It is no secret that at present for many Russian citizens one of the most affordable ways to buy their own home is to obtain a mortgage loan for real estate in a bank. Depending on the conditions under which the loan is issued and at what percentage, the borrower already decides whether he is ready to pay such a loan or not. What will happen to mortgages in 2017 and what are the trends and forecasts?
If we compare the mortgage of the end of 2014 with the mortgage of the beginning of 2017, then, of course, it has become more affordable for people. The key interest rate of the Central Bank of the Russian Federation was increased to 17% per annum in December 2014. As a result, the cost of money for banks also increased. In this situation, Russian banks had two options for getting out of the situation:
- receive your margin and lend to borrowers at a rate above 18% per annum;
- issue a mortgage at an interest rate below the key rate of the Central Bank of the Russian Federation.
In the second case, the “lower percentage” varied from 15% per annum, which was still an outrageous value for many citizens. Moreover, only a few of the best clients could get such a mortgage loan. Overnight, mortgages became unaffordable for many people.
Today, the situation has changed radically. The key interest rate of the Central Bank is 10%, which means that Russian banks have the opportunity to lend to borrowers on more favorable terms for them while receiving their own profits. So the interest rate on the purchase of secondary housing starts from 9, 75% per annum, provided that the client is willing to pay a commission for reducing the rate when issuing a mortgage loan. If the borrower is issued a loan without this commission, then the interest rate varies from 11, 3% per annum. In this case, the size of the down payment is 15% of the value of the property.
If we talk about the availability of mortgages in 2017, then it should be noted that programs with an initial payment of 0 have appeared in banks. There are also options for acquiring commercial real estate and rooms with a mortgage loan. The programs disappeared two years ago.
For what reasons may they refuse to receive a mortgage loan in 2017?
One of the most popular reasons for the refusal of banks to issue a mortgage is that a citizen has a criminal record. This is not advertised by bank employees, but in practice, long-term loans are not issued to people with a criminal record.
In 2017, the bank may refuse a mortgage loan if the borrower is employed by the employer on the “black list”. And, finally, banks do not lend to citizens with a bad credit history.
