Mortgage Loan: In Shorter And Expensive
Mortgage loan is one of the forms of real estate acquisition in the housing construction market. This way for buying an apartment today selects an increasing number of people.
As well as and in other Russian cities, mortgagelending takes place in a certain order, with the registration of a number of documents, and requires specific knowledge and solutions. In many ways, assess the merits and demerits of mortgages allows analysis of this sector of the market economy.
Unfortunately, the financial and economic crisis has particularly affected the areas of construction and real estate. The change in some conditions of mortgage lending in recent years is a consequence of this process.
The first is a change in rates. As a rule, they all depend on the state refinancing rate. The lower it is, the cheaper the loan. As a result of the 2009 crisis, a sharp increase in refinancing rates was observed throughout Russia. Only since 01.01.09 the rate has risen by 13%. The result was a sharp rise in the cost of a mortgage loan. And even the subsequent reduction of the state refinancing rate did not improve this situation. The reason is that as a result of the crisis, banking structures had to resort to unpopular measures such as reducing the risk of non-payments due to an increase in interest rates on new loans issued. In many ways, the situation was rectified thanks to government subsidies that supported the mortgage program, as well as the introduction of a deferred payment system.
Thus, it is expected that the mortgage market will gradually come out of the crisis, and as a consequence, interest rates on mortgage lending will decrease.
The second important point is the timing of the mortgage. Within certain time limits, , these or other documents are made out. Mortgage lending has the longest period for repaying loans to the population. However, in crisis conditions, the risk of non-return of a cash loan or delay in payments is significantly increased. As a result, banks are trying to normalize this situation by reducing maturities, which is completely unprofitable for citizens with low or medium income levels.
