Housing loans. Belagroprombank - “Mortgage in Belarus
Hi all
More recently, we were faced with the question of taking out a loan for a large amount of money (namely for real estate financing). Having studied the offerings of banks in our country, we decided to choose Belagroprombank for the following reasons:
- maximum loan amount- 90% of the cost of housing(that is, we only needed to deposit 10% of the amount of the apartment). This is very important for those who just can’t save up for a down payment.
- term- 20 years(for a shorter loan period, very unrealistic payment amounts were obtained).
- interest rate adequate (although what percentage is considered adequate for Belarus?)
The interest rate for using a loan is variable and changes on the day the refinancing rate of the National Bank of the Republic of Belarus changes.
Now, probably, in all banks it’s like this.. That is.. “bang” - and now the interest on the loan will be 30%, and not as I took - 12-15%...
- deferment possible up to 6 months repayment of payment (principal debt). That is, you will only pay interest to the bank for 6 months, and the amount borrowed will not decrease one bit. Not really such a prospect(
Loan collateral:
- surety at least 2 (two) individuals and (or) mortgage of residential premises built using a loan;
- pledge real estate (until the mortgage agreement for residential premises built using a loan is submitted to the bank) and mortgage residential premises built using a loan.
I’ll talk about these nuances of “security” below.
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In the premises of "Belagroprombank" it is civilized: electronic queue to specialists, soft sofas and TV.
To apply for a loan, you will have to run around, collect various certificates (the most important, of course, about income), and guarantors. If your own income is not enough for a loan, then you can include a close relative (spouse, mother/father) in your total income. In general, you should Contact the bank for advice - initially they will calculate whether your income is enough for a loan. And only then look for guarantors.
*data as of summer 2017
Loan agreement:
We needed 3 guarantors.For registration guarantee agreement You also need to pay the amount to the cashier. For each 20 Belarusian rubles ( 10$ ). The guarantor's salary should be at least $250-300, and preferably more. Or they will increase the required number of guarantors.
Also, the “voluntary-compulsory” service is “tied” here. That is, everyone still needs to be insured - 18 Belarusian rubles from each ( 9$ ). And the guarantors are insured, the one who takes the loan, plus who shares the total income with it. In short, we insure everyone!
The bank also issues pledge agreement. For this you will have to pay another 45 Belarusian rubles (22,5$).
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*This doesn’t apply to the bank, but I’ll still tell you what the apartment design will entail.
- You need to pay for state registration, etc. -
14.7 bel. ruble (7,4$)
- For drawing up and issuing a technical passport for an apartment - 27.49 bel. rubles (13,7$)
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- Need to do real estate valuation. Yes Yes. That new building apartment you just built! They call it money out of thin air.
Estimated market value of real estate - 100 BYN. rubles ( 50$ )
* As usual, amounts increase for urgency. We did everything without speeding up.
- Another payment for BTI services. I don’t even remember why. 12.25 bel. rubles ( 6$ )
At this point, the fees for the services of the pledge agreement stop. Then comes the design stage mortgages.
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You cannot be assigned to the apartment until the mortgage agreement is drawn up!
At the appointed time, it was necessary for the bank representative and us (me + husband) to gather at the BTI. We signed the documents (quite quickly, 20-30 minutes). And, again, you have to pay for it)))
- State registration of the agreement - 29.90 bel. rubles ( 15$ )
- The state fee for certifying the pledge agreement is 115 BYN. rubles ( 58$ )
To real estate
The bank bears special risks when issuing loans to individuals for the construction of individual housing. Therefore, the general requirements of banks for borrowers are strict.
- Firstly, It is desirable to have a plot of land for construction owned. Land rent is acceptable, but there is less chance of getting a loan.
- Secondly, to the site housing and communal infrastructure must be provided. The fact is that a mortgage loan is issued against real estate. A site with a gas pipeline and other communications installed there is more expensive, therefore it significantly increases the bank’s motivation to issue you a loan.
- Third, construction must be approved, and you must have a permit to build a house. Coordination takes place in the architectural committee of the municipality where the site is located.
You must agree on the plan for future construction with the committee, as well as with the SES and the Fire Inspectorate; after all the approval procedures have been completed, you will be given a construction passport, which is a permit to build a house.
ATTENTION. If the building is already under construction, then you need to register ownership of the unfinished construction project.
To the borrower
The main requirements for the fund applicant are as follows:
- Solvency. He will need to make large payments to the bank every month. Mortgage interest starts at 14% per annum, so people with incomes of 50 thousand rubles or more can apply for such a loan. You will have to confirm your solvency either with certificates from your place of work or with the Personal Income Tax Form-2.
- Age restrictions. It is desirable that the borrower be over 25 and under 65 years of age. The conditions for issuing mortgages for construction are very flexible. You can stipulate in the contract that the loan amount will be disbursed in installments, according to each stage of construction. This way you can reduce the risks when stopping the construction of a house due to insurmountable circumstances.
- Availability of guarantors.
- An initial fee. This fee can be up to 20% of the total loan amount. You can use maternity capital to pay off the down payment.
Conditions in Russian organizations
Sberbank
This bank has strict requirements for borrowers.
The interest rate on construction loans starts from 12% per annum and depends on your financial security, as well as the loan amount.
Each mortgage case is considered individually by bank employees. But you yourself can find out the conditions under which you will be given a loan by using the calculator on the Sberbank website.
ATTENTION. Sberbank provides the opportunity to increase the loan amount if construction costs change within 2 years. In this case, it is necessary to provide documents that indicate this.
Alfa Bank
![](https://i1.wp.com/svoe.guru/wp-content/uploads/2017/10/alfa_bank_1_12112510-400x400.jpg)
Rosselkhozbank
![](https://i2.wp.com/svoe.guru/wp-content/uploads/2017/10/rosselhozbank_1_12112533-400x400.jpg)
VTB
![](https://i1.wp.com/svoe.guru/wp-content/uploads/2017/10/VTB_25_12112605-400x400.jpg)
Gazprombank
![](https://i2.wp.com/svoe.guru/wp-content/uploads/2017/10/gazprombank_logo_1_12112924-400x400.jpg)
Belagroprombank
![](https://i1.wp.com/svoe.guru/wp-content/uploads/2017/10/Belagroprombank_logo_1_12112706-400x400.png)
Priorbank
![](https://i1.wp.com/svoe.guru/wp-content/uploads/2017/10/Priorbank_1_12112804-400x400.jpg)
Where is the best place to register?
Having analyzed the conditions that banks offer Russian consumers, we can conclude that The most favorable terms for lending for construction are offered by Rosselkhozbank and Alfa-Bank. They offer the lowest loan rates (about 10% per annum) and do not force borrowers to make a large down payment.
As for banks of the Republic of Belarus, Belagroprombank provides the most favorable conditions. Even if we compare it with Russian banks, it is obvious that it offers the most lenient conditions to its clients.
The popular state-owned Sberbank, oddly enough, does not offer very favorable loan terms. The minimum loan rate is 12%, the down payment starts from 25% of the amount. The advertisement of this bank promises an individual approach to the client, but the conditions are initially too high, and it will be difficult to get a mortgage for construction.
Russian banks place serious demands on their borrowers and their construction projects. Most of them provide loans secured by a house under construction and a plot of land under it. The most favorable conditions in Russia are offered by Alfa Bank and Rosselkhozbank. In Belarus, the most profitable mortgage is from Belagroprombank.
Belagroprombank, like Belarusbank, are state credit organizations of the Republic of Belarus. The main goal of creating Belagroprombank is to provide assistance to the agro-industrial complex. In 2018, it offered several lending programs for individuals, companies and small businesses in the housing construction industry. The proposed schemes are of the same type. They all have:
- strict requirements for borrowers;
- annual grace period with interest reduced by one point;
- high stakes;
- mandatory guarantees - guarantors, penalties, collateral.
Loan for home purchase
Under the program, you can take out a loan for the purchase, including an auction:
- house or share in it;
- apartments in new buildings and on the secondary market.
General terms
It is possible to provide a deferment of loan payments from 6 months to one and a half years. Interest accruals and payments are made monthly.
Loan to persons in need of improved housing conditions
The rules for issuing loans to those on the waiting list differ slightly from the general rules for lending for the purchase of housing, as indicated above.
Features of this program:
Deferment of loan repayment is possible for a period of up to 17 months with mandatory monthly interest payments.
Purchase of Belarusian-made house kits
The scheme is designed to stimulate the domestic market and the purchase of domestically produced goods. The terms and conditions are simple, and the maximum loan amount depends on the financial situation of the applicant.
For a loan up to 2000 BR:
- no income certificates will be required;
- the interim measure is a penalty;
- receive a loan through a specially opened account.
Loan for the construction of residential premises
Loan for the purchase of housing bonds
General requirements for borrowers
- citizenship of the Republic of Belarus, or a residence permit with permanent registration at a specific address on the territory of the republic;
- reaching the age of 18;
- permanent income exceeding the minimum (in 2018 it was set at 305 BR per month) with mandatory documentary evidence;
- positive credit history, no overdue debt obligations.
Exceptions for applicants under the program for the purchase of house kits:
- when lending up to 2000 BR, documentary proof of income is not required;
- over two thousand, confirmation of earnings is required, but without establishing a lower limit.
For individual entrepreneurs additionally:
- no debt on settlements with the budget;
- confirmation of earnings by providing a declaration for the last two quarters.
If the debtor or guarantors undergo changes in the information submitted when applying for a loan during the validity period of the loan agreement, they are obliged to inform the bank about this.
List of provided papers
For the borrower and guarantors
- valid passport;
- for men under 27 years old - military ID, conscript certificate (does not apply to military personnel of all branches of the military, emergency situations, the State Control Committee of the Republic of Belarus);
- certificates of salaries and pensions for the last three months.
Entrepreneurs additionally provide:
- account statement for the last six months;
- a certificate from the bank confirming the absence of debts and blocking of the account;
- confirmation of tax payments for the last six months or two quarters (depending on the form of taxation chosen by the entrepreneur).
For Belagroinvestbank clients, a statement is sufficient.
1. When purchasing housing, including through an auction, the following are additionally provided:
- purchase and sale agreement drawn up in accordance with the law of the Republic of Belarus;
- object assessment;
- for a mortgage - state register documents on registration of the encumbrance in the form of a pledge.
Auction purchase:
- confirmation of the security deposit and registration payment;
- protocol indicating:
- information about all participants in the transaction;
- location of the object and final price;
- obligations of bidders for settlements and conclusion of an agreement.
2. For new buildings
- technical data (number of rooms, location, total area, number of floors);
- confirmation of funds paid;
- construction start and completion dates;
- details of the applicant's account and a certificate of inclusion in the list of citizen developers.
During shared construction:
- relevant agreement with the developer;
- a certificate from the developer confirming that the applicant has paid a specific amount and the date of payment.
3. For individual development
- certificate of ownership to the land where the facility is being built. (If the land papers are dated earlier than May 2, 2006, then an act and a temporary use certificate are provided);
- a certificate from the Department of Architecture and Urban Planning on the estimated and residual cost of the work, the degree of completion as a percentage;
- permitting documentation from state construction supervision;
4. When purchasing housing bonds
- An agreement with the issuing company that provides for its obligation to provide real estate to the bondholder.
Sources
- ru.wikipedia.org/wiki/Belagroprombank
- belapb.by