When advantageous mortgage installments?

The fact that Russian banks are constantly improving the conditions of mortgage lending, the media reported almost daily. In October 2010 fell significantly from mortgage Sberbank and VTB 24, Gazprombank has reduced the amount of the initial payment, and canceled the VTB 24 additional charges. Can the developers to offer more favorable terms than the bankers? To date, some construction companies are offering to buy real estate in conditions close to the mortgage of the major banks. Thus, the installment plan is available for 3-5 years or more, while rates on loans remain relatively low. According to experts 100Kreditov now most of the housing in the primary market, sold it with the use of installment. To attract customers and compete effectively with other lenders, developers use all the more attractive options for borrowers installments. For example, customers can choose a convenient debt repayment schedule within 1-5 years. In installments developers prefer to sell real estate under construction. Taking into account the wishes of the borrower, a schedule of payments, which should make the buyer. For example, funds may be paid monthly or quarterly. In some cases, the regularity of the payments depends on the pace of construction. However, in most cases, the cost of housing must be paid before delivery of the building. Borrowers are willing to pay the debt in 1-2 years may be eligible for concessional lending terms and a special price on accommodation. Moreover, people who just pay 50-70% of the property price, many construction companies provide the ability to repay the outstanding balance on an interest-free basis. Like a mortgage, when you make installment buyer must make a mandatory advance payment in the amount of 10-50% of future housing. The larger the down payment and lower debt repayment period, the best terms offered developers their customers. Usually, the remainder of the debt accrued monthly fee of about 0.8-1%. When buying some customers may object to get a discount on the initial payment, or a few meters housing free of charge. Other construction companies are working with banks that offer unsecured loans at concessional terms. However mene, installment and mortgage instruments are totally different lending. Make installment beneficial to a buyer who can pay the cost of housing for several years and has enough equity to pay a large down payment. In this case, the borrower can save substantially, because the developers are willing to lend to the borrower for better terms than the bankers. In addition, to obtain installment takes a lot less paperwork and time than in the issuance of mortgage credit. On the other hand benefit from mortgage borrowers who have relatively low incomes and not enough money for a down payment of 30-50% of the purchase price. Then the credit can be issued for 20-30 years if the down payment of 10-15%. In addition, the bank makes it possible to buy almost any property in the primary or secondary market, while the installment plan only applies to certain specific housing builders. However, lately there have been joint projects of builders and bankers, when dwelling in the same house you can buy on the installment plan and involving mortgages on favorable terms.