home » Banks » What is better to take a mortgage or a loan. Loan or mortgage? What is the best way to buy an apartment? Which loan is more profitable and faster to pay off: consumer or mortgage

What is better to take a mortgage or a loan. Loan or mortgage? What is the best way to buy an apartment? Which loan is more profitable and faster to pay off: consumer or mortgage

If you do not have enough money to buy a home, you can contact a financial institution. Banks offer the borrower two main options: a mortgage and a POS (consumer) loan. Consider the pros and cons of each type from a practical point of view and calculate which is more profitable to take a loan for an apartment.

Favorable mortgage. Pros and cons:

Mortgage involves the receipt of money from the bank on the security of the acquired or existing housing you have.

low loan rate;
offers of banks of programs with a minimum amount of the first installment (or its complete absence);
the possibility of attracting co-borrowers to the loan, which increases the size of the loan;
a mortgage allows you to get a larger loan amount, unlike consumer banking offers.

Customer credit. Pros and cons:

This type of loan does not require any collateral on your part and can also serve as a source of funds for you to buy a home.

«+»

Loyal requirements of the lender to the borrowers;
prompt approval and issuance of loans;
Loan processing does not require a large package of documents;

«-»

low consumer credit limit;
high interest rates;
a large amount of the monthly payment due to the limited loan term (most often up to 7 years).

Comparative calculation. We determine a profitable loan*

For a mortgage, we take the following minimum initial data:

loan term - 15 years;
amount - 2.5 million rubles;
rate - 11%

When calculating a mortgage loan, we get:

payment - 28.4 thousand rubles per month;
overpayment of interest - 2.6 million rubles, i.е. appreciation of the "deal" - 104.59%.

For consumer loans:

amount - 2.5 million rubles; loan term - 5 years;
rate (average data) - 17%.

And we get: after the calculation, the payment in the amount of 62.1 thousand rubles, and the amount of overpayment on interest - 1.2 million rubles.

*Average indicators for similar programs of different banks were taken into account, excluding the down payment.

Conclusion: The amount of overpayment on a mortgage loan is several times higher than with POS lending. But only a family with a fairly high income can afford to pay a monthly payment of 61.2 thousand rubles.

Over the past six months, the popularity of loans for the purchase of real estate has increased dramatically. In 2020, the apartments themselves have become cheaper, and the interest rates of banks are lower. In this regard, many potential clients of financial and credit institutions have a question about what is better: a mortgage or a loan. First of all, it should be noted that a mortgage is nothing more than a kind of loan. And in most cases, it is compared with another type of loan - consumer non-targeted credit.

A mortgage is a type of loan in which the acquired property (real estate) becomes a pledge and guarantees the fulfillment of the obligations of the debtor. This approach reduces the risks of the bank and makes it possible to reduce the cost of the loan.

Banks always compensate for the uncertainty in the future by the price of their own services. In fact, conscientious clients pay for those borrowers who do not repay the loan and will avoid paying penalties in every possible way (usually these make up 1-2% of the bank's clients).

Real estate is a very reliable collateral. An apartment is not a car, it cannot be stolen or get into an accident, it cannot be moved in space and hidden from collectors. And compared to a general purpose loan, a mortgage loan looks all the more reliable. The number of outstanding debtors in this case is much less, and mortgage interest rates are much lower. Although the cost of the loan is far from the only difference between a mortgage and a general purpose loan.

Pros and cons of mortgages

Negative side

Thinking about what is more expedient - a mortgage or a loan to buy an apartment - you need to consider the following features of a mortgage.

Making a mortgage loan procedure is long. The bank will require a large package of documents, will carefully check everything and, as a result, may refuse to provide money.
The client will need to buy insurance for the purchased property, as well as insure their own life and health.
Have a mortgage there is a minimum size. Many banks are reluctant to provide amounts less than 500 thousand rubles.
Purchased apartment becomes a pledged property. Until the loan is repaid, it cannot be sold or used as collateral for another loan.
When making a transaction, the client will need to pay for the real estate appraisal procedure.
The bank will issue a loan for the purchase of not every property. The borrower is limited in the choice of future housing.
Banks have a negative attitude to the fact that minor children or disabled people will be registered in a loan apartment. This makes it difficult to implement the encumbrance.

What's Good About a Mortgage

Comparing the options for acquiring real estate and choosing a mortgage or a loan to buy an apartment, you need to take into account the positive aspects of the mortgage. There are many of them:

The interest rate on this loan is relatively low.
loan repayment period is long which lowers your monthly payment. and makes credit relatively easy,
purchased insurance can really be useful,
using the mortgage scheme, the borrower receives the right to a tax deduction (reduction of income tax by the amount of payments to the bank),
the corresponding category of borrowers can use such a financial instrument as maternity capital and significantly reduce the body of the loan or the down payment.

An important advantage of a mortgage is that the legal "purity" of the apartment that is planned to be bought will be analyzed not only by the buyer, but also by the bank's specialists, as well as by the security service of the insurance company. This reduces the chance that the real estate acquisition deal will be challenged in the future.

In addition, evaluating what is more profitable - a mortgage or a loan for an apartment - it is worth taking a closer look at special government programs to support mortgage lending. They significantly limit the borrower in choosing an apartment (apply only to housing from accredited developers), but greatly reduce the cost of a loan. At the moment, it is realistic to get a loan for 30 years at a rate of less than 12% per annum. As a result, the monthly payment will be 3-4 times lower than with a short-term non-purpose consumer loan.

When does it make sense to take out a consumer loan for housing?

It makes sense to use a non-targeted loan to buy a home only in one case - if you need a relatively small amount for a short period. Suppose that the borrower can pay from his own funds 85-90% of the cost of the apartment or expects to receive a large inheritance as soon as possible, at the expense of which he intends to cover the debt. Under such circumstances, the short term for the execution of a loan agreement and significant savings on “accompanying” payments are important, and the overpayment due to the high rate will be small.

If it is possible to pay 60-70% of the cost of housing, and the loan is planned to be repaid in 3-4 years, then a mortgage “according to two documents” may be appropriate. Such a loan does not create problems when applying for a loan, does not greatly restrict the client in choosing an apartment and does not greatly increase the interest rate.

When evaluating the presented loan products, one must also take into account the fact that with a mortgage, spouses automatically acquire rights to real estate, even if only one person acted as a borrower. In the case of a non-purpose loan, it is possible to use the funds that were in the account before marriage to pay off the debt. This will make only one of the spouses the owner of the apartment.

Video: Mortgage or loan - pitfalls

Mortgage or credit: which is better?

Buying your own home is the most significant purchase in a person's life. It is good if incomes allow you to accumulate the required amount in cash in a relatively short period of time.
But for the majority of Russians, the only option is to use the bank's borrowed funds. Which loan program to choose: mortgage or consumer? Compare conditions, advantages and disadvantages.

Before looking for an answer to a question that is quite relevant for many Russians: “Mortgage or credit: which is more profitable?”, You need to decide on the key points:

The amount of the required loan.
Optimal loan term.
Purpose of the acquired housing

According to existing banking offers, it is easy to track that a consumer loan without collateral is limited to an amount of about 500,000 rubles. Mortgage also provides an opportunity to receive borrowed funds in a significantly larger amount at a time.

To calculate the optimal loan repayment period, credit experts advise starting from determining the monthly payment amount. It should not exceed 30% of the total income. For consumer loans, the loan term is limited to 5 years (in rare cases - 7 years), a mortgage loan can be issued for up to 30 years.

A mortgage loan is accompanied by the imposition of an encumbrance on the acquired property. According to Art. 12 and the provisions of Ch. V of the Law “On Mortgage (Pledge of Real Estate)” dated July 16, 1998 No. 102-F3, there are a number of restrictions on the use of housing, failure to comply with which may result in the bank’s requirement, as a pledgee, to terminate the loan agreement and repay the entire debt at a time.

For example, if it is not stipulated in the agreement with the bank, it is impossible to register third parties in mortgaged housing or rent it out. The sale of housing is also complicated by the need to pre-pay existing mortgage debt. A consumer loan without collateral allows you to dispose of your existing housing at your own discretion.

In addition to these main points that determine the profitability of loan programs based on their purpose, there are other nuances for comparison.

Mortgage or loan: compare bank requirements

To apply for a loan, the bank only needs to check the borrower, his solvency and solvency. In many ways, these basic criteria are evidenced by the provided certificate of income and the presence of a guarantee.

With a mortgage, in addition to the candidacy of the borrower, the apartment being purchased is also carefully checked. This significantly affects the processing time of the application.

If, with a good credit history, the borrower can receive the required loan amount within 1 business day, then it takes from 5 business days to consider the possibility of providing a mortgage loan to the bank.

Don't know your rights?

And of course, the package of documents required for obtaining a mortgage significantly exceeds the package of documents for obtaining a consumer loan.

Collection of documents for a mortgage loan, subsequent registration with Rosreestr, maintenance (renewal of insurance and current income statements) requires additional investments and time from the borrower.

Mortgage or loan: compare the interest rate

Thanks to the activities of the JSC "Agency for Housing Mortgage Lending" (AHML, now renamed JSC "DOM.RF"), created by the Government of the Russian Federation in 1997 in accordance with Decree No. 1010 of 26.08. and the interest rate goes down.

Currently, the issuance of consumer loans is accompanied by an interest rate in the range of 12-22% per annum (express loans are quite expensive, they should not be taken into account), and for mortgages, the interest rate ranges from 9-14% per annum (for foreign currency loans, it is slightly lower ).

Mortgage or loan: comparing additional costs

Insurance. A mortgage loan, like any secured loan, is accompanied by compulsory insurance of the collateral. Moreover, in the event of an insured event, the funds will be used to compensate for losses, first of all, to the bank, and not to the borrower, in accordance with paragraph 2 of Art. 36 of the Law "On Mortgage (Pledge of Real Estate)" dated July 16, 1998 No. 102-F3.
While with insurance of your own home without encumbrance, it is possible to receive compensation in case of loss of housing or for current or major repairs in the event of an insured event.

The same can be said about the obligatory life and health insurance of the borrower and title insurance - all funds will be used to compensate the bank for losses incurred, and not to the borrower and his next of kin (in case of death). This is a fairly significant drawback of the imposed encumbrance in a mortgage.
Independent appraisal of housing. With a mortgage, the costs of assessing housing fall entirely on the borrower and are mandatory. Making other documents and bringing them into proper form also requires initial investments.

Mortgage or loan: compare conditions

The most pleasant moment when applying for a mortgage is the right to realize a tax deduction (See How to get a property tax deduction on a mortgage) and cash out maternity capital as a down payment (See How to get a property tax deduction on a mortgage). Mortgage under maternity capital: what are the conditions for the down payment?) .

It is also worth noting the verification of the legal purity of the purchased housing not only by the borrower, but also by the security service of the bank and the insurance company. Additional guarantees that the purchase / sale transaction will not be subsequently challenged are provided by title insurance.

The disadvantage of mortgages is the restriction in the choice of secondary and primary housing. Many options are immediately cut off, for example, for new buildings of the developer, which for some reason do not suit the bank, or apartments that do not meet the conditions of the bank in terms of technical condition or location.

In case of a mortgage, banks react painfully to the registration of minor children or citizens with disabilities - after all, this causes difficulties in exercising the right of encumbrance when the borrower evades loan payments. For the borrower, such a condition is hardly acceptable, most of the benefits provided by these persons can only be obtained if they have permanent registration at the place of residence.

Thus, summarizing the considered advantages and disadvantages of consumer and mortgage lending, we can conclude that there is no universal answer to the question “what is better: a mortgage or a loan”. In each individual case, both a loan and a mortgage can be the most beneficial for a potential borrower.

If it is impossible to improve your living conditions at the expense of your own funds, a loan for an apartment is a great opportunity to resolve this issue. Banks offer to purchase housing on a mortgage, but you can also take a non-purpose (consumer) loan.

First of all, when buying a home with borrowed funds, the question arises, which is more profitable: a mortgage or a loan for an apartment? To answer it, you need to analyze in detail both types of lending, consider their pros and cons, and make approximate calculations.

Mortgage and consumer loans are similar in many ways. These are two types of cash loans in which funds are issued for a specified period and at interest. The differences are in the terms of provision, the amount of the monthly payment, terms and so on. To answer the question of what is more profitable: a mortgage or a consumer loan, let's take a closer look at each type of lending.

Advantages and disadvantages of mortgage loans

A mortgage loan is a type of loan in which the debtor's real estate is taken as collateral. It is owned by the person or family that has taken out the mortgage. If the co-borrowers fail to fulfill their obligations, the object of lending becomes the property of the lender. The pledge will be an apartment, for the purchase of which funds or other real estate are taken (determined by the type of loan and the terms of the agreement).

Long periods of time allocated for debt repayment. Mortgage is provided for 5-30 years.
Low rates. This is achieved due to the fact that mortgages are included in targeted lending programs for the population and are designed for people with an average income level.
Small monthly fees. The effect is manifested due to the long duration of payments.
A variety of programs, including preferential ones. Mortgages are issued for primary and secondary housing, for commercial real estate, objects with land plots. Examples of programs: "Young Family", "Military Mortgage", "Maternity Capital" and others.
The possibility of receiving a large amount. A mortgage loan is provided specifically for the purchase of real estate, so it allows you to get a large loan.
The Bank checks the purchased property. This does not give a 100% guarantee of the purity of the transaction, but it can significantly reduce risks.
A number of lenders allow you to include in the mortgage agreement the costs of purchasing furniture in new housing, for its repair. So you can save on paying interest when arranging an apartment.

The borrower is one person or several. Co-borrowers can involve any family members, relatives. This will make the conditions more profitable: it will help to increase the maximum loan size, reduce the down payment and extend the overall repayment period.

High total overpayments. Depending on the size of the monthly payment and terms, it reaches 100-200% of the initial value.
First installment. Most mortgage programs involve the introduction of an initial amount equal to approximately 10% (usually 15-30%) of the value of the acquired object.
The need for home insurance. This helps to secure the apartment and guarantee a refund in an emergency, but increases overpayments.
Increased requirements for borrowers. You will need to collect an impressive package of papers and confirm the status in order to obtain bank approval. At the same time, the documents for the purchased housing are usually provided by the seller. The buyer only transfers them to the bank.
Involving people of pre-retirement or retirement age as guarantors or co-borrowers will most likely lead to a reduction in the loan term, and therefore, an increase in the amount of payment.
A mortgage implies a restriction of the right to dispose of the purchased housing. As long as the encumbrance is in effect, the property cannot be sold, donated, or otherwise transferred to third parties.
After paying off the mortgage, the burden must be removed. To do this, the bank provides a letter of guarantee and its own copy of the mortgage. The borrower provides these papers to the MFC, where after a while they will issue new housing documents with the appropriate marks.
The standard mortgage settlement scheme is as follows: buyers transfer part of the value of the object to sellers (this is an initial contribution formed at their own expense), ownership is registered, and after 5 working days, new owners (borrowers) provide the bank with documents from the registering authorities. Some sellers, despite the fact that their rights are protected by a mortgage agreement, do not agree to such a scheme.
The services of a realtor and a lawyer accompanying the transaction cannot be paid at the expense of mortgage funds.
Purchased housing must be registered in the ownership of co-borrowers. Their minor children may also be owners. Registration of ownership of a third party (for example, an adult child) is excluded.
If the owners of the purchased housing become, including minor children, then the permission of the guardianship authorities is obtained without fail. They must agree that this object will be pledged to the bank. If the co-borrowers fail to fulfill their obligations to repay the loan, this property will be transferred to the ownership of the lender, even if it is the only home for children.

Carefully study mortgage programs - some of them are designed only for the purchase of apartments in new buildings.

Advantages and disadvantages of consumer loans

A consumer loan is a loan that a bank issues to an individual. It is non-targeted, and is issued not strictly for the purchase of an apartment, but for any needs. Provided without collateral: the purchased housing or other real estate remains the property of the borrower even in the event of default under the agreement.

Less total overpayment. It is achieved due to the short term for which the loan is issued, and a large monthly installment.
Prompt processing of applications. The bank will respond within a few days.
Strict requirements for the recipient. You will need to collect less documentation.

Issued for one person. Provided regardless of marital status. When receiving this type of loan, you do not need to make a down payment and insure the purchased housing without fail, which makes the loan more profitable.

The right to dispose of the property remains, even if the loan has not yet been repaid.

Allows you to solve the housing problem even in the absence of your own savings.

Short term loan repayments. Issued for up to 3-5 years.
Relatively high interest rates. A few points higher than mortgage rates.
Large monthly fees. The increase is due to the short period for which funds are issued.
Small maximum amount. A mortgage loan is more profitable than a consumer loan if you need to get a large loan. Consumer credit is always limited in amount.
The absence of home, life and title insurance means that all the risks associated with owning a home are borne solely by the owner.
A number of banks actually impose disability insurance. It usually costs an order of magnitude more expensive than a similar product offered by professional insurers.

To get a loan, you need to have a high level of income. Otherwise, the bank will refuse to provide. It is also desirable that income be guaranteed for several years. Otherwise, the payment of the monthly installment will become difficult.

Calculation example

To understand which is better: a mortgage or a home loan, do the calculations on a special calculator or manually. Here, for example, is a Sberbank mortgage calculator. For example, let's take the average values:

Mortgage. 2.5 million. Interest rate 11% per annum. Term 15 years. Monthly payment 28415 rubles. Taking into account these parameters, the overpayment is approximately 2,614,700 rubles. + insurance premiums, commissions.
consumer loan. 2.5 million. Interest rate 17% per annum. Term 3 years. Monthly payment 89132 rubles. Taking into account these parameters, the overpayment is approximately 708,752 rubles.

It can be seen from the calculations that the overpayment on a conventional loan is much less. But every month you will have to give a lot of money in addition to utility bills for an apartment. This is a significant disadvantage of a consumer loan.

Construction of IZhD

A mortgage for the construction of an individual residential building is unprofitable for those who plan to do at least part of the manipulations with their own hands: as confirmation of the fact of construction, the bank needs documents for all building materials, for all work performed. The lender should provide an estimate, a construction contract, permits for connecting to communications, and so on.

The land plot on which the house will be built is pledged to the bank. If it is on a long-term lease, then the right to lease is accepted as security.

If you plan to build a private house with your own hands, then you can take a relatively small amount under the consumer lending program in order to finance part of the work for the coming season. In winter, you can have time to pay off part of the debt, and by spring, re-issue a consumer loan. But there is a risk that at some point the bank will refuse a loan, for example, due to insufficient solvency due to credit obligations issued earlier.

If you build, which is more profitable given the low rates, you need to take into account that a number of banks make it possible to receive a loan in tranches, that is, in parts. With this scheme, interest is charged only on the actually received part of the loan, which minimizes the overpayment. However, it is difficult to find a lender willing to work with the construction of the IRR.

Tax deduction

When deciding how best to buy an apartment (on a mortgage or on credit), it should be borne in mind that in the first case, if you have an official, “white” salary, you can use the property tax deduction.

This is a one-time "discount" on taxes paid. That is, this is the amount by which the total number of tax payments is reduced. The deduction is equal to 13% of the total debt. Makes mortgage loans more profitable.

Non-working pensioners and the disabled, as well as citizens who work unofficially, will not be able to use this benefit, since they are not payers of personal income tax.

To decide which is better: a loan or a mortgage on housing, taking into account the possibility of obtaining a tax deduction, you need to do this:

for officially employed, it is more profitable to buy real estate in a mortgage;
for the unemployed, it is more important to consider other factors.

conclusions

What is more profitable: a mortgage or a loan - should be decided in each case. It is definitely better to buy an apartment using a consumer loan if you need a relatively small amount, and there is no tax deduction. If you need to realize the funds of maternity capital, then a mortgage is necessary, even if it is a relatively small amount.

It is important to consider the amount of payments. Ideally, they should be comparable to the rental price of the purchased housing. A consumer loan for a large amount means large monthly payments, which, even if you have a consistently high income today, may turn out to be a problem tomorrow.

To reduce the amount of overpayment on a mortgage, it is enough to pay off the debt ahead of schedule. Banks charge interest only for the actual period of use of funds, while taking into account the amount of the balance.

What is more profitable - a mortgage or a loan? The sphere of banking services is developing intensively, offering more and more new financial products that we actively use on a daily basis. These include credit cards, debit cards, various mortgage offers, as well as online payment services. Perhaps the most popular among our fellow citizens, puzzled by the housing issue, were loans for the purchase of real estate of various kinds. However, you need to figure out which is better - a mortgage or a loan?

What is a mortgage?

From the point of view of any economist, a mortgage is a loan product secured by the borrower's real estate. The majority of mortgage clients use these funds to purchase residential real estate. It can be an apartment, a land plot or a cottage. The borrower cannot use this money otherwise, at its own discretion. How is a mortgage different from a loan?

The pledged property will serve as a guarantor for the fulfillment of obligations by the borrower for the banking organization. If the loan obligations are not fulfilled, the bank has the right to sell the collateral. Despite the fact that a mortgage, in fact, is the same loan, many bank customers continue to consider it a special type of banking services, and loans are understood as non-purpose loans issued as consumer loans. There are two types of mortgages: commercial and residential.

So mortgages and consumer loans are very different.

How much can a client expect?

The amount of mortgage loans depends on what program the bank will offer you. For example, a mortgage loan with state support in the regions of our country is issued in the amount of up to 3,000,000 rubles, and for residents of the capital and St. Petersburg up to 8,000,000 rubles. If your city has a social program, the amount of a mortgage loan can be set by the local administration. According to other offers of banks, the amount of the issued amount varies in the range from 300,000 to 25,000,000 rubles. For loan offers, the amount usually does not exceed 8,000,000 rubles. Banks, as a rule, require collateral for amounts exceeding 500,000 rubles. A housing loan is issued on the security of an apartment that is already owned, the amount of the amount is equal to 70% of the price of the mortgaged property. The loan term in this case is no more than 10 years, and the interest rate is slightly higher.

What is better - a mortgage or a loan, is not yet clear.

What is the difference between a mortgage and a loan?

First you need to understand that a mortgage is a certain amount of money that a bank issues at a fixed percentage for the purchase of real estate. You can't spend money on something else. In addition, when applying for a mortgage, the borrower does not receive money, they are transferred immediately to the seller. Mortgage loans are issued by banking institutions in accordance with Federal Law No. 102. A loan is a non-purpose loan, which is also issued at an interest rate set by the bank. In this case, you can spend the funds as the client wants.

What is the interest rate on the mortgage, find out below.

Main difference

The defining difference between a mortgage and a credit loan is that mortgage programs require the provision of collateral. It is impossible to get a mortgage loan without collateral in any bank. In this case, it is possible to pledge not only the property that already exists, but also that which the client is going to buy at the expense of borrowed funds. When obtaining a regular loan on standard terms, collateral in the form of collateral is not required. The next difference is in the amounts that are issued under a mortgage and as credit funds. Mortgage amounts can be dozens of times higher than standard non-purpose loans. The third difference between mortgages and consumer loans is in terms.

Timing

The standard duration of a conventional consumer loan almost never exceeds five years, while a mortgage can be taken out for a term that can sometimes reach 30 years. A significant difference is also the size of interest rates for the use of borrowed funds. Since the risks of the bank in the case of mortgage lending are minimized, a significant reduction in rates is possible here.

Target

And the last difference between the terms of a mortgage and a loan is the purpose for which the client applies to the bank for funds. A mortgage is taken in order to purchase a home, and a loan can be used for various purposes (from buying a refrigerator to purchasing a land plot). It is clear that credit funds can also be used to purchase residential real estate, but what is more profitable: a loan or a mortgage, must be decided on a case-by-case basis. Credit institutions of our country offer a variety of mortgage lending options.

Mortgage Benefits

The advantage of mortgage loans can be considered the possibility of selecting favorable conditions for a loan. It is always possible to choose a financial product with a reduced interest rate or a small down payment. When applying to a bank for a non-purpose loan, you are unlikely to be given such an opportunity. Mortgage can be taken on the security of the acquired real estate, in general, this is a convenient option: there is no need to look for collateral as security. But at the same time, you should not forget that when buying a living space on a mortgage, you will not become its full-fledged owner until you pay the entire amount of the debt, until then the property is the property of the bank.

The difference between a mortgage and a loan is not known to everyone.

Bank consent to sell

In this situation, it is very difficult to sell the property, since this operation requires the consent of the bank. The loan is issued to the client in cash, if at the same time you mortgage your own real estate, this will allow you not to make an initial payment. This scheme is convenient if there are no funds to make a down payment. In the case of issuing a consumer loan in cash and without collateral, the bank may impose a condition on the presence of one or more guarantors. If a loan is issued against the security of existing real estate, then more than one person cannot be registered in the apartment, and it cannot be the property of more than two citizens.

Lending terms

Long term mortgage payments allow you to break down the payment into small parts, and making it less of a hit on the family budget. The main condition here is the age of the client. The borrower must not be younger than 21 years of age and older than 65 years of age on the date when the last payment is made. When applying for a loan, age almost does not play any role, since a regular consumer loan is issued, as a rule, for five years. In the event that you take out a long-term housing loan (if you are mortgaged your own living space), then the bank will most likely approve the loan for ten years.

An initial fee

Mortgage lending involves making a minimum down payment of 15% of the value of the acquired property. It must be understood that a mortgage loan is never granted on general terms without a down payment. Here, maternity capital funds are very often used.

People often ask if you can get a mortgage if you have a loan. The answer is yes, you can, but only if your income allows.

Interest rate

When analyzing the conditions of credit and mortgage programs, it should be noted that they differ greatly in terms of interest rates. Housing loans are issued at different interest rates, depending on the bank and your ability to pay. What percentage on a mortgage is interesting to many.

Reducing the interest rate is possible if there are such factors: the receipt of wages on the card of this bank, a positive credit history, sometimes the place of work influences, for example, state employees are often provided with benefits in credit institutions. The interest rate can also be reduced if there is a special program, making a minimum contribution, with personal and title insurance.

For programs for young families, the interest rate is usually 12.5% annually. Benefits are also provided to military personnel, they can count on the same 12.5%. All other categories of borrowers, ceteris paribus, are likely to be able to get a loan at an interest rate ranging from 13% to 18%. In a long-term loan, the rate is higher and can range from 20% to 35% in different banking institutions. However, when applying with a deposit, the rate can drop to 13%. When issuing a mortgage or housing loans, the bank evaluates the collateral real estate.

What is more profitable - a mortgage or a loan? Let's consider in more detail.

Client risks

Of course, the presence of debt obligations to the bank always presents a certain risk. With a mortgage, the risks may be as follows: the bank may demand property if you have not paid the debt on time, it may also sell it in order to cover its losses. In this case, the borrower is left homeless, without money and with a damaged credit history. With standard lending, there are also risks: with secured loans, there is also a risk of losing housing in the same way. The bank simply confiscates collateralized property when debts are formed on the part of the borrower. In case of non-payment of a consumer loan, the bank has the right to apply to the court with a claim in order to claim the debt.

What to take - a mortgage or a loan, the borrower must decide for himself.

Credit benefits

It's pretty easy to arrange. Bank requirements are not so strict.
Issued as soon as possible.
The package of documents is not too big. Sometimes just a passport is enough.
For customers who have deposits, the bank offers special offers with discounts on interest rates.
The duration of the contract is usually three years, with a maximum of five years. In this regard, the amount of overpayment will be ten times lower than for a mortgage loan.

Minuses

Conclusion

Thus, a mortgage differs from a loan in that it is given at a lower interest rate, the amount will be significantly larger and the loan term will also be longer than with a standard loan. But obtaining a mortgage is impossible without collateral.

We considered what is better - a mortgage or a loan.