Mortgage or cash. Home loan - what is it, why is it better than a mortgage and how to get it

Mortgage as a type of loan

Many do not know that there were times when they received an apartment for free, now it is almost impossible for a civilian who has nothing to do with the security forces and some budgetary organizations.

Therefore, the citizens are faced with the question of improving the living conditions for themselves, their children or grandchildren. Not everyone can afford to buy an apartment without resorting to it, and then they start thinking about how best to solve the issue at the lowest cost, which is more profitable to take.

A mortgage is a type of loan, the bank allocates for some time funds for the acquisition of real estate with the restriction of the disposal of this property by the owner, issued without collateral. Banks try to ensure the return of borrowed money with interest, real estate collateral is the best guarantee, therefore, the interest on a mortgage loan is lower than on other loans.

Features of the mortgage

The positive aspects of obtaining a mortgage are as follows:

1. The loan rate is lower than that of other types of borrowing.
2. The duration of the contract reduces the amount of the monthly payment.
3. Compulsory insurance of the borrower and real estate will allow in case of unforeseen circumstances to repay the loan through insurance.
4. The debtor gets the opportunity to reduce the taxable base by the amount of payments.
5. For the initial payment or reduction of the principal debt, you can use maternity capital.
6. When registering a mortgage, the insurance company and the bank will confirm the legal cleanliness of the apartment, the impossibility of challenging the purchase from third parties.
7. The ability to act as co-borrowers for family members, which allows you to increase the loan amount.
8. Possibility of getting into the program with preferential terms.

In addition to the advantages of signing a contract, there are also disadvantages:

1. The conclusion of a mortgage agreement will require a lot of time for the collection and verification of a package of documents by the bank.
2. You will need expenses for insurance of the client and the acquired property, for real estate appraisal.
3. If the client needs a small amount, the bank may not be interested in issuing a loan.
4. You can dispose of the purchased apartment, donate, sell, exchange at the end of the contract.
5. Not every apartment is suitable for a bank as collateral for a loan; real estate from accredited developers is required.
6. An initial payment is required, from 10 percent of the loan.
7. If an elderly person wants to take out a loan or the co-borrowers will be elderly people, this can lead to a decrease in the duration of the contract and, accordingly, an increase in monthly payments.
8. After fulfilling the terms of the agreement, the borrower will need to remove restrictions on the disposal of the apartment, this will take some time.

What is a consumer loan

A consumer loan is provided by a bank to a borrower for money for a certain period, usually short-term, it can be used for any purpose, depending on the amount, it does not require property as collateral.

Benefits of obtaining a consumer loan:

The application is reviewed quickly, a small package of documents.

1. Compulsory insurance is not required.
2. Collateral is required for a significant loan amount.
3. The type of housing to be purchased does not need to be coordinated with the bank.

Even with a good income, if there are children, a mortgage looks preferable in case of a change in circumstances. Reducing the interest rate, the ability to draw up a contract for up to 30 years, make it possible to pay for the purchase of an apartment without much damage to the budget.

It is necessary to make a decision on the choice of the type of loan after seriously considering all the possibilities and consequences of this step. Which is better, a mortgage or a loan, in each specific circumstance the choice may be different, depending on what purpose the apartment is being bought for. If you have savings and you need a small amount and quick registration, the ability to dispose of the apartment immediately after purchase, then it is better to consider obtaining a non-targeted loan.

If there are no savings, rent and rent is comparable to loan payments, then you should look at the possibility of obtaining a mortgage, it is better to constantly pay for your property than to pay the owner of someone else's home.

The profitability of a particular type of lending depends on the specific circumstances and capabilities of the individual.

What to choose a mortgage, or a consumer loan when buying a home, see the following video:

Jul 18, 2018 Help manual

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If you are firmly resolved, then try to properly arrange a loan. This is necessary so that buying a long-awaited real estate becomes a pleasant event for you, and not an unbearable burden for many years.

Pros and cons of mortgages

Mortgages are rarely taken "from a good life", most often they are issued to solve their housing problems. You get a clear plus: you solve your housing problem. But on the other hand, there is a clear minus: you overpay for the service, sometimes you can buy another apartment for the interest paid for the entire time.

There are three main advantages of a mortgage:

1. A quick solution to the housing issue - if you live in a rented apartment, then you experience some discomfort and restrictions in the arrangement of housing. 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 the years. The mortgage will allow you to immediately call into your home, the only restriction is that you cannot sell or change an apartment without the permission of the bank.
2. You can save money - surprisingly, but an apartment on credit can cost you a discount. For some categories of citizens, the state compensates part of the interest at the expense of budget funds, so the overpayment will be less. For example, for the military, public sector workers, large families, etc. For more details on mortgage benefits, see the video.
3. Investing - you can take out a mortgage and make the borrowed funds work for you. The tenants will pay your monthly installments, and you only need to control this process and sometimes add money to the monthly payment. After a while, you will have your own property.

Along with the advantages, the mortgage also has disadvantages:

• Large overpayment - Russian banks are still far from the European 3-4% per annum. Only a few financial institutions can offer 8-9% per annum, and then on condition that they receive a salary from this bank, life insurance, etc. These percentages for a long period of time with a significant cost of housing lead to a huge overpayment of hundreds of thousands of rubles.
• Long term - it is difficult to predict your financial situation in 20-30 years, for which the average mortgage is issued. In addition, all this time you will have to save on everything and even give up the necessary things in order to pay off the mortgage loan installment.
• The risk of losing an apartment - for such a long period of time you can get sick, a child will be born in the family, unforeseen expenses will appear. If you do not systematically pay the bank on the loan, then the financial institution has every right to sell your apartment and pay off the existing debt at the expense of this money.
• The complexity of registration - mortgages are not issued to everyone, for this the bank must be sure of your solvency. To do this, you need to provide income certificates, purchase insurance at your own expense, pay for notary services. It is difficult and expensive, you need to prepare for this.

Advantages and disadvantages of a consumer loan

This is an opportunity to quickly purchase those purchases that you have dreamed of for so long. For example, you can buy an expensive couch, a TV, a smartphone of the latest model, or all at once. Personal loans are inherently inappropriate. This means that the bank has no control over where and on what you spend your money.

It is interesting! Consumer loans are issued very quickly: some banks issue them in 10-15 minutes. You can get money remotely, that is, you don't even need to come to a bank branch. Applying via the Internet and transferring money to a consumer credit card 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 MFOs issue consumer loans in most cases without collateral, therefore, they set a high interest rate. It covers the possible risks of a financial institution due to non-repayment of debt by a part of 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. Consider how a mortgage differs from a typical consumer loan:

• The mortgage has a long term of lending, this type of loan is issued for 20-30 years, sometimes for 50. Consumer loans are issued for 1-3 years, very rarely - for 5-7 years.
• Interest rate - for mortgages it is 9-12% per annum, consumer loans will cost more - 15-20%. Instant loans will cost 3-5% more per annum. For MFOs, the rates are completely different, here you have to pay 1.5-2% for the day of using other people's money.
• Loan amount - a rare consumer loan is issued in the 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 considered in 1-2 days, sometimes even faster. Mortgage documents are collected and considered up to a month.
• Mortgages are issued exclusively in banks, consumer loans can be obtained from MFIs or even from individuals.
• The mortgage is by default issued against bail, otherwise is impossible. A consumer loan is most often issued without collateral. Getting a consumer loan secured by collateral is more the exception than the standard rule.
• The mortgage entails additional costs: purchase of insurance, payment of notary fees, etc.

Have you decided to buy a house or apartment, but you don't have enough finances? Or do you want to spend it on something else? No problem! There are banks for this case. There you can take the missing amount and pay it in equal installments. For the period that is convenient for you. But the question arises, which is better to take: a loan or a mortgage? Let's figure it out!

Mortgage

So, what is it and what are its features? Which is better - a mortgage or a loan? A mortgage is a loan that is given to you to buy a home or house. The main advantage is the low interest rate. In addition, many young parents are currently taking out mortgages. This means that they can make the first payment for the apartment with the parent capital and thereby significantly reduce the payment and the amount of overpayment! This is not possible with a regular loan. In addition, if a child is born during the payment of the mortgage, the state pays for part of the square meters. This is an excellent financial support for families with a baby. And if, during the payment of the mortgage, three babies are born in your family, the state will fully pay the entire amount of the mortgage for you. Under this program, there are restrictions on the cost of housing and the number of meters, but in general the conditions are excellent.

But mortgages are taken not only by young families, but also by the military and other categories of citizens. More than 70% of apartments in our time are bought using this program. And for each category of citizens there are programs that are convenient for them.

The main advantage of the mortgage, in addition to the low interest rate, is the long term of the loan. Athis is important because apartments are not cheap. And if the term of the mortgage was 2, 3 or 5 years, as with a regular loan, many people would not cope with such financial responsibility and would be delinquent. And that would not have ended well. Because it is very difficult to get out of delays, since the amount of penalties is very large, and in addition to penalties, you still have to pay a monthly payment. In addition, you ruin your credit history, and in the future, when you need another loan, you will have difficulties obtaining it, because the borrower's reputation is very important to banks. After all, if the borrower does not pay, the bank will not receive profit, and possibly its money back. So pay on time and take care of your credit history from a young age. From the first loan!

Everything is clear about the dignity. But what about the disadvantages? They are not here?

Disadvantages of mortgage lending

There are also disadvantages to mortgage lending, but advantages prevail. But let's take a closer look at the disadvantages:

• Encumbrance. That is, the full ownership of the apartment will pass to you only after the full payment of the mortgage.

• Large overpayment arising from very long loan terms! So carefully consider what amount of overpayment and what amount of payment will be withnnumber of years. As a rule, if we consider the mortgage term of 15 and 20 years, then the difference in payment is invisible, but the loan term increases for as much as 5 years!

Credit and its features

A loan, like a mortgage, has a number of advantages and disadvantages. Let's take a look at them. So what are the main disadvantages of a loan?

• A high interest rate, in 100% of cases it is more than the interest rate on a mortgage, which means that the amount of overpayment is greater. You need it?

• Small loan term, which means large loan payments, which spend most of the salary.
• There is no state support, and therefore no special preferential programs.
• Not a very large loan amount.

Advantages of a loan

• No mortgage encumbrances, which means that the whole apartment is completely your property.
• You can sell an apartment even if you have not closed the loan yet. If you had a mortgage, it would be much more difficult. I would have to go to the bank and the relevant institutions and remove the encumbrance. And this takes a very long time. And not all buyers want to get involved with this because they fear deception.

• Lending is possible even for the minimum amount.

In what cases to choose a loan, and in what mortgage?

What is better to take: a loan or a mortgage? In fact, each situation is individual and it is necessary to calculate all the options. And ultimately, using the financial result, determine which method of lending to choose. But it should be understood that the mortgage is given from a certain amount. And if you do not have enough to buy an apartment, then it is better to take out a loan. As a rule, you need to collect a small package of documents for it. And also you can get a loan within a few hours. Very comfortably.

From a practical point of view, you can think about a loan only if you have at least ¾ to buy a home and only 25% is not enough. In other cases, a loan is a financially losing operation. You need it?

Sometimes there are situations when you urgently need to buy an apartment, there is almost the entire amount, but there is no time to wait. Otherwise, someone else will buy it, and you will miss out on a profitable option. In this case, it is better to choose a loan, you will get it done faster, because you will not need to collect a huge package of documents and wait for a bunch of certificates. In many banks, a loan is given within a day on two documents.

It is important to understand that if you take out a mortgage while married, then one spouse can be the main borrower and the other is the co-borrower. In the event of a divorce, the apartment will be automatically divided in half, even if one of the spouses has not made a single payment. If one of the spouses took out a loan for an apartment before marriage, he can sue it in case of divorce.

How to make money on a mortgage?

A very big advantage of a mortgage is the ability to make money on it. With a loan, this is not possible. How can I do that? According to the legislation of our country, each person can return the personal income tax when buying an apartment. How to do it? It is necessary to contact the district tax office, take a list of documents that need to be collected. And within 3 months your account will receive the entire amount of taxes that you transferred to the state for the year. Not a bad pay raise? We think so too!

That is, you will be refunded not only for the purchase of an apartment, but also for the interest that you pay on the mortgage. The only drawback of this system is the limitation on the amount of the refund. This amount changes every year. Currently, you can return 260,000 rubles for the purchase of an apartment, whether it is a mortgage or not, as well as the entire amount of interest paid! If you took out a mortgage after 2016, then the maximum repayment amount is 390,000 thousand.

Additional services

So, you have decided which is better - a loan or a mortgage. However, when contacting the bank, you may be offered additional services. With a mortgage, this is apartment insurance, and with a loan, it is your life insurance. What is the bank for? In this way, the bank insures itself against financial losses, that is, if something happens to you (1st degree disability or death), the bank will still receive the money. He will be paid by the insurance company, and he will not call your relatives. Whether you need this service or not, you decide. It is voluntary. However, many banks make it mandatory for their customers, refusing to issue without insurance.a loan or mortgage for housing. What is the best way to do this? Call the bank's hotline and leave a claim. Do it right in front of a bank employee, and the result will not be long in coming. You will get what you need!

Do you want to pay off ahead of schedule - which is better: a mortgage or a consumer loan?

In this case, you need to contact the creditor bank and find out how early repayment takes place, whether additional applications from the borrower are needed for this. What is the early repayment procedure? Do you reduce the number of payments or their amount? Or both are possible. Be sure to ask these questions to a bank employee and, based on his answers, make a decision about which is better - a mortgage or a loan.

When looking for an answer to the question "Which is better - a loan or a mortgage?" reviews play an important role. Many are in favor of the loan, but it should be borne in mind that they all closed it in less than a year. Realistically assess your capabilities!

Conclusion

If you are faced with the question of which is better: a mortgage or a loan for an apartment, do not rush to make a decision. Be sure to "weigh all the products", calculate the financial result. And only then will you be able to make the right decision, because based only on theory, it is impossible to do this! Each situation is individual, and it is necessary to make a calculation depending on the specific case. Make the right decision so that you don't have to regret lost profits.

Lending is a popular service in the Russian financial market. Individuals acquire 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 a loan product

There is a misconception that a mortgage is a loan for real estate. If you study the history of the development of the institution of mortgage lending, it will become clear: mortgages are collateral. A mortgage loan is a loan issued against the security of property.

In Russia, a mortgage is understood as a financial service that allows you to arrange 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 state ones.

Specific features:

• Has a long-term character. The service can be issued for up to 30 years. Depending on the bank's credit policy, an 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 paying for all the purchased real estate. The minimum contribution is 10%. A common option is 20-30%.
• The acquired object acts as a pledge for obligations. If it is not repaid, the apartment can be withdrawn and sold at auction.
• According to the current legislation, the pledged property is subject to compulsory insurance. An insurance policy is purchased only from a company accredited by the bank for 1 year. The borrower is obliged to renew the policy annually.
• A differentiated repayment scheme works. The client pays the largest payments first. At the end of the term - the smallest contributions.

In addition, it should be noted that the mortgage provides an opportunity to repay the debt ahead of schedule 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, families with two children, there are reduced interest rates on preferential areas - no more than 6%.

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

What are the features of a loan?

Before comparing mortgages and loans, it is necessary to study the very essence of this concept. Credit can be:

1. Targeted - provided for a specific purpose. This is a car loan, consumer loan, secured loan, refinancing.
2. Inappropriate - a cash loan.

If the borrower wants to issue a service for a specific purpose, then he must provide the corresponding document: invoice, tax invoice, agreement, etc. In this case, the funds will be transferred not to the client's account, but to the account of the seller of the service or product.

With regard to a targeted loan, everything is simpler. The client does not need to present such documents, and the money is transferred to a 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 for a promotion. With targeted lending, you can do without collateral. There is no need to provide a surety. For many subjects, this is an important selection criterion.

With a cash loan, you must confirm your level of solvency. In return, you can provide a pledge, surety. Relevant for large loans (amount over 100,000 rubles)

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

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

Comparative analysis of mortgages and loans

If you answer the question which is better: a loan or a mortgage, then it should be admitted that the question is ambiguous. It all depends on what the client's goal is. If this is a banal desire to buy any product, then it is better to take a regular loan. See all loan conditions.

When in doubt which is better, use