What Mortgage Plans are Perfect for You

We continue the series of articles on mortgage lending. The topic of this publication is how to take a mortgage. The article will be interesting to anyone who wants to get a mortgage loan in the very near future or intends to do it in the long term. The support from the really speaks out here from the mortgage broker Geelong .

And now – about everything in detail and in order!

What you need to know before you take a mortgage

For the vast majority of citizens of the Russian Federation and the CIS countries, mortgage lending is the only chance to acquire housing right now, and not through years of savings and savings.

Statistics show that about half of all real estate in Russia is purchased on credit.

The essence of mortgage loans

In brief about what a mortgage is. In the modern world, a mortgage is called a type of loan, in which housing is bought by the borrower in debt and remains under the pledge of the bank.

The client is considered the owner of the apartment or house, but does not have full rights to these facilities. If, before full repayment of the loan, the borrower for any reasons ceases to pay the bills, the bank begins to apply penalties.

The credit company has the right to seize the apartment in its favor, if the recipient of the loan violates the terms of the mortgage agreement.

In addition to delays and delays in payment, there are other ways of violating the contract:

  • transfer of the apartment to third parties;
  • damage to property, non-compliance with the rules of operation;
  • unauthorized change of technical characteristics of the object;
  • Violation of insurance conditions.

More details about mortgage loans in the review article of our site “How to get a mortgage loan ” and ” What is a mortgage “.

  • Before taking such a loan, you need to decide on the purpose, amount and timing. Loans for real estate on the security of the acquired property are given almost all major banks in Russia and neighboring countries. Mortgage lending is a popular practice in the entire civilized world.

The downside is that – the highest interest rates on mortgage loans. At the moment, the average rate in banks is 12-13% per annum.

Since the mortgage is issued for a long time (5-30 years, or even all 50), borrowers should be prepared for the fact that in the coming decades they will regularly (monthly) deduct a certain percentage of their income to the banking institution.

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