What are the benefits of a mortgage from a simple loan? Consumer loan or mortgage - which is better? Video: Mortgage or loan - pitfalls

Housing problem– one of the most important and painful for society. Having good housing is the dream of many. But in what ways can you get it, is it realistic in today’s time?

This article will tell you about all the pros and cons of lending.

Which is more profitable?

Both mortgages and loans are beneficial in different cases. If you can pay 70-80% of the cost of the apartment or you are about to receive a large amount due to inheritance, sale of real estate, or receiving an annual bonus to your salary, then it is better to take out a consumer loan.

If you can’t pay everything at once, prefer a mortgage: you can take out a loan for a long time, the interest rate is half the consumer rate.

What is a mortgage?

Mortgage (from the Greek hipotheka - mortgage, pledge)- secured loan real estate. The lender is a bank or other legal entity.

The borrower guarantees his repayment of the loan by collateral of the apartment located in his
property. By mutual agreement, the right to lease the property is also transferred.

Until now, a mortgage remains the most reliable way to obtain housing. After all, in case
conclusions mortgage loan you transfer money to the seller, and not to third parties. Rights
consumers are carefully protected: during the delay, all risks of loss of the right to
apartment and the borrower’s ability to work.

Step-by-step guide to getting a mortgage loan:

Pay attention to the cost of the apartment. Subtract the down payment and decide how much loan you will need. Count with mortgage calculator, what payments should be made by you in this situation.
We determine whether your income is suitable. It should be 2-3 times higher than monthly payments on a mortgage loan.
Assessing the possibility of you receiving a loan from the bank’s point of view: comparing wages and market prices, the possibility of your company paying you wages, assessing your property status.
Now you can develop a strategy for further action. To get an apartment, you may need to agree to a more remote area or adjust your position in your work book.
Submitting applications to 2-3 banks with brokerage assistance or independently.
When choosing housing, take into account legal risks, living conditions and the amount of insurance payments.
You are buying an apartment.

Documents required to obtain a mortgage loan:

1. Statement.

2. Bank questionnaire.

3. Copies:

passports;
insurance certificate of state pension insurance;
certificates of registration in tax authority an individual at the place of residence on the territory of the Russian Federation (on assignment of a TIN);
military ID;
educational documents (certificates, diplomas).
marriage certificates, divorce, marriage contract
children's birth certificates
work book certified by the employer.

4. Documents confirming income.

May also be needed additional documents:

certificate of registration at the place of residence;
copies of passports of persons living with the borrower;
pension certificate, certificate of pension amount;
documents for expensive property (car, securities);
certificates from drug treatment and psychoneurological dispensaries;
death certificates of close relatives;
documents confirming the availability of bank accounts;
certificates of timely payment of utilities;
documents on lending history.

What is a loan to buy an apartment?

Consumer deposit for the purchase of an apartment– non-targeted loan for personal needs. It is close to a mortgage in terms of collateral of real estate, but has a freer character, because no one will regulate what the funds received will be used for. The existing apartment is used as collateral, not the one being purchased.

Loan amount from 75 to 85 percent estimated value. Many banks set a limit on payments.

Scheme for obtaining a consumer loan:

Submit a package of documents to the bank.
Obtaining committee approval.
Drawing up a pledge agreement.
Cash withdrawal.

Documents to Sberbank of Russia:

Certificate of income for the borrower and guarantor.
Copies of passports.
The questionnaire is signed by both parties.

Other banks may require additional documents from you. It is better to clarify the list of necessary items in advance.

Among them are references:

about receiving income outside of work;
about the absence of debts in housing and communal services;
from BTI;
about profit in the family;
from the psycho-narcological clinic about the absence of mental illness.

And also:

certificate of ownership of real estate;
vehicle passport;
extract from the house register;
photocopy of passport;
employment history; military ID;
employment contract (subject to part-time employment).

When is a mortgage profitable?

If you need a long-term loan without a stressful repayment schedule and high interest rates , then the mortgage is for you. An ideal option for those who cannot pay everything at once, but want to get an apartment and are willing to wait as long as necessary.

Advantages of a mortgage:

Long loan term.
Relatively small percentages.
It is possible to obtain a large loan amount.

Cons of the deal:

The property is pledged to the bank.
Additional insurance costs.
Strict control over funds.

Advantages and disadvantages of a consumer loan agreement

Advantages of lending:

Not tied to a specific property.
Freedom to use the funds received.
Fewer documents, the procedure for obtaining a loan is simpler and faster.
No bank approval required.
The apartment becomes property immediately.

Minuses:

High interest rate.
Short loan term.
Tight payment schedule.
Relatively small payouts.

Interest rate

With income tax is from 15 to 19 percent in annual rubles. If you take out a loan within 25 – 750 thousand rubles, then no deposit is required. For larger amounts it is required.

Mortgage interest: 9-16 percent.

Loan terms

Mortgage duration from 3 to 50 years. Most often issued for 10, 15, 20 years before the onset of
borrower of retirement age. There are programs under which you can receive a loan up to 75 years of age. The terms of the mortgage depend on the size of the loan and the bank’s assessment of the possibility of repayment.

The validity period of the income loan lasts from several months to 5 years.

Security

The mortgage is secured in any case, since you do not need to mortgage the purchased living space. During the transaction, it becomes the property of the lender. The collateral of an apartment in itself is a guarantee of fulfillment of the borrower’s obligations to the bank. The housing documents remain with the lender until the loan is repaid.

Additional collateral is the identity of the person taking the loan. The lender can only enter into a deal with a person who has a good income, preferably with an excess rate. One more condition: flawless credit history. A guarantee from one or two people may also be required.

The bank providing the consumer loan may also require collateral in the event
inability to provide a guarantor. Can be secured by an apartment or
borrower's car. Thus, he agrees that if the loan is not repaid, he
property may pass to third parties.

Sometimes banks require collateral when issuing amounts over 3 thousand rubles. This reduces the risk of non-repayment. A consumer loan secured by property takes longer to process than a regular loan. It is best to use a car as security (your application will be reviewed within two days). If you want to mortgage an apartment, you will need a temporary reserve.

Commission and additional costs when applying for a loan

Income loan: you pay a monthly service fee at the rate of 2 percentfrom the loan amount. If this is real estate, then it turns out to be 6-15 thousand rubles, if it is a car, then about 6 thousand. The insurance policy is equal to 5-10 percent of the loan amount when pledging a car and 0.2-1.5 percent when pledging an apartment annually.

Additional costs for a mortgage:

Home price assessment – about 5 thousand rubles.
Checking an object – from 4.5 to 15 thousand rubles.
Preparation of documents and registration – 30 thousand rubles.
Insurance – 1.5 percent of the remaining debt.
Assistance from a realtor (3-8 percent of the property value), mortgage broker (1-3 percent of the loan amount).
Notarial services.
Fee for processing a loan application – from 2 to 5 thousand rubles.
The loan issuance fee is equal to 1 percent of the loan amount ( from 15 to 125 thousand rubles) (not all banks charge).

Results

Differences between the two types of loan:

The mortgage is of a targeted nature and is issued for the purchase of real estate. The loan provides for the distribution of funds at your discretion; the transaction is impractical.
The mortgage term is 3-50 years, the loan term is several months - several years.
The mortgage money is transferred to the seller, and you can receive the loan in cash.
To secure a loan, collateral is not required; for a mortgage, collateral is required in any case.
Interest on a mortgage is lower than on a loan.
Failure to pay the mortgage leads to non-receipt of the apartment; failure to repay the loan causes large financial losses.

How to get housing is up to you. All the pros and cons of both transactions are obvious. Take into account everything we talked about to avoid possible problems. Be careful! I wish you successful transactions, good lenders and excellent apartments!

Still have questions? Ask a lawyer!

If you are determined, then try to apply for a loan correctly. This is necessary so that the purchase of long-awaited real estate becomes a pleasant event for you, and not an unbearable burden for many years.

Pros and cons of a mortgage

People rarely take out a mortgage “out of a good life”; most often they take it out to solve their housing problems. You get a clear advantage: you decide your housing problem. But on the other hand, there is an obvious disadvantage: you overpay for the service, sometimes you can buy another apartment for the interest you have paid over the entire period.

There are three main advantages of a mortgage:

A quick solution to your housing problem - if you live in rented apartment, then you experience some discomfort and restrictions in arranging your home. Every month you have to overpay money to the owner of the square meters, this can last for years. Ultimately, at the end of your life you will be left without your apartment, having overpaid a huge amount of money over all these years. A mortgage will allow you to immediately move into your home; the only restriction is that you cannot sell or change your apartment without the bank’s permission.
You can save money - surprisingly, an apartment on credit can cost you a discount. For some categories of citizens, the state will compensate part of the interest from budget funds, so the overpayment will be less. For example, for the military, public sector workers, large families, etc. For more details about mortgage benefits, see the video.
Investing - you can take out a mortgage and force borrowed funds work for you. The tenants will pay your monthly fees, and you only need to control this process and sometimes add money for monthly payment. After a while you will have your own property.

Along with the advantages of a mortgage, there are also disadvantages:

Large overpayment - up to European 3-4% per annum Russian banks still far. Only some financial institutions can offer 8-9% per annum, and then only on the condition of receiving a salary from this bank, life insurance, etc. These interest rates over a long period of time and at a significant cost of housing lead to a huge overpayment of hundreds of thousands of rubles.
Long term - difficult to predict financial position in 20-30 years, for which the average mortgage is issued. In addition, all this time you will have to save on everything and give up even the necessary things in order to pay off the mortgage loan installment.
There is a risk of losing your apartment - in such a long period of time you can get sick, a child will be born into the family, and unexpected expenses will appear. If you systematically do not pay the bank on the loan, then the financial institution has every right to sell your apartment and pay off the existing debt with this money.
Difficulty in obtaining a mortgage - not everyone is given a mortgage; for this, the bank must be confident in your solvency. To do this, you need to provide proof of income, purchase insurance at your own expense, and pay for notary services. This is difficult and expensive, you need to prepare for it.

Advantages and disadvantages of consumer credit

This is an opportunity to quickly purchase those purchases that you have been dreaming about for so long. For example, you can buy an expensive soft corner, a TV, a smartphone of the latest model, or all at once. Consumer loan by its nature is non-target. This means that the bank does not control where and what you spend the money on.

This is interesting! Consumer loans are issued very quickly: some banks issue them in 10-15 minutes. You can receive money remotely, that is, you don’t even need to come to a bank branch. Submitting an application via the Internet and transferring money to a card for a consumer loan has become the norm and even a natural trend in the development of lending.

The main disadvantage of a consumer loan is its high cost. Banks and microfinance organizations issue consumer loans in most cases without collateral, so they charge a high interest rate. It covers possible risks of a financial institution due to non-repayment of debt by some irresponsible and unscrupulous borrowers.

How is a mortgage different from a consumer loan?

A mortgage is a form of collateral, but for most people it has become synonymous with an apartment loan. Let's look at how a mortgage differs from a typical consumer loan:

Mortgages have a long lending period; this type of loan is issued for 20-30 years, sometimes 50. Consumer loans are issued for 1-3 years, very rarely - for 5-7 years.
The interest rate - for a mortgage it is 9-12% per annum, a consumer loan will cost more - 15-20%. Instant loans will cost 3-5% per annum more. For MFO rates completely different, here you need to pay 1.5-2% per day of using other people's money.
Loan amount - a rare consumer loan is issued for an amount of more than 500 thousand rubles. For a mortgage, an amount of several million rubles is the standard norm.
An application for a consumer loan is processed in 1-2 days, sometimes faster. Mortgage documents are collected and reviewed within a month.
Mortgages are issued exclusively by banks; consumer loans can be obtained from microfinance organizations or even from individuals.
By default, a mortgage is issued against collateral, otherwise it is impossible. A consumer loan is most often issued without collateral. Obtaining a loan for consumer needs against collateral is more the exception than the standard rule.
A mortgage entails additional costs: purchasing insurance, paying for notary services, etc.

A housing loan has become one of the ways to solve the housing problem. Lately I've been thinking that a mortgage is the only option for a home loan. I myself have a mortgage, and I pay regular annuity payments. However, I recently met a person who did not take out a mortgage when buying a home, but took out a consumer loan for maximum amount at Raiffeisenbank.

In this bank at my employer salary project, and the loan was obtained at a reduced rate of 15 percent. In principle, this is not a big bet, considering that my rate is 12.75 now (it was 14.75 before receiving ownership rights).

However, the question is different - which is more profitable and simpler? Take out a mortgage or apply for and receive a cash loan that you can use to buy a home.
There are both calculation points - you need to calculate the overpayment on the loan, and additional costs when buying a home, which do not depend on whether you take out a mortgage or a cash loan.

Major additional costs when buying a home

Such costs include the cost of a realtor, registration of documents at the registration chamber - payment of state fees. These costs will be there in any case. The price will vary in different regions; if another person does this for you, this will be an additional cost. You will also need certification of the purchase and sale agreement, possibly drawing it up - costs for a notary and lawyer. Checking the legal purity of the purchase object also leads to additional costs.

Preparing for the transaction may take additional time due to the fault of the seller - it may be necessary to pay utility bills. When buying an apartment you always need an initial fee. It is important for a mortgage - very often the interest rate depends on it. Now the minimum contribution is 10 percent or higher.

The main differences between a mortgage and a consumer loan.

The main difference between a mortgage is the rate. It is less for a mortgage than for a consumer loan. But there are a number of mortgages additional expenses, which can make obtaining a cash loan more profitable from a financial point of view.

The first is mortgage insurance. You must insure the property you are purchasing against loss due to an accident (gas explosion, flood). Moreover, the insurance is done in favor of the bank - if an accident occurs, the bank receives the money. You also insure your life and health in case you are unable to pay your mortgage due to illness. In addition, loss of property rights is insured. Without insurance, you may not be given a mortgage at all or given a higher rate by 2-5 percent, which is very unprofitable for you. The second important point is the obligation to mortgage the apartment to the bank.

The bank requires a mortgage on the apartment - this is a mandatory condition for a housing loan. When registering your property rights, you are given a certificate with an encumbrance. The apartment is actually owned by the bank until the mortgage is paid in full. In case of non-payment, the Bank will take the apartment, sell it and pay your debt from the released funds. The rest will be returned to you. With an annuity compounding plan, you pay high interest initially, resulting in a very small balance.

For a cash loan, insurance is an optional condition. But it is very difficult to get such a loan for a large amount. But the advantage of such a loan is the absence of collateral. The apartment immediately belongs to you.

The only risk - the risk of non-payment - if this case occurs, will, in the worst case, lead to communication with debt collectors. But the bank will not be able to take away the apartment. However, there is a risk of losing your title to black realtors and sellers. To do this, you need to carefully approach the choice of purchase. The advantage of a mortgage is that the bank checks the cleanliness of the apartment. In the case of a new building, this issue can be removed.
In addition, an apartment with a mortgage is more difficult to sell.

Mortgage buns.

There are some additional benefits to a mortgage.
The first is a rather long period. You can borrow money for 5-30 years, choosing one convenient for you annuity payment. In addition, a differentiated loan repayment scheme is possible, which in general is more profitable than an annuity.
Read also:
In the case of a cash loan, the term is up to 5 years, which makes the monthly payment higher and unaffordable for many.

However, this raises the issue of early repayment - it will be more profitable if the loan term is short.

The second important benefit of a mortgage is the possibility of obtaining a tax deduction. It can be obtained once in a lifetime and only for the amount of 13 percent of the loan amount.
Maximum 13% of 3 million or 390 thousand plus 13 percent of the amount of interest paid. Plus 13 percent of the amount of expenses for finishing materials in case of purchasing an apartment in a new building
This is a fairly compelling argument. But you need to collect the necessary set of documents to receive a tax deduction. The deduction can be obtained directly from the tax office and from your employer if you have a white salary.

What to choose?

As you can see, each option for getting money for housing has a lot of its advantages and disadvantages.
For example, we want to take out a loan for 507,500 rubles. for a period of 5 years.
Here's an example real loan Orient Express bank

As you can see from the graph, every month the user, in addition to the next payment, pays insurance - 2030 rubles
Let's calculate how much insurance payments came out

2030 * 60 = 121800

We will take the final overpayment from the bank’s schedule - 233316.66
You can take out a mortgage loan at a rate of not 18 percent, but 13%. (For example, in Deltacredit)
Let's make a table to compare both loans. We will not take into account possible commissions in the table; we only take into account what we pay to the bank and the insurance company.

If you look, you can see the following diagram

Lending is a popular service in financial market Russia. Individuals purchase real estate, cars, furniture, and equipment on credit. There are areas for which banks are ready to issue loans. But then let’s talk about what is more profitable for the borrower in 2019: a loan or a mortgage?

Mortgage: features of the loan product

There is a misconception that a mortgage is a loan on real estate. If you study the history of the development of the institute mortgage lending, then it will become clear: a mortgage is a collateral. A mortgage loan is a loan issued against property.

In Russia, a mortgage is understood as financial service, which allows you to obtain a loan for the purchase of residential or non-residential real estate. You can take out a mortgage both within the framework of banking programs and within the framework of government programs.

Specific Features:

Has a long-term nature. The service can be issued for a period of up to 30 years. Depending on the credit policy The bank agreement with the borrower can be signed for a period of 10 to 30 years.
Down payment required. It is impossible to find offers on the market that would allow you to pay for all the purchased property. The minimum contribution is 10%. A common option is 20-30%.
The purchased object acts as collateral for obligations. If it is not repaid, the apartment may be seized and sold at auction.
According to current legislation, pledged property is subject to compulsory insurance. The insurance policy is purchased only from a company accredited by the bank for 1 year. The borrower is required to renew the policy annually.
There is a differentiated repayment scheme. The client pays the largest payments first. At the end of the term - the smallest contributions.

In addition, it is worth noting that a mortgage provides an opportunity to repay the debt early without the application of penalties. If a second or third child is born in the family, then the married couple will have the opportunity to pay off part of the debt with maternity capital, a payment for the third child introduced in 2019. Also, do not forget that for large families and families with two children, reduced rates apply. interest rates for preferential directions - no more than 6%.

Regarding guarantors and co-borrowers: for a mortgage you can attract co-borrowers with high level income. In this case, theoretically the available credit limit. At the same time, the official spouse automatically becomes a co-borrower under the mortgage agreement.

What are the features of providing a loan?

Before you compare a mortgage and a loan, you need to study the essence itself this concept. The loan can be:

Targeted - provided for a specific purpose. These are car loans, consumer loans, secured loans, and refinancing.
Non-targeted - cash loan.

If the borrower wishes to arrange a service for a specific purpose, then he is obliged to provide the corresponding document: an invoice, a tax invoice, an agreement, etc. In this case, the funds will be transferred not to the client’s account, but to the bank account of the seller of the service or product.

Regarding a targeted loan, everything is simpler. The client does not need to submit such documents, and the money is transferred to debit card or issued in the form of cash at the bank's cash desk.

In the first option, more favorable conditions apply. You can purchase a specific product on sale. With targeted lending, you can do without collateral. There is no need to provide a guarantor. For many subjects this is an important selection criterion.

At cash loan You must confirm your level of solvency. In exchange, you can provide a collateral or guarantee. Relevant for processing large loans (amount over 100,000 rubles)

General specific features of loans (except mortgages, car loans):

High interest rates, especially if the bank issues funds without collateral or guarantee.
Relatively short loan period. As a rule, it is 24-36 months.
There is an annuity, that is, the debt is repaid in equal parts. The overpayment on a loan under an annuity scheme is greater than under a differentiated scheme. There is no possibility even with early repayment reduce the amount of overpayment on interest.

Comparative analysis of mortgages and loans

If you answer the question of what is better: a loan or a mortgage, then we must admit that the question is ambiguous. It all depends on what goal the client is pursuing. If this is a banal desire to buy any product, then it is better to take a regular loan. See all loan conditions.

Criterion	Mortgage	Credit
Loan terms	Up to 30 years old	Up to 5 years
Package of necessary papers	The package of documents is huge. Income certificate required	It is possible to apply without an income certificate
Application review period	Up to 5 days	Up to 1 day
Design method	Offline, only with a visit to the bank	Both online and offline registration are possible. It all depends on the size of the loan
Repayment scheme	Differentiated	Annuity
Possibility of early repayment	Yes, but interest is recalculated	Yes, but without recalculating interest
Interest rate	From 9.5-10% (6% according to the state program)	There are no special government programs. Rate - from 12% (according to banks). The rate is set in each case individually
Compulsory insurance	Necessary. The deposit is insured. Additionally, it is recommended to insure the life of the borrower. If you refuse the last option, the rate automatically increases by 0.5-1%	Insurance is a recommendation. But if you refuse to purchase a service, the loan may be denied or the rate may be increased.

If in doubt which is better, use

Over the past six months, the popularity of loans for purchasing real estate has increased sharply. In 2020, the apartments themselves became cheaper, and bank interest rates became lower. In this regard, many potential clients of financial and credit institutions have a question about what is better: a mortgage or a loan. First of all, it should be noted that a mortgage is nothing more than a type of loan. And in most cases it is compared with another type of loan - a consumer non-targeted loan.

A mortgage is a type of loan in which the acquired property (real estate) becomes collateral and guarantees the fulfillment of the debtor’s obligations. This approach reduces the bank’s risks and makes the loan cheaper.

Banks always compensate for uncertainty in the future with the price of their own services. In fact, conscientious clients pay for those borrowers who will not repay the loan and will avoid paying penalties in every possible way (usually these make up 1-2% of bank clients).

Real estate is a very reliable collateral. An apartment is not a car, it cannot be stolen or get into an accident, it cannot be moved in space and hidden from collectors. And compared to a non-targeted loan, a mortgage loan looks even more reliable. The number of unfulfilled obligations of debtors in this case is much smaller, and mortgage interest rates are significantly lower. Although the cost of the loan is far from the only difference between a mortgage and a non-targeted loan.

Pros and cons of a mortgage

Negative side

When thinking about what is more appropriate – a mortgage or a loan to buy an apartment – you need to take into account the following features of a mortgage.

Registration of a mortgage loan - the procedure is long. The bank will require a large package of documents, will check everything carefully and may ultimately refuse to provide money.
The client will need to buy insurance for the purchased property, as well as insure his own life and health.
Have a mortgage exists minimum size . Many banks are reluctant to provide amounts less than 500 thousand rubles.
Purchased apartment will become property encumbered with a pledge. Until the loan is repaid, it cannot be sold or used as collateral for another loan.
When completing a transaction, the client will need to pay for the real estate appraisal procedure.
The bank will issue a loan for the purchase of not every property. The borrower is limited in the choice of future housing.
Banks have a negative attitude towards the fact that minor children or disabled people will be registered in a credit apartment. This makes it difficult to enforce the encumbrance.

What's good about a mortgage?

When comparing options for purchasing real estate and choosing a mortgage or loan to buy an apartment, you need to take into account the positive aspects of a mortgage. There are many of them:

The interest rate on such a loan is relatively low,
the loan repayment period is long, which reduces the monthly payment and makes the loan relatively easy,
purchased insurance can really be useful,
using a mortgage scheme, the borrower receives the right to tax deduction(decrease income tax for the amount of payments to the bank),
the corresponding category of borrowers can use such a financial instrument as maternal capital and significantly reduce the loan amount or down payment.

An important advantage of a mortgage is that the legal “purity” of the apartment that is planned to be purchased will be analyzed not only by the buyer, but also by bank specialists, as well as the security service of the insurance company. This reduces the chance that the real estate acquisition transaction will be challenged in the future.

In addition, when assessing what is more profitable - a mortgage or a loan for an apartment - it is worth taking a closer look at special government programs mortgage lending support. They significantly limit the borrower’s choice of apartment (apply only to housing from accredited developers), but greatly reduce the cost of the loan. At the moment, it is possible to get a loan for 30 years at a rate of less than 12% per annum. As a result, the monthly payment will be 3-4 times lower than with a short-term non-targeted consumer loan.

When does it make sense to take out a consumer loan for housing?

It only makes sense to use a non-targeted loan to buy a home in one case – if you need a relatively small amount for a short period of time. Let us assume that the borrower can pay from own funds 85-90% of the cost of the apartment or expects to receive a large inheritance in the shortest possible time, through which he expects to cover the debt. In such circumstances, a short processing time is important loan agreement and significant savings on “related” payments, and overpayment due to high stakes will be small.

If it is possible to pay 60-70% of the cost of housing, and the loan repayment is planned in 3-4 years, then a mortgage “on two documents” may be appropriate. Such a loan does not create problems when applying for a loan, does not greatly limit the client in choosing an apartment and does not greatly increase the interest rate.

When evaluating the presented loan products, you need to take into account the fact that with a mortgage, spouses automatically acquire rights to real estate, even if only one person was the borrower. In the case of a non-targeted loan, it is possible to use funds that were in the account before marriage to repay the debt. This will make only one of the spouses the owner of the apartment.