Is it possible to take a mortgage in Russia without an initial installment

Mortgage in Russia is associated with lifebondage, the reason for which are high housing prices compared with average incomes and high interest rate (from 10% and higher). As a result, the payment schedule for an average family is stretched to almost retirement. The average term of mortgage loans is 17 years. During this time, the borrower overpays the two-threefold cost of the apartment.

Despite their extortionate rates, mortgagesin our country claimed and justified. In the rental or mortgage dilemma, the mortgage looks more advantageous because the monthly payments are sent to buy your own home, and not completely disappear in fixed costs.

Often, the borrower has difficulties withdown payment, but rather with its absence. What to do if you have not yet saved up the down payment on a mortgage, and you no longer want to rent a house? Yes, and how to save up, if renting an apartment "eats" an impressive part of the income !? Taking a mortgage without a down payment often seems like the only solution to the housing issue for many borrowers, but is it real? What are the features and pitfalls of such a loan?

The important point is to take a mortgage without initialThe contribution is possible only in the secondary real estate market, since lending in the primary housing sector is associated with high risks (double sales, long-term construction and others). If these risks are added to the likelihood of non-repayment of a long-term loan issued without a down payment, the bank’s risks multiply. Naturally, on such conditions, credit organizations are not ready and will not work.

Mortgage with a zero down payment is only suitable.for those who have a stable and high salary, since the monthly payments will be large. Age also matters: it is necessary that the loan be closed before the retirement age of the borrower and his guarantors.

As banks rightly believe, a mortgage without a down payment is a rather risky business, so the interest rate in this case will be higher than on a mortgage with an advance.

Also keep in mind that when you make a pledge of housing will require the services of an appraiser and insurance of the property itself.

Имеется две возможности взять ипотеку без down payment. The first option is to place in the same bank a consumer loan for the first installment and the mortgage itself. At the same time, revenues should allow repaying both loans, therefore, this option is suitable for borrowers with high solvency. According to the requirements of banks, no more than 30% of the net monthly income of the borrower should go to repay a mortgage loan. Net income - all documented incomes (wages, pensions, benefits, etc.) less liabilities (loans, alimony).

The second option is to pledge anotheravailable housing. It should be borne in mind that the bank will issue a loan of no more than 90% of the value of the apartment, thereby reducing the risk of its losses when real estate prices fall. Some banks even offer as a down payment to lay the apartment of close people (for example, parents) of the borrower. This line of mortgage lending is in great demand, because parents are eager to help their grown children, but the pre-retirement and retirement age does not allow them to get a long-term loan. Making a second apartment as a pledge, you need to understand that in case of arrears on a mortgage you put at risk the homelessness of your loved ones and lose the cherished square meters. Therefore, it is important to sensibly assess your capabilities, to be confident in your solvency, in the perspective of saving and increasing your income (wages).

So, take a mortgage without a down paymentcan young able-bodied people with a high official salary, with a positive credit history, who wish to purchase housing on the secondary market, and ideally with free liquid real estate (their own or third parties) for a second mortgage