improve conditions for mortgage banks have started in the middle of last year. A year ago, the ruble rate mortgages stood at 17-25% per annum in the primary market and 15-23% per annum on the secondary, in late 2009, many banks issued loans to housing under construction at 16-21% annually, and at the ready — by 14-19% per annum. Number of credits issued each month in November – December 2009, according to Central Bank, increased to 15 000-20 000 in 4000-6000 against the beginning of the year. Results for 2009 were granted 128 000 mortgage loans, but it is 2,6 times less than in 2008 on the recognition of credit brokers, borrowers while avoiding long-term loans, fearing the decline in revenues.

Meanwhile, in the past year, banks have managed to accumulate a lot of money and now they have to boost lending. Now they can afford to give mortgages to lower than last year, rates, said deputy president of the “Absolut Bank” Emil Yusupov. By March, many banks lowered their mortgage rates at the primary up to 15-18% per annum, and on the finished house – up to 13-16,5% per annum, says Marketing Director Kreditmarta Tatiana Budoragina.

Since September 2009 mortgages fell in 14 of the 18 banks included in the top 30 by assets and issuing mortgages, some of which have lowered rates twice ( “UniCredit, Raiffeisen Bank,” Intesa “) or thrice (Bank of Moscow, Gazprombank), and Nordea bank cut rates five times in six months, said project manager “Monitoring banking products” marketing agency MARX Pauline Medvedev. In her estimation, the average rate on loans for housing under construction in September fell by 3.5% per annum, at the ready – on 4,5% per annum.

without insurance

same time, some banks (for example, Nordea Bank, VTB 24, Raiffeisen Bank, Bank of Moscow, “Uralsib”, “OTP Bank) began to differentiate rates on the mortgage, depending on the of the insurance package. As “insurance” bet in the grounds of one bank can differ by 3-5% per annum, but some – and by 10% (BSGV, “Intesa”), said Medvedev. Minimum bids – for borrowers who choose comprehensive insurance (property, title and life), the maximum – for fear only bail. For example, in Rosbank ceteris paribus on the loan with the comprehensive insurance bet is equal to 15,2% per annum in rubles for insurance of mortgage and personal – 16,7% per annum, with mortgage and title insurance – 20.7% pa and if one mortgage insurance – 22,2% per annum. According to Marx and the Interfax-CEA, the beginning of March 11 of the 18 mortgage banks, the top 30 offered a choice of a mortgage with a different set of insurance services.

«Life insurance usually costs the borrower in 0,7-0,8% of the loan amount per year, while the rate on the loan without such insurance is increasing by an average of 2-3% per annum, “- warn those who decide to save money on life insurance, vice president RosEvroBank Sergei Gordeyko. He estimates that only 2% of borrowers choose loans without insurance with a higher rate.

not on their

In addition to reducing the rates banks are gradually resuming the issuance of mortgage initial contribution of at least 30% of the value of real estate. In the autumn Savings Bank, Nordea Bank, “VTB 24″ reduced the minimum contribution from 30% to 20%.

In February this year in “Absolut Bank” have been mortgage programs with with 10% down payment, requiring collateral as purchased, and existing housing. A RosEvroBank started issuing credits with 10% contribution on bail only purchased housing. But it is available only to families with children where both spouses work, and the monthly payment will not exceed 50% of total family income less mandatory spending, said Gordeyko.

Real estate prices have stabilized, so that the risks depreciation of the collateral were less than, say, a year ago, explains Budoragina. However, lowering the initial fee of 10% generally increases the rate by an average of 1% per annum, she said.

The market has already emerged individual mortgage programs and no down payment, but most of them – credits the security of available housing ( “DeltaCredit”, “Cedar”, etc.). Perhaps the only one who is (1 February) offers a mortgage with a zero contribution on bail just bought real estate – the Bank “Soviet”. However, this loan is granted only when comprehensive insurance for up to seven years under a high rate – 17% per annum in rubles. This is 2% per annum more than the contribution of 30% of the cost of housing – such is the fee for the risk of the bank, explains the head of retail lending “Soviet” Paul Sinyutenko. In addition, the commission of the bank for loans is 8% of the loan amount at the average market rate 1-2%.

can take

experts believe that mortgage terms will improve further. By the end of the year ruble-denominated loan rates on finished housing many banks will drop to 10%, believes Michael Matovnikov, General Director of “Interfax-CEA”. But the main trend this year, he believes reducing down payment. Most banks will reduce the minimum contribution of up to 20%, and the leaders of the market – up to 15%, agrees Budoragina. But the mass appearance of loans with no down payment, which is typical for the rapidly growing property market, this year no one is waiting. Only in 2011 Matovnikov hopes to see mortgages with a rate of 10% per annum in rubles for initial contribution of 10%.

Before taking even cheapened mortgage, experts advise borrowers to estimate income and ability in the future repay. The rates will fall further, but credit growth could trigger a rise in price of real estate, warns the director of the Macroeconomic Research, SU-HSE Sergei Aleksashenko. So people, confident in their ability to pay, better to take now more expensive credit, and subsequently re-credit, than to wait for housing prices, he said. According to his estimates, the growth of property prices by only 5% interrupt reduction rate on the loan by 2 percentage points. However, six months house prices are unlikely to change, and the credits will definitely accessible, certain financial officer for Universal Financial Adviser “Artem Plotnikov.

Experts advise is to assume the currency risk choosing a mortgage in dollars or euros. However, recognize that currency loans due to lower rates and the relative stability of the ruble would be advantageous.

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