What is the difference between a mortgage and mortgage lending? The main differences between a mortgage and a loan

The vast majority of citizens apply for bank loans when purchasing a home. And this is not surprising. After all, everyone wants to get their own home, but saving for it long years Not many agree. Before making such a difficult decision, you should definitely inquire about the types and methods of lending.

What to fill out? Loan or mortgage? And this is where the question arises: how does a mortgage differ from a real estate loan? Are these concepts different or are they the same thing? Let's try to figure it out together.

What is the difference between a mortgage and a loan?

There are several ways to get money to buy a home:

• classic loan;
• mortgage;
• consumer loan.

The first requires an initial payment and can be issued for a period of up to 10 years. In this case, you will definitely need to confirm your income and provide information about official employment.

In the second case, you will definitely be required to provide a deposit, which will be the purchased housing. However, the loan term in this case increases significantly.

When applying for a regular consumer loan, making a down payment is not at all necessary, but each specific bank puts forward its own additional conditions for processing.

In this article, we will try to figure out how a loan differs from a mortgage. After all, both of these products not only have different conditions, but also its advantages and disadvantages.

Pledge

Sometimes citizens are interested in another very interesting question: “What is the difference between a mortgage and mortgage loan?. The term “mortgage” often refers to the collateral itself, which is required by the bank as a guarantee that the money will be repaid on time. The concept of “mortgage lending” means one that can be secured against the purchased property. If you don’t get too caught up in all the subtleties of terminology, then you can say with confidence that both of these concepts mean the same thing.

The first thing that distinguishes a mortgage from a loan (Sberbank or other financial institutions) is the indispensable presence of collateral. It is unlikely that you will be able to get a mortgage without collateral. While a regular loan, including for housing, can be obtained without additional guarantees.

Target direction

The next thing that differs from a mortgage is the purpose of the loan. A mortgage is exclusive. You will not be able to spend the funds received on anything else. Moreover, the procedure for transferring money under a mortgage is structured in such a way that the client does not have the opportunity to hold the banknotes in his hands and spend at least part of the funds “outside”.

Of course, any loan can have a specific purpose. What you are taking money for is most often indicated when writing an application. But control over the use of funds in this case is much weaker. Therefore, it costs nothing, for example, if you take out a loan for housing, use part of the funds for repairs or purchase of new furniture. You can even take out a loan that has no intended purpose. Then you are not obligated to report where the money went at all.

Loan amount and terms

Real estate is an expensive purchase. It is almost impossible to set aside part of your salary and save for it. While you are collecting, the funds will simply depreciate. This issue is important to consider when contacting a bank. The amount that a person can count on when applying for a mortgage will certainly be much greater than that issued under a conventional loan. This is another item on the list of how a loan differs from a mortgage. Getting a regular loan is much easier. Moreover, if the amount is small, then most often one passport is enough to receive it. To do this, you will have to collect a pile of papers and prove your solvency to the financial institution a hundred times.

This also implies the loan term - the next item on the list of how a loan differs from a mortgage. A person of average income is simply not able to quickly pay off a huge amount. Therefore, a mortgage can be issued for 25-30 years. At a time when the term of conventional lending rarely exceeds the ten-year threshold.

Interest rates and risks

Another important point about how a mortgage differs from an apartment loan is interest and the amount of overpayment. With a mortgage loan, you can expect a much lower overpayment percentage. This is due to the following factors:

• longer loan term;
• strict solvency check;
• excellent collateral;
• mandatory insurance of vital risks.

When applying for a regular loan (including for housing), the bank not only does not know for sure where exactly the money will be spent, but also cannot be one hundred percent sure that it will receive it back. Therefore, interest rates in this case are much higher.

There is a difference for the client himself. If he cannot pay off his mortgage debt, he will simply have to give his newly acquired home to the bank. Most often, the financial institution’s claims are limited to this. If a conventional loan is not repaid, a person may lose all his property. If the amount of the unpaid loan is large, the bank will demand repayment of the principal debt, as well as accrued penalties, fines, legal costs and other payments. If you count all this together, the amount may be such that a person simply does not have enough property to pay off the bank.

Another quite important difference is that when receiving a mortgage, the bank will most likely require you to insure the collateral itself, as well as the life and ability of the client. With regular lending, insurance is not mandatory and the bank has no right to require it. If you refuse to take out insurance, the only thing you can be “punished” with is an increase in the interest rate.

Who issues

You can get a regular loan (including for housing) not only at the bank. Many financial institutions and microfinance organizations provide similar services. But to apply for a mortgage, you should only go to the bank. Moreover, not every one of them provides such a service. Especially if the borrower expects to receive favorable conditions.

This happens because issuing a mortgage involves conducting serious checks on the client. Only a powerful security service can perform such actions, which small credit institutions most often simply do not have.

Down payment amount

The next difference between a loan and a mortgage is the presence of a down payment and its size. When applying for a consumer loan, most often no down payment is required at all or very small.

To apply for a mortgage, you just need to have a certain amount that covers part of the planned expenses. Moreover, the higher this contribution is, the lower the percentage you can get when registering.

What's better?

When exploring the question of how a loan differs from a home mortgage, many ask themselves another question: “What is the most profitable way to get money?” It is impossible to give a definite answer here. It all depends on the specific situation.

A mortgage will be profitable if:

• You can take part in any benefit program.
• You already have small children or are planning to have them in the near future. The fact is that if you have minor children, even if the collateral property is lost, you must be provided with another living space.
• Your financial capabilities are stable and you are confident that you will be able to handle multi-year monthly payments.

If you need a relatively small amount and you already have 60-70% of the cost of housing, there is no point in getting involved with mortgage lending. It is much more economical to take out a regular loan and pay it off as soon as possible.

There is one more nuance here: with a mortgage, the owner of the purchased home becomes the bank (until the loan is fully repaid), and with regular lending, it is your property. If the unexpected happens and you cannot repay the debt, then the bank will sell the mortgaged apartment, and you will sell the credit apartment yourself and on your own terms. This way you can save a lot more money, pay off the bank and buy cheaper housing.

What is more profitable - a mortgage or a loan? The banking services sector is developing rapidly, offering more and more new financial products, which we actively use every day. This and credit cards, and debit, various mortgage offers, as well as online payment services. Perhaps most popular among our fellow citizens, puzzled housing issue, received loans to purchase various types of real estate. However, you need to figure out what 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 in the form of the borrower’s real estate. Most clients applying for a mortgage use these funds to purchase residential real estate. This could be an apartment, a plot of land or a cottage. The borrower cannot use this money otherwise, at his own discretion. What is the difference between a mortgage and a loan?

The collateral will serve as a guarantor for the banking organization to fulfill obligations by the borrower. In the event that loan obligations are not fulfilled, the bank has the right to sell the collateral. Despite the fact that a mortgage is essentially the same as a loan, many bank clients continue to consider it special kind banking services, and loans mean non-targeted loans issued as consumer loans. There are two types of mortgages: commercial and residential.

So mortgages and personal loans are significantly different.

What amounts can a client expect?

The amount of mortgage loans depends on what program the bank offers 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 available in your city social program The amount of the mortgage loan can be determined by the local administration. According to other offers from banks, the amount issued varies 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 against the security of an apartment that you already own; 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.

It is not yet clear what is better - a mortgage or a loan.

What are the differences 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 set percentage for the purchase of real estate. You can't spend money on anything else. In addition, when applying for a mortgage, the borrower does not receive money; it is transferred directly to the seller. Mortgage loans are issued by banking institutions in accordance with Federal Law No. 102. The loan is a non-purpose loan, which is also issued at a percentage set by the bank. IN in this case you can spend the money the way the client wants.

We will find out what the mortgage interest rate is below.

Main difference

The defining difference between a mortgage and a credit loan is that mortgage programs require the provision of collateral. You cannot get a mortgage loan without collateral from any bank. In this case, you can mortgage not only the property that you already have, but also the property that the client is going to buy using borrowed funds. When receiving a conventional loan under standard conditions, no collateral is required. The next difference is in the amounts that are issued for a mortgage and as credit funds. Mortgage amounts can be tens of times larger than standard non-purpose loans. The third difference between a mortgage and a consumer loan is the terms.

Deadlines

The standard duration of a regular consumer loan almost never exceeds five years, while a mortgage can be taken out for a period that sometimes reaches 30 years. Significant difference also represent the interest rates for the use of borrowed funds. Since the bank's risks in the case of mortgage lending are minimized, a significant reduction in rates is possible.

Target

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

Advantages of a mortgage

The advantage of mortgage loans is the ability to select favorable loan conditions. There is always the opportunity to choose a financial product with a lower interest rate or a small down payment. When you apply to a bank for a non-targeted loan, you are unlikely to be given this opportunity. A mortgage can be taken out against the property being purchased; in general, this is a convenient option: there is no need to look for collateral as collateral. But at the same time, do not forget that when buying a living space with a mortgage, you will not become its full owner until you pay off the entire amount of the debt; until then, the property is the property of the bank.

Not everyone knows how a mortgage differs from a loan.

Bank's consent to sale

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 you are mortgaging your own property, this will allow you to avoid making a down 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 on 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

A long mortgage payment period allows you to break the payment into small parts, and making it does not put such a strain on the family budget. The main condition here is the age of the client. The borrower must be at least 21 years old and at least 65 years old on the date the final payment is made. When applying for a loan, age plays almost no role, since a regular consumer loan is issued, as a rule, for five years. In the case when you take out a long-term housing loan (if you are mortgaging your own living space), the bank will most likely approve the loan for ten years.

An initial fee

Mortgage lending requires a minimum down payment of 15% of the value of the purchased property. You must understand that a mortgage loan is never provided for general conditions no down payment. Maternity capital funds are often used here.

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

Interest rate

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

A reduction in the interest rate is possible if the following factors are present: income wages on the card of a given bank, a positive credit history, sometimes the place of work influences it, for example, state employees are often given benefits at credit institutions. Interest rate can also be reduced if available special program, making a minimum contribution for personal and title insurance.

For programs for young families, the interest rate is usually 12.5% ​​annually. Military personnel are also entitled to benefits; they can count on the same 12.5%. All other categories of borrowers, other things being equal, will most likely be able to obtain 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 registering with a deposit, the rate can be reduced to 13%. When issuing a mortgage or housing loans, the bank evaluates the collateral property.

What is more profitable - a mortgage or a loan? Let's take a closer look.

Client risks

Of course, having debt obligations to a bank always poses a certain risk. With a mortgage, the risks may be as follows: the bank may demand the property if you do not pay the debt on time, it may also sell it in order to cover its losses. In this case, the borrower is left without housing, 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 living space according to the same scheme. The bank simply confiscates the collateral property when debts arise on the part of the borrower. If a consumer loan is not repaid, the bank has the right to file a lawsuit to recover the debt.

The borrower must decide for himself what to take - a mortgage or a loan.

Benefits of a loan

1. It is quite simple to arrange. The bank's requirements are not so strict.
2. Issued as soon as possible.
3. The package of documents is not too large. Sometimes just a passport is enough.
4. For clients who have deposits, the bank offers special offers with discounts on interest rates.
5. The contract has a short term - usually three years, maximum five years. In this regard, the amount of overpayment will be tens of 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 securing collateral.

We looked at what is better - a mortgage or a loan.

All citizens who decide to use borrowed funds to purchase their own home are interested in a mortgage or a loan: which is more profitable? Having analyzed all the pros and cons, everyone decides for themselves, a mortgage or a loan: which is more profitable to apply for in a particular case.

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

Mortgage or loan: which is better?

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

1. The amount of the required loan amount.
2. Optimal loan term.
3. Purpose of the purchased 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. A mortgage provides an opportunity to borrow funds in a significantly larger amount at a time.

For calculation optimal time When repaying a loan, credit experts advise starting from determining the monthly payment amount. It should not exceed 30% of 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 purchased property. According to Article 12 and the provisions of Ch. V Federal Law “On Mortgage (Pledge of Real Estate)”, as amended on May 7, 2013, number 102-F3, there are a number of restrictions on the use of housing, failure to comply with which may result in the bank as the mortgagee requiring the bank to terminate the loan agreement and repay the entire debt at once.

For example, if this is not stipulated in the agreement with the bank, you cannot register third parties in the mortgaged housing or rent it out. Selling a home is also complicated by the need to pre-pay existing mortgage debt. Consumer loan without security, it allows you to dispose of 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 income certificate and the presence of a guarantee.

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

If there is good credit history The borrower can receive the required loan amount within 1 business day, but to consider the possibility of providing a mortgage loan, the bank requires 5 business days.

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

Don't know your rights?

Collecting documents for a mortgage loan, subsequent registration with Rosreestr, servicing (extension of insurance and current income certificates) requires additional investments and time from the borrower.

Mortgage or loan: compare interest rates

Thanks to the activities of OJSC "Agency for Housing Mortgage Lending" (AHML), created by the Government of the Russian Federation in 1997 in accordance with Resolution No. 1010 of August 26, 1996, bank mortgage programs are continuously improved, registration conditions are simplified, and the interest rate is reduced.

Currently, the issuance of consumer loans is accompanied by an interest rate ranging from 15-22% per annum (express loans are quite expensive, they are not worth taking into account), and for mortgages the interest rate ranges from 10-15% 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 mandatory insurance of the collateral. Moreover, in the event of insured event, the funds will be used to compensate losses, first of all, to the bank, and not to the borrower, in accordance with clause 2 of Art. 36 Federal Law “On Mortgage (Pledge of Real Estate)”, current edition dated May 7, 2013, number 102-F3.

  While when insuring your own home without encumbrance, it is possible to receive compensation in the event of loss of housing for either the current or overhaul in the event of an insured event.

  The same can be said about compulsory insurance life and health 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 immediate family (in case of death). This is a fairly significant drawback of the imposed mortgage encumbrance.

• Independent housing assessment. With a mortgage, the cost of appraising the home falls entirely on the borrower and is mandatory. Drawing up other documents and bringing them into proper form also requires an initial investment.

Mortgage or loan: compare conditions

The most pleasant moment when applying for a mortgage is the right to implement a tax deduction (See How to get a property tax deduction for a mortgage in 2014) and cashing out maternity capital as a down payment (See. Mortgage against maternity capital: what are the conditions for the down payment?) .

It is also worth noting that the purchased property is checked for legal purity not only by the borrower, but also by the bank’s security service and the insurance company. Additional guarantees that the purchase/sale transaction will not be subsequently contested are provided by title insurance.

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

In the case of mortgages, banks react painfully to the registration of minor children or citizens with disabilities - because this causes difficulties in exercising the right of encumbrance if the borrower evades loan payments. For the borrower, such a condition is hardly acceptable; most of the benefits provided to them can only be received by these persons if they have permanent registration at their 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 “which is better: a mortgage or a loan.” In each individual case, both a loan and a mortgage may turn out to be the most profitable for a potential borrower.

What is the fundamental difference between a pledge and a mortgage? Despite the fact that a mortgage is essentially a type of collateral, the difference between these concepts is quite large.

Comparison of definitions

The first difference between a pledge agreement and a mortgage agreement is legal significance these concepts.

The definition of bail was given in Part 1 of Art. 334 Civil Code Russian Federation(hereinafter referred to as the Civil Code of the Russian Federation). Having analyzed this norm, we can say that a pledge is one of the ways to secure an obligation.

According to Part 1 of Art. 1 of the Federal Law “On Mortgage (Pledge of Real Estate)” (hereinafter referred to as the Federal Law), a mortgage is a pledge of real estate, a way to purchase residential real estate by receiving a loan from a bank for a certain amount. It should be returned within 10-15 or even more years. For some categories of the population (teachers, military, doctors, young professionals), the state provides certain benefits for obtaining a mortgage loan. For many people, a mortgage is the most convenient way to become a property owner without having large funds at their disposal.

The concept of a mortgage is much narrower than the concept of a pledge.

Subject of the agreement

The subject of the pledge in accordance with Part 1 of Art. 336 of the Civil Code of the Russian Federation can be almost any movable or real estate, including cars, equipment, jewelry and even property rights to the above objects. Thus, the list of property that can be mortgaged is enormous.

According to Federal Law“On mortgage (mortgage of real estate)”, the loan received is secured by the property acquired in this way. In case of debt, the debt is collected by selling the mortgaged property.

Subject

According to the Federal Law, mortgage lending can only be carried out by banks that are registered and have received a license to engage in banking activities in established law ok.

The pledge holder under a pledge agreement can be either a legal entity or individual. For example, pawnshops issue loans secured by various valuable property.

Mortgage lending is usually carried out only by banks.

Contract form

The form of the pledge agreement is provided for in Art. 339 of the Civil Code of the Russian Federation. According to Part 3 of this article, compliance with this agreement is sufficient written form. But there is an exception: if the contract provides an obligation under the contract, which according to the law must be notarized, then it should also be certified by a notary.

The mortgage agreement is necessarily subject to state registration (Part 1, Article 10 of the Federal Law). Without this he is insignificant.

Storage of pledged property

Since real estate taken on a mortgage is a way to secure a loan, there is an encumbrance on it. This means that without the written permission of the lender, it will not be possible to donate, sell, or even rent out the purchased apartment.

As for the collateral agreement, if you receive a loan, any valuable property, for example, a car or equipment, can ensure its payment. The property itself, for the purchase of which a loan was issued, may not be subject to encumbrances. The property may be held by the pledgor, pledgee, or deposited with a third party (Article 338 of the Civil Code of the Russian Federation).

The guarantee for a mortgage loan is always the property purchased under this agreement.

Value of the pledged property

In the case of a property pledge agreement, its value is determined by the parties themselves and is specified in the terms of the agreement. When concluding a mortgage agreement, the assessment of the property is determined by an expert who has the appropriate permission. The appraiser issues a detailed conclusion, where he indicates the market and liquid value of the appraised property, on the basis of which the bank determines the size of the mortgage.

Requirements for the pledgor

The requirements for a potential mortgagor are minimal. Sometimes all that is required to draw up a contract is a passport and full legal capacity.

The requirements for a mortgagee, when the mortgagor is also the borrower, are much higher. Each bank sets its own framework for those who want to get a mortgage loan, but in any case there are a number of basic requirements:

• age. Mortgages are issued to people over 21 years of age. Each banking organization has its own upper limits, but in any case, the bank calculates so that the loan is fully repaid before retirement age. If the borrower wishes to take advantage of the preferential program, then the age limits are even stricter;
• income level. The potential borrower must have sufficient high level income in order to be able to pay the debt on the issued mortgage loan.

The requirements for the mortgagor-borrower to obtain a mortgage are more stringent than for registering a pledge.

The need for insurance

The need to obtain insurance for purchased real estate is provided for in Article 31 of the Federal Law. Without it, it is impossible to obtain a mortgage loan. In addition, banks often independently establish the requirement to insure the borrower’s life, health, and ability to work. The need to purchase such insurance policies is not provided for at the legislative level, but without them the bank may simply refuse to issue an agreement. Annual insurance payments are usually about 1.5% of the total value of the property.

To obtain a regular pledge, insurance is usually not required.

Insurance of the subject of the mortgage is provided for at the legislative level.

Conclusion

Having studied the features of a mortgage and collateral, it becomes clear that the difference between these two is quite large. In fact, a mortgage is one of the types of collateral with a very narrow list of pledged property.

A loan to purchase a home is for many people a real chance to finally get their own apartment.

The conditions for obtaining such a loan are different; accordingly, they can be divided into two types: mortgage and Housing loan. Let's look at the difference between a mortgage and a loan.

What are the similarities and are there any differences?

These banking products have common features:

1. To get a loan, you need to make a down payment. The larger the amount, the more favorable lending conditions you can count on;
2. The amount of the contribution is determined individually, depending on the type of property being purchased and other conditions;
3. as soon as the agreement is signed, the borrower needs to repay the borrowed funds according to established schedule and with interest.

There are also some differences that you need to know in order to understand the difference between a mortgage and a loan:

• To obtain a mortgage, a potential borrower submits to the bank all documents that can confirm his solvency. And in order to take out a home loan, the seller of the home provides the buyer with an installment plan;
• An apartment purchased with a mortgage becomes the property of the client from the first day of execution of the contract, but until the debt is repaid, it is encumbered by collateral. If housing is purchased on credit, then until the debt is repaid, the buyer does not have ownership rights to it;
• Mortgage terms are about 30 years; a housing loan is given for only 25 (sometimes more) months.

Now about all these features in more detail.

Main differences

Both methods allow you to purchase real estate using borrowed funds. Payment, urgency and repayment are the main principles of such transactions.

According to the mortgage loan agreement, the borrower receives ownership of the apartment, which is encumbered with collateral until the debt is fully repaid. The debt and interest for the use of money must be repaid according to the agreement. If any financial difficulties arise, you can reach an agreement with the creditor and sell the home or restructure the debt.

The terms of a home loan are more convenient at first glance, but a loan from a developer is also issued under fairly strict conditions. The average loan term is 5-7 months, regarding maximum amount loan - it is lower than with a mortgage.

This is due to the fact that before signing the contract, the bank carries out a lot of checks and determines the reliability and creditworthiness of the borrower. Based on this data, the bank’s potential risks are assessed, after which a loan is issued.

The main difference between a home loan and a mortgage is the amount. In the first case, without collateral you can get much less than with a mortgage. But if the client uses the money to pay only part of the cost and he already has the main amount on hand, then such a deal is clearly profitable. In addition, the seller can meet halfway when concluding a deal.

The popularity of mortgages is also due to the fact that the payment terms are 20-30 years. Thus, monthly payments are slightly reduced and even despite the overpayment, at the moment paying is not very strained on the budget.

But in the end, compared to a housing loan, the overpayment percentage is much higher. It seems to be profitable to take out a mortgage, but due to the costs of insurance and the need to provide collateral, the benefits disappear.

As for the financial issue, housing debt may be less of a burden for the borrower than a mortgage. It is best taken by people with high incomes who are able to repay the debt in full within a couple of years. But the seller usually offers quite low interest– only 2% or a little more.

A mortgage will be a more optimal solution for families who have a small but stable income. Often this is the only opportunity to buy a home, even with large overpayments. If the borrower already has about 50% of the cost, then the debt burden is reduced several times. Also, you can almost always pay off your mortgage early.

Now that you understand the difference between a mortgage and a home loan, you can draw conclusions and decide what advantages each of these transactions has.

What are the advantages and disadvantages of these loan products?

First, let's look at the pros and cons of a mortgage:

1. This type of lending is so attractive to borrowers primarily because it gives quite a lot of time to repay the loan;
2. for most clients with an average salary level, the rates are relatively acceptable, and in order to stand out from similar offers from competing banks, lending conditions are sometimes revised. So you can get more profitable proposition;
3. you can easily find a lender, since there are plenty of offers;
4. After signing the contract, you can move into the chosen apartment. But although the borrower is considered the owner, the housing is pledged until the debt is repaid;
5. To obtain a mortgage, you need to collect a lot of documents, and also spend money on concluding a home and life insurance agreement for the borrower, and this is a lot of money. If insurance is refused, the bank has the right to increase the interest rate by 5% or higher;
6. It is impossible to conclude a deal without conducting an independent one.

For comparison, we will tell you the pros and cons of buying real estate using a home loan:

• It is relatively easy to get a loan;
• there is no need to take out expensive insurance;
• the loan term is much shorter than with a mortgage, so the amount of monthly payments can be very serious;
• at the same time, the interest rate for using money is minimal - 2.3%;
• You can get a small amount (usually no more than 1.5 million rubles) and the loan terms are limited.

In any case, choose more suitable option necessary based on specific circumstances in the family. If you have the financial ability to handle large payments, then it is better to take out a home loan. Otherwise, a simple mortgage will be more profitable.

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• Duration up to 5 years;
• Loan up to 1,000,000 rubles;
• Interest rate from 11.99%.

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• According to the passport, without certificates;
• Loan up to 15,000,000 rubles;
• Interest rate from 9.99%.

Loan from Eastern Bank

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• Duration up to 20 years;
• Loan up to 15,000,000 rubles;
• Interest rate from 12%.

Loan from Raiffeisenbank

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• Duration up to 10 years;
• Loan up to 15,000,000 rubles;
• Interest rate from 13%.

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• The solution is instant;
• Loan up to 200,000 rubles only with a passport;
• Interest rate from 11%.

Loan from Home Credit Bank.

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• Duration up to 4 years;
• Loan up to 850,000 rubles;
• Interest rate from 11.9%.

Loan from Sovcombank.