According to statistics, about 700 thousand mortgage loans are issued in Russia per year. And this is due to the fact that the purchase of housing on their own for cash can be mastered by few. And with constantly increasing housing prices, saving up for it becomes an almost unrealistic task. Therefore, a mortgage is a great help for those who want to buy an apartment. However, not everyone knows what it is, like the history of mortgages.
A mortgage loan is a banking product based on real estate collateral. Accordingly, if there is no collateral, then this is some other product of the bank, but not a mortgage. The history of loans of this kind dates back to ancient Greece. Then loans were received on the security of land. In order to determine that this object is under bail, in those days a special stone or pillar was put up on the site. Accordingly, they were guided by it, and it became impossible to get a second loan for this site.
A mortgage is characterized as a secured loan. However, it should be understood that not everyone, even collateral, is a mortgage. The concept of a mortgage includes only those real estate, the pledge of which is of a public nature. That is, the deal on it must be registered with special authorities, and the documents relating to this object must be marked "with encumbrance".
How does a mortgage work
A mortgage loan is issued by a financial institution in most cases for the purchase of an apartment or house. This happens when the buyer does not have enough money to buy a property. The amount of missing funds ranges from 90% to 10% (it all depends on the capabilities of the buyer).
Depending on how much money you have as a start-up capital, the program is also determined according to which the bank will lend you. Also, the interest rate directly depends on this.
A mortgage means that the home is simultaneously owned by the buyer and at the same time remains an object of collateral for the bank. That is, the owner in relation to the property has a fairly large number of restrictions. For example, it is possible to sell, exchange and make other transactions with real estate only with the permission of the bank.
The mortgage encumbrance is completely removed after the full repayment of the debt to the bank. At the same time, re-registration takes place at the Registration Chamber, after which the owner receives documents in which the mark on the encumbrance of the property has already been removed.
When concluding a mortgage lending agreement, the buyer signs all the standard documents and agreements that are provided for by law when buying real estate: a sale and purchase agreement, receipts for money, etc. The difference between a mortgage and the usual purchase of an apartment is that it additionally requires an appraisal procedure for residential premises in order to determine its market value.
Mortgage: pros and cons
There are many different rumors and speculations about the mortgage. And not all of them have a real basis. So, for example, the undoubted advantage of a mortgage is the fact that you can buy housing immediately, move into it and live without thinking about renting real estate and not depending on the mood swings of the owners.
With a mortgage, an apartment or house is immediately registered as property. That is, your position becomes more solid. In addition, the buyer acquires tax exemptions for a certain period. Benefits are calculated due to the fact that this type of loan is targeted.
All property buyers who are officially employed are eligible for a tax deduction from the purchase of a carriage. Its maximum amount is 260,000 rubles.
You should be prepared for the fact that the registration of a mortgage is a rather lengthy process and can take about a month, and in some cases even more. After all, you need not only to collect documents, pay all the necessary fees, etc., but also give them to the bank for verification.
