In 2012, the mortgage market in Russia experienced quite intensive growth. Many banks reduced interest rates on mortgage loans, simplified requirements for borrowers, etc. However, starting in the third quarter of 2012, mortgage rates began to increase. At the same time, the volume of loans issuing is growing. “Among the positive phenomena in the world of Russian mortgages, I would like to note that the volume of loans issued has increased and this dynamics is unlikely to change by the end of the year. On the other side,
all these positive phenomena for apartment buyers take place against the backdrop of a galloping increase in interest rates,
under the influence of the rising cost of money and weakening attention from the state. Moreover, what’s sad is that the pioneers in the growth of rates were state-owned banks - VTB24 and Sberbank,” says the head of the mortgage and special programs Tekta Group Roman Stroilov.
In 2012, the mortgage market changed quite unevenly - some banks increased rates on mortgage loans, while others, on the contrary, lowered them. For example, from December 1, the second largest retail bank VTB 24 in the Moscow region reduced rates on mortgage loans in rubles with a down payment from 10 to 60% for all loan terms. The maximum interest rate reduction was 0.5%. As a result, the minimum interest rate for clients “off the street” when taking out comprehensive mortgage insurance is 11.9% per annum. The loan term is 7 years, and the minimum down payment for this rate is 60% of the property value.
In mid-September 2012, the Bank of Russia increased the refinancing rate by 0.25% to 8.25%. Sberbank of the Russian Federation, the leader of the mortgage market, was one of the first to react to the rate increase by raising mortgage rates. Moreover, for the second time in several months - each time by 0.5%. Now at Sberbank, rates for the purchase of finished housing for clients “off the street” (i.e., those who are not salary clients of the bank) are 14-15% per annum, depending on the loan term and the down payment.
The experts interviewed by Gazeta.Ru have only one forecast for 2013: mortgage rates will rise. "In our opinion,
Rate growth may continue in 2013, but this depends on many factors:
situation in the global financial market, the cost of financing for domestic credit institutions, development Russian economy“, says Andrey Maltsev, Deputy Chairman of the Board of Nordea Bank.
Experts' estimates differ only in how many percent rates may increase. For example, the Agency for Housing Mortgage Lending (AHML) initially predicted that in 2013 mortgage rates would not cross the threshold of 12.5%. However, according to agency statistics, the cost of mortgages has already reached 12.4%. Accordingly, according to the new AHML forecast, in next year Mortgage interest rates will already be 13.5%. Despite the fact that the announced rate - 13.5% - is already considered “exorbitant” for borrowers. “At the beginning of the year, the increase in issuance volumes was due to the realization of demand deferred before the presidential elections. Subsequently, the stability of the economic situation in the Russian Federation had a positive impact. We do not forecast a significant decline in mortgage lending volumes in 2013. Due to the unstable external background, the average mortgage rate in the Russian Federation will fluctuate, but is unlikely to exceed the “prohibitive” mark of 13.5 - 14% per annum,” explains Sergei Arzyantsev, director of the mortgage lending department at Nomos Bank.
There are also more pessimistic (for borrowers) forecasts. "Behind last year mortgage rates increased by an average of 0.5 - 1%. I believe, that
next year the interest rate level will approach 15%.
Reasons for reducing rates may be either due to subsidization of rates by the state, or due to the availability of cheap funding. So far, we haven’t seen one or the other,” predicts Konstantin Shibetsky, director of the mortgage department of the MIC Group of Companies.
Despite the consensus that mortgage rates will increase next year, some experts are confident that the growth in mortgage volumes will not slow down and borrowers will continue to actively take out loans. According to AHML, over the 10 months of 2012, 544.968 thousand mortgage loans were issued in the Russian Federation for a total amount of 801.3 billion rubles. In quantitative terms, this is 1.4 times more than in the same period last year. According to the forecasts of Anton Pavlov, head of the department for work in the retail segment of Absolut Bank, in 2013 the expected volume of mortgage loans issuance is 1-1.2 trillion rubles.
“Strangely enough, with the expected further increase in rates, we do not expect a decrease, but, on the contrary, an increase in mortgage volumes. We associate this trend with the extremely high need for housing, as well as high level inflation in the country. People will try to save their savings, and the best tool than real estate has not yet been invented in our country,” Konstantin Shibetsky makes his forecast.
However, according to Roman Stroilov, increasing loan rates will still reduce the demand for loans: “There are no prerequisites for reducing interest rates on this moment, Unfortunately no. Forecast their growth by next year possible with a 50/50 probability. Today it is possible to give a meaningful forecast only for the next quarter. I believe that
in the first quarter of 2013, the rates will not exceed current values -
the market has already slowed down, the bankers have achieved what they wanted. I believe that if rates do not rise, we will be able to repeat the 2012 figure. If rates rise by even another 1%, we will most likely see a 10% decline in lending volumes.”
Banks will have to compensate for the increase in mortgage rates with more favorable conditions for borrowers - for example, offering special partnership programs with borrowers, etc.
If economic situation worsens, bankers expect a repeat of the situation in 2008. “With economic fluctuations, the composition of mortgage market players may change. In the event of a crisis, some players (private banks) may suspend issuing mortgages, as was the case in 2008,” says Sergei Postnov, vice president of Petrocommerce Bank.
Sberbank offers its clients a fairly wide range of housing loan programs for the purchase or construction of real estate. In addition, the bank has several special offers under which certain categories of borrowers can receive a loan on preferential terms. So in 2013, Sber seems to remain a leading player in the mortgage market.
What can you buy
Ready housing
A loan for finished housing can be obtained in rubles, dollars or euros for a period of up to 30 years and in an amount from 45,000 rubles (1,400 US dollars or 1,000 euros) and up to 85% of the estimated/contractual value of the property. The minimum down payment is 15% of the value of the loaned property.
Pros:
- there are no all types of loan commissions;
- only insurance of the collateral against the risk of loss or damage is mandatory;
- after receiving a loan, the borrower is given one of the credit cards Sberbank (optional);
- you can provide both the loaned housing and any other housing as collateral;
- it is possible to attract three people as co-borrowers (their income will increase the size of the possible loan);
- there are special preferential conditions for participants in salary projects and for employees of enterprises accredited by the bank (reduced interest rate and more flexible requirements for confirming the borrower’s employment)
Minuses:
Sberbank traditionally places high demands on its borrowers. For example, to get a mortgage, a person must work at his current job for at least 6 months, and his total work experience at the time of applying for the loan must be at least 1 year.
In addition, it is necessary to confirm income with strict reporting documents (certificate 2-NDFL, tax return, certificate of receipt of pension, etc.). By the way, in total amount average monthly income is not taken into account at all:
- alimony, scholarships, insurance payments, benefits;
- income from purchase and sale transactions (securities, property rights, property, goods);
- income from investing in securities of all types (including dividends on shares);
- bonuses and remuneration (except for those paid at the main place of work or under part-time contracts).
In other words, only official income in the form of wages from the main/second place of work, declared profit from business, as well as some social payments(pensions, temporary disability benefits)
Perhaps this is precisely the point that can be considered the main disadvantage of a mortgage from Sberbank. Moreover, such strict confirmation of income is mandatory for all types of mortgage programs!
Housing under construction
Many conditions for this loan program are completely the same as the previous version (minimum and maximum loan size, loan terms, requirements for borrowers, no fees, special conditions for participants of salary projects).
Let us dwell only on those points that distinguish a mortgage for housing under construction from other housing loans from Sberbank.
The main difference is how exactly the pledge will be formalized.
Not the loaned premises, but any other premises can be accepted as collateral. Moreover, in this case, a single lending rate will apply for the entire lending period. But in the case of registering an apartment in a building under construction as collateral before registering the mortgage, the interest rate is increased by 1%.If the loan amount is less than 300,000 rubles, 10,000 US dollars or 7,000 euros, then it is not necessary to register a real estate property as collateral.
Construction of a residential building
The loan is issued for the construction of your own residential building. This program has a number of differences from standard Sber mortgage loans.
The minimum possible size of such a loan starts from an amount of 300,000 rubles (10,000 dollars or 7,000 euros), and the maximum should not exceed 85% of the estimated/contractual cost of construction. Before the loaned residential building can be used as collateral, the bank will have to provide other collateral. You can get a deferment on the payment of the principal debt or extend the loan term (for a maximum of 2 years). Only subject to the provision of documents to the bank that confirm the increase in construction costs.
country estate
With this loan program you can purchase (build) a summer house or garden house, or land plot. Loan terms do not apply to residential buildings.
The loan is issued in rubles, dollars and euros for any amounts that do not exceed 85% of the contractual value of the loaned object. As collateral, the bank considers any options approved by it (guarantee of third parties, pledge Vehicle, securities, bullion of precious metals, real estate). If the loan is issued for individual construction, then subject to the provision of documents confirming the increase in cost construction work, at Sberbank you can get a deferment on the payment of the principal debt or increase the loan term (no more than 2 years).
Garage
The loan is intended for the purchase or construction of a garage or parking space.
The loan is issued in rubles, dollars and euros for any amounts that do not exceed 85% of the contractual value of the loaned object. If the purchased garage is built with the participation of bank loans, then the down payment is reduced to 10%, and the interest rate is slightly reduced. The loaned garage is used as collateral, and until it is issued, the following acts as collateral: when purchasing a garage, no additional collateral is required; during the construction of a garage - property rights under an investment agreement, an agreement for the assignment of rights of claim, or an agreement for participation in shared construction. You can take a deferred payment on the principal debt or increase the loan term (maximum 2 years). To do this, you need to provide the bank with documents confirming the increase in construction costs.
Annual interest rates
Sberbank mortgage rates in 2013 will depend on many factors.
Let's look at their gradation using the example of the most popular mortgage - for the purchase of finished housing. By the way, exactly the same interest rate scale is provided for the loan program for housing under construction.
What affects the annual interest rate?
1) Down payment
The lower the down payment, the higher the interest rate for using the loan funds. Sberbank offers three down payment options:
- more than 50% of the cost of the loaned object;
- from 30% to 50%;
- from 15% to 30%.
With each “step” the rate increases by 0.25%.
2) Loan term
Again, three options are offered:
1) up to 10 years;
2) from 10 to 20 years;
3) from 20 to 30 years.
As with the down payment percentage, each increment is 0.25%.
3) From the loan currency
Foreign currency loans from Sberbank (in dollars and euros) will always cost the borrower a little less than in domestic currency. The difference between identical options for the size of the down payment and the loan term between foreign currency and ruble loans will be exactly 2%.
How can you reduce your annual interest rate?
1) If you receive wages to accounts or cards opened with Sberbank, then the minimum percentage for you starts from 13% in rubles and 11% in foreign currency.
Important! For employees of enterprises accredited by the bank, the annual interest rate increases by 0.5% (i.e. starts at 13.5% in rubles and 11.5% in foreign currency). For all other borrowers, the “rise in price” will be 1% (“the minimum interest rate” will be 14% in rubles and 12% in foreign currency).
Please note that minimum value by interest means that you are taking out a mortgage for a period of less than 10 years and with a 50% down payment.
For comparison, let’s immediately consider the maximum mortgage interest rates for “other people’s” clients (the most unfavorable option for the borrower). When making a minimum down payment (15%) and applying for a loan for a maximum term (30 years), a client “from the street” can count on 15% per annum in rubles and 13% in foreign currency.
2) It is definitely worth registering a mortgage as quickly as possible, since the entire period before its registration there is an increased interest rate (+1% to the base one).
Such “discrimination” can be avoided if you pledge not the loaned premises, but any other premises, or conduct a purchase and sale transaction through Sberbank safe deposit boxes.
3) By choosing objects built with the participation of bank loans, you can also avoid an “increase” in the interest rate (especially if you are not a participant in the salary project). A list of such objects can be found on the bank’s website.
In all other mortgage programs, the principle of interest rate formation will be the same - only the minimum and maximum value annual percentage.
Special mortgage programs
Mortgage plus maternity capital
In fact, it is not a separate program, but is simply linked to basic mortgage products.
Specifics:
1) Makes it possible to use maternity capital as a down payment with an increase in the total loan size;
2) You can use the program only if you have a state certificate for MSK and a certificate from the Pension Fund about the balance maternity capital on account.
3) The purchased housing must be registered as the property of the borrower;
4) Within six months from the date of issuance of the loan, you must contact the Pension Fund with a request to transfer MSK to repay the debt on the loan.
For most categories of the population, a mortgage loan is the only chance to own a roof over their head. High price housing dictates its terms. The average Russian cannot do without credit support from banks. Sberbank is one of the leaders in the banking sector of the economy, whose loan portfolio includes several mortgage options.
Potential clients of the bank can familiarize themselves with the line of housing loans on the Internet resource or at Sberbank offices. Mortgage loan programs are designed for clients with different levels income. Borrowed funds can be provided not only for the purchase of a home, but also for all stages of building your own home. The bank's participation in state mortgage programs allows it to provide loan products to individual borrowers, taking into account benefits.
Variety of Sberbank mortgage programs
A borrower who has decided that a mortgage from Sberbank will be able to afford it in 2013 is offered basic and special programs. Sberbank will help clients make their dreams of owning their own home come true now, and not in old age.
The base of the loan portfolio in the field of mortgage loans is represented by the following products:
1. Finished housing (primary or secondary).
2.Housing is under construction.
3.Construction of a residential building.
Special products in the loan portfolio are represented by the following programs:
1. Country buildings.
2. Garage (construction or finished facility).
3. Mortgage refinancing – a loan to pay off a mortgage from another lending institution.
4.Mortgage with the involvement of maternity capital finance.
6.Military mortgage is a preferential program with state support.
Mortgage in Sberbank in 2013 - general conditions
Standard conditions for issuing mortgage loans guaranteed by Sberbank this year: collateral is provided, except for the real estate being financed; an initial payment is required - depending on the program loan, it can be at least 10%; ruble rates start from 10.5%, foreign exchange rates – from 8.8%. The rate on the loan product will depend on the initial payment. The larger the first payment, the more loyal the rate.
The borrower will have to provide a document confirming the level of income, insurance for the collateral and insurance of his life and ability to work, and complete documentation for the collateral property. A loan for most programs can be issued in a choice of three currencies: European, American or Russian.
Loans in rubles are in greatest demand among Russians, since it is problematic to make a long-term forecast for changes in the exchange rate. In addition, it is more convenient to repay the loan in the currency in which the borrower receives income. The rate may be reduced for those borrowers who participate in the Sberbank salary project.
The maximum loan term that a borrower can count on this year is no more than three decades. The bank sets a limit - the maximum age of the borrower is 75 years. You can only get a mortgage if you are 21 years old. The traditional condition from Sberbank is valid employment contract borrower for at least six months, the total work experience must be at least a year.
Some distinctive features of the programs
Two housing loan programs - for the young cell of society and the military - have a minimum down payment of a tenth of the cost of housing. Sberbank provides the opportunity to attract three co-borrowers, which automatically increases the amount of loan funds issued for a mortgage.
Young families are given preferences when concluding a loan agreement. To fall into the category of a young family, it is enough that at least one of married couple has not reached the 35th birthday. If there is a child in the family, then initially only 10% of the funds are allowed. If the child was born while the mortgage has not yet been repaid, then it is possible to defer the payment of the principal amount or increase the term of the loan agreement until the baby reaches 3 years. The ability to attract up to six co-borrowers to this program is a definite plus.
The specificity of the loan product, which is based on maternity capital, ensures an initial payment through the use of funds confirmed by a state-issued certificate.
If a mortgage is issued for a property that is under construction, then the only difference here will be the registration of the pledge. Any other real estate can become collateral; the rate will remain unchanged for the duration of the contractual relationship. Collateral property that is under construction increases the interest rate for the loan.
Lending to suburban real estate only applies to the construction of garden or country houses or investment in land. The loan amount is no more than 85% of the estimated price. A loan can be secured not only with real estate, but also with valuable property.
This year, Sberbank's leading position in the mortgage lending market will remain unshakable, thanks to the variety of programs and individual solutions to the housing problem of each borrower.
