, from just 13.5% APR for loans in rubles (Sberbank) and from 9.1% APR for loans in U.S. dollars (VTB 24). Some banks such as Sberbank and VTB 24, set the rate on the refinancing program at the same level as for loans for similar programs (for housing on the secondary market, the security of available real estate). However, you can meet and banks, whose interest rates for loans to refinance a bit higher than the basic mortgage programs (Alfa Bank, BSGV).

A number of banks holding refinancing program in its mortgage range from the purely decorative purpose. For example, Alfa-Bank offers refinance loans to purchase housing on the secondary market, issued in rubles, at 17,5 - 19,5% per annum in U.S. dollars - under 14 - 16%. Refinancing of loans secured by real estate in Gazprombank also clearly requested only for the species: in rubles - at 19% per annum in U.S. dollars - at 14%. In BSGV rates lower, but still not competitive against the proposals VTB24, Sberbank, Gazprombank and Bank ZhilFinans.

Implementation of the mortgaged property

The crisis has forced some banks to form a separate loan program for the sale of the pledged housing. Having obtained the consent of insolvent borrowers to sale of the pledged mortgage housing, banks have formed a database of properties that can be purchased on credit from a mortgage. Such proposals have, for example, Absolut Bank, Bank ZhilFinans, VTB 24, Bank DeltaCredit and KIT Finance, Sobinbank, Bank Home Credit. Single proposal can be seen from AMT Bank (Ex-BTA Bank), GE Money Bank and Raiffeisenbank.

Great popularity of these programs have not won since housing put up for sale at pre-crisis value, which is significantly higher than current rates for apartments and houses. However, behind the scenes by the representatives of the mortgage banks recognize that the relative price of housing is already possible to bargain.

At the same time, the purchaser of the pledged mortgage housing can be a good idea to save on real estate services. Acquiring the pledged mortgage housing, no need to spend money on commissions for his search, as well as for verification of the housing on the legal purity, since the bank took care to, even when I took the decision to grant credit for its purchase.

Part of the banks offer loans on mortgaged housing is much cheaper than any other program. Bank, KIT Finance is willing to sell their worst mortgage debtors at the same rate at which they were granted in 2007 - 2008, respectively. The bank DeltaCredit minimum rate for loans of this kind in rubles equals only 9.5%, while the U.S. dollar - 7% per annum. Sobinbank offers to buy him in the mortgaged housing loans at 12% per annum in rubles and 10% per annum in U.S. dollars.

One of the most delicious version offers VTB24: loans in rubles interest rate determined in accordance with the terms of the current loan agreement a borrower who sell the object, but no more than the refinancing rate of the Central Bank on the date of acceptance by the bank (for the moment - 7,75% APR), in dollars and euros - not above 10%. In this case, the interest rate does not depend on the term loan and the size of the down payment.

To encourage the implementation of mortgages, VTB 24 minimizes the costs of the borrower to obtain and service loans that are available for the purchase of such housing: no processing fee charged for the issuance of mortgage prepayment without commissions possible from the first days after issuance without time limits and amount.
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