«The main thing about mortgages — all banks lie»: the real story of the borrowers

© RIA Novosti / Alexander Krauledat in fotobounce at the window. Archival photo«The main thing about mortgages — all banks lie»: the real story of the borrowers© RIA Novosti / Alexander Krajevima the image Bank

Buying an apartment is a better investment: a recent opinion poll, according to almost half of Russians. To save on housing on your own, however, few succeed; the popularity of mortgages has increased in recent years. Why costs are often not recouped and what about those who were in bondage for many years — in the material RIA Novosti.

Why young families are paying for mortgages up to 70% of income

«The main thing about the mortgage — all the banks are lying,» says the Manager Yevgeny (name changed his story, he agreed to talk on condition of anonymity). «Pay them like in that movie: from 62 thousand rubles monthly payment of 60 thousand goes to pay interest, and 2,500 rubles — the main duty. That is, after three years of the 12 years I still owe the Bank 3.9 million rubles, and have already paid out 2.9 million rubles — was that interest forward.»


Good Tuesday #Odintsovo! ?

Publication from Odintsovo (@oinfo) Sep 11 2017 11:10 PDT

© RIA Novosti / Maxim to Aminopherase in fotomonsterflash new residential quarters in Moscow«The main thing about mortgages — all banks lie»: the real story of the borrowers© RIA Novosti / Maxim to Aminopherase in fotomonsterflash new residential areas in the suburbs

Thirty-eight Muscovite wife and I decided to take a loan for housing in 2014, six months before the next financial crisis in Russia. A couple was coerced by family circumstances. «In may, our baby was already 3.5 years and live together the apartment became quite difficult,» — says the borrower.

The only solution seemed to improve their living conditions. Leasing the husband with the wife have decided to exclude to give not less than 40-45 thousand rubles a month for someone else’s apartment did not want to. Search of new housing took about two months. First, the couple wanted to take shelter in the building, but then decided to choose the secondary market, not to pay for the repair.

Publication from Odintsovo (@oinfo) Sep 26 2017 11:18 PDT

«Three-ruble note» in next to their house in Odintsovo managed to find with the help of friends. To buy it, needed a loan at 4.5 million rubles, put in a big state Bank at a rate of 13.5%. For an initial fee of 1.5 million rubles, the wife of Eugene has issued a consumer loan at a major commercial Bank. As a payroll client on the phone, she was offered a small discount, but at the stage of signing the contract rate increased from 14% to 15%.

© Merkaturatzeko district of the Moscow region«The main thing about mortgages — all banks lie»: the real story of the borrowers© Merkaturatzeko district of Moscow region

Monthly loan payment on the initial payment amounted to 49 thousand rubles, for mortgage — 62.5 thousand rubles. The salary of both spouses — slightly more than 150 thousand rubles (the average salary in Moscow is about 70 thousand rubles. — Approx. ed.), on payment of both loans in the end, leaving 70% of the budget: according to Eugene, it will last another year and a half — until then, until they pay at least the first loan. Attempt to refinance your mortgage loan at a rate of 10% instead of 13.5% in the same Bank turned to a new expense: the Bank has demanded 30 thousand rubles for the renewal of the contract.

In spite of all, the borrower is assured — the decision for the family was the only option. A mortgage loan couple pay the remaining nine years. «The apartment during this time does not pay off, but live comfortably and to give your child this opportunity,» — says Eugene. The son of the couple this year went to the first class, according to the father, now the boy has his own room, where he learns lessons for the family it was worth the effort. The birth of the second child the couple plan to postpone until the moment when it will be possible to pay off the first loan.

How to reduce debt burden

Not every borrower can refinance your loan, says independent financial adviser, associate Professor Financial University under the Government of the Russian Federation said Suleymanov. This must be adhered to two conditions: firstly, none of the loans should not be overdue, and secondly, in the mortgage contract should be a clause stating that the lender may consent to a change of the pledgee or may consider refinancing from him.

© RIA Novosti / Maxim to Aminopherase in fotomonsterflash apartment building in the Moscow district of Fili«The main thing about mortgages — all banks lie»: the real story of the borrowers© RIA Novosti / Maxim to Aminopherase in fotomonsterflash apartment building in the Moscow district of Fili

In the case of Eugene there are two ways: refinance loans in the same Bank where they have a mortgage loan, or make it at least one mortgage loan. The remainder of the debt it will issue new credit at a lower rate. But here you need to look at the situation of a particular borrower. «The average rate in this pair will be around 14%, and current rates may vary. So now it makes sense to only consider refinancing a mortgage loan», — said finconsultant.
For early repayment of the loans is usually recommended to start with the more expensive (with higher interest rate), but in the case of Eugene, according to Suleymanova, better to repay the first loan on the property: the loan was taken for a longer period and its amount is much more, thus lowering rates when refinancing will give greater effect.
© RIA Novosti RIA Novosti / Infografiken or mortgage – what is more profitable?»Annuity payment (equal payments each month as Eugene. — Approx. ed.) suggests that in the first half of the period extinguished the interest only and the balance of the debt there is almost not decreased. From this point of view advantageous to extinguish a mortgage loan in the first half of term: the difference is 3.5 percentage points now gives a tangible difference in the repayment of the loan,» — said the expert.

In addition, the couple has the opportunity to receive tax credits, which they can use to repay consumer credit. Fees for the renewal of the agreement when you refinance — the banks have this right, but it must be due to the current contract, noted Suleymanov.

«If the mortgagee is changing, the Bank must remove encumbrances, to pay off the previous loan, and then impose the burden at companies house. This requires a cost, but not to the same extent — there is stamp duty much less,» — says the expert. But if the creditor is the same legitimate to ask the Bank, where such Commission. However, some banks now prohibit borrowers go to other lenders.

© RIA Novosti / Dmitry to Korobeynikova in fotobanka family«The main thing about mortgages — all banks lie»: the real story of the borrowers© RIA Novosti / Dmitry to Korobeynikova in fotobanka family
Young families who just want to take a loan is also look special loan program on the website of the seller, such as «Housing for Russian family».

Young is the family, where one of the spouses not more than 35 years. Now they launched a series of preferential programs in the regions, including for public sector employees (teachers, doctors, young scientists and some other categories). The presence of a child increases the chances of benefits, said the consultant.

How you can save on the purchase of housing and mortgage loan

To pay the mortgage is always hard, but the experience of some other borrowers, ways to reduce costs (if the family has not yet young children) still exists. What you need to pay attention to each stage?

My wife and took a mortgage in June 2014. Then we had a choice: to rent an apartment in Moscow for 30 thousand rubles or to pay the same amount on the mortgage. In the end, we paid off the loan early, for about a year and a half instead of five years, and earned 550 rubles on the Deposit interest and the tax deduction.

Lake Kiovo on the other side. Ivan Smith #lobnya #lobnyalife #Lobnya

Publication from Lobnya — Life (@lobnyalife) Jul 5 2017 11:44 PDT

What helped us: first, we initially refused to buy housing in Moscow. On our selected «kopeck piece» in a newly built residential complex in Lobnya is 15 kilometers from Moscow, had only 4.1 million rubles. In the capital budgets other: 8-10 million to accumulate heavier. To go to work an hour and a half not a problem for me, before that I lived in Orekhovo-Zuyevo — every day on the road took me six hours.
Second, a small «margin of safety» we had a few years before that we were trying to save on housing themselves, but 1.3 million is still not enough. In the end we took the remaining amount in the savings Bank at a rate of 12% per annum for five years (to select a different Bank was impossible, our Builder was accredited there). Each paycheck after that, we early extinguished 10-20 thousand rubles in addition to the primary payment.

Thirdly, you need to pay attention to the details when signing the contract. A separate issue life insurance: recommended by the Sberbank of the company, it cost 20 thousand rubles. However, the Bank has and other accredited insurers: we found out the cost of the policy at all, and in the end had to take out insurance for 1800 rubles. Some companies have contracts with automatic prolongation, the main thing here is to keep the cost of service each year were recalculated based on the actual balance of the debt.

Airplane romance ©@curly_photo #inmosreg #riama #the suburbs #Moskovskaia #Sheremetyevo #frontal #lobnyalife #lobnya #Repost @riamo.ru

Publication from Lobnya — Life (@lobnyalife) Jul 26 2017 11:11 PDT

Before moving we had to do the repair: the apartment was completely empty, so first we continued to remove other housing. The money was only for food and transport, all the rest went for repairs, and the contribution of the early repayment. But in December 2014 we were lucky: we successfully took advantage of the panic in the banking market. Then, the Central Bank raised the key rate to 17% per annum, and rates on deposits for a few days rose from 10 to 23% per annum. We opened the contribution at 19% per annum for one year, and all the free money sent. Our mortgage is worth 12%, so the «top» of the contribution we were down to 7%.
In may 2015 we received a tax deduction — more than 300 thousand rubles, the money we also placed on Deposit. When his term came to an end, we fully paid off the mortgage and still have earned interest of approximately 70 thousand rubles. Along with the tax deductions, the benefit amounted to 550 thousand rubles. Thus, we paid back the loan in one year and three months. The apartment rose: we bought it for four million 70 thousand rubles, and when the house put on record its cadastral value has increased to 5.8 million rubles.