Rate in rubles *

Credit term

A distinctive feature of providing a mortgage for the construction of a house is the possibility of using existing real estate as collateral, rather than purchased property. This condition is especially relevant for those clients who need money to build suburban housing.

Mortgage loan secured by existing real estate: main purposes of obtaining

Mortgages from Rosbank Dom Bank are issued for:

construction of a residential building;

purchase of finished housing - an apartment in an apartment building or country house (including with a plot of land);

purchasing an apartment during construction;

purchase land plot;

purchase of a house under construction (including a land plot).

As part of this program, you can purchase and non-residential premises– ready-made apartments. But the most popular option today is a loan for the construction of a residential building. For the remaining specified purposes, as a rule, there are separate mortgage programs that are secured by the purchased property.

Borrower information

Nationality: does not matter

Age: 21 years old at the time of application targeted loan secured by real estate and not older than 65 years at the time of full repayment construction mortgages;

Employment: credit is given to both employees and founders and co-founders of companies and individual entrepreneurs;

Co-borrowers/guarantors: co-borrowers can be up to 3 people, both relatives and any third parties;

Military ID: not required.

Real estate information

When pledging purchased/existing real estate:

The building in which the object is located should not be registered for major repairs, demolition or reconstruction with vacancy;

The property must have a separate kitchen and bathroom;

The final decision on whether the collateral meets the requirements is made by the bank.

Insurance Information

Mortgage for construction: conditions for issuing a mortgage loan

Today the bank has the following conditions for issuing a loan for real estate construction:

loan term from 3 to 25 years;

base interest rate – 7.89%* per annum;

amount – from 300 thousand rubles. – for regions and from 600 thousand rubles. – for Moscow and the Moscow region;

loan amount – no more than 65% of the value of the existing property.

A mortgage for the construction of a house from Rosbank Dom can be issued with the involvement of co-borrowers - up to 3 people. They may or may not be related to the primary borrower. To receive money for building a house, a bank client must provide documents confirming the intended use of the funds.

Who can take out a home construction loan: a list of requirements for the borrower

Clients can get a loan to build a house on favorable terms, for example without down payment. The borrower only needs to have a confirmed income and meet the age requirements, namely, to be no younger than 20 and no older than 65 years old on the date of full repayment of the debt. The client's nationality does not matter.

A mortgage for the construction of a private house is issued only on the condition that an apartment is provided as collateral. If the purpose of lending is the purchase of apartments, then the finished apartments that are owned by the borrower should act as collateral.

Before applying for a mortgage at the construction stage or for the purchase of finished housing, it is important to remember that the property pledged as collateral must meet the following bank requirements:

The apartment is located in a building that is not subject to demolition, reconstruction or major renovation. A mandatory condition for a mortgage for construction is the presence of a separate kitchen and bathroom in the housing.

The apartments are a separate room, located on above-ground floors and have central communications. You will find the specifics of obtaining a loan for housing construction in the General Loan Conditions. Presented here full list requirements for apartments.

Find out more from our specialists about the conditions for obtaining money to build a house, the features of obtaining a loan without a down payment secured by existing real estate.

More details

* Lending conditions affecting the full cost of the loan (as of March 17, 2020): rates 7.89% -11.14% for clients whose salary account is opened with PJSC ROSBANK, with a loan amount of 35% of the market value mortgaged real estate, made in connection with a reduction in the interest rate under the agreement of a one-time payment in the amount of 1% to 4% of the loan amount (depending on the conditions loan agreement), life and health insurance, property and the risk of loss (limitation) of ownership rights to it (the borrower has the right not to insure these risks), and depending on credit history, loan term (3-25 years), labor activity, level of education, number of parties to the transaction, location of the collateral, type of income and ratio of income to expenses. Until the intended use of the loan is confirmed, the rate increases by 2%. Loan size from RUB 600,000. for Moscow and the Moscow region, from RUB 300,000. for other regions. Costs for appraisal and insurance – in accordance with the tariffs of appraisal and insurance companies. PJSC ROSBANK reserves the right to change any part of this message without prior notice. The bank has the right to refuse to provide a loan. PJSC ROSBANK General license of the Central Bank of the Russian Federation No. 2272 dated January 28, 2015

Check out Rosbank's loan product

Dreams of owning a home can become a reality even for those who do not have personal funds for construction. Today, Moscow banks offer programs for the construction of a residential building. For many, the conditions for providing such a loan will be much more profitable for a number of reasons:

• can be issued at the bank line of credit and spend funds as construction progresses, interest in this case will be accrued only on the amount withdrawn from the account;
• For young families, many banks provide the opportunity to obtain a mortgage;
• if during the construction phase you need a larger amount than you planned, you can count on Grace period for payment of the principal debt.

Mortgage conditions for building a house in Moscow

With a list of banks providing mortgage, you can find it on our website. Calculate the interest rate and monthly payment amount credit calculator. The application is submitted on the bank’s website or in person at bank branches in Moscow.

Mortgages for the construction of a private house in Moscow are issued by most banks for a period of up to 30 years at a rate of 10%. One of the conditions is the registration of a mortgage on the land or on existing real estate. If you are interested in a mortgage for building a house without a down payment, then you will need to draw up a surety agreement and provide the bank with confirmation of your solvency.

A loan for the construction of a private house is a popular product in banks. Wanting to become a real estate owner, clients prefer to invest in creating a “dream home” rather than implementing engineering ideas. Loan conditions depend on where to get a loan to build a house or cottage: from a large state bank or from a local regional bank.

Having issued a loan under low percentage With an unverified lender, clients risk losing their down payment or paying inflated interest rates.

What is the best way to get a loan to build a house or cottage?

The best way to apply for a loan to build a house is to submit an application online and receive preliminary decisions. Next, if the decision is positive, you need to come to the bank office. The lending manager will explain the nuances and talk about possible costs. If everything is being built, then the money can be received immediately or on the same day.

Application online – today it is convenient and quick way for a modern person who values ​​his time. Moreover, without leaving your home, you can send applications to several banks at once.

When choosing a bank for a construction loan, you need to pay attention to the following parameters:

• borrower reviews
• loan conditions
• repayment methods
• reputation in the market.

Credit institutions, as a rule, do not seek to “cash in” on clients and value their reputation. The popularity of the product indicates its convenience - if a loan for the construction of a country house (cottage, apartment) is chosen, it means that the bank is trustworthy.

The loan term depends on the borrower’s solvency and the terms of the product. Set minimum conditions without taking into account additional expenses for insurance, commissions and unforeseen situations, risky. But it is also irrational to set maximum limits, having the opportunity to pay ahead of schedule - the amount of overpayment will be greater.

The construction of a bathhouse or additional structures can be optimally financed using customer credit: interest will be higher, but without collateral and guarantors.

Registration of existing property as collateral is advisable when large loans: as security for loan repayment, this is – the best option, guaranteeing preferential loans for construction.

The best banks for a loan to build a house

Below is a rating of the TOP 5 best Russian banks offering the most favorable conditions for loans for the construction of houses and summer cottages. The rating was compiled by experts in the field of lending and it is recommended to pay attention to these banks and leave applications.

Cash loan for the construction of a private house and dacha from Alfa-Bank

One of the largest private banks in Russia offers a cash loan to all clients 20-64 years old, without collecting various certificates and providing collateral.

Interest rates attract the attention of borrowers: from 11.99% for “salary” clients and from 13% for everyone else. The loan amount varies depending on the wishes of the borrower - but not more than 3 million rubles for a period of up to 7 years. This amount and period will be enough to choose a comfortable payment for yourself.

The money received can be used for any purpose, including the construction and renovation of a private house and cottage.

Favorable interest rates on a loan for the construction of a country house from OTP Bank

The subsidiary of a Hungarian bank in Russia, OTP Bank, does not divide the line of credit products according to customer needs, offering a loan for any purpose to potential borrowers aged 21-65 for 5 years.

It’s easy to take out a loan without collateral or guarantors from OTP Bank: interest rates range from 11.5% to 750 thousand rubles.

The borrower has the right to receive credit funds and dispose of them at your own discretion: the terms of the loan do not oblige you to report to the company for the loan spent.

The rate of 11.5% is high for mortgages and home loans, but those who apply have significant advantage: the ability to shift the payment date (a commission is charged for the service according to the company’s tariffs).

OTP Bank loans are easy to repay: in terminals, on the website, by money transfer in other payment organizations or banks.

Preferential loan for pensioners to build a house from Sovcombank

Are you a pensioner and need a loan for construction? Gaining popularity among pensioners, the bank offers a loan at a low interest rate to achieve their intended goals: build a house, cottage, bathhouse or improve living conditions.

You can apply for a loan without unnecessary hassle and bureaucracy. It is enough to leave an application on the bank’s website and receive a preliminary calculation and loan decision within a few minutes.

Express loan for building a house without certificates and guarantors from Renaissance Credit

A wide network of repayment channels (M.Video, bank terminals, Euroset, QIWI) simplifies making monthly payments and reduces the risk of loan delinquency.

Consumer loan from Sberbank for construction and repairs

State and main bank countries - Sberbank offers to issue a consumer loan for any purpose, including for the construction of a private or country house without collateral or guarantors. This program is perfect for those who urgently need money for repairs or construction of their own home.

You can make a calculation directly on the website and submit a loan application. You will receive a response from the bank almost immediately. To register, you must have Sberbank Online connected.

If you are considering state banks Sberbank, VTB or Rosselkhozbank in order to take out a loan to build a house, then Sberbank will definitely be the favorite of these banks. But do not forget that applying for a loan in state banks is a little more difficult than applying for a loan in commercial bank which are listed in our review.

Owning a home is the dream of many city dwellers who are tired of traffic jams, dust and the eternal bustle of the big city. However, the realization of this desire requires time, effort, and, most importantly, significant funds. Not everyone can pull off such a project, however, the developer can count on the help of the bank. In modern Russia, most banks offer mortgage programs, including a targeted loan for building a house.

House on credit - profitable

As practice shows, building a house on credit is much cheaper than buying it already built. The reason is obvious - by the end of construction completely finished building sharply increases in price. A loan for building a house is considered a targeted loan, which means that borrowed funds The bank client can use it strictly for housing construction.

Among the products of banks providing loans, the most interesting is a targeted loan from Sberbank. This credit program provides for the issuance of funds for the purchase of a private household under construction secured by the purchased or other housing. Thus:

• the borrower receives a loan from a bank for the construction of a private residential building and the same building is pledged to the bank;

• other property owned by the borrower becomes collateral Residential Properties, and the funds received from the bank are used for the construction of a private house.

This loan program, among similar products of Sberbank, differs from the “Housing Under Construction” loan in slightly higher interest rates, from the “Country Real Estate” program in the purpose of financing, since the latter involves the construction of a summer house, and “Construction of a residential building” provides a targeted loan specifically for the construction of a house for permanent residence.

When a ready-made residential property becomes the object of collateral, the money is still considered earmarked and must be spent on the construction of new housing. To obtain such a loan for a house, the borrower must submit to the bank documents in addition to the existing housing being pledged as collateral, and also documents for the house under construction. Be sure to read the article , there's something else useful information.

The table shows the rates for the Sberbank mortgage loan “Construction of a residential building”:

Interest rates for the residential building construction mortgage program depend on the loan term, loan currency, size of the down payment, and whether the borrower receives a salary from Sberbank or not. Interest rates on the loan are:

There are other loan options for the construction of private houses

From the point of view of benefits, banks are not interested in providing loans for construction, since if the project is not completed, the bank will lose benefits, and the borrower is unlikely to recoup the losses. Thus, the bank, issuing a long-term loan for construction, but not acquisition, has nothing as collateral. Banks seek to compensate for the lack of collateral with increased interest rates, which are on average 3-4% higher than rates on loans for the purchase of built houses.

In addition, such a mortgage is provided under a guarantee or pledge of real estate to which the borrower has a property right. A big problem when obtaining a mortgage is the down payment, the amount of which can reach 40% of the mortgage amount. To solve this problem, borrowers use consumer loans. for the down payment we have already written earlier. In the table of offers from Sberbank for mortgages in US dollars for the construction of private houses:

How to get a mortgage

Obtaining a loan for construction is a rather complicated, but quite feasible process.

The most profitable option for a loan for building a house may be to use a program in which the construction of a private house is carried out through a development company that is a partner of the credit institution.

With this program, the bank approves the developer’s project and finances the construction. In this case credit organizations They treat the borrower less harshly, and this is reflected in the number of claims. Mortgage interest is usually lower compared to conventional lending.

To implement construction, the borrower must submit to the bank a significant amount of documents, including a development permit, cost estimate, project, layout, etc. This is a completely normal approach to the problem, since the bank must be sure that the residential building will be built and become collateral for a long-term loan.

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The story is not for the faint of heart

In 2016, my wife and I started building a house. We didn’t have enough money to buy a house, so we took out a loan.

Georgy Shabashev

built a house with bank money

We have long dreamed of moving out of town, into our own home. We didn’t like the option of a townhouse, so we decided to buy a plot and build a log house on it according to our own design.

By the time we purchased the plot, we knew that without credit money we won't be able to build a house. They began to calculate options in advance so as not to drown in loans and not be left without a home.

We made it. I hope my experience will help you make a decision too.

How I tried to get a loan to build a house

A mortgage for a townhouse or apartment under construction and a loan for the construction of a house are different loans. In the first case, the property remains pledged, so the bank does not take risks: if the payer cannot repay the debt, the bank will sell his home. But issuing a loan for the construction of an object that does not yet exist in nature is a more risky operation.

The bank will not approve a construction loan if you do not have a plot. We bought a plot of land with our own money - this was supposed to be an additional guarantee for the bank: the property has land, but there are no loans. If you don’t have money for either a plot or a house, I recommend thoroughly weighing everything. Taking out loans to both purchase a plot and build a house is a dangerous scenario.

I studied the offers of several banks that were at that time issuing construction loans and submitted several applications: one bank rejected me immediately, another took several weeks to process my application and eventually also rejected me. I have a good credit history with no arrears, and the refusals were incomprehensible.

During a personal meeting, the bank manager said that construction loans are approved very rarely. Even after approval, construction documents - an agreement with the developer, an estimate and documents on the ownership of the land plot - may not pass verification. If something doesn't pass the test, the loan will be denied. This is the bank’s internal regulations, and it cannot be changed.

The bank also requires a construction permit, and obtaining it takes several months. While you are applying for permission, the bank’s approval will no longer be valid. If you want to get a loan under this scheme, you must obtain permission in advance.

I decided not to apply for construction loans anymore and go the other way: draw up an estimate and, as the house is being built, register consumer loans when your money is not enough. The rate on consumer loans is higher, but this option still seemed profitable to me: you don’t have to pay interest on the entire amount at once, fewer documents are required, and construction can start earlier.

After completion of construction, I planned to refinance consumer loans with a high interest rate with one general loan secured by the built house. The conditions for such loans are better: the rate is 5-7 percentage points lower, and the maximum term is longer. As a result, the loan burden will decrease.

In the end, my plan looked like this:

1. Make an estimate and understand how much money is needed and when.
2. Apply for loans as needed.
3. Refinance all loans secured by the built house.

Budgeting

When planning to renovate an apartment, they often go beyond the budget. But if in the case of renovation you can leave one room unfinished, then you won’t be able to live in an unfinished house. In order not to spend the entire budget during construction, we studied proposals for several weeks.

To begin with, we visited the developers' exhibition sites - these are several dozen densely packed demonstration houses. There are also sites where several small developers show their houses - 1-2 from each. The houses are similar, but the cost depends on the materials and the company.

The advantage of ordering from a large company is that they have partner banks that are ready to approve a loan for building a house in this company. The downside is that you cannot make changes to the project at will: you need to choose from the available options and their configurations. The developer could not make our changes to the project: the size of the rooms, the layout of the bathroom and the wall material were fixed. The proposed options did not suit us.

And all the work would have to be ordered from one developer - this is often unprofitable. We refused such an offer.

Small developers have more freedom of choice. Many people agree to finalize the project for free, but there are rarely preferential lending programs. We wanted a house made of rounded logs and were looking for a developer who specializes in this material.

The company was chosen at one of the exhibitions wooden houses. We were offered several standard projects to choose from. Each project had several layout options; you could also choose the tree and its size. We made about 10 changes to the project: we increased the diameter of the log, the canopy on the roof, the height of the ceiling, the size of the rooms, and took into account the redevelopment in the bathroom. How we chose the house and what the price was made up of, I will tell you in a separate article.

To plan an estimate, you need to know the stages of construction, their timing and cost. A log house is built in two stages: first, the box is the foundation, walls and temporary roof; then the second stage - communications, external and internal decoration. After the construction of the box, the house must settle; this time is allocated for the natural subsidence of the house when the logs dry out - shrinkage. The developer's recommendation is at least a year between stages. This is a feature of wooden housing construction.

The project with selected materials and components cost 2.6 million for the first stage and 3.9 million for the second. Additionally, we set aside 300 thousand for drilling a well, installing a septic tank and connecting communications to the house, and 10% of the estimate for unforeseen expenses.

The first stage takes 3-6 months depending on the weather, and then another year of shrinkage. After this, the second stage of construction can begin. In total, we needed 2.9 million at the beginning of construction and another 4.6 million after a year and a half.

The preliminary estimate for our house is 7.5 million rubles

First stage

2.9 million rubles: 2.6 million according to the estimate and 0.3 million for unforeseen

At the beginning of construction

Second phase

4.3 million rubles: 3.9 million according to the estimate and 0.4 million for unforeseen

After 1.5 years

External communications - well, septic tank, electricity

RUB 300,000

In the middle of the second stage

Financing plan

After collecting input, I sat down to draw up a business plan.

To the first stage 2.9 million rubles were needed. We had saved up 900 thousand, our parents closed the deposits and gave us another 800 thousand. I planned to take the remaining 1.2 million on credit. The first stage lasted six months.

Second phase began a year after the completion of the first. It required 4.6 million rubles, taking into account a reserve of 10% and the costs of a well, septic tank and electricity. I planned to save 50 thousand rubles every month after the start of the first stage for the second stage - in a year and a half, 900 thousand would accumulate. 3.7 million rubles remain. Banks usually give no more than 1.5 million for consumer needs. I took a risk and planned to receive two loans of 1.5 million each with an interval of 1-2 months. Whether the bank would approve them and at what rate, I had no way of knowing. I agreed to borrow the remaining 700 thousand from friends if the money was needed.

I planned to take out all the loans for the maximum possible period - for consumer loans this is 5-7 years. So monthly payment and the total loan burden will be less, and the likelihood of approval of subsequent loans will be greater. I refused life insurance: it was not so profitable, even taking into account the fact that credit rate demoted. Even if the loan is closed early, the insurance is usually not refunded.

At the beginning of the summer of 2016, when I made the plan, the average rate on consumer loans without insurance was about 20%, and the refinancing rate was 11%. I expected that the rate would decrease further, but just in case, I included the planned loan load at a rate of 21% per annum. With my parameters, the total monthly loan payment would be about 95 thousand.

The end of my plan- refinancing of all loans with one, secured by the built house. The bank accepts only registered objects as collateral - I have budgeted another 6 months for the process of registering a built house.

Each bank has its own requirements for the collateral. For example, not all banks accepted collateral wooden houses, and some did not work with country real estate at all - only with apartments. Sometimes the requirements were for the foundation, the availability of communications and distance from the nearest city in which there is a bank office.

At that time in Moscow I found only five banks that were ready to accept wooden house pledge. This is the second risky assumption: during construction credit policy banks could change and the house would no longer meet the collateral conditions.

A registered house and land are used as collateral, and banks only lend 50-70% of their total appraised value. After refinancing, I could count on a rate of 12-14% per annum for a term of 10-15 years. If you refinance 4.2 million rubles - the sum of all loans according to the plan - for 15 years at a rate of 14%, the monthly payment will be about 56 thousand. This suited me.

How it really turned out

First stage of construction. In June 2016 central bank again reduced the key rate by 0.5%. The euro exchange rate, on which the cost of in-house communications and equipment depends, decreased during the winter and spring. I decided it was time to act.

I took out my first loan for 1.2 million rubles at 20.9% per annum from the same bank where I took out and closed the car loan ahead of schedule: I received a pre-approved offer from the bank. I refused insurance. The construction contract was signed on the same day, and a week later builders arrived at the site.

When they were digging a foundation pit, it turned out that due to the nature of the site, the foundation needed to be further strengthened and made deeper. A friend who works in the landscape design industry agreed with the builders' conclusion. The strengthened foundation cost an additional 350 thousand and immediately ate up 300 thousand set aside for unforeseen expenses. I was lucky that a few months had passed since I made the plan and I was able to save a little more.

As planned, I saved the entire year after the first stage for the second stage of construction.

Second stage of construction. When the time came for the second stage, I submitted an application for 1.5 million to another bank - there was a promotion with fixed rate 15.9%. The loan was approved for me without any problems, but for a maximum of 5 years. I agreed. The rate was attractive, and insurance was not imposed. The builders began work. According to the plan, I was supposed to take out another loan for 1.5 million, and if there wasn’t enough money, borrow from friends.

Another loan was needed two months later, and by that time consumer loans of up to 5 million began to appear. I contacted a bank that had a special offer for such a loan. The number of stars in the conditions went off scale: compulsory insurance life and health, condition of advance payment, only online application for the minimum rate. While considering the application, the bank increased interest rate and offered to leave the car as collateral - I refused.

A couple of days later, I learned about a pre-approved offer from another bank from which I had previously taken out and successfully repaid a loan. The bank offered to take 1.5 million at 18.5%. As a result, I went according to plan: I took out two loans of 1.5 million each, and the rate turned out to be lower than what I had pledged.

Unexpected expenses. The appetite comes during the renovation - at the second stage, unexpected “wants” began to appear. I wanted bigger windows on the first floor - plus 40 thousand. Additionally, install attic windows - another 220 thousand.

A week later, friends shared with us their experience of using heated floors, which, of course, were not taken into account in our estimate. We limited ourselves to heated floors in the hallway, kitchen and bathroom - without expensive sensors and regulators, it turned out to be 130 thousand with work.

130,000 R

we spent on heated floors

We built a house for ourselves and for a long time, so we followed our wishes. Total plus 390 thousand to the estimate.

While the exterior finishing was going on and internal communications were being carried out, new unplanned expenses appeared. According to the plan, 300 thousand were allocated for the arrangement and introduction of all communications, but the well had to be drilled deeper than expected - in the end, all 300 thousand were spent only on water supply and sewerage. Installing a meter, bringing electricity into the house and laying cables underground instead of wires hanging above the site cost another 65 thousand. Also, the estimate did not include grounding - plus 45 thousand, including equipment and installation. Instead of 300 thousand, we spent 410.

With all the additional work, the cost of the second stage was 4.7 million - 100 thousand more than planned expenses. In a year and a half, I saved up about a million and took out two loans of 1.5 million each for the second stage. But I still lacked 700 thousand, which in a couple of months had to be paid to the workers.

I didn’t want to strain my friends, but the total payment on all loans at that time was about 95 thousand. I didn’t want to take out another loan: the amount of 100 thousand monthly was for me a psychological mark that I didn’t want to cross.

As a result, I borrowed 400 thousand from friends and crossed out another 300 thousand from the estimate of work: I left the installation of interior doors and gas equipment for later, limiting myself to an electric boiler. Heating the house in this case is more expensive, but connecting to gas in our village costs approximately 600 thousand and takes almost a year.

Another month later the house was ready: communications were installed and running, finishing was completed and plumbing was installed. The only thing missing were interior doors, but we were able to install them in just a month. The only furniture included a kitchen, a refrigerator and a bed - all given as housewarming gifts from relatives. But it was already possible to live in a house and save on renting an apartment.

Home registration

To refinance my loans, I needed to register the house - otherwise the bank would not take it as collateral. Registration takes several months, but I was able to save time.

On the advice of friends, I turned to a company that collects and prepares documents. I was assigned a manager who was in charge of registering the house. I issued a notarized power of attorney for him so that he could perform on my behalf registration actions. The power of attorney stated that the authorized representative can only register (register) real estate objects, but does not have the right to sell them. I was calm about my property.

35,000 R

I paid for the collection and processing of documents

I contacted the company in advance, and the manager suggested that I take care of the decoration during the construction of the house. That's exactly what I did.

Registration took 6 months; I did not delve into the paperwork process. During this time, the manager called me a couple of times to update the status. All Required documents he requested and processed it without me - I saved time and nerves. I paid 35,000 rubles for the company’s services - the entire amount after the registration was completed. I received an extract from Rosreestr with the address of the house and my name, and a dozen other documents that the manager had to fill out for registration.

By the time construction was completed, the house was registered.

Loan refinancing

When drawing up a business plan, I selected banks that were willing to take my house as collateral. I checked the current rates on loans secured by real estate on bank websites and chose the bank with the lowest rate.

I had already communicated with the bank managers, but still called to clarify the list of documents. A week later, I collected the entire package of documents and headed to the bank to fill out a loan application.

Before submitting the application, the amount of debt on all loans was 4 million - that’s exactly how much I requested. Not a single delinquency appeared in my credit history, I fulfilled all current loan obligations on time - and a week later I received bank approval.

All that remained was to appraise the house and land and submit a report to the bank. The assessment cost 18,000 rubles and took less than a week. In the report, the house and land were valued at 7.6 million rubles. In the approval, the bank indicated that it could issue a maximum of 60% of the assessment - this was enough to close all loans.

But here problems began: the bank’s collateral department did not want to accept an independent assessment, arguing that the countryside real estate market had fallen. Bank experts valued the house with a plot at only 5.6 million - 60% of this amount was enough for only two loans out of three. My arguments, construction contracts and an appeal to the head of the mortgage department with a request to reconsider the assessment did not change the bank's decision.

I didn’t want to submit an application to another bank: there were no guarantees of a higher valuation of the collateral, and the approval period was already expiring. I agreed to the bank's terms and refinanced two of the three loans. Despite the fact that the rate on the first loan was higher, it turned out to be more profitable for me to refinance the second and third loans: they had a larger debt balance, and I needed to transfer as much as possible to a lower rate.

After refinancing, I was left with a loan with the highest rate and a debt to friends - in the amount of almost 1.5 million. I wanted to reduce the rate and pay off the debt as soon as possible. On the Internet I found a promotion for refinancing at a rate of 10.99%. The promotion allowed you to refinance the loan and receive additional cash, but in the amount of no more than 1.5 million. I understood that the preposition “from” could mean any rate, but I filled out the application anyway.

I received preliminary approval without an exact rate within an hour via SMS. The next day I brought the original documents, signed the form, and half an hour later the manager said that the refinancing was approved at the minimum rate - 10.99%. I closed an expensive loan and repaid the debt to friends.

Results

2.5 years passed from the moment I purchased the plot to the time I moved into the house, of which approximately every fourth day I dealt with bureaucracy: I analyzed bank offers, sent loan applications, collected documents, visited bank offices and more. My risky plan underwent adjustments along the way, but overall it worked. I spent a lot of time and nerves, not to mention money.

82,000 R

I pay monthly on all loans

Now I have two loans: a mortgage loan for 15 years at 13.5% and a consumer loan for 5 years at 10.99%. The total monthly payment is 82 thousand rubles. This is more than the mortgage payment for a two-room apartment on the Moscow Ring Road. We had to greatly reduce spending on entertainment and forget about vacation trips. But in three years I will have repaid the consumer loan and will be able to pay more on the collateral.

And most importantly, we have our own home. It was worth all the ordeal.

Remember

1. Assess your financial capabilities.
2. Create an estimate and business plan.
3. Monitor construction to avoid unexpected costs.
4. Register the house in Rosreestr.
5. Refinance home equity loans.

Anticipating reader questions

1. The current loan is insured, and I took out separate insurance for the house against fire, short circuit, theft and other risks. Loans that have already been refinanced were issued without insurance.
2. Parents will not be in poverty. We built a big house where everyone can live together.
3. I didn’t dare save up and buy a house without loans: materials are becoming more expensive, the euro exchange rate is rising, and renting an apartment eats up half of my savings.
4. If instead of a house you buy an apartment for 7.5 million with a mortgage at 10% for 15 years, then the payment will be approximately the same as what we have now. You won't be able to save money that way.
5. The amount of monthly interest for the first years is approximately equal to the cost of renting a two-room apartment in Moscow. The further you go, the lower the interest.
6. With current payments, we will repay both loans in 6 years, not in 15. The loan term has been deliberately extended to reduce risks and ensure a minimum payment.
7. Every month we can choose: to save money or repay part of the loan early.
8. Article about financial side construction, and not about the material of the house. I will describe maintenance costs and energy efficiency in the next article.
9. The house is not the only family property. In a difficult situation, property can be sold.
10. The scenario described in the article is the same risk as taking out any loan. If the possibilities are correctly assessed, such a plan will become an alternative to lending for suburban construction.