Lending is a popular service on the Russian financial market. Individuals purchase property, cars, furniture, appliances. There are directions for which banks are ready to issue loans. But then we will talk about what is more profitable for the borrower: a loan or mortgage in 2019.
Mortgage: features of the loan product
There is a misconception that a mortgage is a loan for a real estate object. If you examine the history of the development of the institution of mortgage lending, it becomes clear: mortgage is the key. Mortgage loan is a loan issued on the security of property.
In Russia, mortgage is a financial service that allows you to apply for a loan to buy residential or non-residential real estate. You can take a mortgage as part of banking and state programs.
- It has a long-term nature. You can arrange the service for up to 30 years. Depending on the credit policy of the bank, the agreement with the borrower may be signed for a period of 10 to 30 years.
- A down payment is required. It is impossible to find offers on the market that would allow to pay all the purchased property. The minimum installment is 10%. The common option is 20-30%.
- The acquired object acts as a pledge for obligations. If it is not repaid, the apartment may be withdrawn and auctioned off.
- Under the current legislation, the pledged property is subject to compulsory insurance. The insurance policy is purchased only in a company accredited by the bank for 1 year. Every year the borrower is obliged to reissue the policy.
- Works differentiated repayment scheme. The customer first pays the largest payments. At the end of the term – the smallest contributions.
In addition, it is worth noting that the mortgage provides the ability to early repay the debt, without the use of penalties. If a second or third child is born in the family, then the married couple will have the opportunity to repay part of the debt by the maternity capital, payment for the third child, put into effect in 2019. Also, do not forget that for large families, families with two children reduced interest rates in preferential areas – no more than 6%.
Regarding the guarantors and co-borrowers, it is possible to attract co-borrowers with a high level of income on mortgages. In this case, the available credit limit will theoretically increase. At the same time, the official spouse will automatically become the co-borrower of the mortgage agreement.
What are the features of the loan
Before you compare a mortgage and a loan, you need to examine the very essence of this concept. Credit can be:
- Trust – to be provided for a specific purpose. This is a car loan, consumer loan, mortgage loan, refinancing.
- Not targeted – a loan in cash.
If the borrower wants to arrange a service for a specific purpose, then he is obliged to provide the corresponding document – an invoice, tax invoice, contract, etc. In this case, the funds will not be transferred to the client’s account, but to the account of the seller of the service or product.
Regarding the target loan, everything is easier here. The client does not need to submit such documents, and the money is transferred to a debit card or issued in the form of cash at the bank’s box office.
In the first variant more favorable conditions are valid. You can purchase a specific product on the stock. 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.
With a cash loan, you need to confirm your level of solvency. In return, you can provide a pledge, a guarantee. Actual for processing large loans (the amount of more than 100 000 rubles)
What are the general specific features of loans (except mortgage, car loan):
- High interest rates, especially if the bank issues funds without collateral and surety;
- Relatively long loan period. As a rule, it is 24-36 months.
- The annuity is valid, that is, the debt is paid off in equal parts. Overpayment on a loan according to the annuity scheme is greater than with a differentiated scheme. It is not possible, even with early repayment, to reduce the amount of overpayment on interest.
Comparative analysis of mortgage and loan
Regarding what is better: a loan or mortgage, the question is ambiguous. It all depends on what purpose the client pursues. If this is a trivial desire to buy some goods, then it is better to take a regular loan. All conditions for loans here.
|Loan terms||Up to 30 years||Up to 5 years|
|Batch of required papers||The package of documents is huge. Income certificate required||There is a possibility to issue without a certificate of income|
|The term of consideration of the application||Up to 5 days||Up to 1 day|
|Way of registration||Offline, only with a visit to the bank||It is possible both online registration and offline. It all depends on the size of the loan.|
|Early repayment option||There is, when this occurs, the recalculation of interest||Yes, but without recalculation of interest|
|Interest rate||From 9.5-10% (6% of the state program)||No special state programs. Rate – from 12% (according to banks). The rate is set in each case individually.|
|Compulsory insurance||It is necessary. Insurance pledge. 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 advisory in nature. But in case of refusal to purchase the service in the loan, they can refuse or raise the rate.|
If there is any doubt that it is better, then use a loan calculator. It will determine the minimum payment for the loan. And also to choose the best lending conditions.