Interview and text: Maria Solnechnaya
Heading expert: Vladimir Fedyanov, Head of the retail business development project "Eurasian Bank"
Mortgage has been the subject of vivid discussions, disputes, conflicts and the topic of humorous programs for more than one year. It seems to me that this is due to the fact that the consumer of this banking product does not fully understand how to calculate their costs for this type of loan, what to expect from this and how to come to terms with the fact that the actual overpayment for housing is almost equal to one more of the same cost of housing. Probably, I'll tell you with sarcasm, this is the highlight of the Mortgage.
In essence, a mortgage is the same loan that you and I use, only longer-term, respectively, and the level of overpayment in the actual figure of rubles is much higher.
We're a lot less likely to wonder about catastrophic overpayments, like with car loans, but mortgages are a hot topic. It has long been clear to everyone that the percentage of this product is overestimated compared to the similar European one.
However, let's look at the other side. This does not prevent Ipoteka from being popular and attracting new customers every day, thereby supporting the real estate market in our country. 2016 is still under the slogan of the economic crisis, where the situation and conditions are changing day by day.
Should I take out a mortgage now or put it off until better times?
I propose to deal with some of the questions on this topic with representatives of the Eurasian Bank, who have been actively working in the market for this product in recent years.
GP: For 2016, the forecasts were very different, but most of them leaned towards the fact that the interest rate on mortgages will be kept at the level of 12-13%.
Forecasts for a longer period were already an order of magnitude more optimistic. Analysts of the largest financial companies believed that in three years the rate could reach 7%. In fact, it is rather difficult in the current situation to understand today what ultimately came true from the forecasts for this year on rates and which long-term forecasts to believe. Vladimir:
To take or not to take a mortgage, and is it worth doing it now? This question now and then appears in the press, and further attempts to predict the future follow. Believe me, you can answer them without resorting to the services of fortunetellers. See for yourself.
Now the rates are at the level of 12-13%, and banks note a significant increase in demand from potential borrowers (since the beginning of the year, the growth has already amounted to 40%). In general, if you look at the history of the domestic mortgage market, although not very long, but still, starting from 2001, you can see a sharp increase in demand for mortgage loans whenever the mortgage rate fell below 14-15%. This naturally leads to an increase in demand for real estate, which in turn leads to higher prices.
Thus, there are two options for the development of events: The first option is that in the short term inflation will be tamed and economic growth will resume.
In this case, mortgage rates are likely to actually decrease, which will lead to an increase in housing prices. By taking out a mortgage today, you can save on the value of your property and refinance your loan at a lower interest rate later on. The second option is that the situation in the economy will stagnate or even worsen.
In this case, the mortgage rate will no longer be as comfortable as it is now. Draw your own conclusions. GP: 1st place in the TOP-50 “Cons of Mortgage” is occupied by “Mortgage is a debt hole”.
Tell me, what should be taken into account in addition to calculating the monthly payment to potential borrowers before applying for this type of loan in order to avoid this fact? I know that Sberbank, for example, recommends considering only the most popular housing, in other words, housing that is in demand. And, between us, they approve such a mortgage much more readily. What can you say about this? Do you have any other considerations at your bank? Vladimir:
A mortgage, like any other loan, can turn into a debt hole when you cannot repay it. The mortgage in this case is even in a better position, since the borrower can always sell the collateral to pay off the loan and return to its original state. Nevertheless, in order not to find yourself in such a deplorable situation, you need to try to conservatively approach your capabilities. Statistics show that the probability of default drops sharply when the Borrower's payment-to-income ratio is less than 40% and the loan-to-value ratio is less than 70%.
All banks know about it and do not hide it. Moreover, by getting a loan on such terms, you will get the best interest rate. When choosing your property, leave a margin of safety! There is another important point that, perhaps unconsciously, makes people buy the most expensive (large) apartment on credit, and at the same time sharply reduce the level of quality of life (the level of income disposable after payment of all mandatory payments).
There is an opinion that until you pay off the loan, nothing can be done with the apartment. Therefore, it is necessary to take housing for growth with a perspective of 10-15 years. This is wrong! It is quite possible to sell housing on the security of the Bank when you really need it.
Income and family have grown - sell your small mortgage apartment, which suited you just yesterday and take a loan for a new home. It's really quite simple. And no matter what they say, a mortgage is the safest, cheapest and most transparent way to borrow money to buy a home.
GP: For many years I have heard from acquaintances, colleagues and friends that the most optimal and reliable way to get a mortgage is Sberbank.
This year, I increasingly hear the opinion that commercial banks offer more favorable and comfortable conditions for mortgage lending. What can you boast about in this sense? What are the main advantages of Eurasian Bank over other banks? Vladimir:
Sberbank is a huge machine that operates in the most standardized way. For our part, in contrast to such a giant, we can offer a more individual approach to customer service. Each client from the first meeting to the transaction is led by a personal manager. The analysis of the borrower is also carried out individually, taking into account all the nuances. Yes, it is somewhat more expensive, but the difference in rates is not so great for the Borrower and amounts to about 0.5%, and for some clients who do not fit into the standards of scoring models, this is generally the only way to get a loan.
GP: I'd love to hear from you about what's new in your potential clients' mortgages in the coming year.
What to fear, and what, on the contrary, to wait and use? Vladimir:
You know, we still have a very wide range of mortgage products. We give loans for the purchase of both finished and under construction housing. At the same time, you can buy not only an apartment, but also a house with a land plot, apartments or even a garage. In addition, we give loans secured by the property of the apartment. The scope of using such a loan is even wider, and the rate remains low as a mortgage. However, a surprise awaits our customers in the new year!
We plan to launch a new mortgage product - a loan with a payment every two weeks. It is no secret that thanks to the efforts of the state, which insists on paying advance payments to employees, the format of paying salaries 2 times a month is becoming increasingly popular. So, at the same% rate, a payment every two weeks will significantly reduce the overpayment on the loan compared to the usual monthly payment. And, taking this opportunity, we want to wish our customers not to be afraid of anything in the New Year, and to perceive all changes in an exclusively positive way!
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