Why loans for housing becomes available

Government actively promotes the purchase of apartments in new buildings by buying banks' mortgage loans at 11% per annum in rubles for a term of 30 years. But banks have their ruble and programs with interest rates below the state. In addition, on the market today introduced a program of liability insurance of the borrower, which should reduce the risks of banks, and hence the rate. However, while all these measures are accessible to the mortgage did not. In mid-February, Sberbank began issuing loans under the program "Mortgage with state support." First joined the program VTB 24, who started working on this scheme since June last year. According to estimates VTB 24, since the program started around 3500 the bank provided loans worth more than 5 billion rubles. To date, the proportion of programs accounted for more than 50% of the loans for the purchase of housing under construction and about 20% of total loans at the finished home. In addition to the Savings Bank VTB 24 and the implementation of state programs and engaged in Gazprombank "Uralsib". The program aims to support the primary real estate market - mortgages at discounted rates can be arranged for the purchase under construction or built premises in the legal entity (developer or investor). "This program may be of interest primarily to banks, finance specific construction projects of housing types, particularly in regions distant from Moscow and St. Petersburg, because the banks are interested in the redistribution of credit risk with the developer on private individuals. In addition, reduced purely commercial risks developer associated with the slow implementation of the apartments and the overall accumulation of volumes, not finding the demand in the market, and thus compensated for credit risk and bank loans to developers, "- the director of retail business of Nordea Bank, Vyacheslav Lyasevich. Conditions of the program are: credit can be issued for a maximum of 30 years with a minimum initial contribution of 20% of the purchase price, without additional fees. The loan rate shall not exceed 11% per annum in rubles. It should be noted that this rate the borrower will pay only after the registration of a mortgage in favor of the bank, that is, when the apartment in a newly built house goes into the category of finished housing. Prior to that, the credit will apply higher interest rate. Thus, prior to the registration of mortgages in VTB 24 rate increases by no more than 2.5%. In the Savings Bank rate for this period will increase by 1,9-3,75%. After registration of the mortgage in VTB-24 rate on the loan amount to 11% regardless of the duration of the loan amount and down payment, the Savings Bank - 10,7-11% per annum. The lowest bid - 10,7% - can be obtained by issuing a credit for ten years and making more than 50% of the price. In general, bankers say the success of this program. "High enough proportion of the program in the total amount of mortgage loans indicate a high degree of competitiveness, especially when purchasing housing under construction. The increase in term of the state program before the end of 2013 significantly expanded the range of construction projects that may be purchased under the program, increasing the thus the opportunities for the people to purchase housing mortgages with low interest rate ", - says head of the development of loan products and affiliate programs of the Department mortgage VTB 24 George Ter-Aristokesyants. According to the deputy director general of the Agency for Housing Mortgage Lending (AHML) Andrew Semeniuk, active in the market demand for mortgage loans with an interest rate of 11%. "According to the Bank of Russia, at the end of last year the average rate in the market was 12.5%. In addition, as our case studies, the citizens are now more focused on buying a home in a new economy class", - says Andrey Semenyuk. However, the market, there are alternative programs that can not offer less favorable terms, even without government support. For example, the Savings Bank until the end of 2011, extended the action "in the top ten," according to which the introduction of at least 10% of the price the interest rate of 10% per annum in rubles. True, there are some limitations: the credit can be issued only for facilities built with the participation of credit bank. It also loses the state in duration: the credit necessary to return a maximum of ten years. Low interest rate and a down payment on the loan - the key factors that help increase the availability of mortgage lending. And if banks are willing to lower mortgage rates, the choice of programs with a minimum initial contribution is limited. In connection with this insurance company (IC) HMLA proposes to introduce a mandatory mortgage insurance of the borrower, which will reduce the risks to both himself and the bank. The scheme of this type of insurance is simple: insurance issued to the difference between the minimum down payment and a standard fee of the bank. If the borrower defaulted on the purchase price of the apartment is not enough to pay off debt (including penalties), the insurance company reimburses the bank the remaining amount. How to tell HMLA in SC, in accordance with the law on the mortgage insurance premium for liability insurance for the borrower shall be paid at once for the entire contract period and an average of 2-2.5% of the loan. A payout the insurer will make after the bank loan into the default object implements the mortgage and can not account for the proceeds to repay indebtedness. One of the marked advantages of such a program - lower borrowing costs by reducing the risk to lenders. In SC HMLA suggest that the cost of credit will be reduced by 2-3%. Banks are more reserved in their assessments. "Over time, when such insurance will go down in practice, the difference in interest rates will decrease by about one percentage point. Prerequisites for this practice are: insurance risks will be reduced, which means that insurance, which now makes up to 5% of the price will be considerably cheaper , so the difference will be obvious and credit insurance to become more profitable. Because of rising prices the cost of apartments will cover the amount originally taken the loan. In this case, banks will not mortgage risks in interest rates and we can talk about lowering interest rates for borrowers who do not currently get a loan for an apartment under the minimum payment, - says head of mortgage development bank "discovery" of Alexander Efimov .- It is known that the bank's clients, who can make no more than 10% of the price, are in the so-called risk. Typically, these borrowers are easier to part with it given default than those who have made a significant amount of own funds. And the reasons for the spread of the insurance market participants are quite obvious. " However, the total cost of the loan with mortgage insurance even with the discount from the bank will often be higher than if the borrower money and undermining the bank made 20% of property value. For example, when buying a studio apartment up to 5 million rubles. Program Bank "DeltaCredit" "Delta ruble" with a minimum down payment 20% of the loan term 25 years and the interest rate 13.75% per annum monthly payment amount to 45 113 rubles., overpaid bank interest - 9.53 million rubles. By reducing the down payment to 10% of the price and interest rates - up to 12.75% (ie, the bankers assumed 1%) of the monthly loan payment will increase to 47 400 rubles., And the income of the bank - to 9.7 million rubles. In this case the borrower a lump sum will have to pay an average of 90-112,5 thousand rubles. for insurance. However, with decreasing rates of 2% (as suggested by SK HMLA) monthly payments will be reduced to 44 100 rubles. And the overpayment to the bank - to 8.7 million rubles. Thus, in this case, the borrower will not only reduce the initial payment, but a little to save on monthly payments and the total overpayment. Bankers generally approve of innovation SK AHML, but use it at home is not resolved (with the exception of 24 and VTB banks operating standards HMLA). "Theoretically, it is a good tool to reduce the down payment, which currently is a factor limiting the development of the mortgage. In the case of insurance of financial risks necessary to consider that any additional payment of money increases the burden on the borrower. In this sense, the borrower must be an option to buy this insurance or not. We consider such an option, but so far we have proposed an insurance mechanism is not fully built and it has many difficulties. Besides the cost of such insurance until the client is too large, which increases the cost of a mortgage loan. We negotiate with our partners, including the SC AHML to reduce the cost of this type of insurance, "- says Vice-President, Business Development Bank" DeltaCredit "Dinara Yunusov. Indeed, it is too high tariffs and insurers need to pay the entire amount at one time led to an increase in the cost of credit. "In order for this program has become popular, is required to lower tariffs, and here much will depend on policy AHML. This is a mutually beneficial process, if HMLA reduce tariffs for reinsurance, and that insurance companies should go to lowering cost," - said Alexander Yefimov.