Is it profitable to take out a mortgage now, based on the economic situation? Is it worth taking out a mortgage now? Should you take out a mortgage now or wait?

The habit of saving money and storing it in a pillow (at best, in a bank account) was inherited from grandparents who carefully put money in savings books and were afraid to spend an extra penny. Everyone knows what such frugality led to: savings depreciated and if previously the family could afford to buy a car, then just two days later it was impossible to even buy a box of matches for the same money.

Some still believe that it is better to save for 10 years on real estate than to get involved with a mortgage. After all, firstly, banks profit from their clients, receiving almost double benefits from each loan. I took four million for a one-room apartment and gave it back eight. But you could buy a two-room apartment for eight. And, secondly, in case of delay, you can lose everything. In fact, if you approach the purchase of a home with a mortgage wisely, you can, a couple of months after contacting the bank, already live in your own home, paying the same monthly amount as for renting a similar property.

So, for example, let’s take a one-room apartment in the near Moscow region for 2.5 million rubles. The average salary in the capital, according to Rosstat, is 67.8 thousand rubles. We subtract 13% of income tax from it, as a result the employee receives just under 60 thousand rubles. Let's imagine that a person has a place to live (for example, with his parents) and does not pay rent. But he needs to eat, travel to and from work, get dressed, pay for his mobile phone and internet. We set aside at least 20 thousand rubles a month for expenses (although the cost of living in Russia is 17.6 thousand rubles. In total, he will be able to save 40 thousand rubles monthly. Ideally, you can save up for an apartment in five and a half years. But do not forget about inflation when money instantly depreciates. Plus, sometimes it is tempting to take a little from your savings, for example, for a trip to the sea, for gifts, for new gadgets.

If a person rents a house and gives “someone else’s uncle” about 25 thousand rubles a month, then he will be able to save 15 thousand rubles. In total, he will be able to become the owner of his own apartment, at best, in 14 years. And during this time he will limit himself in everything. The figures are provided subject to stability in prices for both food and housing.

Advantages of a mortgage

The most important advantage of a mortgage over a lease is the availability of an asset that will only grow in value every year. If problems arise, you can sell and even after paying off debts to banks, there will be money left over. Now mortgage rates are not so high; the same Sberbank offers options at only 8% per annum. Plus, a down payment is not required everywhere; some construction companies are ready to enter into an agreement without an advance payment.

In addition, if this is the purchase of a first home, the buyer receives a property tax deduction, which can be used to partially repay the mortgage. You can “reduce” the amount with the help of maternity capital. And if loan rates drop in the future, the client can simply contact the bank to refinance the loan. We subtract the maternal capital from 2.5 million 453 thousand, as a result, the mortgage is taken for 2 million rubles. But let's consider the option where the apartment is purchased on general terms and there is a down payment of 375 thousand. If you pay 40 thousand rubles monthly, you will pay off the debt in 6 years. But at the same time you will have your own housing. If you take out a loan for 10 years, you will have to pay only 28 thousand rubles. The interest rate in this case is 10%.

If you buy a property from certain developers at 8% per annum, then you can pay off the mortgage in 7 years, paying 33.2 thousand rubles each.

When is the best time to buy your own home?

It is better to take out a mortgage if:

you have a stable income, you have worked in one place for more than 6 months;

the mortgage payment is equal to the rental rate or, if it exceeds, then not by much;

housing prices are rising faster than savings can be achieved;

purchasing real estate will not affect the family’s well-being.

But it is better to rent if there is no confidence in the future, salaries are paid with delays, there is no certainty about the place of residence, rent is an order of magnitude lower than monthly mortgage payments.

Your own housing in Moscow

Thus, according to studies, teachers (at least 19 years), medical personnel (about 15 years), engineers (12 or more years) will save the longest for their housing in the capital, and the least of all will be managers and top managers of serious companies.

“Considering that a one-room apartment in Moscow costs about 7 million rubles, it makes sense to collect for housing for people with a salary of 90 thousand rubles a month, and this takes into account that this entire amount will not be spent. Those. If the spouses have such income in the family, they can afford to save this money. True, in this case, it is still more relevant to purchase real estate with a mortgage,” shares his opinion Alexey Shmonov, CEO and co-founder of the Internet portal about real estate website.

According to experts, when compared with prices and wages over the past 5 years, saving now is a little easier and faster. The term was reduced by an average of 2-3 years (for example, instead of 22 to 19). But, again, this is provided that all income will be deferred for the purchase. Don’t forget that many still rent apartments in Moscow, so this option is unrealistic for them. Therefore, it is not surprising that last month the number of mortgage loans repeated the record of 2014. In July, more than 84 thousand loans were issued. Since May of this year, mortgage issuance volumes have been growing by leaps and bounds. The reason is low interest rates on home loans. Not only bank representatives, but also Russian residents themselves are talking about the increased affordability of housing and mortgage loans. If the rate drops to 6% and the same conditions for borrowers remain, then the majority of citizens of our vast homeland will be able to afford their own housing.

Things are quite complicated in Russia now, and many citizens are thinking about ensuring the safety of their savings by investing them in buying an apartment. Some people plan to invest in real estate using personal funds, others rely on a bank loan. But is it worth taking out a mortgage now? Perhaps there are better ways to invest?

Mortgage in crisis: two groups of indicators

To answer the question of whether it is worth taking out a mortgage now, when a difficult economic situation has developed in Russia, it will be useful to first analyze what are the key components of the banking crisis, which analysts talk about so much. Then we will try to determine how much the EU and US sanctions against Russia are to blame for the current situation - they are assigned a key role in the fact that crisis trends have arisen in the Russian economy.

So, what are the problems in the Russian national banking system? Experts identify two main groups of crisis indicators, which, in turn, are formed under the influence of a large number of different factors.

Solvency crisis

The first crisis indicator: the solvency of the population is declining. People simply cannot afford to take out new loans. This, in turn, is due to the following main factors.

Firstly, with rising inflation, increasing prices for most consumer goods, especially imported ones. The most noticeable increase in the cost of household appliances. And this despite the fact that real wages, if they grow, are not in commensurate proportions. Prices for housing and communal services and transport are also growing steadily. Result: citizens have no available funds to service loans.

Secondly, this is the debt burden of a significant part of citizens. Many people are not so much thinking about whether it is worth taking out a mortgage now, but rather about how to pay off previous loans. Many Russians have difficulty paying off their current debt.

Now let’s try to determine how economic sanctions against Russia influenced the emergence of the first crisis indicator. Regarding the first factor, there is probably an influence. Experts associate the rise in food prices with the Russian food embargo against European suppliers - and this is somehow connected with sanctions. This is the Russian answer to them. Regarding the second factor, most likely, the guilt of the sanctions here is relative. The fact is that the bulk of loans were issued by Russians long before the political situation worsened.

We will probably also have the right to note that both factors that form the corresponding indicator are interconnected. The rise in prices of products and services obviously further limits the solvency of a potential borrower, provided that he has loans.

Banking crisis

The second crisis indicator: the deterioration of the situation in banks, as a result - the inability of financial institutions to issue loans, including mortgages, and also to offer them on terms that are comfortable for the consumer. The factors of the current situation, in turn, are as follows.

Firstly, banks now have extremely limited free capital. In order to issue something to borrowers, banks must have something. The liquidity of Russian credit institutions is assessed by many experts as low.

Secondly, banks, oddly enough, are in a similar situation with borrowers - in terms of debt load. The fact is that they themselves owe a lot to whom - foreign creditors, the Russian Central Bank.

In turn, let’s try to determine whether sanctions are to blame for the current situation? Many experts believe this is true. Why? Proponents of this point of view focus on the fact that a significant part of Russian financial institutions are debtors of foreign creditors. In the years before the sanctions, they actively carried out external loans, taking advantage of the attractive interest conditions. Debt repayment was largely expected through refinancing mechanisms - through new foreign loans. Now, when, under the conditions of sanctions, Russian banks have practically lost the opportunity to lend abroad, financiers need to look for new sources for payments. Many credit institutions, analysts say, do not have their own reserves for this. And even more so, they do not have the capital to issue it as loans.

Is the situation in banks the priority?

Forecasts regarding how mortgages will develop and what to expect from the market largely depend, analysts believe, on the real state of affairs in banks. The aspect reflecting the activity of potential borrowers is secondary at this stage. Even if Russians did not have solvency problems dictated by rising prices (especially for electronics and other imported goods) and the lack of real wage growth, the situation in the banking industry itself is too far from optimal for the mortgage market to develop as actively as in the last few years, economists believe.

Pay back on interest

Most likely, analysts believe that if banks want to actively lend to citizens in a crisis, they will do so by significantly increasing interest rates. Or by extremely tightening the criteria for loan approval. Thus, a scenario is quite possible in which a person does not even have to think about whether it is worth taking out a mortgage now. Most likely, the bank simply will not be able to provide a loan on comfortable terms. Or it will completely refuse the application due to internal crisis reasons. Does it make sense to take out a mortgage now when the situation in banks is far from optimal? Many experts believe that such decisions are not yet very justified.

If the application is approved

Let's consider a successful scenario - let's say a Russian person has no problems with existing loans, he has a high salary, and the bank, in principle, is ready to provide him with a loan to buy a home. Should this citizen take out a mortgage now? The answer to this question can be given based on studying the key aspect of the upcoming transaction: won’t it turn out that after buying an apartment after some time it will become so cheaper that the mortgage will be unprofitable for a person?

In this aspect, when deciding whether to take out a mortgage now, it is most advisable to study the market not so much from the point of view of the crisis situation in banks and sanctions, but in terms of analyzing trends that reflect the dynamics of the purchase and sale of real estate. Of course, the political situation plays some role here. But the key factor in the prospects of investing in housing, experts say, is the state of affairs in the relevant market.

The situation on the real estate market

How are things going in the real estate segment? Is it profitable to take out a mortgage now from the point of view of the expected movement of housing prices? Experts identify three probable scenarios regarding the prospects for market development.

According to the first, real estate prices in the coming years will remain at a level more or less corresponding to the current one. Proponents of this point of view believe that today's real estate market in terms of pricing and the relationship between supply and demand is sufficiently balanced. A potential decrease in purchasing activity due to restrictions on lending by banks and the low solvency of borrowers, economists believe, will be accompanied by a corresponding decrease in supply - largely due to the fact that home owners will prefer to wait out the crisis and not sell their homes too cheaply. Is it profitable to take out a mortgage now in relation to this scenario? Probably not very much. Prices will remain the same, but the bank will have to pay interest, which, moreover, will most likely be high due to the crisis.

However, it makes sense to take out an apartment on credit if a person is currently renting a home, and the expected amount of payments will be commensurate with rental rates. However, this option presupposes that the citizen has a significant amount for the down payment on the mortgage. And in this case, it will probably be more profitable to arrange it as a deposit, receive interest, from which, in turn, pay for the rented apartment. Some banks now offer deposits of 20% per annum or more. This is due, according to analysts, to an increase in the Central Bank refinancing rate, which rose to 17% in December. If we take the scenario discussed above as a basis, then from an investment point of view the deposit will look more profitable than investing in an apartment - it is unlikely that it, in this case, will rise in price by 20% per year, and then by the same amount, while in the case With a deposit, interest accrual is carried out by the bank in progression.

The second scenario assumes that real estate prices will still rise. This will be associated primarily with inflationary processes. It is expected, for example, that based on the results of economic development in 2014, the corresponding figure will exceed 11%. Even if demand in the real estate market is not sufficiently dynamic, experts believe, an increase in housing prices, in general, can be expected in proportions to inflation. Is it worth taking out a mortgage now, given this scenario?

Most likely, the guidelines for a potential buyer in this case will be approximately the same as in the case of the first option. That is, you can take out a loan for an apartment if the property is currently being rented, and the interest payments will be the same or not much more than the rent. Or make a deposit for the amount collected for the down payment, receive interest and use this to pay for rent.

The third scenario assumes a decrease in housing prices. This will be due, in turn, to a possible imbalance between supply and demand in the market, which may be fueled by the fact that in recent years a significant stock of new buildings has been introduced in Russia. Although a significant part of the apartments built within the framework of such projects are shared apartments, a significant percentage of them will subsequently be sold at market prices or, for example, resold. This could create what some economists believe is an oversupply in the housing market.

Probably, if you follow this scenario, there is no point in even wondering whether it is worth taking out a mortgage now. Of course, this will not be the optimal option. If we are talking about finding profitable investments, then you can pay attention to deposits. If there is a need for housing, it is better to rent it for now, especially since the corresponding rates, as a rule, decrease following the purchase and sale segment.

Factors are interconnected

Of course, each of the scenarios in the real estate market largely depends on the situation in the banking sector and on the level of solvency of citizens. Therefore, we can say that the crisis factors discussed above also directly affect the housing market, as well as any other. At the same time, experts still believe that objective market mechanisms are formed under the influence of the noted factors to a limited extent. Criteria that reflect the real need of Russians for certain types of housing, taking into account the influence of migration processes, changes in apartment construction technologies, etc. are very important.

Dollar rate factor

Some experts, however, consider it permissible to highlight a fourth scenario, which involves a significant increase in real estate prices due to the influence of a unique, in a sense, factor. As you know, the dollar exchange rate against the ruble almost doubled in 2014. However, most currencies of other developing countries, including CIS countries, have not depreciated as much as the American one. As a result, the average salary in dollars in Russia and, say, Kazakhstan has practically leveled off, or even, perhaps, has become inferior to that established in the neighboring country. As a result, apartments in the Russian Federation in terms of, say, steel in a number of segments are significantly cheaper than their neighbors. Citizens of Kazakhstan end up coming to Russia and buying housing here. This trend, as some economists suggest, may continue and also intensify due to similar activity by residents of other neighboring countries - Belarus, Azerbaijan, the Baltic states, and possibly China. This may, to some extent, fuel the demand for real estate and cause prices to rise at a rate exceeding inflation.

Perhaps a person should study, when deciding whether to take out a mortgage, the opinions of experts regarding the fourth scenario, but only if he lives in a border city. That is, this option can be classified as localized.

conclusions

Thus, we have identified the main factors determining the crisis trends in the real estate market and examined the main scenarios, the study of which will allow us to decide whether it is worth taking out a mortgage for an apartment in today’s market situation.

Let's try to summarize. So, there is a crisis in the bank lending market. Banks, in all likelihood, will not be able to issue loans with the same dynamics as they did in previous years, and on the same interest terms. Borrowers, in turn, will not always have an objective ability to pay the mortgage. The consequence is a decrease in demand. The reason for the banking crisis is the political situation. Therefore, when deciding whether to take out a mortgage now, when there are EU and US sanctions against Russia, we probably say no. We need to wait until the situation in banks stabilizes, they find new sources of loans to pay off existing obligations, or the Government will help them with this.

The second factor that may influence the decision about whether to take out a mortgage right now is the situation on the Russian real estate market. Economists identify three basic scenarios. This is price stabilization, a slight increase commensurate with inflation, or a decrease. Or, if a person lives in a border city, a slight increase in the cost of apartments.

Is it worth taking out a mortgage? The pros and cons of this decision in relation to the current market situation are quite obvious. Among the positive aspects is the opportunity to invest profitably if demand grows in the near future. Economists, although they recognize the significant depth of the current crisis, believe that the situation will improve in the foreseeable future - due to a possible return in oil prices, import substitution, and diversification of the country's economy. Also, investing in real estate will at least ensure the safety of monetary investments in relation to inflation. Among the negative aspects of the decision to purchase a home is that the likelihood of prices falling or their lack of growth is quite high. Neither one nor the other will be beneficial for the buyer of the apartment. Also, most likely, at this stage, banks will not be able to offer the borrower comfortable interest conditions.

It's no secret that real estate prices on the domestic market - be it secondary housing or square meters in a new building - are very high. For most people, even those with a stable average income, purchasing an apartment is almost impossible. It will take a very long time to save for such a purchase, and no one can put off solving housing problems for ten years.

You can solve your housing problem by taking out a mortgage loan. This financial instrument was created specifically for financing purchases in the real estate sector and assumes: a large loan amount and a long repayment period.

Advantages and disadvantages of a mortgage

Like any other financial instrument, an apartment loan has a number of advantages and disadvantages that should be taken into account before applying to a financial institution for such a loan.

Advantages of a mortgage - why is it worth taking?

To answer the question of whether or not it’s worth taking out a home mortgage, you need to look at the advantages of this decision. Customer reviews highlight the following: positive sides:

1. This tool allows a person to become the owner of a home without having to pay its full cost. It is enough to save up a down payment (usually the amount of this contribution in different banks varies from 10% to 30% of the total cost of the selected housing).
2. Opportunity to move into your own apartment immediately after purchase. Even housing purchased with borrowed funds becomes the property of the borrower. At the bank, he registers it as collateral in case he cannot repay the loan funds.
3. Minimum waiting period. The waiting period for acquiring your own real estate in this case is equal to the period for obtaining a mortgage loan. This, of course, does not happen instantly - as a rule, such a process can take two to three months.
4. Tax deduction. After processing a loan, the amount of income tax is calculated not from the full amount of the borrower’s income, but from the balance (it is calculated by subtracting the amount of the monthly loan payment from the amount of monthly income).
5. Possibility of obtaining a social mortgage. The difference from the usual one is that the state participates in paying the cost of housing - this can be a partial refund of the down payment or subsidizing the interest paid.

Disadvantages of a mortgage loan

Before you take out a mortgage, you should understand what negative sides she has. Among them are:

1. High final cost of housing and long payment terms. Due to the fact that the mortgage is issued for many years (usually ten or more), the bank's remuneration (in other words, interest) ultimately amounts to a substantial amount, comparable (and sometimes exceeding) the cost of the apartment itself. Simply put, a person takes out a loan and buys one apartment, and he pays the bank two and sometimes three times more money.
2. Additional payments. In addition to regular loan payments, the terms of the agreement oblige the borrower to take out property insurance at least annually, and the property will have to be insured against all possible risks. Some banks also issue an insurance policy for the borrower himself. It's not free, and you have to renew the insurance annually until the loan is paid off.
3. Commissions upon registration. When applying for this type of loan, you need to be prepared for the fact that you will have to pay additionally for almost everything: for the registration itself, for reviewing the application, for withdrawing funds, for assessing the property. This list can be very long, and the total amount of such payments sometimes reaches 10-15% of the down payment.
4. Until the mortgage is paid, the borrower has no right to sell, exchange, bequeath or otherwise dispose of his property without the consent of the bank.
5. Strict requirements for the borrower. The credit institution has strict requirements regulating the need for a stable income, length of service, age of the borrower and much more. Such strict criteria make mortgages inaccessible to pensioners, students, and young families.

Therefore, the pros and cons of a mortgage should be carefully analyzed on a case-by-case basis.

What is more profitable: rent or mortgage?

What is more profitable: mortgage or rent? This question is asked by a huge number of Russian citizens today. It should be understood that each case is individual. However, you can make a small comparison of these options based on several criteria.

With a mortgage, ownership of the property is transferred to the borrower immediately after execution of the contract. When renting, the apartment, regardless of the length of stay, does not belong to the residents.

But there are also advantages to renting - you can live in good housing without having absolutely any savings. In order to obtain a mortgage, you will need to raise funds for a down payment.

In addition, monthly payments for rent are usually significantly lower. But when you take out real estate on credit, payments will sooner or later stop. When renting, repairs and maintenance of the apartment most often fall entirely on the shoulders of the landlord.

Some people cite a high degree of mobility as an advantage of renting. That is, it is possible, if necessary, to change your place of residence much more easily.

As can be seen from the comparison, an apartment with a mortgage can be a more profitable option for those who already have a certain amount of savings, a stable income, and do not plan to move to another locality in the near future. In all other cases, the rental option is more suitable.

Mortgage 2019 – to take or not to take?

Should you take out a mortgage in 2019? For those thinking about it, you should know that most experts agree that next year will be a good year for the mortgage market. It is not yet clear whether interest rates will decline, but existing and new government support programs will make this financial product more accessible.

Should I take out a mortgage this year or wait?

There is another question that worries many people: is it worth taking out a mortgage this year now or is it better to wait. The answer to this question should only be given on an individual basis, since it depends primarily on the stability of the potential borrower’s income and the prospects for their preservation and growth.

Real estate experts predict a 5 percent increase in property values ​​over the next few years. In addition, in 2019 one can observe a decrease in mortgage rates in almost all banks. The rate is about 10% under the standard program, and 6% per annum under the mortgage program for young families - today this is a tempting offer to acquire your own home!

Should I take it or is it better to save it?

Thus, those who decide Is it worth taking out a mortgage or is it better to save up?, we can advise you to weigh the pros and cons. It can be very difficult to collect such an amount. Often, with a stable income, it is much easier to get a loan. In this case, you can make monthly payments in excess of the regular payment. Most credit institutions allow partial early repayment. With it, you can reduce not only the term, but also the amount of payment. As a result, with an accelerated interest calculation scheme, the bank is paid less, and the apartment belongs to the borrower.

Last update: 01/30/2019

Regarding crises, then in the picture below you can see the change in the dollar exchange rate from 1998 to the beginning of 2019.

I think there is no need to write about 1998 and 2014 (August 2008 – military conflict with Georgia). True, in 1998 the population had practically no money, but in the face of new shocks they accumulated some fat and endured everything much easier.

This is about it that crises happen with enviable regularity. Once every 5-10-15 years, but difficult times come. Putting your life on hold because of this is simply stupid.

Instead, it is better to take all possible measures to protect yourself.

Mortgage fear and how to deal with it

What scares you the most about a mortgage?

First of all, these are long loan terms: 5, 10, 15, 20 years.

Is this really scary? Will you really have to pay all these years and won’t be able to pay it off sooner?

No no and one more time no!

Keep in mind that no matter what type of payment you choose, if you start paying off early, you can reduce the overpayment and the mortgage term ().

Example. Calculate how much your salary has increased over the past 5 years. Now imagine if you took out a mortgage 5 years ago, you could now start paying it off ahead of schedule, because... payments remained the same.

Calculation of the period for which it is more profitable to take out a mortgage

Don't be intimidated by a 20-year mortgage if you have a fixed interest rate. In just 4-5 years you will begin to pay off your debt ahead of schedule and payments will not be so burdensome for you.

Disadvantages of a mortgage loan to remember

Since the cost of real estate is quite high, and one’s own savings are often not enough, therefore a large amount is taken out on credit for a long period of time ( 10-15-20 years).

This leads to several disadvantages of buying an apartment/house with a mortgage:

1. Paying for so long can be mentally difficult.
2. There is a risk of losing a source of income and incurring debt to the bank (read also how possible).
3. To formalize the purchase of an apartment in and spend more time waiting for the application to be approved by the bank.
4. You will have to pay for insurance annually (be sure to read).
5. You must have money for a down payment.
6. Large overpayment on the loan if not repaid early. Accordingly, the longer the term and amount of the loan, the more money you will have to pay.
7. An encumbrance is placed on the apartment and in case of non-payment it can be lost.
8. Selling such an apartment will be more difficult.

Advantages of a mortgage loan that should not be forgotten

Now let’s get acquainted with the advantages of a mortgage in order to ultimately decide whether to take out a mortgage.

1. Buying an apartment with a mortgage is much safer than just through a real estate agency, because the bank at least somehow checks the documents and is interested in ensuring that no problems arise in the future (not a 100% guarantee, but something). This way you can even arrange everything without realtors and save on commissions. The only thing is that you need to compose it correctly, but it’s not that difficult, some banks even give you their own form.
2. A mortgage loan usually has a lower interest rate than a consumer loan.
3. Registration of documents for mortgage transactions takes place in just 7 days.
4. A mortgage allows you to buy a home much earlier than if you save money for it. This is especially true for those who live in a rented apartment. It’s one thing to pay for your own house and another when you have to pay for someone else’s apartment (possibly purchased with a mortgage). About what is more profitable, mortgage or rent, .
5. Another plus- this is that if you save money, then inflation will “eat it up”, while the purchased apartment, on the contrary, becomes more expensive. Again, due to inflation, payments will become less and less burdensome from year to year.
6. You can get a deduction() from the interest paid on the mortgage and thereby get back 13% of the amount spent (), and then make it as an early payment on the mortgage (the overpayment and term will be reduced).
7. If problems with money still arise, no one will kick you out of the apartment so easily. You can take a credit holiday.

Mortgage risks and dangers to consider

Let's consider the most likely risks associated with a long loan term and a large amount.

1. You may lose your source of income(for example, fired from work), BUT in this case, you can ask the bank for a deferment in the payment of the principal debt (credit holiday). And it’s hard to believe that someone will sit idle, for the first time a job not in their specialty or one that pays less can always be found - some verified options on how to make money on the Internet (without cheating).
2. To be more relaxed in this regard, it is better in the form of 3 monthly payments.
3. Health problems may arise. In this case, a nest egg + health insurance will save you. Not a 100% guarantee, but still much calmer.
4. Recognition of the transaction as invalid. To do this, you can get title insurance. What is it, read the link.

These are the main problems that may arise.

Example, If in one family a decrease in income by 50% will not particularly affect the ability to pay the loan, then in another it will lead to late payments on the mortgage loan. I don’t think there is any need to explain what will happen if one of the family members loses income.

Assess all risks correctly and leave a reserve amount for at least several months of payments.

How to pay off your mortgage early?

It's simple, we use property deduction, the maximum amount is 260 thousand rubles+ some other part is returned from the interest paid to the bank.

Of course, you won’t be able to pay off your entire mortgage ahead of schedule, but it’s quite possible to partially reduce the burden. This is also true in 2019.

Welcome! Today we’ll talk about whether it’s worth taking out a mortgage at all. In fact, our readers regularly ask this question, so our experts will tell you in this article when it is worth taking a mortgage and when not, how to evaluate the pros and cons of a mortgage bank and offer, whether it is worth taking a mortgage in 2019 or is it better to wait.

Before you take out a mortgage for an apartment, you should not only assess your financial capabilities, but also study market indicators.

Market indicators

First of all, pay attention to the interest rate. The lower it is, the less the overpayment will be. In our country, if the mortgage rate is less than 11-12%, the deal is considered profitable.

If you look at it on a large scale, the increase in the level of interest on loans depends on the following factors:

• due to the introduction of international sanctions, the influx of investment into the Russian economy has decreased;
• at the same time, export prices for oil decrease and the ruble depreciates;
• It becomes more difficult for banks to attract new capital, as a result of which interest rates on loans rise.

Also take into account the current dollar exchange rate and its tendency to rise or fall. If the dollar rises against the ruble, it means that the Central Bank refinancing rate will increase. This, in turn, will entail an increase in loan rates, incl. and on mortgages.

For example, when there was a jump in exchange rates in 2014, mortgage rates rose to 17-18% per annum. Many borrowers were simply scared to take out a long-term loan at such interest rates, but there was no way out.

Therefore, if a mortgage is issued at a low interest rate, and the foreign exchange market is stable, it’s time to apply for a mortgage now.

Own capabilities

When thinking about how to decide on a mortgage, evaluate the following parameters:

• your income;
• desired loan size;
• expected repayment period.

Based on these data, knowing the interest rate, you can calculate the size of the monthly payment and draw conclusions about the possibility and feasibility of obtaining a mortgage.

Also consider the following factors:

• additional income (for example, investment or from deposits, or an existing part-time job);
• already having loans and other obligatory payments.

Assess whether you will be able to pay the bank the amount of the established payment every month for a long time or not. How stable is your income, will it be enough to have enough money not only to repay the loan, but also for everyday life.

You can find out about this from our previous post.

Pros of a mortgage

Of course, such a loan is not cheap, but the positive aspects of a mortgage justify the risks:

1. You don't need to save a large sum over many years to buy a home. You can become the owner of an apartment or house right now. To do this, you only need to have on hand the amount of the down payment. And the period during which the loan is issued, as a rule, does not last more than 1-2 months.
2. You can move into the apartment immediately after completing the transaction.
3. When applying for a mortgage, you can use one of the government social programs, if there are grounds for this. For example, you can receive a subsidy or maternity capital funds, with the help of which part of the debt will be repaid.
4. By taking out a mortgage on an apartment, you can get a tax deduction.
5. Even if you lose your job, you can contact the bank with an application for a deferred payment.
6. The interest rate is lower than on a consumer loan.

If the loan rate is low, your income allows it, and even more so it is possible to receive a subsidy, you should not be afraid to take out a mortgage on your home. Yes, with a mortgage loan, you will have to make monthly payments to the bank, but in return you will get your own home.

When not to take out a mortgage

Before deciding to take such a responsible step, you should think carefully. Perhaps now is the time when it is better to hold off on taking out a mortgage loan.

Market indicators

You should not make a hasty decision and apply for a mortgage if the situation on the foreign exchange market is not stable. If the dollar/ruble exchange rate is growing rapidly, then banks may raise loan rates. In times of economic crisis, there were often cases when borrowers submitted an application at one percent, and by the time it was approved, the bank set an increased rate. There was no way out; there was no way to buy a home for several million rubles, so many decided to take out a mortgage on less favorable terms.

Someone will say: “I’m afraid!”, and they will be right. After all, at a high rate, the overpayment even for 10 years will be more than the cost of the apartment itself.

It is also risky to draw up a mortgage agreement not in Russian rubles, but in US dollars or Euros. As the exchange rate rises, monthly payments in ruble equivalent will increase many times over.

Own risks

A responsible borrower, as a rule, is afraid to take out a home loan if the company in which he works is unstable, there is a risk of dismissal or a change in professional field. To be sure of your solvency, evaluate the reliability of your workplace at least for the period of validity of the mortgage agreement.

Do not take out a mortgage if you are planning to move in the near future.

Is it possible to get a mortgage loan with a low income? It is possible, but you should consider the following:

• what amount will remain after repayment of all obligatory payments;
• will it be enough to live on;
• with a minimum payment amount, the loan term will be the maximum possible (up to 30 years).

Cons of a mortgage

So that the borrower personally and his family are not afraid to take out an apartment on credit, it is necessary to assess in advance all the consequences of concluding an agreement:

1. The housing will be pledged to the bank. Therefore, it cannot be sold until the loan is fully repaid.
2. The borrower assumes long-term financial obligations to make regular payments of a significant amount.
3. When concluding an agreement, the bank client also bears additional costs for real estate valuation and insurance. Often, when applying for a mortgage, it is customary to insure not only the property, but also the life and work capacity of the borrower.

Mortgage in 2019

Let's consider whether it's worth taking out a mortgage this year. Most likely, yes, because the market situation is now quite favorable for concluding such transactions.

1. Banks provide mortgage loans at 9-11% per annum.
2. There has been a tendency for rates to stabilize after the increase. Forecast for the end of the year - mortgage at 11-12%.
3. The exchange rate is quite stable.
4. The maternity capital program continues to operate. You can’t take it in cash, but it is possible to pay off part of the debt for housing.
5. Prices on the secondary housing market are now almost minimal.
6. Some developers offer a program in which you can provide existing housing as a down payment.
7. Valid for new buildings for families with children.

How to make money on a mortgage

With a mortgage loan, you can not only purchase a home, but also make money on it.

Method 1

If you have a main apartment for living, then having the amount of the down payment, you can take out a mortgage on the apartment from the bank and then rent it out.

The main thing is that the amount that renters will pay is equal to or greater than the monthly loan payment. Thus, all expenses under the loan agreement will be covered by the rent, and in the end you will become the owner of the home that others actually paid for. If the rent also exceeds the loan payments, then in addition to the apartment itself you will also receive additional income.

Method 2

Having a substantial monthly income, you can take out a mortgage for an apartment in a new building under construction. In this case, its price will be an order of magnitude lower than the market price compared to when the house is completed.

At the same time, it is worth taking out a mortgage for a short period in order to pay off the loan as quickly as possible, and the overpayment is minimal. After a while, when the loan is repaid and the house is rented out for housing, this apartment can be sold at a much higher price than it was purchased, taking into account loan costs.

Method 3

Play on falling real estate prices. Now is one of the best times to buy real estate, as there is a chance to buy a resale option with a good discount. A large number of unsold apartments have accumulated on the market; if you manage to find a good deal and sell at the seller’s price, then after the inevitable rise in real estate prices you will be able to sell the apartment with a plus, even taking into account interest.

How to choose a bank to conclude a mortgage transaction

When deciding to take out a mortgage, it is important not only to assess the situation on the real estate market and financial risks, but also to choose the right bank.

Why is it not always profitable to go to the financial institution with the lowest interest rate? The fact is that in addition to the annual mortgage rate, there are also other conditions. To understand where it is better to draw up an agreement, pay attention to the following parameters:

1. Amount of fines and penalties for late payment.
2. Is there a fee for issuing a loan and in what amount?
3. Is there a possibility of early repayment and under what conditions?
4. Explore your options for paying monthly payments (whether you need to go to a bank or have an online transfer option).
5. Ask the bank manager to calculate the total cost of the loan over the entire repayment period. Compare this amount with offers from other banks.
6. Find out if the bank has any additional mortgage programs. For example, for young families or for the military.

Deciding on a mortgage is not easy, but if you correctly assess all the risks and your opportunities, then this is a real way to become the owner of your own home not in the distant future, but right now. Moreover, at the time of execution of the contract, the cost of the apartment is “fixed”, and many years later, by the time payments are completed, this amount will be much less than the real cost of housing at the time of closing the loan agreement.

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