Analysis of the state of housing mortgage lending. Analysis of housing mortgage lending in Russia Analysis of the state of the housing mortgage lending market
In every economically developed country, a significant part of the banking services market is occupied by mortgage lending. Whatever the salaries of the population, often citizens have to collect more than one year to buy housing. In order not to delay the acquisition of such a desired living space, there is a mortgage.
Below IQReview will review the current state of the Russian mortgage market.
Basic concepts of the mortgage market
The mortgage lending market is a system that consists of the following components:
- Mortgage market (primary). This includes the scope of the borrower and the lender, that is, the participants are citizens who take out a mortgage, and banks that issue loans for the purchase of housing.
- Mortgage securities market (secondary). This is the sale of securities (mortgages) that are issued by banks and sold to investors.
- Real estate market. Includes real estate transactions.
The scheme of interaction between the three components looks like this:
- The borrower (a citizen who wants to purchase housing on a mortgage) applies to a bank that provides loans for housing.
- The bank evaluates financial condition the borrower, and determines (in the case of a positive decision on the mortgage): the maximum possible loan amount; duration of payments; monthly payment amount.
- In case of approval and agreement of the conditions between the participants in the transaction (the bank on the one hand and the borrower on the other), an agreement is concluded.
- Between the borrower and the seller of real estate, a contract of sale of the selected apartment is drawn up.
- A loan agreement is drawn up between the bank and the borrower.
- At the request of the bank, the borrower takes out insurance for life and for housing purchased with a mortgage.
In this case, the bank (lender) creates a primary mortgage market. At his discretion, he can either keep issued mortgages in his portfolio, or give them to investors. Investors in this case create a secondary market for securities and provide the bank's budget with funds. The bank can spend this money on issuing new loans, after which the cycle repeats.
According to statistics, in countries with a developed and stable economy, the population takes mortgage loans for more than 90% of real estate transactions. Typically, housing loans are cheaper than consumer loans - the annual percentage is on average 5-7% (the more stable and better economic situation, the lower the percentage, and vice versa).
History of the Russian mortgage market
It is believed that in Russia mortgage lending appeared only in the "nineties" (and as a more well-known and mass phenomenon, even later - approximately closer to the middle of the "zero"). However, the first such services existed before: back in 1754, under Empress Elizabeth in the Russian Empire, banks issued mortgage loans. Naturally, the demand for them was not as massive as it is now, and they were focused not on average citizens, but rather on the wealthy class.
However, such services from Russian banks were still relevant and continued to develop until the 1917 revolution itself. After the coup for many years, mortgage lending was forgotten: under the USSR, such a concept simply did not exist.
But in its modern form, the Russian mortgage market really originated only at the end of the last century, after the collapse of the Soviet Union. Russian banks made their first "steps" in the mortgage market in 1995. The pioneers were Sberbank and DeltaCredit, which began to issue loans to the population secured by existing real estate.
Since then, the terms of issuance have partially changed, becoming softer and more loyal to the borrower. For example, in the "nineties" mortgages were issued only to those who have official income, and now other sources of income are also taken into account. On the other hand, earlier the borrower was required to provide much less certificates and documents. There was another important nuance: earlier, mortgage loans were issued only for the purchase of secondary real estate. The development of the mortgage market in this direction did not stimulate the construction industry.
In the 1998 crisis Russian market mortgage lending, which had just begun to develop and gain momentum, was forgotten due to the default and the problems that followed. For several years, the development of this area stopped: the banks did not have the funds for loans, the population did not have the ability to consistently pay them.
Primary and secondary mortgage market
Recovery after the default began only at the beginning of the 2000s, starting in 2002. Interest in mortgages resurfaced in 2005-2007, when the real incomes of citizens began to gradually increase. At the same time, the active development of the market began: in order to attract customers, banks created various offers. Along with this, began to develop and: demand went up, and with it - and real estate prices.
Briefly in numbers:
- in 2005, the volume of mortgage loans in the Russian Federation amounted to just over 56 billion rubles;
- in 2006 - more than 263 billion rubles;
- in 2007 - more than 556 billion rubles.
A significant leap was suspended in the next crisis that erupted in 2008. Economic problems led to a fall in real estate prices by 20-40%. In addition to this, some smaller banks left the market (or curtailed their mortgage programs) because they did not have the funds to issue loans. During the crisis period, such services remained only with large banks, however, even for those, the number of loans issued decreased significantly. As a result of the deterioration in the solvency of customers, the conditions for issuing mortgages began to tighten.
The restoration of the situation began in 2009. This was facilitated by the government of the Russian Federation, which developed a program to support borrowers. 250 billion rubles were spent on this from the budget. These funds were used to refinance loans, which accelerated the recovery process. Such actions led to the fact that in 2010 the demand for loans began to grow, and in 2011 the rates dropped again to 11.5-12% per annum.
Comparison of mortgages and rental housing (video)
The current state of the Russian mortgage market
In 2014, along with another crisis, problems began again in the mortgage lending market. Interest on loans jumped up to 20%. In addition, serious problems arose for those who took loans in foreign currency - due to the approximately 2-fold increase in the dollar and euro, these borrowers could no longer cope with payments. To stabilize the market, the government of the Russian Federation again allocated budgetary funds and created the possibility of preferential conditions with a rate of 13%.
The following plans are known for the near future: by 2018, the authorities promise to reduce the mortgage rate to 7% per annum.
Mortgage loan statistics
An analysis of the mortgage market will not be complete without specific enterprises that are currently operating on it.
The largest companies issuing loans for real estate in the Russian Federation are now (“places” in the rating are distributed as of January 1, 2017):
- Sberbank.
- VTB 24.
- AHML.
- Gazprombank.
- Rosselkhozbank.
- Deltacredit.
- FC Opening.
- Raiffeisenbank.
- Communication bank.
The conditions for most organizations are approximately the same:
- Loan term - from 1 (usually from 5) to 25-30 years.
- The loan amount is usually limited to a minimum limit (on average from 300-400 thousand). Maximum size credit is calculated individually for each applicant. Sometimes it can be the full cost of buying a home, sometimes it can cover only part of the requested funds.
- Insurance: almost always required. Both the purchased object and the life of the borrower require insurance.
- Housing market: some banks have restrictions - you can only take out a mortgage on the primary market. For others, loans are issued both for the “primary” and the “secondary”.
- Interest rate: on average - 12-13% per annum. It can differ both up and down (rarely), depending on many factors (amount, loan term, city, borrower’s “characteristics”, and so on). Interesting fact: often in advertisements, banks indicate an underestimated rate. Moreover, the figures can be completely fantastic (for the current situation in the mortgage market in the Russian Federation): 7-8% per annum. In fact, it turns out that such conditions may exist, but only for a narrow circle of clients, and only if a whole list of conditions is met.
- The need for a down payment: all banks have different ways. Some don't have it at all. For others, it can average at least 10-20%.
The sequence of steps for obtaining a mortgage loan
Separately, it is worth mentioning the various options for obtaining a mortgage. She may be:
- Standard. The usual option, suitable for those who are not eligible for benefits provided by the state or the bank. Differs in the highest (in comparison with preferential categories) rates.
- . Military option. It differs primarily in rates, which are slightly lower than those of standard mortgage programs. In 2015 average rate for military mortgages was 8%, in 2016 - about 12%.
- Mortgage with state support. Loans of such a plan can only be issued for housing that is being built, and it is being built with the participation of money from the same bank. The conditions of such programs may partially differ from a standard loan. Medium annual rate — 12%.
- "Russian family" (or "Housing for young families"). Currently valid until 2020. Suitable for young families (if at least one of its members is under 35 years old) who live in unsuitable conditions (communal apartments, insufficient space according to regional standards).
Mortgage Bank - a credit institution specializing in issuing long-term mortgage loans secured by real estate (land, various buildings and other real estate). Resources mortgage bank are made up of own savings and funds received from the sale of mortgage bonds - long-term securities issued against security real estate and earning a fixed percentage.
A commercial bank determines the technology of mortgage lending depending on the object of lending, credit policy And organizational structure. With multivariance various elements organization of the lending process, it can be stated in all banks that there are the following five main stages of the technology for issuing and repaying a mortgage loan:
- - preliminary consideration of the loan application and interview with the prospective borrower;
- - underwriting;
- - making a decision on issuing a mortgage loan;
- - registration loan agreement and pledge agreements;
- - support of the loan and control over the execution of the loan agreement.
At the first stage, the bank explains to the borrower the conditions for issuing a mortgage loan and offers him to fill out an application, which in essence can be considered as a questionnaire containing information of interest to the bank in terms of minimizing the risks associated with lending. Already at the first stage of the lending process, it is important to assess the risks as fully as possible. If, during the interview, the loan officer does not receive satisfactory answers to key questions related to the issuance of a loan, then the request for its issuance is rejected, and it is necessary to provide a reasoned explanation for the reasons why the loan cannot be granted. If the loan officer made a positive decision, he informs the potential borrower about what documents and information the bank needs for further consideration of the loan application.
The second stage is to assess the potential ability of the borrower to repay the loan and assess the degree of its security. At this stage, the specialists of the bank or collateral appraisal company, the legal service and the security service of the bank are involved. If the existing apartment of the borrower is offered as collateral, then the following are studied: the composition of the premises, layout, general and living space; duration of operation; condition of structures, walls, floors and ceilings; condition engineering communications- heating, water supply, electricity supply, sewerage, etc.; the need for repairs or upgrades now or in the future. As a result of studying these factors, the value of the proposed collateral is determined. If an apartment under construction is offered as collateral, then the design and estimate documentation, construction time, and the reputation of the developer and contractor are studied. The results of the analysis are used to further determine the amount of the loan, the possible down payment of own funds and the preliminary maturity of the loan. For this purpose, the following incomes are considered: wage, premiums, commission income, dividend and interest income, pension payments, income in the form of rent etc., as well as financial obligations: housing payments, utility bills, taxes, insurance payments, previously accepted debt obligations, health insurance and etc.
The results of underwriting (checking the solvency of the borrower) are issued in the form of a certificate or conclusion and submitted to the credit committee for consideration.
At the third stage, the credit committee reviews the materials received during the underwriting process and examines the relevant documents, after which it makes a decision to issue a loan or to refuse to provide it. If the decision of the credit committee is positive, the relevant employee shall prepare for the client an approximate estimate of the costs associated with obtaining a mortgage loan. The estimate may include the following items: commissions to realtors; collateral appraisal costs; payment for obtaining documents on pledge from the real estate registration authorities; notary fee for registration of the contract of sale; notary fee for registration of a pledge agreement; collateral insurance.
At the fourth stage, the bank concludes a loan agreement with the borrower. When concluding a contract, the parties are guided by the main provisions provided for Civil Code Russian Federation, taking into account the peculiarities of the bank's credit policy.
Under the loan agreement, the lender undertakes to provide cash, i.e. loan, in the amount and on the terms stipulated in the contract, the borrower undertakes to repay the loan received on time sum of money and pay interest on it. In each loan agreement, in addition to such sections as data on the parties who entered into the agreement, there are sections regulating the rights and obligations of the parties:
- - the amount of the loan and the amount of bank interest;
- - the procedure and terms for issuing a loan;
- - procedure and terms of repayment of interest;
- - description and price of the collateral provided for in a separate pledge (mortgage) agreement;
- - the amount of sanctions paid by the party that violated the terms of the contract.
Simultaneously with the conclusion of the loan agreement, a pledge (mortgage) agreement is concluded and a mortgage is issued, as well as an insurance agreement is concluded in favor of the bank. Without these documents, the issuance of a mortgage loan cannot be started.
At the fifth stage, loan support is carried out, which includes:
- - issuance of a loan in the manner prescribed in the loan agreement.
- - control over the intended use of the loan during the construction or reconstruction of lending facilities;
- - monitoring the safety and condition of the collateral accepted to secure the loan;
- - control over regular, in accordance with previously agreed at the conclusion of the contract, terms of repayment of the loan and accrued interest.
In case of violation of the terms of repayment of the loan and payment of interest, banks in some cases provide deferrals for the borrower to fulfill their obligations with accrual for the period of using the deferred loan for more than high percentage. In case of violation of repeated terms of repayment of the loan, the loan is transferred to the account of overdue loans, and operations for the sale of collateral begin.
In the period 2006 - 2008. housing mortgage lending in Russia has developed rapidly. The number of banks operating in the mortgage lending system has grown rapidly. Over the past few years, mortgages in Russia have become relatively affordable for the middle class of the population: interest rates have decreased, the requirements for providing a package of documents have been reduced (including the permission not to submit a 2-NDFL certificate), a loan could be taken for any amount and without a down payment and etc. If we take into account the volume of mortgage loans for 2006 - 2008, then this period can be called a stage of rapid growth, according to the final indicators: 2006 - 233,897 million rubles, 2007 - 611,212 million rubles, 2008 - 1,070,329 million rubles. In 2009, due to the crisis, the total volume of mortgage loans issued decreased by 5.6%, and amounted to 1,010,889 million rubles. Since 2010, the economic situation has stabilized and the volume of mortgage loans issued has surpassed pre-crisis figures: - 1,129,373 million rubles, 2011 - 1,474,839 million rubles (according to the Central Bank of the Russian Federation).
Many Russian banks in the first half of 2007 showed a special loyalty to those who wanted to buy an apartment on credit. If 3-4 years ago, as realtors and mortgage brokers sadly joked, in order to get a mortgage loan, the borrower had to prove to the bank that he did not need money, then in 2007 some banks were ready to lend to almost everyone .
The rapid growth of mortgage lending was associated with the revaluation of assets, and at the end of 2008 foreign exchange risks of clients were transformed into credit risks banks.
The financial crisis had a negative impact on the ability to choose a bank and a mortgage program. Before the crisis, about 120 banks were providing mortgage loans in Russia. During the crisis, the number of banks providing mortgage loans decreased markedly: the most stable large banks, usually state-owned, could afford mortgages.
Some banks have officially suspended lending programs for the purchase of housing. Some banks lent mortgages only nominally. Mortgage lending programs of banks had high, in fact, protective interest rates. Thus, the rates on ruble mortgage loans in Alfa-Bank reached 24% per annum, in KMB-Bank - 21.00%, in Raiffeisenbank - 20%.
The reason for the curtailment of mortgage programs by banks is not only a lack of funds, but to a much greater extent, their decision to leave the market was influenced by the increased risks of mortgage lending. Real estate prices have risen rapidly for several years, but could just as quickly fall.
In a situation of economic instability, banks did not seek to increase their loan portfolio, but to improve its quality and reduce risks. This desire was expressed in an increase in the down payment, tougher requirements for borrowers, and an increase in interest rates on loans from all banks that have not left the mortgage lending market.
The mortgage lending market began its recovery in 2010. As specialists of the AHML Analytical Center noted: “In 2010, mortgage lending was steadily recovering: at the end of the year, 301,035 mortgage loans were issued for total amount to 378.9 billion rubles. The volume of loans issued in 2010 exceeded the level of 2009 by almost 2.5 times, the number of loans issued increased by more than 2.3 times.”
The construction of new buildings and the sale of apartments in new buildings also resumed in 2011. Banks began to actively interact with developers, entering into partnership agreements with them. For a developer, accreditation of a new building by a bank almost always means an increase in sales: only reliable companies pass accreditation, which means that buyers' confidence in an accredited new building increases significantly. In addition, today the rates on loans for apartments in a new building and for housing in the secondary market have changed, so it has become much more profitable to buy a new building with a mortgage, especially considering that the cost of the apartment itself at the construction stage is lower.
To date (early 2012), the mortgage market continues to gain momentum. At the end of 2011, the total volume of mortgage loans issued by the largest market participants amounted to almost 624 billion rubles, while at the end of 2010 the same banks issued loans in the amount of just over 353 billion rubles. At the same time, the growth in mortgage lending is observed in the vast majority of participants. Thus, out of 91 banks whose profiles were taken into account in the preparation of the rating, the issuance of loans in 2011 was higher for 70 than in 2010, RBC experts note.
Table 4
Volume of issued mortgage loans in 2011 (million rubles) |
Volume of issued mortgage loans in 2010 (million rubles) |
Change (%) |
Number of issued mortgage loans in 2011 (pieces) |
Number of issued mortgage loans in 2010 (pieces) |
Change (%) |
||
Sberbank |
|||||||
Deltacredit |
|||||||
Raiffeisenbank |
|||||||
rebirth |
|||||||
Khanty-Mansiysk Bank |
|||||||
Absolut Bank |
|||||||
Zapsibkombank |
The volume of mortgage loans issued by the largest Russian bank in 2011 increased by 56.64% and amounted to almost 346 billion rubles, which, as before, corresponds to the first place in the rating. The second, no less stable, is VTB 24, which last year showed a more significant increase in issued "housing" loans than Sberbank - 153.79%. In total, according to the questionnaire received by RBC.Rating from VTB 24, in 2011 the bank issued mortgage loans for a total of 80.4 billion rubles. Closes the top three "Deltacredit", the same indicator of which amounted to 21 billion rubles. and an increase over the past year of about 97%.
In the table in terms of the size of the mortgage portfolio, the leading position, which is not surprising, is occupied by Sberbank. Its portfolio as of January 1, 2012 amounted to almost 770 billion rubles, which is 28% more than in 2010. The second line belongs to VTB 24, whose portfolio over the same period grew by 39% and amounted to 246 billion rubles. Closes the top3 "Deltacredit" with an indicator of 62.4 billion rubles (see Table 5).
Change (%) |
||||
Sberbank |
||||
Deltacredit |
||||
Absolut Bank |
||||
Raiffeisenbank |
||||
UniCredit Bank |
||||
Khanty-Mansiysk Bank |
||||
Zapsibkombank |
Acquisition of finished housing (Sberbank)
Lending terms
Loan currency |
Russian rubles / US dollars / Euro |
|
Credit amount |
Minimum |
Maximum
|
Credit term |
||
Commission for issuing a loan |
Missing. |
|
Loan security |
|
|
Insurance |
||
Interest rate |
|
Apartment in a new building (VTB 24)
Lending terms
Loan currency |
Russian rubles / US dollars / Euro |
|
Credit amount |
Minimum 300,000 rubles (10,000 US dollars or 7,000 euros). |
Maximum Must not exceed the smaller of:
|
Credit term |
||
Commission for issuing a loan |
Missing. |
|
Loan security |
· Pledge of a credited or other property. |
|
Insurance |
Compulsory insurance of the pledged property (except for the land plot) against the risks of loss/destruction, damage in favor of the Bank for the entire term of the loan agreement.
|
|
Interest rate |
From 8.90% in rubles From 8.95% in foreign currency |
Finished housing in an apartment building (Deltacredit)
Lending terms
Loan currency |
Russian rubles / US dollars / Euro |
|
Credit amount |
|
|
Credit term |
||
Commission for issuing a loan |
Missing. |
|
Loan security |
· Pledge of a credited or other property. |
|
Insurance |
Insurance of the purchased apartment against the risk of loss and damage is mandatory |
|
Interest rate |
From 10.50% % in rubles From 7.25% in foreign currency |
Standard "Economic 5" (Rosbank )
Lending terms
Action "Turnkey!" (Uralsib)
Lending terms
Loan currency |
|
Credit amount |
Maximum, 8,000,000 rubles (but not more than 80% of the property value) |
Credit term |
3 to 30 years old |
Commission for issuing a loan |
Missing. |
Loan security |
· Pledge of a credited or other property. |
Insurance |
Property (collateral) insurance is carried out in case of: natural Disasters; flooding; the impact of unforeseen physical forces (lightning strike, gas explosion, fall of flying objects or their debris and other objects, collision with vehicles); illegal actions of third parties; structural defects. |
Interest rate |
Despite the revision by many banks of mortgage programs and interest rates on them, the minimum interest rate is still at a very high level (10-12%). average cost square meter in the capital as of May 14, 2012, according to a study conducted by specialists from the site http://realty.dmir.ru (in collaboration with the Real Estate and Prices magazine), is 188,502 rubles. The average cost is small one-room apartment is 6,531,985 rubles. average salary in Moscow this year increased by 7% and rose from 48.5 thousand rubles. up to 51.1 thousand rubles. This is stated in a press release from the research service of the recruiting company HeadHunter.
Given the above facts, and in particular the average price per sq. meter in the capital, we can say that very few people in our country can afford a mortgage.
Vladimir Putin at a government meeting on May 11, 2012 instructed the government to take measures to improve living conditions Russians and lower mortgage rates. The President signed a decree "On measures to provide citizens of the Russian Federation with affordable and comfortable housing and improve the quality of housing and communal services," the Finmarket news agency reports. "The Government of the Russian Federation should ensure, by 2018, a reduction in the indicator of exceeding the average level of the interest rate on a mortgage housing loan (in rubles) in relation to the consumer price index to a level of no more than 2.2 percentage points," the decree says. It should be noted that both Vladimir Putin and Dmitry Medvedev have repeatedly expressed their wishes regarding the level of mortgage rates. At the same time, specific figures were called, as well as possible solutions were indicated.
According to the instructions of the President, the situation in the mortgage lending market should change for the better. More families will be able to afford their own housing, which, in my opinion, will have a positive effect on the demographic situation in Russia.
UDC 339.13.017
HOUSING MORTGAGE LENDING MARKET IN RUSSIA: STATUS AND DEVELOPMENT PROSPECTS
Tolstykh Irina Alexandrovna, Candidate of Economics, Associate Professor, Department of economic theory and economic policy"
(e-mail: [email protected]) Voronezh State Technical University,
Voronezh, Russia
This article reveals the main macroeconomic indicators of the Russian Federation, indicators of the housing market and mortgage housing lending, analyzes them, and characterizes development trends.
Key words: housing market, housing mortgage lending market.
Over the past five years, the housing construction industry has been one of the most successful in Russia, especially against the backdrop of a slowdown in economic growth in 2014. This industry has brought a stimulating effect for the development of the national economy and had a significant contribution to the dynamics of GDP. However, the main macroeconomic indicators and relative indicators of mortgages show multidirectional dynamics (Table 1).
Table 1 - Main macroeconomic indicators of Russia and relative
real mortgage rates in 20 )