The difference between a mortgage and a home loan. Advantages and disadvantages of a loan and a mortgage on housing What is the difference between a mortgage and a consumer loan

Welcome! Today we will find out the answer to the question: what is better mortgage or credit? In this article, our experts will tell you about the pros and cons of these types of loans, give examples so that you can determine for yourself what is more profitable mortgage or consumer credit specifically in your situation.

There comes a time in almost everyone's life when it's time to think about buying your own home. To inherit an apartment or buy it with the help of accumulated savings is an ideal solution to the problem. However, most Russians need additional Money ah to purchase real estate. In this case, the question naturally arises, what is better to take - a mortgage or a consumer loan? There is no single answer here. Much depends on the amount available, the housing being purchased and the conditions of each particular family.

At its core mortgage, just as a consumer loan is a type of loan obtained from a bank at interest on certain conditions. The main difference by which a credit institution classifies loans is the purpose of obtaining funds. Consumer credit is usually issued without the need for a report on its spending. While the purpose of the money received on a mortgage or a car loan is strictly targeted.

Let's try to understand in detail how a mortgage differs from a loan by comparing the basic conditions for their issuance.

A housing loan has more stringent requirements for the borrower and the housing being purchased, since the money is issued for a long period, and the property will be the guarantor of their return. The list of documents to be submitted to the bank is quite impressive, and the terms for their verification and approval of all conditions may be delayed.

A consumer loan is faster and easier to obtain, but it has significant restrictions on the term and amount of lending. In addition, the rates for this type of loan are usually much higher than for a mortgage.

Each of the options - a loan or a mortgage - has its positive and negative sides, which should be discussed in more detail.

Pros and cons of consumer credit

«+»:

• Speed ​​of clearance. The term for consideration of an application for a loan is much shorter than when applying for a mortgage. In some cases, only a few hours pass from the moment of application to the issuance of a loan;
• Minimum package of documents . Most banks require only a passport and a certificate of income to issue a consumer loan;
• The bank does not require mandatory registration of title and real estate insurance . In the event of a voluntary purchase of these insurances under force majeure circumstances, the insurance company will indemnify the owner, not the bank.
• No need for collateral of the purchased property . Pledge for a non-purpose loan is required only when large amounts are agreed (more than 500-700 thousand rubles). This may be a residential or non-residential premises already owned, or other liquid property. The purchased apartment will not be encumbered;
• You can purchase housing that does not fit the bank's standard conditions by type, age or other parameters.

«-»:

• High interest rates . The percentage for using a consumer loan is higher than for a mortgage loan;
• Short loan terms . The average term for which a consumer loan is issued does not exceed 3-5 years. Only in some banks you can take it for 7 years;
• Big monthly payment . The first two significant disadvantages of a non-purpose loan form a loan payment, for the payment of which it will be necessary to allocate a significant amount from the family budget every month;
• Loan limits. The amount of a consumer loan without collateral usually does not exceed half a million rubles. Getting over big loan assumes that the client has liquid collateral and a good guarantor.

Pros and cons of mortgages

«+»:

• Minimum down payment . To buy your own home, it is enough to accumulate about 10-15% of its value;
• Affordable monthly payments . Long-term mortgage lending allows you to choose a comfortable payment that does not reduce the borrower's standard of living;
• Opportunity to participate in mortgage programs funded by the state. Certain privileged categories of citizens (young families, doctors, teachers, parents of two or more children) can count on partial repayment of their debt to the bank through the provision of housing subsidies or maternity capital by the state;
• Getting additional income in the form of a tax deduction. In accordance with the tax legislation of the Russian Federation, once in a lifetime, you can return income tax in the amount of 13% on the amount of interest paid on a mortgage, but not more than 390 thousand rubles;
• Additional verification of the legal purity of the transaction. The purchased property will be carefully checked by the security service of the bank and the insurance company before signing the documents. And compulsory title insurance provides an additional guarantee of a refund in case the transaction is recognized as illegal.

«-»:

• Pledge of purchased housing . Until the full repayment of the debt, the owner of the apartment will be the bank. Any real estate transactions - sale, donation, etc. – possible only with the consent of the creditor;
• Bank insurance. A mortgage loan involves annual insurance of the borrower's life, real estate and title for the amount of the debt. This will require additional financial costs. In addition, in the event of an insured event, payments will go in favor of the bank, and not the insured;
• Restrictions in the choice of real estate. When applying for a mortgage, you must be prepared for the fact that the choice of housing will need to be coordinated with the bank. If the lender is not satisfied with the proposed option, then the application will not be approved, and you will not receive money;
• The inability to arrange an apartment in shared ownership with children or people with disabilities. Banks very rarely approve transactions where children or people with disabilities appear as owners of the purchased housing. Their rights are additionally protected by the state, so it will be impossible to sell such real estate in case of delay in repaying the debt;
• Significant loan repayment. During the use of mortgage money, the bank will have to pay interest several times higher than the initial cost of the apartment. The overpayment will be the greater, the longer the term of the mortgage.

We consider the costs and choose the most profitable option

The difference between a mortgage and a loan will be more obvious if, using a specific example, you calculate the monthly payments for each option. Suppose that a person by the age of 30 has managed to save up half the cost of an apartment. The remaining 50% in the amount of 1 million rubles. he decided to borrow. Housing is planned to be bought in a house under construction. Let's try to figure out what will be more profitable in this option - to take a mortgage or a consumer loan. To do this, use a loan calculator.

You can take a mortgage at Sberbank at 10.9% per annum for a period of 10 years. With annuity payments, you will have to give the bank 13,718.46 rubles a month. The total overpayment will be 646,214.77 rubles, that is, about 65% of the amount taken on credit.

The second option is a consumer loan at 15% per annum for 5 years. Here, the monthly payment amount will be 23,789.93 rubles, and the overpayment will be 427,395.81 rubles. or 43% of the loan amount.

The options under consideration differ in the amount of monthly payments by almost 2 times. When applying for a mortgage, the burden on the family budget will be less noticeable, but in 10 years the bank will have to pay almost a third of the cost of the apartment.

From the point of view of financial benefits, a consumer loan will be more preferable, since the amount of overpayment on it is less. At the same time, in case of early repayment of the mortgage, the amount of interest paid to the bank will decrease and will be able to compete with consumer credit. And taking into account the fact that from the amount of interest paid on the mortgage, you can get tax deduction, the final overpayment will be even lower than that of a family that has taken a non-purpose loan.

Use ours to make a calculation specifically for your case. It supports the early repayment function, including maternity capital, which will allow you to make a more detailed loan repayment model and look at the difference between a mortgage and a regular loan.

Another point influencing the decision is the pledge of the purchased property. In case of loss of the source of income, the borrower can sell the property or rent it out and thus pay off the debt. When applying for a mortgage, he can do this only with the consent of the bank, which is extremely reluctant to make any transactions with the mortgaged property.

The results of the comparison of mortgages and consumer loans

Two main points are crucial when choosing a loan option:

• family income;
• Down payment for an apartment.

If more than 70% of the value of the property will be paid for with your own money, then it makes sense to take out a consumer loan. This will save time on collecting documents and allow you to immediately become a full owner of the property. It is especially beneficial to use this option if in the near future it is planned to receive a large amount of money that can be spent on early repayment of bank debt. However, you should be prepared for the fact that for some time a significant part of the family budget will be spent on monthly loan payments.

If you need a loan of more than 500-700 thousand rubles and have several children or other dependents, it is better to take a mortgage. When lending for 15-20 years, the payment looks more attractive and there will be no need to greatly infringe on current expenses.

Often borrowers have a question - is it possible to take a mortgage if there is a loan? With good credit history and high income, banks usually meet the needs of the client and approve the mortgage application.

In any case, think carefully before making a final decision whether to take a mortgage or a loan to buy a home. It is necessary to carefully study all the pros and cons, in relation to the existing situation, analyze possible scenarios and make a choice that suits a particular case.

We are waiting for your questions in the comments. Our online lawyer is always ready to advise on the complex legal aspects of the transaction.

We will be grateful for the rating of the article and like in in social networks this post.

What is more profitable - a mortgage or a loan? The sphere of banking services is developing intensively, offering more and more new financial products that we actively use on a daily basis. This and credit cards, and debit, various mortgage offers, as well as services for online payment. Perhaps the most popular among our fellow citizens, puzzled by the housing issue, were loans for the purchase of real estate of various kinds. However, you need to figure out which is better - a mortgage or a loan?

What is a mortgage?

From the point of view of any economist, a mortgage is a loan product secured by the borrower's real estate. The majority of mortgage clients use these funds to purchase residential real estate. It can be an apartment, a land plot or a cottage. The borrower cannot use this money otherwise, at its own discretion. How is a mortgage different from a loan?

The pledged property will serve as a guarantor for the fulfillment of obligations by the borrower for the banking organization. If the loan obligations are not fulfilled, the bank has the right to sell the collateral. Despite the fact that the mortgage, in fact, is the same loan, many bank customers continue to consider it special kind banking services, and loans are understood as non-targeted loans issued as consumer loans. There are two types of mortgages: commercial and residential.

So mortgages and consumer loans are very different.

How much can a client expect?

The amount of mortgage loans depends on what program the bank will offer you. For example, a mortgage loan with state support in the regions of our country is issued in the amount of up to 3,000,000 rubles, and for residents of the capital and St. Petersburg up to 8,000,000 rubles. If your city has a social program, the amount of a mortgage loan can be set by the local administration. According to other offers of banks, the amount of the issued amount varies in the range from 300,000 to 25,000,000 rubles. For loan offers, the amount usually does not exceed 8,000,000 rubles. Banks, as a rule, require collateral for amounts exceeding 500,000 rubles. A housing loan is issued on the security of an apartment that is already owned, the amount of the amount is equal to 70% of the price of the mortgaged property. The loan term in this case is no more than 10 years, and the interest rate is slightly higher.

What is better - a mortgage or a loan, is not yet clear.

What is the difference between a mortgage and a loan?

First you need to understand that a mortgage is a certain amount of money that a bank issues at a fixed percentage for the purchase of real estate. You can't spend money on something else. In addition, when applying for a mortgage, the borrower does not receive money, they are transferred immediately to the seller. Mortgage loans are issued by banking institutions in accordance with Federal Law No. 102. A loan is a non-purpose loan, which is also issued at an interest rate set by the bank. In this case, you can spend the funds as the client wants.

What is the interest rate on the mortgage, find out below.

Main difference

The defining difference between a mortgage and a credit loan is that mortgage programs require the provision of collateral. It is impossible to get a mortgage loan without collateral in any bank. In this case, it is possible to pledge not only the property that already exists, but also that which the client is going to buy at the expense of borrowed funds. When obtaining a regular loan on standard terms, collateral in the form of collateral is not required. The next difference is in the amounts that are issued under a mortgage and as credit funds. Mortgage amounts can be dozens of times higher than standard non-purpose loans. The third difference between mortgages and consumer loans is in terms.

Timing

The standard duration of a conventional consumer loan almost never exceeds five years, while a mortgage can be taken out for a term that can sometimes reach 30 years. A significant difference is also the size of interest rates for the use of borrowed funds. Since the risks of the bank in the case of mortgage lending are minimized, a significant reduction in rates is possible here.

Target

And the last difference between the terms of a mortgage and a loan is the purpose for which the client applies to the bank for funds. A mortgage is taken in order to purchase a home, and a loan can be used for various purposes (from buying a refrigerator to purchasing a land plot). It is clear that credit funds can also be used to purchase residential real estate, but what is more profitable: a loan or a mortgage, must be decided on a case-by-case basis. Credit institutions of our country offer a variety of mortgage lending options.

Mortgage Benefits

The advantage of mortgage loans can be considered the possibility of selecting favorable conditions for a loan. It is always possible to choose a financial product with a reduced interest rate or a small down payment. When applying to a bank for a non-purpose loan, you are unlikely to be given such an opportunity. Mortgage can be taken on the security of the acquired real estate, in general, this is a convenient option: there is no need to look for collateral as security. But at the same time, you should not forget that when buying a living space on a mortgage, you will not become its full-fledged owner until you pay the entire amount of the debt, until then the property is the property of the bank.

The difference between a mortgage and a loan is not known to everyone.

Bank consent to sell

In this situation, it is very difficult to sell the property, since this operation requires the consent of the bank. The loan is issued to the client in cash, if at the same time you mortgage your own real estate, this will allow you not to make an initial payment. This scheme is convenient if there are no funds to make a down payment. In the case of issuing a consumer loan in cash and without collateral, the bank may impose a condition on the presence of one or more guarantors. If a loan is issued against the security of existing real estate, then more than one person cannot be registered in the apartment, and it cannot be the property of more than two citizens.

Lending terms

Long term mortgage payments allow you to break down the payment into small parts, and making it less of a hit on the family budget. The main condition here is the age of the client. The borrower must not be younger than 21 years of age and older than 65 years of age on the date when the last payment is made. When applying for a loan, age almost does not play any role, since a regular consumer loan is issued, as a rule, for five years. In the event that you take out a long-term housing loan (if you are mortgaged your own living space), then the bank will most likely approve the loan for ten years.

An initial fee

Mortgage lending involves making a minimum down payment of 15% of the value of the acquired property. It must be understood that a mortgage loan is never granted on general terms without a down payment. Here, maternity capital funds are very often used.

People often ask if you can get a mortgage if you have a loan. The answer is yes, you can, but only if your income allows.

Interest rate

When analyzing the conditions of credit and mortgage programs, it should be noted that they differ greatly in terms of interest rates. Housing loans are issued at different interest rates, depending on the bank and your ability to pay. What percentage on a mortgage is interesting to many.

Reducing the interest rate is possible in the presence of such factors: wages on the card of this bank, a positive credit history, sometimes the place of work influences, for example, state employees are often provided with benefits in credit institutions. The interest rate can also be reduced if there is a special program, making a minimum contribution, with personal and title insurance.

For programs for young families, the interest rate is usually 12.5% ​​annually. Benefits are also provided to military personnel, they can count on the same 12.5%. All other categories of borrowers, ceteris paribus, are likely to be able to get a loan at an interest rate ranging from 13% to 18%. In a long-term loan, the rate is higher and can range from 20% to 35% in different banking institutions. However, when applying with a deposit, the rate can drop to 13%. When issuing a mortgage or housing loans, the bank evaluates the collateral real estate.

What is more profitable - a mortgage or a loan? Let's consider in more detail.

Client risks

Of course, the presence of debt obligations to the bank always presents a certain risk. With a mortgage, the risks may be as follows: the bank may demand property if you have not paid the debt on time, it may also sell it in order to cover its losses. In this case, the borrower is left homeless, without money and with a damaged credit history. With standard lending, there are also risks: with secured loans, there is also a risk of losing housing in the same way. The bank simply confiscates collateralized property when debts are formed on the part of the borrower. In case of non-payment of a consumer loan, the bank has the right to apply to the court with a claim in order to claim the debt.

What to take - a mortgage or a loan, the borrower must decide for himself.

Credit benefits

1. It's pretty easy to arrange. Bank requirements are not so strict.
2. Issued as soon as possible.
3. The package of documents is not too big. Sometimes just a passport is enough.
4. For customers who have deposits, the bank offers special offers with discounts on interest rates.
5. The duration of the contract is usually three years, with a maximum of five years. In this regard, the amount of overpayment will be ten times lower than for a mortgage loan.

Minuses

Conclusion

Thus, a mortgage differs from a loan in that it is given at a lower interest rate, the amount will be significantly larger and the loan term will also be longer than with a standard loan. But obtaining a mortgage is impossible without collateral.

We considered what is better - a mortgage or a loan.

A decision on a consumer loan is made by the bank within 2-3 business days, and an application for a mortgage can be considered for several weeks, during which the real estate seller can find another, more “prompt” buyer.

Mortgage loans are issued only by large banks with a good reputation, so the choice among lenders and the proposed conditions will be very small.
Absolutely all banks, as well as micro-financial organizations, are engaged in issuing consumer loans, which is why the range of offers is simply huge.

One of the main disadvantages of a mortgage loan is the impressive cost of its execution: the total cost of notaries and appraisers, state registration of the transaction and real estate insurance can exceed several thousand dollars.

Therefore, before applying for a mortgage, we advise you to study the features of the mandatory

What is more profitable: a mortgage or a loan?

Depending on your situation, the benefit may lean towards one or another banking product, for a more complete understanding, answer a few questions:

What share of your own funds do you have?

If your own funds are less than half, then it is definitely more profitable to take a mortgage. Since by default we are talking about a large amount of money, then on the terms of a consumer loan, the bank is unlikely to approve it for you.

Are there any arguments in favor of lowering the interest rate?

A lot of arguments, such as: the developer company, the accreditation of the object by the bank, the bank itself and many others are able to reduce the interest rate on a mortgage, but not on a consumer loan!

Do you consider the risks associated with buying a home?

When making a purchase in a mortgage, the bank assumes the risks associated with unscrupulous sellers and the cleanliness of the purchase and sale transaction itself, and with a consumer loan, you simply receive the money in your hands and take full responsibility.

For a more complete answer to the question What is the difference between a mortgage and a loan? we will compare the standard conditions of both banking products.

What is more profitable mortgage or loan: rates and lending limit

An important indicator by which you can determine whether a mortgage or a loan is better is the average interest rate on a loan product. Thus, the size of the average market mortgage rate is now about 13.7% per annum, which is 5-10% lower than the same indicator in the field of consumer lending. For example, for up to 5 years, a mortgage can be taken at a rate of 9.95-11.5%, and a consumer loan will cost you 16-20% per annum. However, the interest rate on a mortgage loan largely depends not only on the term of the loan, but also on the size of the mandatory minimum down payment.

In addition, the mortgage of a conventional loan and the amount of a possible loan are more profitable: banks are ready to issue from 300-500 thousand to 45 million rubles secured by real estate. The size of a consumer loan without a guarantor usually does not exceed 1 million rubles, with two guarantors - 3 million rubles.

What is better a mortgage or a loan: the procedure for obtaining and repayment terms

Note that a mortgage differs from a loan also in terms of repayment and loan processing. A mortgage loan can be issued for up to 30 years, and a consumer loan for 2-3 years, maximum 5-7 years. However, a decision on a consumer loan is made by the bank within 2-3 business days, and an application for a mortgage can be considered for several weeks, during which the real estate seller can find another, more “prompt” buyer.

On the other hand, the bank is interested in that the borrower does not lose ownership of the collateral, therefore, when applying for a mortgage loan, he personally checks the eligibility of the sale of the acquired property and carefully controls the transaction.

What is the difference between a mortgage and a loan: additional lending conditions and registration costs

When analyzing what is more profitable - a mortgage or a loan, it is worth paying attention to some aspects of mortgage lending that are disadvantageous to borrowers. One of the main disadvantages of a mortgage loan is the impressive cost of its execution: the total cost of notaries and appraisers, state registration of the transaction and real estate insurance can exceed several thousand dollars. Therefore, before applying for a mortgage, we advise you to study the real conditions and hidden payments for a mortgage loan and the features of compulsory mortgage and life insurance for borrowers.

A mortgage is less profitable than a loan and the presence of a mandatory down payment, which usually amounts to at least 10% of the cost of the property being purchased. However, there are also mortgage lending programs without a down payment, but their number is limited, and the conditions are less favorable than for a standard mortgage.

When is a consumer loan better than a mortgage?

Despite the fact that, in general, a mortgage is cheaper than a consumer loan, in some situations the execution of the latter is more beneficial for the borrower. So, a mortgage is not better than a loan in the following cases:

1. To buy a home, 10-20% of its value is not enough - the savings on the interest rate will be "covered" by the costs of obtaining a mortgage.
2. When a relatively small amount of money is urgently needed - for example, for an additional payment when exchanging for another living space.

In addition, a consumer loan can become an alternative to a mortgage if the housing you are purchasing does not suit the bank as collateral, but suits you perfectly: for example, when buying an apartment in a five-story panel building.

What is the main difference between a mortgage and a mortgage? Despite the fact that a mortgage is essentially a kind of collateral, the difference between these concepts is quite large.

Definition Comparison

The first thing that distinguishes a pledge agreement from a mortgage agreement is the legal meaning of these concepts.

The definition of pledge was given in Part 1 of Art. 334 of the Civil Code Russian Federation(hereinafter - the Civil Code of the Russian Federation). After analyzing this norm, we can say that a pledge is one of the ways to secure an obligation taken.

According to part 1 of Art. 1 of the Federal Law "On Mortgage (Pledge of Real Estate)" (hereinafter - the Federal Law), a mortgage is a pledge of real estate, a way to purchase residential real estate by obtaining a loan from a bank for a certain amount. It should be returned within 10-15 or even more years. For some categories of the population (teachers, military, doctors, young professionals), the state provides certain benefits for obtaining a mortgage loan. For many people, mortgages are the most convenient way become the owner of real estate without having large funds at its disposal.

The concept of a mortgage is much narrower than the concept of a pledge.

Subject of the contract

The subject of pledge in accordance with Part 1 of Art. 336 of the Civil Code of the Russian Federation can be almost any movable or immovable property, including cars, equipment, Jewelry and even property rights to the above objects. Thus, the list of property that can be mortgaged is huge.

According to the Federal Law "On Mortgage (Pledge of Real Estate)", the loan received is secured by the property acquired in this way. In the event of a debt, the debt is collected by selling the mortgaged property.

Subject

Mortgage lending in accordance with the Federal Law can only be carried out by banks registered and licensed for the right to engage in banking activities in the manner prescribed by law.

A pledgee under a pledge agreement can be both a legal entity and individual. For example, pawnshops issue loans secured by various valuable property.

Mortgage lending is carried out, as a rule, only by banks.

Contract form

The form of the pledge agreement is provided for in Art. 339 of the Civil Code of the Russian Federation. According to part 3 of this article, it is sufficient for this agreement to comply with the written form. But there is an exception: if the contract provides an obligation under the contract, which, according to the law, must be notarized, then it should also be certified by a notary.

The mortgage agreement must be state registration(part 1 of article 10 of the Federal Law). Without it, he is worthless.

Storage of pledged property

Since mortgaged real estate is a way to secure a loan, it is burdened. This means that without the written permission of the lender, it will not be possible to donate, sell, or even rent out the acquired apartment.

As for the pledge agreement, in the case of obtaining a loan, any valuable property, for example, a car or equipment, can ensure its payment. On the property itself, for the acquisition of which a loan was issued, encumbrances may not be imposed. The property may be held by the mortgagor, the pledgee, or be deposited with a third party (Article 338 of the Civil Code of the Russian Federation).

The guarantee for a mortgage loan is always the property purchased under this agreement.

The value of the mortgaged property

In the case of a property pledge agreement, its value is determined by the parties themselves and is prescribed in the terms of the agreement. When concluding a mortgage agreement, the assessment of the property is determined by an expert who has the appropriate permission. The appraiser issues a detailed conclusion, where he indicates the market and liquid value of the appraised property, on the basis of which the bank determines the amount of the mortgage.

Claim requirements

Requirements for a potential mortgagor are minimal. Sometimes all you need to sign a contract is a passport and full legal capacity.

The requirements for a mortgage lender, when the mortgagor also acts as a borrower, are much higher. Each bank sets its own framework for those who want to get a mortgage loan, but in any case, there are a number of basic requirements:

• age. Mortgages are issued to people who have reached the age of 21. Each banking organization has its own upper limits, but in any case, the bank expects the loan to be fully repaid before retirement age. If the borrower wants to take advantage of the preferential program, then in this case the age limits are even tougher;
• income level. The potential borrower must have enough high level income in order to be able to pay the debt on the issued mortgage loan.

The requirements for the mortgagor-borrower to obtain a mortgage are more stringent than those for registration of a pledge.

The need for insurance

The need to obtain insurance for purchased real estate is provided for in Article 31 of the Federal Law. Without it, obtaining a mortgage loan is impossible. In addition, banks often independently establish a requirement to insure the life, health, and working capacity of the borrower. The need to purchase such insurance policies is not provided for at the legislative level, but without them, the bank may simply refuse to execute the contract. The amount of annual insurance payments is usually about 1.5% of the total value of the property.

Generally, insurance is not required for regular collateral.

Insurance of the subject of mortgage is provided at the legislative level.

Conclusion

Having studied the features of a mortgage and a pledge, it becomes clear that the difference between these two is quite large. In fact, a mortgage is one of the varieties of collateral with a very narrow list of pledged property.

Buying a home is relevant for many Russians. Thanks to the emergence of mortgage programs on the market, the opportunity to acquire an apartment or a house has become more real.

But not everyone wants to get a mortgage. And many are concerned about the question of whether there are special consumer lending programs for buying real estate.

Let's talk about the main differences between a mortgage and a consumer housing loan.

Differences

Mortgage- a target loan, it is issued by a bank for a specific purpose - the purchase of an apartment or house.

When applying, the borrower does not receive funds in his hands, and cannot dispose of them at his own discretion.

The bank transfers the money needed to pay for the sale and purchase transaction to the seller of the object.

Features of this product:

• long-term lending - from 7 to 30 years;
• amounts from 500 thousand to 10 million rubles (for residents of the regions - up to 5,000,000 rubles);
• the presence of the first installment for the object is obligatory;
• often additional collateral or surety is required;
• you can attract up to 4 people as co-borrowers;
• a strict approach to the consideration of the application;
• long period of consideration and exit to the deal;
• strict requirements for the acquired object;
• the apartment is pledged to the bank until the debt is fully repaid;
• registration of insurance of the object and risks at the choice of the bank;
• without the consent of the creditor, it is impossible to dispose of housing at one's own discretion (sell, donate, alienate, pledge);
• the interest rate on mortgages is lower than on consumer loans, but the final overpayment is more significant due to the long term of the loan.

At the same time, mortgage loans also have advantages. For example, banks provide a number of benefits for certain categories of borrowers: the military, young families, employees of companies standing at the bank for payroll service. This saves money on debt payments.

Loan agreement for the purchase of housing

Its two main differences from home loans are − limited limit and term for issuing funds. Usually it does not exceed five, in rare cases - seven years.

What other differences exist:

• higher interest rate;
• higher monthly payment
• do not need documents for the object;
• the bank does not check the purchased apartment;
• if the borrower has sufficient income, no guarantor is required;
• more loyal credit history requirements;
• no down payment required;
• the object is not pledged to the bank.

But why then do you need a mortgage at all, if borrowing cash to buy a home is easier and more convenient?

In fact, this opinion is erroneous. Each of the options has both its advantages and disadvantages.

Can I get a loan to buy an apartment?

An important clarification needs to be made here. A consumer loan that is issued in the form of cash will be non-targeted - that is, it does not require a report on the use of borrowed funds.

In the bank, such loans are provided on general terms. whatever you fund.

These loans usually do not require the involvement of co-borrowers., and the lender is more loyal to the borrower's form of proof of income.

If, according to the official 2-NDFL certificate, your income is insufficient, an extract from debit card (on which additional income is accrued to you), and a rental agreement for housing (if there is property that is rented out).

You can take a cash loan to buy an object. The main factor that prevents many borrowers from using only this method is the limit on the amount of issuance.

In many banks, the limit for these products does not exceed one and a half million rubles.

IMPORTANT INFORMATION: Exclusion of MKB and VTB 24. In them, the borrower can get a loan up to 3,000,000, for a period of up to 10 years.

But usually when considering the application, the creditor may reduce the amount to be issued, and as a result, the borrower needs to apply to other banks, getting the remaining funds.

Not everyone finds this option beneficial. Mortgages are much easier.. The issuance limits for such loans usually cover the average cost of a two- or three-room apartment in the Moscow region, while in regions where the cost of housing is lower, this product will be even more profitable.

Due to the long term of issuance, the monthly payment will be less, and it will be more comfortable to pay it.

On our website we will tell you how to get it!

How profitable would such an offer be? Read about the terms of government-supported mortgages and who the benefit program is for.

What is better, easier and more profitable to take

And again, the borrower faces a dilemma: which program to use to buy a home? If your monthly income does not exceed 30 thousand, you have a down payment and a job with which you are not going to quit in the future - the best choice will become a mortgage.

Provided that the cost of purchased housing does not exceed 1.5 million rubles. Then the monthly mortgage payment will be about 17 thousand rubles.

If we recall the possibility of partial early repayment, which is provided by a number of banks, then it is also possible to reduce the cost of overpayment.

If you have a spouse, or a close relative agrees to act as a co-borrower for you - the amount can be increased to 2.5 - 3 million.

Remember that your monthly debt payment should not exceed 50% of the total family income, or your salary.

The conclusion is simple - if you have an average salary, then it is better to apply for a mortgage loan, since its payment will not become a burdensome burden (provided that you have correctly assessed your capabilities).

A cash loan is suitable in the following cases:

• if you purchase a residential building worth no more than 1,500,000 rubles;
• when buying an apartment or room;
• in the absence of a down payment;
• you are not afraid of a higher interest rate (from 18.9 to 23%, on average);
• a monthly payment of about 30 thousand per month is not a problem for you (or your family);
• there are difficulties with collecting a package of documents for a mortgage loan;
• official income is insufficient, and the additional bank is not ready to take into account.

A cash loan is convenient when you urgently need to receive funds and enter into a deal, and an interesting option fails. If the purchased housing costs no more than 1.5 million rubles, it is more profitable to issue it.

Moreover, the debt can be repaid within 5 years. The main limitation is the amount of your earnings.

The final choice between the two types of loans is up to you. After all, only you know exactly your capabilities, and you can realistically assess your chances of successfully paying off your debt.

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