What is the difference of the mortgage loan

What is different from mortgage loan

For most ordinary people the difference between the credit and mortgage seems irrelevant - any option involves getting to borrow money from the subsequent payment of certain parts. Meanwhile, there is a difference and it is expressed in the difference between the conditions of registration and reception, as well as the repayment of the loan taken. Let's see what is different from a mortgage loan and that it is better?

Credit - the definition and the conditions for obtaining
The loan is defined as a form of relationship, during which the value of the available free copyright is transferred to the jurisdiction of another entity. In another way, this concept implies that the creditor, having some money or goods can transfer it to another person on the terms of repayment, urgency and payment. The borrower receives a loan product is obliged to repay the debt within a certain period, together with accrued interest, which stipulates the terms of the contract. In the context of contemporary realities often become the subject of the loan funds.


Credit is ready to offer its customers any bank, but credit conditions may vary. In particular, the interest rate can vary from 16 to 75% per annum, depending on the package of the documents submitted and the level of solvency of the borrower. The loan may be provided as a guarantee and be without collateral. Term lending is most often no more than five years.

Credits can be targeted, that is intended for a specific purpose - the purchase of household items, for the repair of apartments, on receipt of payment and so on. Maybe a loan and misuse. In this case, the client is not obliged to explain bank lending target.

Money received in the loan, the borrower can spend on that wish. In this case the acquired property on credit does not become a bank guarantee and the owner can dispose of it at their discretion.

Mortgage - this is, and under what conditions it is made?
The mortgage is also a form of lending, but it is issued for a specific purpose - a mortgage loan can be spent only on the purchase of housing. Under the terms of the mortgage contract purchased property is pledged to the bank that becomes collateral loan for the entire loan period. Thus, if a customer falls into a difficult financial situation and can not pay the debt, the real estate property will go to the bank to collect a debt.

For registration of the mortgage will require a much larger number of documents than a direct loan. Also you need to pay mandatory insurance and to pay some of the bank's commission. Dispose of the apartment mortgage borrowers will be able only after payment of the entire amount of the debt, until this moment, he is only entitled to reside in the purchased housing.

The interest rate when you make a mortgage is much lower than the rate on consumer credit. If the normal lending rate can reach 75%, the mortgage can be issued under the 10-15% per annum. Upon cancellation of the insurance percentage may increase by a few points, but for the majority of banks mortgage insurance is a must.

A significant advantage of the mortgage and lending terms. Mortgage loan can be taken for a period of 20-30 years. In addition to the amount proposed in mortgage lending, at times more consumer high.

Compare and contrast the loan on mortgage
The difference between the mortgage loan can be generally defined as a special mortgage credit form. Lending involves a loan of money for a certain period to repayment. The loan may, provided a guarantee or not, but in any case for the use of borrowed funds necessary to pay the interest agreed in advance. Mortgage - a cash loan to pThe main differences between the loan and mortgage can be expressed as:

- Credit - is a broad concept, while the mortgage is only one form of credit;
- Loan can be collateralized or unsecured, while the mortgage contract is always made out on bail acquired property;
- As a credit facility can serve as money, as well as certain goods in mortgage lending borrower always gets money for the purchase of housing;
- The issuance of the loan can be engaged in any financial institution, and the mortgage is the prerogative of the banking institutions;
- The size of the consumer depends on the collateral value of collateral and proof of income of the borrower, the amount of mortgage loan is determined on the basis of the applicant's income and can be increased to the maximum.

Thus, the difference between the loan consumer and mortgage becomes apparent. Each type of loan has its pros and cons. Choosing a loan product is based on their capabilities and needs.urchase housing at which purchased property becomes collateral until full repayment of the loan. And in fact, and in another case, the borrowed funds must be returned to the specified in the contract period.

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Types of mortgages

Types of mortgages and mortgage lending

If buying a home you do not have enough money, you can always use the services of banks accounts. This service provides a wealth of opportunities for the purchase of more comfortable, more spacious and more convenient for its location apartments. But the mortgage - this is a delicate matter, to which must be approached very seriously, because, as with any loan, you get a sum, but to give, though parts have a lot more money.

Also, each type of mortgage has its own separate individual nuances. Let's start with the mortgage on the primary (secondary) market. Borrowers may be only those persons who have attained the required age (twenty-one), but not older than 65 years (in various banks age difference sometimes set slightly differently), and having at the same time work experience (which in today's work place) at least 3-6 months. The features of such a loan (mortgage) can be considered that the initial payment must be about 10% or 20% of the total amount, the interest rate can not be less 11.45%, but the loan itself can be taken right up to 30 years (some banks give time and up to 50 years).



ipotekiEsli types you are unable to pay the initial fee, then the most suitable mortgage, not taking into account the initial fee. But it has its caveat - the interest rate will vary (approximately 1-1.5% of the normal rate mortgage).

Next, let's talk about the mortgage, which is issued on bail. Namely - on bail of any property, always owned by the borrower. Usually such a loan taken on the purchase of property (buildings), which is not accredited in the bank. This mortgage has a plus - oddly enough, borrowed money can be spent on the apartment, and on other similar desires.

Mortgage on two documents does not require confirmation of a steady income from the borrower. This type of mortgage is very useful to individual entrepreneurs, businesses and those who receive not only the "white" wages (in fact confirm the presence of a virtually impossible). To obtain such a loan from the client require only a passport and the other a document that can confirm the identity of the borrower. But here, too, there are two peculiar conditions: interest rate increase (0.5-1% of conventional mortgages), and the initial contribution even more - 35%, and some banks - 40%.

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3 simple reasons why unpopular mortgages

Consumer credit is the most popular form of lending to date. And the most lagging loan is a mortgage on which there are a number of objective reasons.

Now gradually increased as the volume of retail loans as well as the number of banks in this segment, although compared to the corporate segment, they remain much lower.

And there are several reasons. First - because historically, each credit segment and the inherent repeatability of certain cyclical. Since the risks for both banks and borrowers in this regard the maximum, it is restored to the last turn. As the solvency of borrowers on the mortgage, taking into account the present-day real estate prices and mortgage interest rates, is much lower than, for instance on consumer credit.



The second reason. The bulk of the banks in our market does not have the resources to rebuild a large mortgage lending on such a long period of time.

And the third reason - is that after the events of 2008-2009, not every borrower is ready to take on yourself and your family a mortgage on which will have to pay up to 60% - 70% of their household income each month. For this, both banks and borrowers are trying to soberly assess their capabilities and risks that are associated with the mortgage, because such thoughtless lending at a constant growth of the entire real estate prices does not justify itself.

We now know that the total volume of new loans, which are provided to the population, are growing every month

Although the mortgage market such an increase does not apply, the first thing it comes to auto loans and consumer loans.

Given this growth in lending Ukrainian population already issued loans by almost 20 tips. hryvnia. and it is only in the first quarter.

According to the latest National Bank lending in Ukraine is gaining enormous momentum, as in January, banks issued to the population 4.8 bln. UAH. Credit, and in February, this figure increased by 12% and amounted to 5.4 bln. UAH., In March, this figure reached 8.7 bln. UAH. But in spite of this the share of mortgage loans for the purchase of real estate in the amount ranging from 2.5% to 5%. A major part of this scrip issued by the public mainly for the purchase of everyday consumer goods, consumer, auto and cash loans. repayment schemes.

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How to pay off your mortgage?

Getting a mortgage is always accompanied by a pledge of real estate, ie mortgage. In general, mortgages this is the mortgage. This property is imposed burden. What is the burden can be read here.

Encumbrance valid until the loan is fully repaid.

But the debt you have paid, and are still Rosreestra recorded that the apartment in the mortgage.


How to pay off your mortgage?

A registration of the mortgage is repaid on the basis of:

The decisions of the court;
Joint statement from you and the creditor;
lender statements;
Statements mortgagor, ie, your application.
If shaped by the mortgage, pay off the mortgage easier. You can do it yourself.

In order to pay off the mortgage, you need to contact the lender the following documents:



a certificate on the performance of your obligations under the credit agreement;
original mortgage (if any). On the mortgage lender have to be a mark that the liability is settled completely. This mark must be certified by signature of the authorized person of the creditor with an indication of its position and the seal of the creditor;
notarized copies of the constituent documents of the lending bank;
certified copies of documents certifying the authority of the person who made a mark on the repayment on the mortgage, and signed a letter of debt repayment.
If the mortgage is not made, then pay off the mortgage can only be with the lender.

In the loan agreement or the contract on the mortgage or mortgages should be given a period during which the creditor is required to give you all the necessary documents for the repayment of the mortgage. Standard time - 2 weeks.

Please note that a small bank does this automatically. Therefore, as soon as fully paid on the loan, contact the bank with an application for the issuance of the necessary documents.

How is the removal of the mortgage with the property?

To remove the encumbrance need to Rosreestra. To do this, you must have the following documents:

Statement;
The package of documents that you gave the lender (see above);
The agreement, based on which the mortgage was registered - the sales contract (if mortgage by operation of law - with a note of registration of the mortgage), proof of ownership, etc.) or mortgage agreement, and with a note of registration of the mortgage;
Legal documents in the apartment;
In any case, grab a credit agreement;
Receipt of payment of fees (only if you want to get a pure testimony, no records of the mortgage).
The whole procedure is free. Paying only need to obtain a certificate without encumbrances, if you want to get it. To do this, you need only write an application for the grant of such a license on a new form and pay a fee.

Encumbrance is removed 5 days.

Your mortgage is sold. What to do?

It's okay, just now you have a new lender. It gives you the same documents as described above and further issue certified copies of documents confirming the purchase of your loan (mortgage).

And if the lender (the bank) is bankrupt?

When a bank bankruptcy, revocation of his license, the bank introduced a temporary administration, which should resolve all issues with the clients of the bank. The required set of documents can be obtained from it.

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Corporate mortgages. How to take care of the enterprise

the possibility of buying more affordable housing being built by the company itself,
grant a loan, which, in turn, is of two kinds - the subsidy for the down payment or the payment of the interest rate.
Let's look at a mortgage. Such a loan involving the help of his employer and have a corporate mortgage.


In the process of registration of the corporate mortgage involves three parties: the borrower, the company and the lending bank.

For the borrower, in addition to direct subsidies from the company, it is good for the fact that the employer may have with the lending bank payroll project and then the mortgage can be even cheaper. Most banks give a discount to the interest rate for members of salary projects. As a rule, it is a minus of 0.5% to the rate.


It is made out such corporate mortgages, usually in the shortest possible time, because your income in this case, the bank already knows, extra certificates do not need and checks you much faster. In the current conditions of unstable financial market and the real estate market of problematic speed is very helpful.

As the company prepares relationship with his employee at the corporate mortgage?

If the company gives the employee a subsidy or compensation, as mentioned above, it is often with him is the target of the loan agreement. While work - on it you do not pay anything worked, for example, 5 years - nothing should dismiss before 5 years - will have not only the bank, but also to his former employer. There may be exceptional cases where the employee has been working in the company and is especially important scenes, and the company encourages its free subsidy.

Corporate mortgages, incidentally, to some extent, protects personnel against possible compulsory retirement, but it restricts the freedom to quit on their own is difficult.

But in any case, the presence of such assistance from the company is a good thing. After all, the same initial payment is difficult to accumulate, and then the company will give the money. Even then this money will have to pay. Consumer credit will more accurately.

In general, corporate mortgage deal interesting, but as with any mortgage, responsible. There is a good saying on the subject - "free cheese is only in a mousetrap." Think and choose you!

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