Should you be afraid of a mortgage? “You must be sure that the decision to take out a mortgage is really a priority. What needs to be done to profitably purchase a home.

You need to prepare for a mortgage for a long time with a notepad, pen and calculator in your hands. If you are wondering how to sell to a bank more profitably for the next few years, read what mistakes can ruin your entire life and how to prevent them.

Mistake 1. Taking out a mortgage with a maximum required payment

The logic is ironclad: the larger the monthly payment, the faster the mortgage is paid off, the less the overpayment is. This is direct savings.

In practice it turns out a little differently. Let’s say the income is 30,000 rubles, the mortgage payment is 17,000. This is even more than half, but the borrower has read a hundred articles about how to live on 5,000 rubles a month, so he can also save.

Let’s not talk about the fact that constantly living in a regime of catastrophic savings is harmful and you can break loose - this already depends on willpower. But in such cases, even small force majeure events lead to delays.

How to do it

Take out a loan for at least 30 years, but with conditions that you can fulfill without straining.

Even if you expect your income to increase, take a mortgage that you can afford now. If you have money, you will close your mortgage early or find another use for it.

To do this, you need to reconsider all possible options and offers of banks: someone offers profitable programs for young borrowers, families, bank clients, someone reduces the rate with additional insurance or on the condition that you collect a lot of documents to confirm reliability.

Mistake 2. Renting a house for too long and not taking out a mortgage

Taking out a mortgage is scary, especially when you rent a home. When renting, you don’t have a headache because of taxes, repairs and utilities; you can drop everything and go to the Himalayas, without fear that bank employees will fly in after you. But the money is spent on the loan, and it seems that it will never end. But to make sure it’s time to take out a mortgage, all you have to do is take a calculator and do the math.

I took out a loan from the bank for 1,550,000 rubles for 10 years. Monthly payment - 21,700 rubles. If you pay according to schedule, the overpayment will be 1,054,000 rubles. But I’m trying to pay off the debt ahead of schedule, and if I maintain the right pace, I’ll overpay no more than 600,000.

If I rent the same apartment all this time, I will pay at least 1,800,000 rubles, and that’s if the rental price does not increase.

How to do it

Find a bank, sit down and calculate what apartment you can buy right now. If you don’t have enough for housing that you can immediately move into, take out a mortgage in a house under construction. This is also possible if you search and analyze the offers of banks.

DeltaCredit Bank has a “” - this is a program where the first year or two, monthly payments are reduced by half, just enough to cover both rent and a mortgage while the house is being built.

And when the house is completed and you no longer need to rent anything, this part of the budget will begin to go towards repaying the loan. But we must take into account that not a single bank will give out goodies for beautiful eyes. Typically, the rate for a loan with concessions is higher than for a regular loan.

Mistake 3. Forgetting about moving

Many people generally throw this point out of their heads. But imagine that you are young and have an interesting profession. They offer you a move, but there is one catch: a 30-year mortgage. Or your family is growing, you need a larger apartment, but you already have an existing mortgage for a two-room apartment.

How to do it

Why not go to another city or to the north for high salaries, rent a house there and pay the extra money for the mortgage payment? Why not try to sell the apartment with collateral?

A mortgage is not tied to a location. If you wish, a mortgaged apartment can be rented out and sold if you agree on this with the bank. Yes, these are always additional difficulties, but if plans have changed, all difficulties can be overcome.

And don’t be afraid to take out a loan for real estate where you will live, choose an apartment with a reserve of meters. By the way, few people think about it, but you can take out a mortgage not only for an apartment, but also for a house.

Mistake 4. Forget about repairs

Buying an apartment when the developer has barely managed to obtain a building permit is profitable. The price per square meter at the excavation stage is much lower than in finished housing. Especially if the apartment is rented as a construction project - this is when you have an empty box in front of you and room for creativity. Only you need to invest a large amount in this creativity.

Even if you buy a home on the secondary market, after moving you cannot do without repairs: somewhere you need to move an outlet, somewhere the wallpaper is disgusting. If you forget about this, the housewarming party may be delayed (or you will also have to take out a loan for repairs).

How to do it

There are three options:

• When you take out a mortgage, pay a smaller down payment, but immediately set aside “repair” money. It's better to put them at interest.
• Save for renovations while you pay off your mortgage. The same mortgage holidays that we talked about can help.
• Look for a developer who immediately rents out a renovated apartment. At a minimum, you can live in it, that is, finish the mortgage, and only then repair something.

Mistake 5. Not creating an emergency fund

Typically, if you make a larger down payment, the terms of the mortgage will be softer. It’s logical that you want to give away everything you’ve acquired through back-breaking labor, but in the end you have to live from paycheck to paycheck.

How to do it

Set aside a small amount that will cover mandatory payments for at least two months, and best of all, six months. This is insurance in case you suddenly lose your job or something else happens.

Mistake 6. Not reading the contract

Even if you have already discussed everything with the manager, even if the consultant has answered a hundred of your questions, read and clarify everything that you do not understand. Even if you ask an obvious stupid question, just do it.

How to do it

Read the agreement and all documents it refers to (for example, general bank lending conditions). Make a summary of the main provisions: when you need to pay, what documents to update, which companies to insure with, where to call if there are problems.

Mistake 7. Forgetting about tax deductions

Are you aware that there is a tax deduction for a mortgage? Both for the purchase of an apartment and for interest on the mortgage. This deduction can be for a round amount - up to 650,000 rubles.

How to do it

Collect certificates of income and payments, submit an application to the tax office (if you don’t know how, then there are many companies at your service that will arrange everything for you in 20 minutes), receive money. By the way, if you are married, your significant other can also receive a deduction. The spouse is entitled to compensation, even if he is not the owner of the property, and many people forget about this.

Mistake 8. Thinking that it will somehow go away on its own

Let's say something bad happens: you're late on a payment. It doesn’t matter for what reason: the reminder didn’t work, I wasn’t in the mood, the money ran out. There is no point in burying your head in the sand and continuing to pay your mortgage as if nothing happened. Even for one day of delay, the bank can issue a fine or charge penalties, and then this will result in round sums.

How to do it

The ideal option is to get insurance, but it is expensive (and if the insurance is good, it is very expensive). Regardless of whether you have insurance or not, in any unclear situation, call the bank. Minor difficulties can be resolved immediately; in case of major problems, we can negotiate and even renegotiate the terms of the mortgage. The main thing is not to disappear and treat your obligations responsibly.

If you realize that you are mentally prepared for a mortgage, find out what conditions you can count on. Use the DeltaCredit online approval service: it will help you get pre-approval for a loan without visiting the bank. Register, submit an application, get approval and upload the necessary documents - everything is quick and hassle-free.

The dangers of a mortgage, the fears of a mortgage loan for an apartment that borrowers experience when making a decision.

Here I am not going to agitate you for a mortgage, I am not paid for this, and I am not interested in it. My goal is for you to make an informed decision and not say later that you didn’t know or didn’t hear.

What fees does the bank take when issuing a mortgage, and what fees should it not take? How to calculate the real rate on a mortgage loan and why refinancing is not always profitable - further in the text.

Dangers of mortgages for buyers

Loan issue fee

It was successfully canceled by the court for a mortgage loan for an apartment, but credit institutions went further and decided to charge a fee for opening a current account if you do not have one with this bank. Commission for transferring funds if the purchase of real estate with a mortgage is carried out in the city (country) of the organization’s presence.

Commission for depositing cash at the cash desk when repaying a loan (some banks).

For consumer and business loans, origination fees may still apply. This ban does not apply to consumer loans, because many people received loans for personal consumption and then bought apartments with them.

Therefore, if, when applying for a mortgage for an apartment, the contract specifies a fee for issuance, calmly leave such a lender.

Loan processing fee

Not very large banks can still charge a commission for processing (we do not take mortgage brokers into account).

There are credit organizations that do not charge fees, but ask you to bring a credit history, which they offer to take to the history bureau for a nominal fee, for example, two and a half thousand rubles.

Although at the same time, the media have long been saying that every citizen has the right to receive free information about his credit history once a year.

True, this story is confusing, because there are a great many similar bureaus and you don’t really know which one to contact, because... many are called the Central Bureau. So which one is more centered? :))

As a result, we pay the bank, which itself searches for your story. Another may suggest “cleaning up” your financial history. If you encounter something like this in the process of applying for a home mortgage, you can simply get up and go to a competing financial institution.

There is another option - to return the commission, this happens in several stages.

Stages of returning the loan processing fee:

• prepare and send a claim to the bank;
• prepare and submit a statement of claim to the court;
• you will be given a court date
• there will be a preliminary hearing;
• then consideration of the case on its merits;
• you will receive a court decision and a writ of execution
• you go and present the writ of execution to the organization (as an option, the bailiff service or the Bank of Russia RCC);
• As a result, funds are transferred to your account.

The bank will increase the mortgage interest rate during the contract period

Mortgage rates for living space: foreign currency, ruble, floating, fixed. To know exactly at what interest rate you took out a mortgage, read the agreement carefully, especially the small print, which is found not only in footnotes.

Does a financial institution have the right to increase mortgage interest rates during the term of the mortgage agreement? Maybe, if in some way, even indirectly, this right is secured in the contract. After this, even in court you will not win anything.

I’ll try to reassure you in advance - with fixed rates, the bank is unlikely to use the opportunity to increase it during the loan repayment period.

Thus, this fear is justified and it should exist, but without fanaticism :)

Concept of effective interest rate

The effective interest rate (as opposed to the advertised interest rate) is the rate you receive when you pay off your mortgage.

It includes all costs of maintaining the mortgage, i.e. how much you realistically will spend on extinguishing. This will include hidden fees for maintaining, opening an account, and insurance (real estate, life and death insurance). Life and death insurance are not mandatory types of insurance today, but refusing them increases the interest rate.

The concept of refinancing rate

Simply put, the refinancing rate is the percentage (the latter officially is 7.25%) at which the Central Bank issues loans to other banks, and they increase their profits and as a result we receive the tariffs that advertising offers us.

The concept of Libor and MosPrime rates

Libor and MosPrime are necessary for investors whose interests are to take money and then return less money. For example, banks with foreign capital offer favorable “floating” interest rates on loans - foreign currency Libor and MosPrime.

MosPrime is the Moscow rate, Libor is the British interbank loan offer (in other words, the refinancing rate in the UK). Libor is calculated for 1-6-12 months and is considered the most profitable. Moscow MosPrime is daily and is similar to that established by the Central Bank.

These types of loans are lower than ruble loans, but there are risks involved.

There is an opinion that Libor is the most optimal of these two. The main reason is because the UK economy is quite stable.

What if the bank goes bankrupt?

A bank cannot become bankrupt overnight, because... has a fairly serious structure and is controlled by the state. In any case, when an organization goes bankrupt, it cannot go anywhere - it is either absorbed, or changed its name, or reorganized.

Some, on the contrary, are happy, rubbing their hands, saying that if the bank goes bankrupt, they won’t have to pay. No, you still have to pay, because... By law, the disappearance of a creditor somewhere does not relieve the obligation to pay. For example, if one creditor went bankrupt and another took over its obligations, then you will pay the new one.

And if in the new bank the interest rate on a similar loan is not 18%, but 16%, then you can refinance. If, on the contrary, in the new one the rate for a similar loan is higher, then you may be strongly advised to change (increase), but not change unilaterally; this issue may be resolved through the court.

The bank requires early repayment of the loan

With a mortgage, it is possible for the lender to demand early repayment only if he considers that, for example, the apartment on which the encumbrance is imposed is losing its liquidity.

The loss of liquidity consists of simply calculating the value of the property, taking into account interest, which must repay the loan in full. The credit institution cannot claim the entire amount immediately.

How can you be required to repay early: installments, increase payments, reduce the loan term. Early repayment cannot be demanded if the financial situation of the borrower worsens (based on the results of judicial practice).

And that's good :)

Package sales of banking products

Banks are trying to capture and penetrate the entire financial sphere of a consumer's life. Ideally, a person should have a salary card from them, take out a car loan, a mortgage, etc.

In this regard, the concept of double, triple and even quadruple (!) sales of banking products appeared.

The development of real estate construction and social programs related to the provision of housing for low-income people, young families, etc., contributes to the popularization of banking services. For example, social programs are being promoted for preferential mortgages for teachers, employees and other categories of citizens, but often they do not have the money for a down payment.

Then financiers found a way out: take out a consumer loan for the amount of the down payment when buying a home, then they will also give you a mortgage, plus a credit card. And many borrowers go for it, because some “borrow” up to 3 million rubles, plus the limit on the card can be up to 5 million rubles.

Pretty good :)

Now let's look at a typical example. The borrower received a loan for a down payment and did not even spend it on a trip to Thailand, but paid it as a down payment for an apartment.

And now about the disadvantages of this approach for the borrower

Now it’s time to get a mortgage, but the bank didn’t promise you that it would issue a mortgage, it just offered. As a result, a person comes and is told that they cannot issue him a mortgage. The borrower goes to another credit institution, where during the calculation it turns out that the borrower already has a loan that he is repaying.

As a result, the interest rate and term increase. They can also get a credit card as a bonus, although the rate on it will be a little higher, because there are already obligations on the mortgage. The result is insane payouts.

But our Russian man is no stranger, so he decides to do the following - take out a mortgage and cover the consumer loan with it, in the expectation that only the mortgage will remain to be paid.

Ideally, he does this. And everything seems to be going well - he can afford the mortgage and can fulfill his obligations.

But the fact is that most often in a newly purchased apartment (new buildings everywhere, less often in secondary buildings) it is necessary to make repairs. And at this moment the lender offers a credit card, upon registration of which the borrower receives discounts in a number of stores with building materials. Everyone has arrived :)

Or another, not very successful outcome. They gave me a mortgage, but I couldn’t close my existing consumer loan, because the mortgage loan was a no-brainer for buying an apartment, which means a credit card came in handy here.

As a result, the money scattered somewhere and then it turns out, as in a fairy tale - “at the end of the trough”: a mortgage was issued, two or three consumer loans, a couple of credit cards that already had zeros on them and one was not activated (usually borrowers are proud of this - they kept it) .

Question from Chernyshevsky:
- What to do?

Mortgage refinancing

Loan refinancing is when one bank took it at 10%, and another saw 9.5% and decided to refinance, i.e. applying for a new loan.

Another bank will also consider you, just like the old one, you will also go through all the rounds of taking (or not taking) a commission, they may tell you to renew the new insurance, because the existing one does not fit and so on.

And then the brilliant idea comes that you need to refinance and reduce the monthly payment in order to “fit” into your budget.

However, credit institutions, for the most part, refinance with great reluctance, because They understand that they came to them for a reason.

This means the borrower understands that he has problems, or they will appear in the future, this is like a litmus test (remember chemistry lessons with Marya Ivanovna) and you postpone the crisis in payments or do not want to spoil relations with the current bank.

In fact, it is better not to use the refinancing program, but just go and re-apply for a loan.

Remember when I talked about ten ways to reduce your mortgage payment? So there was no mortgage refinancing there and not without reason.

There may be good circumstances if you mathematically calculated that refinancing is beneficial for you, even after recalculating all the above nuances.

You learned how to find out the real rate on a mortgage loan for an apartment, how to return some commissions, how to avoid getting caught with a “difficult” mortgage, and whether it makes sense to refinance your mortgage.

I hope that this material about banking fears before applying for a home loan was not only useful for you and you learned a lot of new things, but also helped you make the right decision and protected you from various mistakes.

VKontakte Facebook Odnoklassniki

Mortgages are treated differently. Some people cannot imagine purchasing an apartment without it today. And someone continues to be afraid of this bondage and considers mortgages a universal evil

Of course, there are many reasons for fear. Alena Nikitina, head of the Personal Finance Organization company, explains to realto.ru the reasons for the fear of mortgages and tells how to deal with this for those who want to solve their housing problem.

Of course, fear is often useful in life. It keeps a person in tension and in a certain tone. But at the same time, it is fear that may prevent a person from doing some things that could make his life easier. As economists say: there is no need to be afraid of risk - we need to make it manageable.

So, the first concern: mortgage is too expensive. Indeed, our housing prices are exorbitant and inflated. Therefore, everyone decides for themselves whether to continue renting an apartment or take out a mortgage on it. Surely many have made comparative calculations and calculations. As a result, you can review bank rates and get: if you have approximately 30% of the cost of a future apartment as an entrance fee, then the monthly payment will be equal to approximately one rent. But there is a huge plus - in case of any disasters, your monthly mortgage payment will be equal, unlike rent, since the rent for a rented apartment will increase every year. Again, when you pay off your mortgage, you seem to be giving money for your home, rather than “giving” it to someone else’s uncle.

Second concern: the mortgage is taken out for too long. Indeed, many people complain that as long as you pay off all the money for the mortgaged one-room apartment, you can retire. Nobody argues that a mortgage is a very long-term loan. At the same time, expert Alena Nikitina does not advise taking it for more than 15 years - this is the optimal period. Moreover, this can be found out by carrying out simple calculations: if you take out a loan for 20 or 25 years, then as a result the payment is reduced slightly. Therefore, taking out a mortgage for a very long period simply does not make sense. Moreover, if you have the opportunity to advance payments, then it is better to do so. You can always make an early repayment (even partially) and thus reduce the repayment period of the mortgage loan. This, by the way, is very profitable, especially in the first years, when the main share of payments is interest paid to the bank. As mortgage holders themselves say, it’s hard in the first two or three years, when you have to get used to additional expenses. But in our country there is quite high inflation and its growth is not slowing down, and citizens’ incomes are periodically growing. So at this point you need to rely on yourself, your earnings and try to repay the loan early.

Third fear: too high monthly payments, which take away almost half of the salary. Indeed, many of us probably have borrower friends who complain about payments and the fact that because of the mortgage they are literally scraping by. This can happen if the monthly payment is around 40-50% of your salary. This is truly a big burden on the family budget. Therefore, experts advise against taking such extreme measures just to repay the loan early. You shouldn’t take on debt, advises Alena Nikitina, it’s better to make payments more comfortable for your wallet - that is, no more than 30% of your income.
At first, it’s better to play it safe: you can make a higher down payment, or don’t go crazy and buy a smaller apartment or in a more remote area.

Fourth concern: as a result, the apartment will become “golden”. Many are convinced that in the process of payments they will have to pay two or three times the cost of the apartment. And indeed it is. But you need to remember about inflation, the rise in price of real estate, so that in 10-15 years, it is quite possible that your home will cost as much or almost as much as you pay for it on a mortgage. In addition, if you try to repay the loan ahead of schedule, the final overpayment will be less.

Fifth fear: What if I can’t repay the loan? Of course, it’s scary to think about something 10-20 years in advance. Anything can happen in life - loss of job, health, etc. Therefore, it is better to try to create a kind of “stabilization fund” for yourself - so that you have at least 6 monthly payments to the bank somewhere in your stash in case of force majeure. This way you won’t worry if you lose your job or a crisis occurs. You will have time to make a decision - find a new job or additional income, or solve the problem radically - for example, sell an apartment.

Sixth concern: the bank will take away the apartment. This can only happen if you grossly violated the agreement with the bank. Or if the value of real estate falls sharply. “Because your apartment is collateral for the bank. If it starts to cost less than the amount issued to you, the bank may ask you to make an additional payment. How to protect yourself from this? First, it's better to make a larger down payment. It is unlikely that the apartment will fall by more than 30-40%. Secondly, if you have financial problems, there is no need to hide from the bank,” explains the expert. There were cases when the borrower did not pay the mortgage for 2-3 years, and then suddenly began to be indignant as to why the bank was going to take away the apartment. As a rule, banks are quite loyal to those who come to them in advance, before the loan is overdue, since the bank’s main job is to issue loans, and not to sell real estate, even collateral. Therefore, in this case, it is better not to spoil your credit history, otherwise you may fall into the “risky borrower” category and the next loans will either be denied to you or given at a higher interest rate.

Seventh concern: it is impossible to sell a mortgaged apartment. Many people really believe that it is almost impossible to sell the mortgaged property and, until you give the last ruble to the bank, you will have to pay the mortgage until the last day. In fact, it is just as possible to sell a mortgaged apartment as an ordinary one; this is the most ordinary transaction. Therefore, if you can no longer pay your mortgage, then simply sell your apartment. At the same time, you will still have some money in your hands. The second option, which many resort to, is to rent out their mortgaged apartment and move to cheaper housing or to live with relatives. In fact, this option is the most profitable, since if you ask the bank to restructure the debt, the overpayment on the mortgage will increase significantly, as the loan term will increase.

How many times have we heard that mortgages are a conspiracy on a planetary scale aimed at enslaving the ordinary population. Is it so? Everyone will answer this question for themselves, but still, do not forget that in the modern world with a market economy, for the vast majority of people, a mortgage is the only way to purchase their own home.

Of course, a mortgage is one of the most complex types of lending, and you cannot sign a contract without understanding what it is about.

Basic principles of a mortgage loan

This loan is targeted, that is, the money is transferred automatically to the seller’s account, and not to your hands. The purchased property becomes collateral. This is a very important point. The fact is that, according to Russian legislation, the debtor’s property can be seized, including real estate. But, if this is your only home, then they have no right to foreclose on it. But not in the case of a mortgage. If you are late and do not pay the bank, do not expect that the bailiffs will not fulfill their duties just because you have nowhere to live except this apartment. They will evict you, and it’s worth knowing.

As in the case of a car loan, when concluding an agreement, the bank will also require an insurance agreement, but in this case it will not be the property that will be insured (the apartment, even in the event of a fire, does not lose much in value), but your life and health. The bank must be sure that if you become critical, it will not lose money. The only advantage is that this is also beneficial for you, and the amount of such an agreement is not as burdensome as CASCO for car loans.

Next, no matter that you take out a loan to buy an apartment, still prepare the money. No bank will agree to a deal unless you make a down payment, and its amount is usually around 30% of the cost. Next, depending on the amount of the down payment, the bank will personally calculate the interest rate for you.

Such a loan is extremely rarely issued for a short period. As practice shows, loan terms are in the range of 10-25 years. This should be taken into account, especially by the payer. He must be firmly confident that over such a long period of time he will remain solvent and know that during this time he will significantly lose money. And mortgage payments are not small.

It is also worth knowing that buying housing from the secondary market is easier than buying a new building. But the bank will issue a loan for the purchase of primary housing only if the construction company is its partner. The bank's websites indicate which companies they cooperate with. This is due to the fact that the bank very well checks the financial component of such enterprises, so as not to end up without collateral, since the house will not be completed. For the payer, by the way, this can be a very good help when choosing a construction campaign. Be sure that if a large bank cooperates with them, then they have already been checked and double-checked, and you are unlikely to be among the “defrauded investors”.

There is no need to be afraid of a mortgage, you just need to take it into account.

Mortgage loans have a rather bad reputation in Russia. Many people are afraid of losing property, getting into debt or taking out an unfavorable loan. The reason for these fears is a lack of information.

Misconception No. 1. “Gray” income

Gray income is earnings that are not documented. However, contrary to popular belief, a bank can issue a mortgage if there is an easy way to verify your income. Therefore, some banks ask for a certificate certified by the employer as confirmation.

Misconception No. 2. If the bank goes bankrupt, I will have to repay the loan early

Typically, bank bankruptcy is a long process. The loan portfolio of a bankrupt bank is transferred to another credit organization (not to collectors!). However, the terms of your agreement do not change.

Those. you continue to make monthly contributions, only to a different bank. If another bank tries to change the conditions (worse them), then feel free to file a lawsuit. In addition, the loan agreement specifies cases of early repayment. So read the contract carefully.

Misconception No. 3. The apartment is owned by the bank until the loan is repaid.

The most common myth. When you take out a mortgage, the apartment/house immediately becomes your property. However, the certificate of ownership will contain a clause indicating that the premises are encumbered with a mortgage. This only means that you do not have the right to dispose of property without the bank’s permission.
The bank cannot just take away the apartment!

Misconception No. 4. A mortgage must be obtained from a reliable bank.

This is why everyone goes to Sberbank. This is logical and correct. However, you can get much better conditions if you go to a less popular bank.
In fact, it doesn’t matter which bank issues the mortgage. Only the mortgage agreement is important. Therefore, read the terms and conditions carefully.

Misconception No. 5: Taking out a mortgage is dangerous. The future is unclear...

Russia is such a stable country that many are afraid of the future. After all, it is unknown what will happen in 15-20 years. Or you may lose your job, or your ability to work.

First, if mortgages become cheaper in the future, you can refinance the loan. Those. you can get more favorable conditions.
Secondly, possible health problems can be insured in advance. If something happens, God forbid, you will be able to pay off part of the loan with insurance payments.
Thirdly, there is no need to be afraid of losing your job. It is profitable for the bank to “keep” you. You can go to the bank and ask for a two-month deferment. Or you can set aside money in advance for the amount of two months' payments, i.e. insure yourself in case of financial difficulties.

Misconception No. 6: You must choose a mortgage with a minimum down payment.

On the one hand it is logical. After all, it is better to pay a small down payment so that there is money left over for repairs and the purchase of furniture, equipment, etc.
In fact, it's quite the opposite. The higher your down payment, the better your mortgage terms will be. Banks trust borrowers more who make a large down payment (about 50% of the total amount). After all, if the borrower has accumulated such an amount, then the bank rightly believes that the borrower is a conscientious one with good earnings.

If you make a minimum down payment, you take out a mortgage for a much longer period. In the long run, you will overpay a lot. In addition, the bank may simply refuse you a loan, considering that you do not earn enough.

Misconception No. 7. When pledging existing property, you do not need to confirm income.

Some people believe that when making a deposit you do not need to confirm your income. This is justified by the fact that the amount of the pledged property is higher than the cost of the mortgage. Typically, the borrower’s existing apartment serves as collateral.

The bank must be confident that you will be able to pay your mortgage. And the deposit is insurance in case you cannot pay. The bank wants to earn money on interest, and not trade in the property of careless borrowers.

Conclusion

As with any other activity, when applying for a mortgage you need to think with your head. There is no need to be afraid, but you shouldn’t be frivolous either. Cold calculation is your tool. Don't be afraid to hire a professional lawyer or realtor. It is better to pay professionals to save your money and nerves later.

Thank you for your attention!

Latest tips from the “Home and Cottage” section:

Purpose, use of sandblasting machines: equipment rental
How to choose the right plastic utensils
How to cook cherries in their own juice in an autoclave