If they plan to purchase real estate, people prefer a mortgage, which differs from a conventional loan in a high limit, a long period for paying off obligations and targeted spending of funds.

However, for a number of reasons, the service is not available to all borrowers, so people are starting to consider alternative options. Today there are classic consumer loans with a high limit.

The amount is quite enough to purchase real estate in the middle price category. Before making a final decision, it is important to understand What is more profitable - a mortgage or a loan?.

The essence of both proposals is to borrow money at a certain interest rate. The difference lies in the purpose and use of funds. If a person took a classic consumer loan, he is not obliged to report to the financial institution for expenses. When we're talking about about mortgage lending, the intended use of funds must be confirmed in mandatory.

The bank provides services under different conditions. The mortgage interest rate is lower and amounts to a minimum of 10.25% per annum. When a consumer loan is issued, the overpayment will be equal to a minimum of 13.9%.

With a mortgage, the obligation can be closed within 30 years. A person is required to repay a consumer loan within 10 years. Obtaining a targeted loan for the purchase of housing entails a whole list of additional expenses:

• payment for assessment of the selected premises;
• property insurance;
• payment of state fees for the preparation of a number of documents.

Additionally, a citizen may be forced to require life and health insurance. Similar work is carried out when issuing a classic consumer loan. However, the borrower has the right to refuse the offer. There is no need for registration expenses.

To obtain a mortgage, you have to prepare a large package of documents. The list should include real estate papers, confirmation of a stable income and official employment, and compliance with requirements. Registration of non-targeted services can be carried out on the basis of two documents.

Under a mortgage, the spouse of the recipient of the funds acts as a co-borrower. A similar obligation is not imposed if the family takes out a consumer loan.

The classic offer has a small limit. The size of the available loan amount depends on the value of the property being purchased. It necessarily becomes encumbered if the borrower does not provide alternative collateral for the loan.

To save money, you can. If the payment is made within 50 days, you do not have to pay interest. However, the service is not suitable for purchasing an apartment due to the small limit.

If a non-target offer is used, the need for collateral arises only if the requested amount exceeds 500,000-700,000 rubles. A guarantee option is a security option.

The mortgage application process takes much longer to process. Sometimes the decision is announced only after a week. You can find out the answer to your consumer loan application within one hour.

When is it better to use a consumer loan to buy an apartment?

Without going into details, a number credit specialists clearly answers that borrowing for certain purposes is much more profitable than standard consumer offers. However, if you study the essence of the issue in more detail, it turns out that this is not always the case. Receiving standard loan, the citizen will encounter the following advantages:

1. The registration procedure is much simpler. It is enough for a citizen to provide one or two documents so that the financial institution can make a decision. When it comes to a mortgage, you have to provide a large package of documents, the collection of which may take up to one month.
2. There is the possibility of unhindered closure of obligations before the expiration of the contract. Additional sanctions are not applied to the citizen. When it comes to concluding a mortgage agreement, the debtor is often limited in the ability to repay the debt, since the company is not interested in this. If the borrower can close obligations ahead of time, this will entail a loss of profit for the bank.
3. The property will not be encumbered. When a mortgage is issued, the client is required to provide the purchased property as collateral. If it is not possible to make timely payments, the bank initiates legal proceedings, during which a decision may be made on the need to sell the premises to pay off the debt. If a citizen takes out a standard consumer loan, the money is lent without collateral.
4. The client has the right to refuse the purchase insurance policy. You can insure the premises of your own free will. The policy can protect not only the premises but also. However, a citizen is not required to purchase insurance. If the service is imposed, you can.
5. You will not have to pay for the services of appraisers, pay additional commissions and make a number of other payments required during the mortgage process.
6. The service will allow. However, the financial situation must allow for smooth settlement.

Disadvantages of a classic loan compared to a mortgage

However, based on the above parameters, it cannot be said unequivocally that a consumer loan is better than a mortgage, since the product also has significant disadvantages. Among the disadvantages, experts include the following features:

1. The interest rate will be significantly higher. Its size exceeds the overpayment on mortgage lending by 2-3%, which in the long term can turn into a significant amount. However, this difference can be compensated due to the absence of the need to introduce additional fee for the insurer, assessment and other services.
2. The loan term will be significantly lower. It is necessary to close the obligations within 5 - 7 years. The repayment period for mortgage debt can be up to 50 years. Resulting size monthly payment for a consumer loan will be significantly higher.
3. Size available limit very limited. Banks are not ready to provide clients without collateral with more than 1 - 1.5 million rubles, which significantly limits the choice of real estate. The limit on mortgage offers reaches 30 million rubles.

What to choose: Mortgage or consumer loan?

It is recommended to give preference to a mortgage if a citizen plans to reduce the financial burden on the budget. The service will allow you to deposit cash in relatively small amounts over a long period of time.

However, if a person has about 90% of the cost of housing, and the potential borrower does not have enough small amount, it is better to apply for a consumer loan. The property will not become encumbered, and the debt will be repaid much faster. Additionally, you will be able to save on related payments.

When 70% of the cost of housing is in hand, a person will be able to pay the remaining amount within 5 years; it is more advisable to use a mortgage using two documents. The service will significantly simplify the registration process and will not greatly limit the borrower when choosing a premises. Interest rates on such services are relatively small.

Giving the choice to the second credit product, it is important to consider that both spouses will be recognized as the owners of the property, regardless of who paid the mortgage. If we are talking about closing obligations according to the standard, settlement can be purchased using funds available before marriage. In this case, only the husband or wife is recognized as the owner of the property.

Conclusion

It is necessary to make a decision based on the characteristics of a specific situation in the current financial situation. The difference in interest rates is not so significant due to the associated costs of mortgage lending. The influence of parameters can vary significantly in each specific situation.

All citizens who decide to use borrowed funds to purchase their own home are interested in a mortgage or a loan: which is more profitable? Having analyzed all the pros and cons, everyone decides for themselves, a mortgage or a loan: which is more profitable to apply for in a particular case.

Buying your own home is the most significant purchase in a person’s life. It’s good if your income allows you to save up in a relatively short period of time the required amount in cash.
But for most Russians, the only option is to use borrowed funds from the bank. Which loan program to choose: mortgage or consumer? Let's compare the conditions, advantages and disadvantages.

Mortgage or loan: which is better?

Before looking for an answer to a question that is quite relevant for many Russians: “Mortgage or loan: which is more profitable?”, you need to decide on the key points:

1. The amount of the required loan amount.
2. Optimal loan term.
3. Purpose of the purchased housing

According to existing banking offers It is easy to track that a consumer loan without collateral is limited to an amount of about 500,000 rubles. A mortgage provides an opportunity to receive a one-time borrowed funds in a significantly larger amount.

To calculate the optimal loan repayment period credit experts it is advised to start from the definition monthly amount payment. It should not exceed 30% of total income. For consumer loans The loan term is limited to 5 years (in rare cases - 7 years), a mortgage loan can be issued for a period of up to 30 years.

A mortgage loan is accompanied by the imposition of an encumbrance on the purchased property. According to Article 12 and the provisions of Ch. V Federal Law “On Mortgage (Pledge of Real Estate)”, as amended on May 7, 2013, number 102-F3, there are a number of restrictions on the use of housing, failure to comply with which may result in the bank as the mortgagee requiring the bank to terminate loan agreement and pay off the entire debt at once.

For example, if this is not stipulated in the agreement with the bank, you cannot register third parties in the mortgaged housing or rent it out. Selling a home is also complicated by the need to pre-pay existing mortgage debt. An unsecured consumer loan allows you to dispose of your existing housing at your own discretion.

In addition to these main points that determine the profitability credit programs Based on their purpose, there are other nuances for comparison.

Mortgage or loan: compare bank requirements

To apply for a loan, the bank only needs to check the borrower, his solvency and solvency. In many ways, these basic criteria are evidenced by the provided income certificate and the presence of a guarantee.

When taking out a mortgage, in addition to the candidacy of the borrower, the purchased apartment is also carefully checked. This significantly affects the processing time of the application.

If, with a good credit history, the borrower can receive the required loan amount within 1 business day, then it takes the bank 5 business days to consider the possibility of providing a mortgage loan.

And of course, the package of documents required to apply for a mortgage is significantly larger in number than the package of documents required to apply for a consumer loan.

Don't know your rights?

Collection of documents for a mortgage loan, subsequent registration with Rosreestr, servicing (extension of insurance and current certificates income) requires additional investments and time from the borrower.

Mortgage or loan: compare interest rates

Thanks to the activities of OJSC "Agency for Mortgage housing lending"(AHML), created by the Government of the Russian Federation in 1997 in accordance with Resolution No. 1010 of August 26, 1996, bank mortgage programs are continuously improved, registration conditions are simplified, and the interest rate is reduced.

Currently, the issuance of consumer loans is accompanied by an interest rate ranging from 15-22% per annum (express loans are quite expensive, they are not worth taking into account), and for mortgages the interest rate ranges from 10-15% per annum (for foreign currency loans it is slightly lower ).

Mortgage or loan: comparing additional costs

• Insurance. A mortgage loan, like any secured loan, is accompanied by mandatory insurance of the collateral. Moreover, in the event of insured event, the funds will be used to compensate losses, first of all, to the bank, and not to the borrower, in accordance with clause 2 of Art. 36 Federal Law “On Mortgage (Pledge of Real Estate)”, current edition dated May 7, 2013, number 102-F3.

  While when insuring your own home without encumbrance, it is possible to receive compensation in the event of loss of housing for either the current or overhaul in the event of an insured event.

  The same can be said about compulsory insurance life and health of the borrower and title insurance- all funds will be used to compensate the bank for losses incurred, and not to the borrower and his immediate relatives (in case of death). This is a fairly significant drawback of the imposed mortgage encumbrance.

• Independent housing assessment. With a mortgage, the cost of appraising the home falls entirely on the borrower and is mandatory. Drawing up other documents and bringing them into proper form also requires an initial investment.

Mortgage or loan: compare conditions

The most pleasant moment when applying for a mortgage is the right to implement tax deduction deduction (See How to get a property tax deduction for a mortgage in 2014) and cashing out maternity capital as down payment(Cm. Mortgage against maternity capital: what are the conditions for the down payment?) .

It is also worth noting that the purchased property is checked for legal purity not only by the borrower, but also by the bank’s security service and the insurance company. Additional guarantees that the purchase/sale transaction will not be subsequently contested are provided by title insurance.

The disadvantage of a mortgage is the limitation in the choice of secondary and primary housing. Many options are immediately cut off, for example, for new buildings by the developer, which for some reason do not suit the bank, or apartments that do not meet the bank’s conditions in terms of technical condition or location.

In the case of mortgages, banks react painfully to the registration of minor children or citizens with disabilities - because this causes difficulties in exercising the right of encumbrance if the borrower evades loan payments. For the borrower, this condition is not very acceptable; most benefits These persons can receive only if they have permanent registration at their place of residence.

Thus, summarizing the considered advantages and disadvantages of consumer and mortgage lending we can conclude that there is no universal answer to the question “which is better: a mortgage or a loan.” In each individual case, both a loan and a mortgage may turn out to be the most profitable for a potential borrower.

You will learn how a loan differs from a mortgage, what is good about mortgage lending and when it makes sense to take out a consumer loan. We will compare these two products using different criteria to determine which is better.

24.04.2018 Andrey Kushchev

If you do not have the full amount to purchase real estate, there are only two ways to purchase it - a mortgage and a consumer loan. Each of them has its own pros and cons, which should be taken into account when choosing.

How to choose the right one and what is the difference between a consumer loan and a mortgage - read the article.

How does a loan differ from a mortgage?

To understand which loan to apply for – consumer or secured – you need to understand the lending conditions and understand how they differ.

This will help you make the right choice, which everyone will individually determine for themselves - focusing on their own income and capabilities.

Interest rate

The loan rate is the first thing a consumer pays attention to. The average annual rate in rubles for a mortgage is 12%, for a consumer loan – from 18% to 30%. The rate depends on the loan amount and bank conditions. The higher the amount, the lower the rate.

Despite the fact that mortgage lending is cheaper, it requires additional expenses - for insurance, a notary, an appraiser, a realtor and a mortgage broker.

Repayment terms

A secured loan is issued for a period of up to 30 years, and a consumer loan – from 1 month to 7 years. Bank conditions differ, but the maximum existing deadlines- 7 years.

Documenting

It is easier to take out a consumer loan than a collateral loan. Often the amount of a residential loan is quite large, especially in large cities where real estate is more expensive.

To apply for a mortgage loan, the bank will require many documents - work book, income certificate, housing documents, passport. Also, if you are married, both spouses must be co-borrowers.

To apply for a consumer loan, you only need a passport and a certificate of income.

The main difference between a consumer loan and a mortgage is the form of collateral. Upon registration mortgage apartment always belongs to the bank until the debt to it is fully repaid, therefore this form of lending is called collateral.

For example, if you are late in payment, or have lost your source of income and are unable to pay your obligations, the bank has the right to take away mortgaged property- apartment.

What's good about mortgage lending?

Russians who do not have their own homes prefer to take out mortgage loans. For many, this method of purchasing a home looks more attractive.

Mortgages make housing affordable. Since this is the most popular way to buy a home, let's look at its pros and cons.

pros:

• Availability – average Russian family can afford to take out a housing loan;
• you need to have only 10-12% of the total amount for the down payment;
• long term payments – up to 30 years;
• low interest rate - maximum 10-11% per annum (including insurance);
• the opportunity to receive a subsidy from the state for low-income families;
• the possibility of a tax deduction - once in a lifetime, every Russian has the right to return 13% of the amount of taxes paid on a mortgage - this allows you to save money.

Minuses:

• high risk - the housing does not completely belong to you until the debt to the bank is repaid;
• the mortgaged home is your collateral to the bank;
• the chosen housing must be agreed with the bank - it does not always agree to your conditions;
• long terms mean a high overpayment - for example, if a mortgage is issued for 20 years at a rate of 10%, you overpay twice as much;
• the need for insurance, which must be renewed every year.

When does it make sense to take out a consumer loan?

It is more profitable to take out a consumer loan only if the family has already saved up 70% of the cost of housing. They borrow the missing amount from the bank and pay it back within a few years.

Remember: consumer loans are not issued for more than 7 years. If you are not sure that you will have time to repay the debt within this period, it is better to think about a mortgage.

This type of lending has its pros and cons.

pros:

• The registration procedure is quick;
• You only need a certificate of income and a passport;
• there is no need to leave real estate as collateral;
• wide choice of housing - you don’t need to reckon with the bank;
• It is not necessary to take out insurance.

Minuses:

• interest may be twice as high;
• limit on the amount - if you have a low income, a large loan will not be issued;
• the monthly payment is higher;
• relatively low repayment terms.

Comparison of consumer and mortgage lending according to different criteria

From the right choice lending depends on a lot - how much you will overpay, how complex the bureaucratic processes will be and whether the bank will give you money at all.

To understand this, we offer a comparison of these two types of lending according to the most important criteria.

Purpose of receipt

The purpose of receipt is to purchase a home. In both cases, you must have an initial amount - at least 10% of the cost of the house or apartment. You need to start from how much money you have.

If there are none at all or only available for the down payment - better mortgage. If there is a large part of the cost of real estate, look towards a consumer loan.

Bank requirements

When lending money, a bank always takes a risk. To minimize risks, he requires a lot of documents from you, a certificate of income and registration of collateral. The bank's task is to return its money with interest in any case - even if the borrower is unable to pay.

The requirements for a mortgage loan are quite high. The key one is the presence of a stable income, in which the borrower is able to make monthly payments.

In the case of a mortgage, the income level should be such that the borrower does not spend more than 40% of his monthly income on payments to the bank. If you do not fit into these frameworks, you will be rejected.

There are no such strict rules for consumer loans. The main thing is to confirm the presence of a stable income. Only if the amount is really high will the bank check your solvency.

Deadlines for reviewing documents

When applying for a consumer loan – from 1 hour to a week.

When registering a collateral – from 1 day to several months. This process usually takes 2-3 weeks.

Interest rate

Consumer credit is always more expensive - from 18% per annum. Security deposit – from 10%.

Since January 1, 2018, a law on state subsidies for mortgages has been in force in Russia. The law applies to families expecting a second or third child. With a preferential mortgage, a family will be able to pay only 6%.

Security

Collateral is a source that guarantees the repayment of a debt - collateral or a guarantor. A mortgage is always secured by the housing for the purchase of which it is issued.

Consumer credit is not always secured by collateral. Typically, collateral is required when the loan amount exceeds 300 thousand rubles. If below, a certificate of income is sufficient.

Insurance

Bank conditions are always different. If to obtain a mortgage you must take out insurance for real estate, life and health, then for a consumer loan you only need insurance for life and health.

Which is better - a loan or a mortgage: expert opinion

The lending method is determined based on your capabilities - how long you can repay the loan, how much money you have at the time of registration, whether there is additional real estate.

It is advisable to apply for a consumer loan for the purchase of a home when you have most of the cost of a house or apartment and at the same time you are confident that you will be able to pay off the debt in a short time - you take the missing amount from the bank.

If it is impossible to improve your living conditions due to own funds An apartment loan is a great opportunity to resolve this issue. Banks offer to purchase housing with a mortgage, but you can also take out a non-targeted (consumer) loan.

First of all, when buying a home using borrowed funds, the question comes up: what is more profitable: a mortgage or a loan for an apartment? To answer this, you need to analyze both types of lending in detail, consider their pros and cons, and make approximate calculations.

Mortgage and consumer loans are similar in many ways. These are two types of cash loans, in which funds are issued for a specified period and at interest. The differences lie in the terms of provision, the amount of the monthly payment, terms, and so on. To answer the question of which is more profitable: a mortgage or a consumer loan, let’s take a closer look at each type of lending.

Advantages and disadvantages of mortgage loans

A mortgage loan is a type of loan in which the debtor's real estate is taken as collateral. It is owned by the person or family who took out the mortgage. If the co-borrowers fail to fulfill their obligations, the loan object becomes the property of the lender. The collateral will be the apartment for the purchase of which funds are taken or other real estate (determined by the type of loan and the terms of the agreement).

• Long periods allocated for debt repayment. Mortgages are provided for 5-30 years.
• Low rates. This is achieved due to the fact that mortgages are included in targeted lending programs for the population and are designed for people with average incomes.
• Small amounts of monthly contributions. The effect is manifested due to the long duration of payments.
• A variety of programs, including preferential ones. Mortgages are issued for primary and secondary housing, for commercial real estate, objects with land plots. Examples of programs: “Young family”, “ Military mortgage", "Maternity capital" and others.
• Possibility of receiving a large amount. A mortgage loan is provided specifically for the purchase of real estate, so it allows you to obtain a large loan.
• The bank checks the purchased property. This does not provide a 100% guarantee of the purity of the transaction, but it can significantly reduce risks.
• A number of lenders allow you to include in the mortgage agreement the costs of purchasing furniture for a new home and its renovation. This way you can save on paying interest when furnishing your apartment.

The borrower is one person or several. You can involve any family members or relatives as co-borrowers. This will make the conditions more favorable: it will help increase the maximum loan size, reduce the down payment and extend the overall payment terms.

• High total amount of overpayments. Depending on the size of the monthly payment and terms, it reaches 100-200% of the original value.
• First payment. Majority mortgage programs involves making an initial amount equal to approximately 10% (usually 15-30%) of the cost of the purchased object.
• The need to insure purchased housing. This helps to secure the apartment and guarantee a refund in an emergency, but increases overpayments.
• Increased requirements for borrowers. You will need to collect an impressive package of papers and confirm your status in order to receive bank approval. At the same time, documents for the purchased housing are usually provided by the seller. The buyer only transfers them to the bank.
• Involving people of pre-retirement or retirement age as guarantors or co-borrowers will most likely lead to a reduction in the loan term, therefore, the size of the payment will increase.
• A mortgage involves restricting the right to dispose of the purchased housing. As long as the encumbrance is in effect, the property cannot be sold, donated, or otherwise transferred to third parties.
• Once the mortgage is paid off, the encumbrance must be removed. To do this, the bank provides a letter of guarantee and its own copy of the mortgage note. The borrower provides these documents to the MFC, where after some time they will issue new housing documents with the appropriate marks.
• The standard payment scheme for a mortgage is as follows: buyers transfer part of the cost of the property to the sellers (this is an initial payment formed from their own funds), ownership is registered, and after 5 business days the new owners (borrowers) provide the bank with documents from the registration authorities. Some sellers, despite the fact that their rights are protected by the mortgage agreement, do not agree to such a scheme.
• The services of a realtor and lawyer accompanying the transaction cannot be paid for using mortgage funds.
• The purchased housing must be registered as the property of the co-borrowers. The owners may also be their minor children. Registration of ownership rights to a third party (for example, an adult child) is excluded.
• If the owners of the purchased housing include minor children, then permission from the guardianship authorities is mandatory. They must agree that this object will be pledged to the bank. If the co-borrowers fail to fulfill their obligations to repay the loan, this property will be transferred to the ownership of the lender, even if it is the only home for the children.

Carefully study the mortgage programs - some of them are designed only for the purchase of apartments in new buildings.

Advantages and disadvantages of consumer loans

Consumer loan is a loan issued by a bank to an individual. It is non-targeted and is issued not strictly for the purchase of an apartment, but for any needs. Provided without collateral: the purchased housing or other real estate remains the property of the borrower even in the event of failure to fulfill obligations under the agreement.

• Lower total amount of overpayments. This is achieved due to the short term for which the loan is issued and a large monthly payment.
• Prompt consideration of applications. The bank issues a response within a few days.
• Lax requirements for the recipient. You will need to collect less documentation.

Issued for one person. Available regardless of marital status. When receiving this type of loan, you do not need to make a down payment and insure the purchased home without fail, which makes the loan more profitable.

The right to dispose of the property is retained, even if the loan has not yet been repaid.

Allows you to solve the housing problem even in the absence of your own savings.

• Short loan repayment periods. Issued for a period of up to 3-5 years.
• Relatively high interest rates. Several points higher than mortgage rates.
• Large monthly contributions. The increase is due to the short period for which funds are issued.
• Small maximum amount provided. A mortgage loan is more profitable than a consumer loan if you need to get big loan. A consumer loan is always limited in amount.
• The lack of home, life and title insurance means that all risks associated with home ownership rest solely with the owner.
• A number of banks actually impose disability insurance. It usually costs an order of magnitude more than a similar product offered by professional insurers.

To obtain a loan you must have a high level of income. Otherwise, the bank will refuse to provide it. It is also desirable that the income be guaranteed for several years. Otherwise, paying the monthly installment will become difficult.

Calculation example

To understand which is better: a mortgage or a home loan, carry out the calculations using a special calculator or manually. Here, for example, is Sberbank's mortgage calculator. For example, let's take the average values:

1. Mortgage. 2.5 million. Interest rate 11% per annum. The term is 15 years. Monthly payment 28415 rubles. Taking these parameters into account, the overpayment is equal to approximately 2,614,700 rubles. + insurance premiums, commissions.
2. Consumer loan. 2.5 million. Interest rate 17% per annum. Term 3 years. Monthly payment 89132 rub. Taking these parameters into account, the overpayment is equal to approximately 708,752 rubles.

The calculations show that the overpayment on a conventional loan is significantly less. But every month you will have to pay a lot of money in addition to utility bills for the apartment. This is a significant disadvantage of a consumer loan.

Construction of railways

A mortgage for the construction of an individual residential building is unprofitable for those who plan to carry out at least part of the manipulations with their own hands: to confirm the fact of construction, the bank needs documents for all building materials and all work performed. The lender should provide an estimate, a construction contract, permits for connecting to communications, and so on.

The land plot on which the house will be built is pledged to the bank. If it is on a long-term lease, then the right to lease is accepted as security.

If you plan to build a private house with your own hands, then you can take relatively little a large amount under the consumer lending program to ensure financing of part of the work for the coming season. During the winter period, you can have time to repay part of the debt, and by spring you can apply for a consumer loan again. But there is a risk that at some point the bank will refuse a loan, for example, due to insufficient solvency due to loan obligations issued earlier.

If you build a house with a mortgage, what is more profitable, taking into account low rates, you need to take into account that a number of banks make it possible to receive a loan in tranches, that is, in parts. With this scheme, interest is accrued only on the actual portion of the loan received, which minimizes overpayments. However, it is difficult to find a lender willing to work with the construction of private railways.

Tax deduction

When deciding how best to buy an apartment (with a mortgage or on credit), you should take into account that in the first case, if you have an official, “white” salary, you can take advantage of the property tax deduction.

This is a one-time “discount” on taxes paid. That is, this is the amount by which the total number of tax payments is reduced. The deduction is equal to 13% of the total debt. Makes a mortgage loan more profitable.

Non-working pensioners and disabled people, as well as citizens working unofficially, will not be able to take advantage of this benefit, since they are not payers of personal income tax.

To decide which is better: a loan or a mortgage for housing, taking into account the possibility of obtaining a tax deduction, you need to do this:

• for officially employed people, more profitable purchase real estate for mortgage;
• for those who are not working, it is more important to take other factors into account.

More details in the video.

conclusions

What is more profitable: a mortgage or a loan - should be decided in each specific case. It is definitely better to buy an apartment using a consumer loan if a relatively small amount is needed and there is no tax deduction. If you need to sell maternity capital, then a mortgage is necessary, even if it is a relatively small amount.

It is also important to consider the size of payments. Ideally, they should be comparable to the rental price of the purchased property. Consumer loan for a large sum– these are large monthly payments, which, even if you have a consistently high income today, may turn out to be a problem tomorrow.

To reduce the amount of overpayment on a mortgage, it is enough to pay off the debt ahead of schedule. Banks accrue interest only for the actual period of use of the funds, taking into account the amount of the balance.

?

At first glance, there is only one difference - a mortgage involves collateral for housing, which is purchased on credit, but a consumer loan does not. But this difference is not the only one. To understand which is better, a mortgage or a loan to buy a home, let’s determine the main features of both banking offers.

Advantages and disadvantages of a mortgage loan

Let's try to answer the question: mortgage or loan to buy an apartment - which is better? To do this, compare the features, note the pros and cons of each program.

What is the difference between a mortgage and a loan for the purchase of real estate without collateral?

Positive aspects of a mortgage:

• relatively low interest rate. Taking into account the fact that a mortgage is usually taken out for a large amount (more than 1 million rubles), the amount monthly payments will be lower than for a similar consumer loan;
• optimal repayment period. To make the monthly payment acceptable for citizens with average incomes, the mortgage is provided for a long term. One of the conditions is that the amount of the regular contribution does not exceed 50% of family income borrowers. A consumer loan can be issued for several years (on average 1-3 years), and a mortgage - for 10-30 years.
• obtaining the right to a tax deduction. Size income tax may be partially reduced by the amount that the client pays to the lending bank after purchasing a home;
• receiving government subsidies under programs for young families, military personnel, and beginning specialists;
• use of maternity capital (if borrowers are entitled to it). A conventional loan does not provide this opportunity;
• legal purity of the transaction. Financial institutions cooperate only with trusted developers, the transaction is controlled by the bank’s legal department, a realtor (if the client uses his services), an appraisal firm, and government agencies (if they are involved in obtaining a mortgage). Thanks to this, the risk of purchasing real estate, which will later be contested by someone, is minimized.

To evaluate which is more profitable - a mortgage or a loan - you need to know the disadvantages of each program. Let us note the main disadvantages of a mortgage loan:

• complexity and duration of the registration procedure. The transaction involves several successive stages: collecting documents, searching for housing, deciding on a mortgage from the lender, concluding an agreement, state registration ownership rights to real estate. In this case, the bank will conduct a thorough assessment of the borrower, checking his solvency and credit history, and there is a risk that the client will ultimately be rejected. All this usually takes a lot of time and effort. For a regular loan, which can be used to purchase a home, the application procedure is much simpler;
• compulsory insurance of real estate, which is purchased with a mortgage, the life and health of the borrower. If you take out a regular loan, this condition will be voluntary;
• A mortgage requires a down payment. Taking into account total cost housing, the amount that must be paid at once can be significant for most borrowers;
• minimum size. If you spend the bulk of your funds on purchasing a home from your own savings, you will not be able to take out a mortgage for an amount less than that set by the bank;
• Failure to fulfill obligations to the bank will result in loss of ownership of the property. The loan does not require collateral for the purchased property, so the housing will remain the borrower’s property even if the debt is overdue;
• a mortgage involves collecting a large package of documents. These include not only an identity card and a certificate of income, but also a purchase and sale agreement, collateral documents, documents on insurance and payment of a down payment. For family borrowers, it is required to provide certificates of marriage registration and birth of children. In many cases, a consumer loan requires only a passport and a certificate of income of the borrower, which greatly facilitates its registration;
• the need to pay for the real estate valuation procedure. It can be carried out by the bank’s legal department or an independent company. The procedure is paid, which will result in additional costs for the borrower;
• The home you purchase with a mortgage cannot be used for sale or exchanged until the loan is repaid. If you purchased property on credit, you can dispose of it as you wish, including selling or exchanging it for favorable conditions;
• mortgage limits the choice of residential real estate. It is necessary that the developer cooperates with the lending bank, and the amount of the mortgage loan is sufficient for its purchase. The choice of real estate on the primary market is limited to offers from developers who cooperate with the lending bank. A consumer loan makes it possible to purchase almost any property, including spending borrowed funds on building your own home according to an individual project;
• Mortgage approval becomes more difficult if minors or people with disabilities are registered in the purchased apartment. This problem will not arise if real estate is purchased using consumer loans.

To summarize, we can draw the following conclusion: a loan gives more freedom in the choice and disposal of property and is suitable for those who have significant savings or earn a high income. wages. Mortgages are more suitable for those who have average income and who has the right to government subsidy, the opportunity to use the bank’s program for preferential categories of citizens.

Mortgage or loan - what to choose?

Let's consider the conditions when it would be profitable to take out a mortgage or consumer loan.

It would be better to take out a mortgage loan in the following circumstances:

1. When the borrower is able to make payments on time for a long time, but their amount does not exceed 50% of monthly income families;
2. If there is no confidence in the legal purity of the purchase and sale transaction. In this case, multilateral control when applying for a mortgage will virtually eliminate the possibility of fraud with the property. You can apply for a housing loan without resorting to the services of realtors, which makes it possible to save additional money;
3. When does the client plan to use social program for preferential categories of citizens (for example, “Young Family”, “Military Mortgage”) and receive a mortgage on favorable terms. In this case, part of the cost of housing will be paid through a subsidy from the budget;
4. If the borrower expects to receive a tax deduction after purchasing real estate.

It is more profitable to take out a consumer loan in the following situations:

1. If a relatively small amount for a limited period of time is enough to purchase real estate. For example, the borrower’s savings are enough to pay up to 80-90 percent of the cost of housing. A standard apartment in Moscow costs 7 million rubles. In this case, it is enough to take out a loan of 700-800 thousand rubles with a repayment period of 3 years, so that the monthly payment (for calculation, let’s take an approximate interest rate of 7.9%) is about 5-6 thousand rubles. The amount of overpayment will be lower than that of the classic home loan- due to a smaller amount and a shorter payment period. The monthly payment will also be less burdensome - given that mortgage payments typically account for 40-50 percent of the family budget;
2. If the client’s official income level does not meet the bank’s requirements. As a rule, this occurs in situations where citizens receive income under a gray scheme. For example, a client has an unofficial part of his salary, and according to the 2-NDFL certificate, his income is less than necessary (the amount of the monthly payment for mortgage loan should not exceed 50% of the borrower’s earnings);
3. If the borrower wants to purchase real estate from a developer with whom the property he is interested in does not interact with financial institution. If a citizen is an existing client of a certain bank and can count on individual loan conditions, in certain circumstances a regular consumer loan may be more profitable than a mortgage loan;
4. When the borrower does not meet the bank's requirements for a mortgage. For example, to mandatory conditions creditors are treated continuously seniority, but the client worked unofficially for a long time.
5. If the age at the time of mortgage payment exceeds set by the bank or, on the contrary, insufficient. Typically, to get housing loan Must be at least 21 years of age and no more than 65 years of age. For a consumer loan, this condition may be milder. In this case, taking a non-targeted loan will be a more profitable solution;
6. If the borrower has liquid property that he can pledge as collateral for a consumer loan. Encumbering valuable property increases the chances of getting large loan for a long time. Moreover, if the collateral is not the object that the borrower is buying, but other property, for example, a car, jewelry, the client will not lose the apartment purchased with the funds, even if difficulties arise with repaying the loan. Even if there is a risk of delay, before it occurs, he can contact the bank to get an extension, credit holidays, interest rate reduction and other restructuring options. If the borrower has made payments regularly and in full and there is a good reason why repayment of the loan is difficult, the bank in such a situation will most likely accommodate its client. Restructuring a mortgage will be much more difficult than a consumer loan.

Conclusion

We looked at the features of buying an apartment with a mortgage or using consumer loans. The choice depends on the financial capabilities, characteristics of the housing and whether the client has the right to receive preferential conditions.

To determine which is more profitable - a mortgage or a loan, it is convenient to use the calculations of specific banking programs. To know current offers from banks you can on our financial portal. It is convenient to view the schedule of the program of interest, the amount of overpayment depending on the loan amount and its repayment period. If the terms of the mortgage or consumer loan suit you, you can proceed to applying for it via the Internet directly.