Refinancing a loan involves obtaining a new loan from another bank to repay the old one. Banks themselves choose what types of loans and under what conditions to refinance. Sberbank, in particular, offers mortgage refinancing and even the possibility of combining several loans.
Refinancing a mortgage, or in other words, transferring a mortgage from one bank to another, will reduce the monthly payment and the total overpayment of the loan.
Mortgage refinancing program at Sberbank
Sberbank offers a mortgage refinancing program at a rate of 9.9%. This is the lowest possible rate that is valid if the borrower takes out life and health insurance.
But Sberbank refinances not all mortgage loans, but only those that meet the following requirements:
- no current overdue debt;
- during the last 12 months the loan was repaid without delays;
- the loan was concluded more than six months ago;
- the loan agreement ends no earlier than 3 months later;
- there was no restructuring on the loan.
If the mortgage loan fully meets the requirements, then Sberbank can refinance it on the following conditions:
- The rate is from 9, 9%.
- The minimum loan amount is 300 thousand rubles.
- The maximum loan amount is 80% of the value of the property indicated in the appraisal report.
- Term - from 1 to 30 years.
- Compulsory life and health insurance of the borrower, property.
At the same time, until the registration and repayment of the refinanced mortgage, the loan rate will be 2 percentage points higher. For example, before registering a mortgage with Sberbank, the rate will be 11.9%, and after - 9.9%.
Sberbank does not offer the lowest refinancing rate, but this program has several interesting advantages:
- you can pay off not only the mortgage, but also other loans taken from other banks;
- you can get an additional amount for personal needs at a low interest rate.
But not only Sberbank offers mortgage refinancing programs.
Conditions for refinancing mortgages in other banks
The table contains the main conditions for refinancing mortgages in three banks: VTB, Gazprombank, Rosselkhozbank, indicated on the websites.
As you can see, Sberbank does not offer the lowest refinancing rate. However, each bank determines the lending conditions for each borrower individually. And these terms may differ materially from those presented on their sites.
In addition, banks may refuse to refinance a loan without explanation.
Conclusion
Sberbank, like other leading banks in the country, offer mortgage refinancing programs. Before transferring a mortgage loan to another bank, it is best to start by doing the following:
- Calculate how profitable refinancing will be. Indeed, in addition to reducing the rate, there will be additional costs for a new loan (insurance, appraisal of the value of a property, registration of a pledge). Moreover, you will have to spend not only money, but also time to collect documents.
- Carefully study the terms of refinancing offered in different banks.
These two steps will save you time and money.
