Confirmation of the initial payment. Everything about the down payment on a mortgage: to whom it is given, how is it paid, can it be returned? Why are the conditions for targeted and non-targeted mortgages so different?
Down payment on a mortgage is one of the key points loan agreement, along with the interest rate, amount and maturity.
Payments for real estate mortgages usually consist of two components:
- down payment - a certain amount that the buyer pays directly to the seller;
- the amount to be credited - the difference between the total cost of housing and the first installment paid.
Although the bank does not receive the first installment, it strictly controls this process. The rate and other conditions of the loan agreement depend on the size of the first installment.
Taking a mortgage with a down payment is easier and cheaper than obtaining Housing loan no first payment.
Down payment - what is it for and what depends on it?
The down payment on the mortgage is beneficial to all parties to the mortgage transaction: both the home seller and the client himself.
- The down payment on mortgages is important for banks because it weeds out insolvent clients. Those who did not manage to collect money for the first installment have fewer opportunities to pay off the whole.
- An apartment taken on a mortgage with a down payment, more profitable for the bank as collateral.
Let us explain the last point with an example:
- In case of termination of payments on the loan, the bank takes away the housing purchased under the mortgage, sells it, and thereby compensates for its losses. But the resulting housing may become cheaper due to wear and tear and fluctuations in market prices. It will not be possible to receive the entire cost of housing at the time of the loan. For the bank, this is a loss.
- If part of the real estate was paid for through the first installment, then the loan amount turns out to be less. But all the real estate bought in the mortgage is accepted as a pledge. Those. the bank gives out less and gets the same amount.
The down payment is beneficial to home sellers, especially developers during the construction phase. The developer needs money to continue the work, the first installment immediately goes to his account, and the bank loan funds - only some time after his approval.
For sellers of finished housing, the first installment becomes a guarantee of a future transaction.
The down payment on the mortgage is beneficial to the loan recipients. Because:
- The amount to be credited decreases, respectively, the interest payments are lower.
- Finding a down payment mortgage is easier. Banks are more willing to issue such loans, because consider them more reliable. For the same reason, mortgages with a down payment are often issued at a lower interest rate.
The down payment becomes a problem and limitation only for those who urgently need housing, but have not yet collected the funds necessary for the down payment.
How do I make the first installment on a mortgage?
The issue of transferring the first installment is purely technical, but it matters because the banks control it. And also because a correctly executed first installment does not provide an opportunity for deception on the part of the seller. For example - to receive the first installment, to refuse the transaction and not to return the money.
Each option for transferring the first installment has its own advantages, disadvantages and rules.
Cash transfer.
Most often, this is how money is transferred when buying a home from individuals. The method is simple, free and risky. The greatest risk is to become a victim of fraud, theft, robbery, or simply to be cheated.
To avoid all this, you should transfer money in safe places, with witnesses and on receipt. The buyer and the seller must carefully count the money and record in writing not only the fact of transfer, but also the amount.
Transfer through a safe deposit box.
This option attracts a third party as a guarantor, namely the bank that hands over the cells. Everything goes something like this:
- The buyer and the seller agree in advance on the transfer of cash through a safe deposit box.
- The buyer, who is also the payer, concludes a cell lease agreement with the bank. The contract specifies the order of access to the contents of the cell. In particular, the seller gets the right to collect the money after the conclusion of the contract for the purchase and sale of housing.
- The payer places money in a cell.
- The parties conclude an agreement.
- The seller takes the money.
Cumbersome, but more reliable than direct calculation. However, you have to pay 50-150 rubles for rent. per day.
Wire transfer to the seller's account.
The method is inexpensive, but reliable, because the very fact of receiving money by the seller and the exact amount are recorded. The risk remains that he will not fulfill his obligations, but the seller will not be able to deny that the money has been transferred.
Letter of credit.
Here, the money is also credited to a bank account, but the seller can receive it if certain conditions are met - when registering a real estate contract.
With all the above methods, the bank checks the document confirming the initial payment.
How do I calculate the down payment on a mortgage?
You need to calculate the down payment on the mortgage from the total cost of the acquired housing. Banks almost always indicate a minimum down payment limit, but do not prevent you from depositing more.
How much the down payment on the mortgage will be can be counted in one action per. You just need to take the total cost of housing and calculate the required percentage of the down payment. But if part of this contribution is not paid in cash, the calculation becomes more difficult.
How much is the down payment on a mortgage in Russian banks?
When it comes not about targeted programs with government funding, Russian banks set approximately the same conditions mortgage lending housing. However, there is still a difference between the products of different banks. And, taking into account the size of the loan and the maturity period, even a fraction of a percent on the total add up to a considerable amount.
- The initial payment on a mortgage in, for example, a profitable "" will be 20%, and for lending to secondary real estate - 10%.
- The down payment on a mortgage starts at 10%. The exception is loan refinancing and renovation program.
- The down payment on a mortgage varies from 15%. For an apartment, it increases to at least 20%, a house or plot will require 25%.
- The initial payment on a mortgage is kept in the same range: on a loan "" the first installment starts at 20%, ready-made housing is credited on the same terms. A loan for the construction of a residential building will require 25%. For those who receive a salary from Sberbank, the contribution for buying a home can be reduced to 10%.
Without benefits, it is best to count on a down payment of 20% of the total property price.
Examples of calculating the down payment in Russian banks
Calculating a mortgage with a down payment means figuring out not only the amount of the payment own funds, but also other significant parameters of the loan: rate, maturity, total overpayment. For clarity, we will draw up a table with data for a mortgage loan of 5 million rubles, for 20 years, with a down payment of 10%.
The general terms are pretty close, but tenths of a percent result in more than half a million difference.
What if there is no money for a down payment on a mortgage?
Mandatory first installment mortgage becomes an obstacle for those who urgently need housing, but do not have the necessary savings. Here a choice appears: for a long time, maybe several years, to save money or look for workarounds.
- The safest way to get money for the first installment is to accumulate from income or sell some property. Here the borrower does not have any new obligations or restrictions.
- The next, very profitable, way is to get into the "Young Family" program and receive a free subsidy from the state, which can be spent on the down payment on a mortgage. Here some restrictions appear, housing must be no less than the established area. The main condition is to really be a young family in need of better living conditions.
- You can spend maternity capital on the down payment on a mortgage.
- Help with paying the first installment can be obtained by doctors, teachers, scientists and the military. Each of these categories has its own mortgage programs, but in all cases, the budget transfers to clients a certain amount that can be spent on the first installment.
- You can borrow money or. Borrowings from individuals, especially from relatives and friends, are most often issued without interest, but this is the subject of personal relations. and non-targeted bank loans are much more expensive than mortgage fees. Therefore, this method should only be used by those who urgently need a loan.
Some borrowers negotiate with the seller overpricing and provide bogus documents on the payment of the down payment. The legality of this option is doubtful, therefore we will not discuss it.
Can I take a mortgage without a down payment?
Without special benefits, without using special conditions and without providing additional guarantees, it is not easy, but possible. At the request "mortgage without a down payment" search programs will give out several dozen offers from Russian banks.
However, you should pay attention - most of these products have the words "refinancing" or "refinancing" in their names. Sometimes this is not immediately visible, but something similar is found in the conditions. All this is not lending for the purchase of real estate, but the redemption of a previously issued loan from another bank.
Mortgages without a down payment are sometimes provided by the developers themselves. It is a way to attract home buyers at a specific property. An example is the mortgage of the residential complex "Edelweiss" at 6.9%. A loan can be taken without a down payment, but only for the purchase of specific housing in the city of Balashikha.
Loans without a down payment and additional restrictions are rare, but there are. An example is a loan "" at a rate of 11.1%.
- A mortgage without a down payment is usually more expensive because has an increased interest rate and other compulsory payments for insurance, appraisal, inspection, etc.
- A mortgage without a down payment usually does not apply to all properties, but only to certain categories or specific offers.
- With such a mortgage, banks are more demanding on mortgaged real estate: a different attitude towards redevelopment, minor owners, etc.
- Requirements for mortgage recipients are stricter, without a down payment it is difficult to get loans for persons with low income tainted by credit history, poor financial prospects.
After weighing all of this, many clients are looking for money but opting for a down payment mortgage.
conclusions
Down payment on a mortgage is a common, and in most cases profitable, way of paying for a loaned property.
- The first installment reduces the amount on which the interest is calculated.
- The first installment entitles you to more.
Attempts to avoid a down payment often increase overall costs, impose restrictions on the choice of housing, and require additional efforts and costs from the borrower.
When applying for a mortgage, Russians take into account not only the interest rate and the term of the loan. The same close attention potential borrowers pay the amount of the down payment. If it is 30% of the value of real estate, or even all 50%, families have to save 10-15 years to collect the required amount.
How to confirm that the amount for the first installment is sufficient
It will be necessary to confirm the sufficiency of the amount for the initial payment when the mortgage application is approved by the bank. In this case, the parties to the sale and purchase transaction choose in advance the method of transferring the first payment. Most often, the following calculation options are considered:
- transfer of the amount to the current account of the seller with the issuance of a receipt;
- cash settlement against a notarial receipt;
Which option is approved by the parties, that is entered into the sales contract. The same document indicates the size and timing of the transfer of the initial payment.
For Sberbank, the initial mortgage payment becomes a guarantee of the borrower's solvency. Wherein credit organization has the right to request in advance information on the confirmation of the amount of the first installment. The role of a supporting document can be: an account statement from any bank with a balance of funds, data on the deposit, a document on state subsidies or presentation of a certificate for maternity capital.
Until the seller confirms the receipt of the initial payment, Sberbank will not proceed with the procedure for transferring funds on the mortgage.
Is it affordable to take a mortgage without your own capital
Standard mortgage lending programs at Sberbank work only with a down payment. But, if you take into account some of the nuances, then you can choose an option when you do not have to invest large amount for the purchase of housing:
![](https://i1.wp.com/brobank.ru/wp-content/uploads/2019/09/sberbank-pervyj-vznos-po-ipoteke-4.jpg)
Without a down payment, you can take a non-target mortgage with a mortgage on housing. But for this you need to pledge your property to the bank. Minimum amount will amount to 500 thousand, and the maximum is 10 million rubles.
Caution: Fraud
On the network, you can find another option for buying a home without a down payment - registration of a mortgage with an overpricing of the object of the transaction. But this scheme belongs to illegal procedures. If Sberbank reveals the fact of fraud, then, at best, the seller and the buyer are threatened with the cancellation of the transaction and being blacklisted by the bank, and at worst, charges of fraud.
It is dangerous to succumb to the provocation of the second party, which inclines to overstate the cost of housing:
- Most often, offers of this kind are unsafe, especially if the seller and the buyer do not know each other well.
- If fraud is detected, this will negatively affect the borrower's credit history.
- If the price of housing is already too high, then if the price is overstated, there will be a significant difference, which the bank will reveal when conducting an expert appraisal of real estate.
In addition to fraudsters, owners of illiquid housing or developers in an inconvenient place often persuade such schemes. They use gray schemes and somehow sell real estate. The buyer's advantage is that the seller will collude and help buy the living space without the long collection of the initial amount.
Sberbank check
At the stage of filing an application for a mortgage, Sberbank issues the borrower a list of appraisal companies that conduct real estate expertise. These are qualified institutions that conduct independent analysis. The bank trusts the opinion of these agencies. Therefore, it has now become much more difficult to build a deal in collusion with the seller and overstate the value of the acquired real estate.
In order to buy real estate on a mortgage, you need an initial payment - at least 15-20% of the value of the property. Such an amount on hand, together with a confirmed income, will show the bank that you are solvent and financially organized. This means that with a high probability you will be able to repay the loan on time and without problems.
But the down payment is important not only for the bank, but also for the borrower himself. The more savings, the less risk and overpayments.
In this article, we will figure out which initial payment is considered optimal and whether it is possible to take a mortgage without any savings at all.
Low installment - more delays
In principle, banks benefit from a low down payment. The lower it is, the more affordable loans buyers, the more credits, which means the profit. But not everything is so simple. There are also more risks. As the Central Bank calculated in its latest financial review, the probability of delinquencies on a loan with an initial payment of 10 to 20% is 1.5-2 times higher than that of loans with a down payment of 20 to 40%.
We consider overpayment
The risk of not coping with the financial burden, and as a result, to receive a fine from the bank for delay or even find yourself without real estate - that's not all. At low down payment the rate and monthly payments are higher, and the final overpayment to the bank is significantly higher.
Let's calculate how the costs change for the first installment of 15, 30 and 40%. Let's say an apartment costs 5 million rubles. We take a loan for 20 years, for convenience we take the same rate - 9.2% (with a low contribution, it can be higher).
The difference even between contributions of 15 and 30% is about 6 thousand for a monthly payment and 830 000 rubles for interest.
And between contributions of 15 and 40% - already more than 10 thousand in payment and 1,300,000 rubles in interest.
Of course, in some cases the difference will be less. But such calculations are a reason to think. Perhaps it is worth saving a little more, for example, on a deposit.
Read also:
You can calculate monthly payment with its own conditions on the mortgage calculator DomClick. if you have Personal Area, click "Edit" - the amount of interest on the loan will be displayed in the upper right corner. If you are not registered, click the "View payment schedule" button - the overpayment will be indicated at the bottom of the schedule.
Mortgage without a down payment
Few banks offer mortgages with no down payment at all. Most often, the rate for them is higher, the requirements for the borrower are stricter, and in addition to pledging real estate, the bank can attract guarantors to guarantee payments.
Another way, much more risky, is to take consumer credit for the down payment. We do not recommend doing this, and here's why:
The bank is highly likely to refuse a mortgage due to an additional loan
Consumer loan rates are higher than mortgage
The financial burden may turn out to be unbearable for the budget and the desired purchase will become a problem
Maternity capital and military mortgage
Absolutely safe ways to take out a mortgage without savings are state support programs. Here, the down payment or part of the amount for real estate can be paid by the state for you. There are such programs for families with children, military men, young families, state employees, displaced persons, low-income and other categories of citizens. Each region has its own. You can find out what programs are in your local administration.
Some of the most affordable programs that operate in the same way throughout Russia are:
"Military mortgage"- monthly in January 2019, program participants are credited with 23,334 rubles, they can be saved on a special account and use the accumulated amount as a down payment. Further transfers will go towards monthly payments. Maximum amount loans 2 502 000
"Play a mortgage"
If you nevertheless decide to take a mortgage with a minimum down payment, it does not hurt to check your strength.
Has reduced the initial payment on mortgage loans, the press service of the bank reported. For participants salary project it will drop from 15 to 10%. This program is urgent and will run from September to the end of January 2020.
The bank also introduced temporary - for three months - indulgences for clients applying for mortgages for the purchase of apartments in the secondary market and in new buildings in the North-West and Ural regions. The speech will concern those borrowers who cannot confirm their income and employment. For them, the down payment will decrease from 50 to 30%.
Sberbank mortgage rates remain unchanged: for borrowers with an initial payment of 10-15% of the cost of housing, the premium to the base rate will be 0.2 percentage points, as well as for clients with a 15-20% down payment, the press service of the state bank said.
For salary clients of Sberbank base rate mortgage is 9.6% per annum. Minimum bet a loan for the purchase of finished housing in a mortgage is equal to 9.1% per annum, taking into account the discount for salary clients of Sberbank with participation in the campaigns "Young Family" and "Discount 0.3% on Domclick". The minimum mortgage rate for new buildings under the program of subsidies with developers for the bank's salary clients is 7.6%.
“For many Russians, it was precisely the insufficient amount of their own savings that was a serious limitation when buying real estate on a mortgage,” explains Alexander Vedyakhin, First Deputy Chairman of the Board of Sberbank, his words are quoted in the message.
According to the general director of Frank RG, Yuri Gribanov, salary clients for the bank are more predictable and less risky, so the bank can make a better offer for them than for clients “off the street”.
Reducing the size of the down payment by banks has been worrying the regulator for several years. According to the Central Bank, the probability of default on a mortgage with a low down payment (10–20%) is 1.5–2 times higher than in the case when the borrower is ready to deposit 20–40% of the cost of housing. Since 2018, the Central Bank has already raised the premiums to risk ratios on mortgage loans twice. In January 2019, the risk ratio on mortgage loans with a low down payment (10-20%) for banks increased from 150 to 200%. The premium is valid only for the time when the ratio of loan debt to the value of collateral (LTV) exceeds 80%, the Central Bank explained. “Our special focus is on mortgages with a low down payment - up to 20%. As you remember, it was the risky mortgage that caused financial crisis in the USA, which then spread to the whole world. We have introduced increased ratios for banks for issuing such a mortgage, ”said Elvira Nabiullina, Chairman of the Bank of Russia, speaking at the State Duma on May 30, 2019.
According to the chief analyst of Sberbank, Mikhail Matovnikov, despite the measures of the Central Bank, retail lending will continue to develop, since it is more attractive than other types of lending. “It is impossible, by limiting profitable business, to drive banks into more risky and less profitable lending to companies, especially since the Bank of Russia is actively introducing restrictions there,” he stressed. Matovnikov noted that the size of the down payment does not greatly affect the level of risk on a mortgage loan. "Perhaps the default on such mortgage loans is 1.5 times higher than on loans with a higher down payment, but the level of defaults itself is very low!" He added.
The real risks still lie in a completely different area: it is time for the regulator to shift its focus more to corporate lending to related parties, the chief analyst of Sberbank is sure. “It is these loans that give the greatest losses in bankruptcy of banks, and in the event of bankruptcy of a retail bank, as the experience of Svyaznoy has shown, it may well even fully pay off creditors, which is almost never the case with corporate banks,” concluded Matovnikov.
In the first half of 2019, the total volume of mortgage loans to residents of Russia increased by 9.24%, or 592.2 billion rubles, total amount loans in the hands of the Russians amounted to 6.4 trillion rubles. By the beginning of July it reached 7 trillion rubles, recalls the consulting company Finexpertiza. According to the Central Bank's estimates, the share of mortgages with a low down payment in the first half of 2019. decreased and amounted to 36.7% of the total volume of mortgages issued, the Central Bank said. According to the results of the first quarter, such loans were 40.9%, in the fourth quarter of last year - 43.2%.
Loans have long become an integral part of life. They allow you to purchase the necessary and expensive things. Most people find it difficult to quickly save money to buy an apartment. Therefore, a mortgage becomes an excellent solution. You can live in your house, while repaying the debt to the bank at the same time. But real estate is very expensive, so a large loan is needed. A prerequisite is the down payment.
general information
In conditions unstable economy the bank wants to be sure that the issued loans will be repaid on time. In cases with loans for small amounts things are not so bad as they are issued for a short period of time. The mortgage is taken for many years, and therefore the financial institution must be sure that the client has enough funds to pay off the debt.
Today you can take out a loan with or without a down payment. But the first option offers a number of benefits for both parties. Paying in part of the money allows you to confirm the client's solvency.
The need for a down payment is due to the fact that real estate is pledged as collateral for a mortgage. In case of termination of payments, it is implemented. The proceeds are used to pay off the debt. If something remains of them, then the amount is handed over to the borrower. Over time, housing declines in value, and therefore the contribution allows you to increase its liquidity.
Benefit to the parties
The advantages of this type of lending are not only for the bank, but also for the borrower. The deposited amount of money allows you to immediately pay off part of the debt and significantly reduce its size. In turn, this affects the interest, which does not come out so high. Moreover, banks often provide special benefits - the larger the initial payment, the more the interest rate decreases.
Many financial institutions require insurance:
- life;
- health;
- property.
The cost of the policy is calculated based on the amount owed. Therefore, the smaller its size, the cheaper the insurance.
It is easier to get a loan with an initial payment than without it. If you want to make a payment, the bank is more likely to approve the application. The number of documents for registration is reduced. Many financial institutions provide benefits and give a loan for a passport or two documents.
The bank also has certain benefits. The presence of the first payment allows you to verify the client's solvency. In the event that he nevertheless stops paying off the debt, the presence of a contribution increases the liquidity of the real estate. In some cases, the borrower urgently needs to sell the home. In this case, the bank will receive the loan amount in full.
Contribution amount
Each financial institution provides its own conditions for issuing a mortgage. The minimum border of the acceptable level of payment is determined, but it is better not to focus on it. Banks are very distrustful of people who take out a loan for a short term with a small down payment.
Such a scheme is often used in order to repay a loan ahead of schedule - this can significantly save money on interest. But the organization in this case suffers losses.
Calculating the down payment is easy enough. Usually this is 10-15% of the property value. But the optimal payment would be in the amount of 30-40%. Much also depends on where the apartment is purchased in a new building or on the secondary market. In the first case, the liquidity of the area is greater, so the first payment will be less.
Sberbank provides a mortgage without proof of income, but in this case, the down payment will be 50% of the cost of the apartment. For a new building, the indicator changes by 15%, and for the secondary market - by 20%.
VTB24 does not differentiate between the types of housing, and it has a flat rate of 10% and 40% for individuals who cannot prove income. Rosselkhozbank has slightly higher requirements - 15%.
In order to finally determine which initial payment is better to make, you need to contact the bank branch. Many factors are taken into account, and only a specialist is able to make the final calculations.
Ways to accumulate money
Despite the fact that a mortgage with a first payment has a number of advantages, it is not always possible to use it. The main problem is where to get the money. The easiest option is to cut costs and increase revenues. To simplify the situation, it is better to calculate the direct amount of the payment.
To do this, it is worth deciding on the specific cost of housing and calculating the amount of the contribution from it. Next, you need to regularly save money from all receipts. You can put them in the bank at interest - this will allow you to get a small profit.
If you live in a rented apartment, it is better to move out to your parents and other relatives. These savings will save you an impressive amount of money.
There are some tricks that can help you make your down payment even smaller. Many banks provide preferential terms for "salary" clients. VTB24 provides a rate of 10%.
Loyal requirements are given by new financial organizations. But contacting them is not always safe, no one can guarantee that they will last long.
Some banks provide special conditions when using maternity capital... The interest can be reduced to 5. The capital itself can be used to pay off the mortgage, but it is not always regarded as a contribution. Some banks are ready to accept it with the addition of personal funds (in the amount of 10% of the cost of housing). Only then will the payment be credited.
Developers often enter into special contracts with financial institutions... This allows us to provide customers with bonuses in the form of a reduction in the size of the first installment.
The state provides subsidies for the purchase of housing to a number of citizens. It can be claimed by:
- teachers;
- doctors;
- military;
- young families.
To participate in the program, you need to collect packages of documents. Each region has its own terms of provision, so it is better to consult with specialists beforehand.
Some options
Credit institutions can accept additional security as a contribution - existing housing. His condition and the conditions of the bank are taken into account. This method is convenient when buying an apartment in a building under construction.
It is not always possible for a client to confirm the availability of funds. In this case, in addition to the mortgage, he also draws up a consumer loan. Before taking such a step, you need to think over and weigh everything well, since you will have to pay on two loans at once. The bank service necessarily checks credit history, and she will know about all the debts available. Therefore, it is worth calculating the amount of the aggregate payment. It does not have to represent a significant amount from the budget, otherwise it will be difficult to contribute it.
On the financial situation the need to renew insurance once a year will also affect. They are calculated based on the balance of the debt.
Design features
The buyer and seller of real estate can do without the participation of a bank. Money can be transferred against receipt, transferred to an account or put into a cell. The lender only sets the percentage of the payment. If the dwelling has several owners, the contract clearly states to whom the first installment goes - to one owner or to all in equal parts.
The client confirms the initial payment by opening an account. The required amount is put on it, and on the day of the transaction, it is transferred to the seller's details. For financial institution an extract is enough.
For some banks, a receipt from the seller is sufficient. It is better to notarize it. The text must indicate the amount in figures and words, the name of the seller and his signature.
A mortgage with a down payment is attractive with favorable terms. It is not that difficult to obtain, and it allows you to lower your interest rate. Therefore, it is better to get down to getting it. A good option will be looking for opportunities to participate in the state. programs for receiving subsidies.