Mortgage: maximum maturity

Mortgage for many citizens of our country is the only option to purchase their living space. It is considered a long-term banking product, which is associated with a variety of risks. Usually for 10-15 years, a mortgage is issued. The maximum maturity in each bank is different. It is necessary to choose the appropriate period to fully pay the mortgage without delays.

The concept of

What is the term of the mortgage? This is an approved time period, during which the client must pay the cost of housing with interest. Such information is indicated in the loan agreement. The client can independently choose the period during which a mortgage will be drawn up. The maximum maturity is usually quite large.

According to banking rules, the shorter the term, the less the overpayment. Payments on short terms are quite large, which creates a risk of non-payment if the borrower has material difficulties. Even with a stable income, you should make sure, that is, take a loan for a long period. If the funds are enough, then you can pay the mortgage ahead of schedule, saving on interest.

What do banks offer?

If it is necessary to design housing loans, you should know how much Russian banks lend. What is the maximum term of a mortgage in Sberbank? He is 30 years old. And it is installed on almost all programs. If you select the maximum term of a mortgage in Sberbank, and also pay without early repayment, then the overpayment will be large. Therefore, it is necessary to think carefully before registration.

Other banks also have a maximum mortgage term. VTB 24 offers to issue housing loans up to 50 years. Not every credit institution offers such conditions. The programs are designed for young professionals and young parents aged 25-35 years, because they help to get the amount to buy real estate at a favorable rate.

What is the maximum term of mortgages in other banks? Other institutions offer to issue a loan up to 30-35 years. In "Raiffeisenbank", "Promsvyazbank" also issued a mortgage. The maximum maturity there is 25 years. In "Rosselkhozbank" and "Gazprombank" he is 30 years old.

Betting

Depending on the term, the rate may change. In Russian banks, it ranges from 11 to 16%. Its size will be larger if there is no down payment. Also there are programs for real estate, for which you must provide a minimum of documents. Then the rate can be from 18%. With participation in government programs, it will be possible to obtain a mortgage at a low interest rate of 8-14%.

Requirements

To make a mortgage, you must meet certain requirements:

• Age from 21 years;
• Citizenship of the Russian Federation;
• Availability of official income;
• Registration before the retirement age;
• The payment period for the last installment is not later than 75 years.

Requirements may vary from bank to bank. Sometimes you need to confirm the experience of 6 months in the last job. If the client has real estate, then it will help to arrange a mortgage. The property is used as collateral.

An important credit requirement is a positive credit history. If previously loans were issued, but not paid in the prescribed period, there may be a refusal. The absence of such a story can also lead to rejection of the application. Often, a guarantor is required, so that in the event of non-payment of the obligation, they pass to him.

Whichever period is chosen, many programs need to pay the first installment. It can be within 10-25% of the price of the property. It is often necessary to have a certain level of income, for example, from 25 thousand rubles. The higher the salary level, the higher the chances of obtaining a mortgage and the higher the amount is given. Other types of income are taken into account: from business, sub-work, renting out real estate.

The minimum period

Mortgage loans are issued for a period of 1 year. In practice, an annual loan is almost not applied. The reasons include:

• Large payments;
• High rates;
• Providing a guarantee of money back guarantee.

If there is a constant and high income, then to receive the missing amount you can take a consumer loan. The shortcoming of a short-term contract is the difficulty in regulating the schedule and using early payment. The borrower must pay large sums every month.

Customers need to consider:

• Risk of income decline;
• Probability of loss of work;
• additional expenses;
• Lack of revenue growth;
• Inflation.

Under these circumstances, it is difficult to make payments. Therefore, it should be taken into account when drafting the contract. Violation of the payment schedule will affect the credit history, which is why it is unlikely that there will be approval of applications in the future. To reduce the risk, banks offer insurance.

How long should I choose?

This issue is of interest to many borrowers. The average period is 10-15 years. As you can see from the statistics, this is enough to pay for the loan. Compared with Western and American customers who pay a mortgage for a long time, Russians prefer to quickly get rid of debt. The reasons are overpayments - in the US the rate is 1-2%, while in Russia the figure is 12-15%, so over 30 years, large overpayments are obtained. This is different in different countries mortgage.

The maximum maturity allows the borrower to choose the desired period. The following tips should be considered:

• The risk of delay on short terms is high if the financial situation worsens;
• Choosing a long period, the loan can be paid ahead of schedule with partial installments, reducing the final overpayment;
• Early payment now in most banks is done without fines and commissions.

Overpayment on different terms

It turns out that the maximum term of a mortgage in Russia in each bank is different. If you choose a longer period, the overpayment will be greater. For example, if you issue a loan for 1 million rubles for 5 years at 13%, then the overpayment will be 360,000 rubles.

When the contract is formalized for 15 years, the overpayment will be 1.3 million rubles, and the rate will be 13.5%. As a result, getting a mortgage is better for a shorter period. At the same time, one must take into account one's financial situation before a mortgage is formalized. The maximum maturity can be chosen, but you need to try to pay ahead of schedule.

Early payment

To pay early is better at the beginning of the term when there are percentages. In this case, you need to reduce the amount of the principal debt, as interest is charged on the balance. In the second half of the repayment, early payment will not be so noticeable.

If it is known that there will be early repayment, for example, after receiving maternity capital or subsidizing a young family, it is advisable to arrange a mortgage for a short period. The payment term should be appointed on the basis of the actual financial situation.

Changing the payment schedule

Most of the interest is charged at the beginning of registration, and then the principal debt is paid. Russian banks usually make annuity payments. First pay interest, then debt. If the early repayment is carried out, then the debt size changes. At partial payment the schedule of payments changes.

Usually customers are offered:

• Reduction of the loan term, and the payment remains the same;
• Reduce the payment, leaving the number of months.

With early payment, which is more advantageous - a reduction in the time or amount? In the first case, the monthly load does not decrease, and the interest will be less because of the short period. The second option involves reducing monthly payments.

When is the reduction of the period advantageous?

Thanks to an early payment of 50-100 thousand rubles, the term for several months is reduced. If you calculate everything on a loan calculator, then with a one-time early repayment, a reduction in the period is beneficial. Since the amount of payment will be the same, overpayment will be less.

Experts advise to make out a mortgage for a maximum period, and if possible, make payments ahead of schedule. This will save the housing, even if a little overpaid. Determine how best to pay the mortgage, ahead of schedule or not, should be based on their situation. It is necessary to take into account inflation, how money depreciates. At a high rate it is recommended not to pay the loan ahead of schedule, but to purchase goods.

When is it better to pay early?

If the mortgage is drawn up for a long period, it is better to choose early repayment in the first year. This will save a lot. If there is no money superfluous for payments, it is necessary to extinguish the mortgage as the situation and the contract with the bank allow. For example, Sberbank establishes that early payment is possible after 3 months after the first payment, since it is not profitable for it to be repaid quickly. Other banks may have their own requirements. But the faster the debt, the more it will save on interest.