Overpay twice and end up homeless. What mistakes do we make with mortgages?

To buy an apartment with a mortgage, you need to select a property, prove your solvency to the bank and submit documents for consideration. If income allows and the monthly payment does not exceed 50% of total income, the application will be approved. But banks make demands not only on the client’s solvency, but also on the apartment itself. If the apartment is in an old building that is considered to be in disrepair or the deterioration of the building is more than 65%, the mortgage will be refused.

We'll tell you what criteria banks use to evaluate apartments. You will also find out whether it is possible to buy an apartment with redevelopment.

Short-term financial planning

Borrowers make most mistakes at the stage of planning and applying for a mortgage. Very often, citizens overestimate their own financial capabilities and ability to save, says managing partner Maria Litinetskaya.

“People often take out a home loan, believing that their current financial situation will at least not change, and perhaps even improve. In reality, everything can change, and I'm not talking about some serious troubles (say, job loss or illness). You need to understand that in our country, inflation is outpacing income growth, so from year to year the mortgage burden, which once seemed light, can become heavier,” explains the expert.

Question answer

What is more profitable - saving for an apartment for a long time or taking out a mortgage?
Few people take into account that a mortgage is a systemic decision that includes issues of marital status, the possibility of having children, supporting elderly parents, and one’s own health. All these factors affect solvency. And not taking them into account means making mistakes that can lead to loss of money or even an apartment, warns Associate Professor of the Financial University under the Government of the Russian Federation, Ph.D.
Vitaly Pichugin. “For example, having and raising children is not only the happiness of parents, but also financial responsibilities that require an increase in income or a reduction in expenses for other needs. If there is a mortgage, all items of family expenses are reduced, only mortgage payments remain. The question arises: spend money on children (clothing, illness, food, nanny, educational activities) or continue to pay the mortgage? Since “everything is best for children ” the loan payment first begins to be delayed, and then terminated. Only the bank does not care about anything other than timely and regular payment of the debt, and if this does not happen, then ultimately the borrower loses the apartment and, at best, moves to rented housing with the children,” says Pichugin.

How to postpone correctly

If you decide to save for an apartment, you need to save the same amount every month and use financial instruments that will prevent inflation from devaluing your savings. It may be difficult at first to cut costs and avoid impulse purchases. Therefore, it is better to prepare for savings. This can be done in several stages:

1. Set yourself up for savings . The most important thing is to be prepared to save a portion of your income every month. At the same time, buying an apartment should be a priority goal. The savings cannot be spent, for example, on an extraordinary vacation - no matter how much you would like it. It is best to save for an apartment as soon as you receive income, before the temptation to buy something arises. And for unexpected small expenses, it is worth creating a separate reserve fund, setting aside up to 5% of your income monthly.

2. Analyze expenses. The more money you put aside each month, the faster you will be able to accumulate the required amount. Perhaps, for the sake of your future apartment, it is worth reducing some expenses or abandoning them completely. An expense analysis will show you how much money to save and on what.

3. Make a plan . It will help you understand how much money and for how long you will have to save. To do this you need to define:

• Target. For example, save up for an apartment on the secondary market in the Moscow region.
• Goal cost. In our case - 5,000,000 ₽.
• An amount that is not too difficult to save monthly. Ideally, no more than 30% of the total family income. You shouldn’t go into austerity mode: this can lead to stress and breakdowns.
• Deadline for achieving the goal.

Let's calculate how many years a young family with a total income of 150 thousand rubles needs to save money to buy an apartment for 5,000,000 rubles.

For the purity of the experiment, the increase in the value of real estate will be equal to the deposit rate, and the newlyweds put money into the bank at interest. Thus, the interest on the deposit will cover inflation.

If you save 35,000 rubles monthly, then you can buy an apartment in 12 years: 35,000 rubles × 144 months = 5,040,000 rubles.

The goal will be achieved earlier if you increase the amount of savings:

4. Protect what you have accumulated. To protect savings from spending, access to them can be difficult. For this purpose, a long-term - for a period of at least two years - replenishable deposit without the possibility of early withdrawal of money from the account is suitable.

You can find deposits with replenishment on Sravni.ru

Find a contribution

No nest egg for a rainy day

This mistake follows from the first one - the inability/unwillingness to plan life with a mortgage for a long time. Experts advise saving up an amount equal to at least three monthly loan payments before taking out a loan.

Without such a cushion, any force majeure (for example, temporary disability) will unsettle you and make it impossible to repay your debt to the bank on time.

Housing prices are going up and rates are going down. When is the best time to take out a mortgage? More details

The down payment is also on credit

It turns out that some citizens not only do not strive to create a financial cushion for a rainy day, they do not even have the amount of 20% of the cost of the housing they plan to purchase. As Andrey Barkhota, strategic marketing manager at PSB Bank, told AiF.Ru, these citizens use borrowed funds, often consumer loans.

“At the same time, the final cost of purchasing housing increases significantly and the borrower’s solvency rapidly deteriorates. It is necessary to accumulate funds on your own, thereby assessing your own debt servicing capabilities,” the expert is confident.

We save correctly

We increase income. To collect the amount you need for an apartment faster, think about what options you have to earn more: ask for a raise at work, offer to do additional work for extra pay, change your job to a higher-paying one; if you are a freelancer, raise the prices for your services for customers.

If you cannot yet increase your value in the labor market , think about what additional knowledge and skills you need to make you worth more as an employee: knowledge of foreign languages, advanced training courses, and so on.

In addition to increasing wages at your main place of work, it makes sense to think about the possibility of a part-time job. For example, you can work part-time as a taxi driver, courier or tutor, do manicures or minor repairs, make something with your own hands and sell it. Think about what you know and how you can use it to earn extra money.

Another additional source of income can be selling things you don’t use on bulletin boards like Avito and Yula. For inspiration, read the story of a girl who sold 70,000 rubles worth of unnecessary things in two months.

We reduce costs. Determine the amount for each expense item (utilities, food, clothing, medicine and medicine) and try not to go beyond it. Give up “junk spending” on bad habits such as alcohol, cigarettes and sweets. Do not use shopping to lift your mood; go to the store with a list so as not to buy too much. Look for cheaper analogues of your usual purchases: eat at home rather than in restaurants, choose home care instead of visiting beauty salons, etc. Every month, compare your planned expenses with your actual ones. However, don't overdo it: if you go into austerity mode, there is a high probability of breakdowns due to stress.

We are saving. It is best to set aside the required amount immediately upon receipt of income, so that there is no temptation to spend it. To avoid accidentally spending what you have saved, it is better to limit access to savings.

Flipping strategy: how to earn over a million by reselling apartments

Waiting for the “bottom” of rates

Rates on deposits and loans depend on the key rate of the Central Bank of the Russian Federation and are constantly changing. It happens that potential mortgage borrowers wait for the so-called “bottom” of rates” in order to obtain a loan on the most favorable terms.

“In fact, the cost of borrowed housing is even more influenced by its price, rather than the cost of borrowed resources. If the rate decreases and the cost of housing increases, then in the end the price of the issue will be identical,” Barhota emphasizes.

Question answer

Which borrower will be able to receive 450 thousand rubles to pay off the mortgage?

Where to store savings - 2 options

Every year, due to inflation, prices rise and money depreciates. To protect your savings, you need to place them in financial instruments. It is desirable that they generate income that exceeds inflation. For example, if real estate rises in price by 5–7% per year, it is better to invest money in financial instruments with an income of 8–10% per annum.

You should only choose proven instruments with returns slightly higher than the inflation rate. This will help save your savings. A financial instrument must meet three criteria:

• low level of risk;
• profitability is higher than inflation;
• high liquidity - the ability to sell at any time at a price not lower than the purchase price.

Housing in Moscow from 2 million ₽: what options are there and where to look for them

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Option No. 1 - bank deposit

This is the most common risk-free financial instrument. Its yield is barely catching up with inflation. Thus, in July 2021, inflation was 6.5%, and the average rate on deposits for a period of more than one year was 5.1%. Although some banks have better offers.

It is better not to store more than 1,400,000 rubles in one bank. This is the maximum amount that the state will return to the depositor if the bank’s license is revoked. Another nuance is the tax on interest on deposits exceeding 1 million rubles. It is small, but you need to remember about it when calculating income.

Option No. 2 - stock market instruments

In the stock market you can get higher returns than on bank deposits. However, investments there are not protected by the state; theoretically, an investor could lose large sums.

Any adult Russian can buy securities. To do this, he just needs to open an account with a brokerage company.

1. Bonds

With bonds, the government or companies borrow money and pay it back with interest. The amount of debt, repayment period and interest are known initially. Therefore, like deposits, bonds allow you to estimate future earnings in advance. The yield from bonds - especially corporate ones - is higher than from a deposit. At the same time, no one guarantees the return of the invested money: if the company goes bankrupt, it will not be possible to return the funds.

To minimize the risk of losing money, it is worth investing in government bonds (OFZ), municipal bonds and bonds of large Russian corporations (ideally, companies with state participation). OFZs and municipal bonds are considered highly reliable, but, unfortunately, they can bring a return only 1–2 percentage points higher than a bank deposit. If you invest money in bonds of large Russian corporations, you can earn up to 12%.

Advice

It is beneficial for people who pay personal income tax (personal income tax) to open an IIS (individual investment account) type A. If you put up to 400,000 rubles on it in a year, the state will pay a personal income tax deduction of up to 52,000 rubles (13% of the investment amount ). The money will be transferred according to the bank details specified by the investor. You can spend them at your discretion, for example, by purchasing additional bonds or other securities.

2. Promotions

By purchasing shares, a person becomes a co-owner of the company. Profit on these securities can be obtained through dividends - the distribution of part of the company's profit between shareholders - and through an increase in the market value of the share itself. The return on shares can be much higher than on bonds, and especially on deposits. However, this is a high-risk investment, and no one guarantees income.

Only a small part of your savings can be invested in stocks: no more than 30%. As the deadline for achieving the goal approaches, it is necessary to reduce their size in the investment portfolio and replace them with other financial instruments. When choosing stocks, it is better to pay attention to large, reliable companies - the so-called “Blue Chips”.

3. ETFs and mutual funds (Funds)

ETF (Exchange Traded Fund) and mutual funds (exchange-traded mutual funds) are a basket of securities. An investor can buy part of the fund and become the owner of a part of everything that is in it. If an investor buys 2% of a fund, then he begins to own 2% of its securities. A share in the fund can be bought or sold at any time the exchange is open.

As a rule, most funds traded on the Moscow Exchange repeat the dynamics of a certain index. By purchasing ETFs and mutual funds on the stock exchange, an investor gains access to different classes of assets: shares (Russia, USA and other countries), bonds (ruble and foreign currency bonds of Russian and foreign issuers), raw materials (gold).

Funds allow you to get a wide diversification of assets for less money. This way, the risk of losing investments becomes less: if some assets fall in price, other assets are likely to compensate for this.

10 main mistakes of new investors

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Ignoring commission for rate reduction

To reduce the rate, most banks offer to pay a one-time commission, which, as a rule, does not exceed 1.5-4.5% of the loan amount, says Inna Soldatenkova, leading expert on credit products at the financial supermarket Banki.ru.

By paying this commission, you can reduce the rate by 0.5-1.5%. “Keep in mind that the longer the loan term, the greater the benefits of this option. But keep in mind that if the loan is repaid early, the commission is not recalculated and is not returned!” the expert advises.

Non-use of government support measures

The state is trying to encourage citizens to buy housing with a mortgage. For this purpose, various programs are provided to support borrowers, by becoming a participant in which you can receive a preferential rate or mortgage holidays. “Many banks have special lending conditions for teachers, civil servants, young families, and families with minor children. In some regions there are preferential programs from AHML, and in some areas you can even get a subsidy from the budget,” notes Inna Soldatenkova.

To avoid such a mistake, monitor news of social legislation,” says , director of the legal service “ Unified Center for Protection . ”

Take it or wait? What will happen to mortgage rates Read more

Incomplete study of the contract

Often, borrowers, under the influence of a low interest rate, forget about the other terms of the mortgage agreement - additional fees, insurance, etc. All this most directly affects the final amount of the debt, notes Konstantin Bobrov.

Ideally, read the mortgage agreement as carefully as possible, and clarify points that raise questions with a bank employee. In the end, you will “live” with this loan for several years, and it is better to know all the nuances about it.

Imposed services

By the way, about insurance. By law, when applying for a mortgage, insurance of the collateral (that is, real estate) is required. The borrower can insure other risks (for example, his health) at his own discretion. Banks, however, prefer to remain silent about this and ambiguously hint to the client that without insurance issued by a company friendly to the bank, they may not receive a loan.

However, according to Bobrov, you can choose an insurer yourself - the bank does not have the right to impose its own, says the expert.

Question answer

Is it possible not to pay a mortgage if you are seriously ill?
“The policyholder has the right to refuse the insurance contract, taking advantage of the cooling-off period, terminate the contract with the insurance company affiliated with the bank and, if necessary, enter into an contract with another public insurance company at an adequate rate (cost of services),” adds the head of the law agency “Verbitskaya and partners", K. Yu. n. Yulia Verbitskaya .
In addition to insurance, banks also impose on citizens certain legal services for consulting and drawing up a loan agreement. According to Verbitskaya, this is most often the case with provincial financial organizations. “These banks oblige the borrower to enter into a separate agreement and sign a certificate of legal services allegedly provided. It should be noted that existing judicial practice will allow the borrower to recover such costs through the court, proving that the fact of the provision of legal services did not actually occur,” she explains.

Don't forget about government assistance

Existing government programs in Russia can help save money and reduce accumulation time. Check if you are eligible for:

• participation in the “Young Family” program. Under the program, you can receive a subsidy from the state for 30% of the estimated cost of housing for a family without children and 35% of the estimated cost of housing for a family with children;
• maternal capital. In 2021, at the birth of the first child, maternity capital is 483,881.83 rubles, at the birth of the second - 155,550 rubles. Maternity capital can be disposed of three years from the birth of the child for whom the certificate was issued. You can also spend it on buying an apartment;
• housing certificates. Some categories of citizens - for example, young scientists, military personnel, doctors, large families - can receive a state housing certificate;
• tax deductions (when buying an apartment, for medical expenses, investment expenses, for training).

Everything seems to be simple. But saving large sums is always difficult. You need to arm yourself with discipline and self-confidence, then you will succeed. Good luck in resolving the housing issue!

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