There are many different mortgage programs on the market today. In such a situation, it is quite difficult to make the right choice and settle on a really profitable bank offer.
Each person has their own understanding of a profitable mortgage. The borrower, when choosing a bank, can be guided by the lowest overpayment, a small down payment, or a minimum package of documents and fast loan processing. Therefore, one and the same bank may become the most optimal for one, and unprofitable for another.
Regional specifics should also be taken into account. Within one bank, excellent lending conditions can be offered in different regions. The most lucrative mortgage offers can be found in densely populated cities with high competition.
Smallest overpayment or monthly payment
Overpayment on a mortgage largely depends on the interest rate and the term of the loan. The lowest interest rates on mortgages are offered today by large Russian banks (VTB24, Sberbank, etc.). This is due to the fact that it is more difficult for small banks to attract large sums for long periods in the interbank market.
Favorable interest rates are offered by the Agency for Housing Mortgage Lending (AHML), but rather strict requirements are imposed on the borrower and an extensive package of documents will be required.
The final amount of the overpayment depends not only on the size of the interest rate, but also on the additional commissions associated with the issuance of a mortgage. Therefore, when comparing bank offers, it is worth paying attention to the announced final amount of the overpayment. For each borrower, the interest rate is determined on an individual basis. Therefore, you should not be guided by the base rate, which is indicated in the advertising proposal.
Almost all banks offer reduced interest rates for their payroll clients. At Sberbank, they can apply for a rate reduction of up to 3 p.p.
The longer the term of the mortgage, the more and the overpayment. But for some borrowers, the minimum monthly payment is more important. Otherwise, their financial capacity will not allow them to make mortgage payments. In such a situation, it is worth looking for a bank offering long-term lending of up to 20-30 years. It should be noted that today almost all banks represented in the mortgage market offer extended lending terms.
An initial fee
For some borrowers, a minimum down payment is important when choosing a bank. Today, the minimum down payment is 10%, but it is not common and requires additional security for the loan, or differs in unfavorable rates. Such programs are available in Russtroybank, Moscow Regional Bank, Uralsib, as well as special programs for certain groups of the population from Sberbank and VTB24.
In some banks, it is possible to obtain large loans secured by existing real estate. The money can be used to buy an apartment. Thus, no down payment is required. Loans secured by real estate are, for example, in the "Moscow Credit Bank", "Alfa-Bank", "Petrokommerts", "Gazprombank".
Fast processing and minimal package of documents
For some borrowers, the concept of a profitable mortgage is synonymous with a quick loan. It is worth noting that the fewer documents the bank requests for a mortgage, the higher the interest rate will be.
Today there are programs that involve the provision of only two documents (a passport and the second one of the borrower's choice) for obtaining a mortgage loan. But they differ in strict requirements for the initial payment, it must be at least 40-50%. VTB24 and Sberbank have such programs today.
