Author Yakovleva Galina To read 32 min Published on 2022-01-14 Updated on 2022-01-14 Hello, dear readers of the financial magazine “RichPro.ru”! Today we will talk about loans and loans secured by an apartment: how to get a loan from a bank secured by existing housing and where you can get a cash loan without proof of income.
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After reading the publication from beginning to end, you will learn:
- What are the most popular ways to apply for an apartment secured loan;
- What you need to do to get a loan secured by an apartment in a bank;
- What are the conditions for obtaining funds secured by a share in an apartment.
At the end of the article, we traditionally provide answers to questions that most often arise in the process of studying materials on the topic under consideration.
It is useful to carefully study our publication for those who want to borrow money by providing pledge an apartment. It is also worth familiarizing yourself with it and those who are simply interested in financial matters. In general, do not waste time, start reading right now!
We will tell you about how to get a loan secured by an apartment and where you can get a loan secured by existing housing in this issue
1. A loan secured by an apartment – an opportunity to quickly solve problems that have arisen?
Banks are serious commercial organizations whose important goal is to make a profit from their activities. Naturally, such companies will not lend money without a guarantee of return.
Worth considering! In an effort to reduce risks, banks are more loyal to customers who, in addition to confirming solvency, transfer pledged liquid property. Banks perceive an apartment as good collateral.
If the borrower refuses to repay the debt for any reason, the creditor will sue him. Usually the result of the process is realization of collateral. After that, the bank takes away an amount sufficient to repay obligations under the loan agreement. The remaining amount is returned to the borrower.
However, you should not think that you can get money on the security of an apartment without much difficulty. In fact, this process is quite complex and responsible. You will have to overcome several important stages, for which it is better to prepare in advance. It is also important to study as much useful information as possible.
When deciding on a loan, the borrower must understand that not any apartment will be accepted as collateral. But even if the property suits the bank as collateral, there is no guarantee that the loan amount will not be less than expected.
Banks accept only highly liquid apartments as collateral. In other words, such a property, if necessary, should be easily sold.
To assess the level of liquidity, the bank analyzes the following criteria:
- < strong>location of the house – the apartment must be located in the region where the bank operates;
- the location of the apartment in the house– most banks do not issue money against the security of apartments located on the first and last floors;
- technical condition – the apartment must be habitable, then there is to be connected to the mains, water supply, sewerage;
- the degree of physical deterioration of housing – the house should not be emergency, subject to demolition, awaiting reconstruction or overhaul;
- the presence of redevelopments – any layout requires legal clearance;
- right of ownership – the apartment must belong to the borrower on the right of ownership, minors must not be registered in it;
- the presence of encumbrances – the apartment should not be subject to encumbrances and other restrictions on real estate activities.
It should be borne in mindthat banks rarely agree to issue a loan secured by rooms, as well as apartments in shared ownership. However, those who own only part of the apartment also have a chance to receive money. To do this, you should contact brokers or microfinance organizations.
Important to know! both owners of insufficient quality apartments and those who own luxury apartments. This is due to the low↓ liquidity of both types of real estate. Selling a luxury property can be as difficult as selling a decrepit one.
Regardless of the quality of the collateral, you should be prepared for the fact that obtaining a loan will take a lot of time. You will have to prepare a large number of documents, make sure that the right of ownership is registered correctly.
If the apartment is suitable for the bank as collateral, the next step is to check the borrower for compliance with the requirements of the bank. Each credit institution develops them independently, but a number of conditions for each of them can be distinguished.
The main requirements of banks for borrowers:
- age in the range of from 21 to 60 years old at the date of conclusion of the loan agreement;
- permanent registration in the region where the bank is present for at least six months;
- official employment;
- high-quality credit history;
- absence of outstanding obligations on loans;
- official income in excess of the monthly payment at least 2 times.
The requirement for documentary evidence of wages is not mandatory. There are banks that issue loans subject to presentation of all 2 documents. However, it will be more difficult to find such institutions.
Before using any financial service, it is important to evaluate all its advantages and disadvantages.
Among the pluses (+) of loans secured by an apartment are the following:
- the ability to borrow a fairly large amount of money;
- quite long repayment periods – can reach 15 years;
- loyalty to customers.
Another advantage is that the apartment remains the property of the borrower. He can live in it. Moreover, with the permission of the bank, an apartment can be rented out or registered in the living space of relatives.
However, registration of a pledge involves limiting actions with real estate.Without the consent of the bank, it will not be possible to sell, exchange or donate an apartment.
Despite a fairly large number of advantages, a loan secured by an apartment also has disadvantages. The most significant is the risk of losing ownership of the property. However, this situation occurs only after a court decision in case of refusal to pay. Therefore, it is important to evaluate your financial capabilities BEFORE applying for a loan.
The borrower should not forget that the bank lends no more than 60% of the market value of the property. If the borrower needs a large amount, consider selling the home.
See also our article on providing a loan secured by a house with a land plot.
Main purposes of obtaining a loan (credit) secured by an apartment
2. What do they take a loan (loan) secured by an apartment – TOP 5 popular goals?
A loan secured by an apartment is beneficial for both parties of the transaction. The borrower, using this type of lending, receives the most favorable conditions. At the same time, for the lender, the availability of collateral acts as an additional guarantee of the return of money lent out.
The need to obtain a loan may arise for various reasons. Below are the most popular purposes of mortgage loans.
1) Construction and renovation
Some decide to build a cottage or renovate the apartment in which they live. Both goals require significant material investments. At the same time, consumer lending does not allow you to borrow the necessary amount of money.
That is why in the life situations described, many decide to get a loan secured by an apartment they own. Usually, the money given out to secure such real estate is more than enough for repairs or construction.
2) Purchasing real estate
Today, buying an apartment or exchanging it can be difficult. Therefore, experts recommendfor those who urgently decide to purchase another apartment, take a loan secured by the property they own.
This option is suitable for those who do not have enough savings to make a down payment on a mortgage. We talked about mortgages without a down payment in more detail in a previous article.
3) Improving living conditions
Buying an apartment in a house under construction in a mortgage is not always possible. Often, banks do not lend to certain construction projects or microdistricts. A loan secured by an existing apartment will help solve the problem.
By the way, some people earn good money by purchasing housing under construction on credit. After putting the house into operation, they sell the apartment they bought in it for more than it was bought. After that, it remains to repay the debt on the loan. The remaining amount may turn out to be a good profit.
4) Opening a new or developing an existing business
Banks hardly issue loans for opening, as well as business development. It is especially difficult for individual entrepreneurs to borrow money for such purposes.
The probability of approval of the application in such cases is quite low↓. However, the situation changes if a businessman offers his own apartment as collateral to the bank.
5) Urgent need for funds for other needs
Sometimes you may need money urgently. The goals can be different – the need to repay a debt, illness, trouble, urgent purchases. It is important in such cases to protect yourself from the influence of emotions. The decision should be made carefully, with a sober head.
You should be aware of the riskiness of lending secured by an apartment. This is especially true in situations where such real estate is the only home. Therefore, mindlessly risking real estate is not worth it.
Regardless of why the money is needed, it is important to make an informed decision when applying for a loan secured by real estate. This will help avoid a lot of problems later.
Proven methods of obtaining loans secured by apartments
3. What are the ways to get a loan secured by an apartment – an overview of the TOP 3 options?
There are several options for obtaining money on bail. Before submitting an application, it is important to carefully read all the methods, analyze their advantages and disadvantages. Only in this case it is possible to choose the best loan option.
Option 1. Bank loan
Borrowing money secured by an apartment in a bank is the best and most reliable way. The advantages of this method are the lower↓ rate and the security guarantee. However, the requirements for bank lending are much more stringent, both in relation to borrowers and real estate.
Among the requirements for potential borrowers that all banks make, the following can be distinguished:< /p>
- Agetraditionally set within from 21 to 65 years. But some banks are expanding these limits by lending to pensioners, including those aged up to 85;
- Permanent registration em> – banks welcome stability. Therefore, they do not lend to those who have a temporary residence permit or a permanent one for less than six months;
- Employmentshould be official. Many credit organizations offer more favorable conditions for civil servants, as well as payroll clients;
- Amount of income. Salary should allow you to make more than just a monthly loan payment , but also be sufficient for other needs. Typically, banks will only approve a loan if the loan installment does not exceed 30% of income.
Worth considering! Banks don't lend moneyon the security of apartments, which are located in non-prestigious areas, on the first and last floors of buildings. Banks do not lend to those who have minors registered in the apartment, as well as persons who have refused privatization.
An important feature of a bank loan secured by apartments is that the collateral remains the property of the borrower. He can use the property to live in or rent it out. However, there are limitations – you cannot take any actions with the apartment that change the owner – sell, donate or exchange.
Option 2. Loan from a microfinance organization
If the client or an apartment as an object of collateral for some reason is not suitable for a bank, there is a chance to get a loan from a microfinance organization. There is no need to confirm income, the MFI does not closely study credit history.
In most cases, microfinance organizations do not require a voluminous package of documents from borrowers:
- It is often enough for a borrower to provide a passport and a second document .
- For the subject of collateral, you will have to present a technical passport, an agreement on obtaining ownership, an extract from the USRR.
The advantages of a loan in MFIs secured by an apartment are as follows:
- the ability to receive funds for any purpose;
- quick processing, an advance can be issued in a few hours;
- only interest has to be paid, there are no additional commissions;
- the opportunity to get a loan secured by apartments that are not accepted by banks.
< li>the repayment schedule is developed individually;
Naturally, loans from microfinance organizations also have significant disadvantages. The most important is too high↑ stakes. Combined with a short term, this leads to huge payments. The result is a significant increase in the risk of losing the apartment.
Option 3. Loan from private investors
The last option should be used only as a last resort. Private loans are suitable for those who have been rejected by other lenders, for example, with a significantly damaged credit history.
To pros (+) lending through private traders include:
- maximum processing speed;
- minimum documents and certificates;
- lack of borrower checks.
However, there are a number of disadvantages that force borrowers to think several times before using the services of private traders.
The disadvantages (-) of such loans include:
credit brokers. However, when working with them, it is important to be careful. There are also many brokers who make money fraudulently.
It is important to carefully study all the ways of obtaining loans secured by apartments. It is worth carefully evaluating the advantages and disadvantages of each of them in order to understand which option is optimal in a particular situation.
How to get a loan secured by an apartment – a step-by-step guide for a borrower
4. How to get a loan secured by an apartment in a bank – 5 main stages?
It takes a lot of time to get a loan secured by an apartment. Often the procedure takes several weeks.
Therefore, financiers are advised to prepare for it in advance. This will help to significantly reduce the time between sending an application to the bank and receiving money. First of all, you should carefully study the instructions for obtaining a loan from a bank secured by an apartment, compiled by specialists.
Stage 1. Preparation of documents for an apartment
Regardless of the purpose of obtaining a loan, as well as the bank where the loan will be issued, you will need to provide documents for collateral. If you prepare them in advance, the process of applying for a loan will go much faster.
The lender will most likely require the following documents:
- certificate of ownership, or a recent statement from the USRR;
- agreement under which the rights to an apartment were acquired – an agreement on the sale, privatization, donation, a document on inheritance;
- certificate , confirming the absence of debts for payment of utility bills;
- technical passport;
- certificate that the apartment is not under encumbrance, arrest.
Since each bank independently determines the list of documents required for lending, other certificates, contracts, agreements may be required.
In order to determine the maximum loan amount, any bank will require the borrower to conduct a assessment of the collateral. It is advisable to order it in advance. This will help the borrower not only save time, but also understand how much credit he can count on. over half a year ago. Moreover, some banks lend only if there is a report from the appraisal company from the list they offer.
In most cases, it is more profitable for the borrower to order an independent appraisal on their own. This is due to the possibility for bank employees to underestimate its real value when inspecting an apartment.
The following parameters may influence the estimated value:
- year of construction of the house;
- number of floors;
- apartment area;
Since the amount of a loan secured by an apartment in a bank usually does not exceed 60%its estimated value, the borrower is interested in making it as high as possible. But at the same time, it is important to correctly assess your strengths. After all, the larger the loan amount, the larger the amount you will have to repay monthly.
Stage 2. Selecting a bank and completing an application
If a future borrower wants to find the best loan offer on the market, he will have to spend enough time. The more banking programs he studies, the more likely he will choose the best option.
Take note! First, you should pay attention to the bank through which the potential the borrower receives a salary. In most cases, payroll clients are offered the most favorable conditions by credit organizations.
If wages are handed out, or lending through a payroll bank is impossible for any reason, you will have to look for a bank from scratch.
When choosing a bank, it is worth considering the following characteristics:
- Terms of service. advised to cooperate with banks opened less than 5 years ago;
- Performance indicators.First of all, it is net profit. For reliable banks, it is stable for a long time. In addition, publicly available credit institutions can be trusted;
- Reviews. It is important that they are independent. It is worth talking to friends and acquaintances. If you decide to look for reviews on the Internet, it is important to study reliable resources, such as for example, Banki.ru or Sravni.ru;
- Rating – it is best to pay attention to the ratings of international agencies or serious Russian ones.
If it is not possible to study banks on your own, you can contact a broker . These companies help you choose a loan program that is ideal for a particular case.
Stage 3. Applying to the bank and submitting a package of documents for consideration
The next step in the procedure for obtaining a loan is to contact the bank. Most modern credit organizations accept loan applications via the Internet.
But it is important to know that the bank's decision in this case will be preliminary. If approved, the borrower will still have to go to the bank branch with a package of necessary documents.
The following documents will be required when contacting the bank:
- civil passport ;
- second document, for example, certificate of SNILS, TIN, driver's license;
- a copy of a work book or contract certified by the employer;
- certificate of wages.
Each bank draws up a list of documents required for obtaining a loan. Therefore, in addition to the main ones mentioned above, others may also request.
Stage 4. Conclusion of the contract
The most important and responsible step in obtaining a loan is the signing of the contract. It is from this agreement that the financial condition of the borrower largely depends until the full repayment of the loan. The agreement defines the rights and obligations of both the credit institution and its client.
Important to know! Competent borrowers ask the lender for a sample agreement a few days before the date of the loan. This allows you to study the agreement at home in a relaxed atmosphere.
Experts recommend going even further – presenting the agreement for review by a lawyer. He will easily find all the pitfalls of the agreement.
Typically, employees claim that the contract is template and cannot be changed. In fact, the borrower has every right to insist on adjusting the points of the agreement that do not suit him.
It is important to remember that the agreement will have to be observed for many years. It is better for bank employees to seem like a bore than to spend a monthly amount on repaying a loan that exceeds what the borrower expected.
When checking a loan agreement secured by an apartment, you must:
A prerequisite for issuing funds secured by the apartment is purchasing insurance for it. It is better to spend time and choose the insurer with the most favorable rates, because you will have to pay for its services annually.
Stage 5. Fulfillment of loan obligations
The lending process does not end with the signing of the agreement. Simultaneously with one copy of the agreement, the borrower is given a payment schedule.
To avoid additional fees, clarify in advance for which payment methods it is not charged.
When paying off a loan, it is important to follow the schedule exactly. If payments are not made on time or in full, the borrower will face the accrual of penalties. This will lead to an increase in the cost of the loan.
You can independently determine the monthly payments and interest on the loan, as well as display the debt repayment schedule with the table using our online loan calculator:
Loan amount:< /b> ₽ Initial payment ₽ Loan term months years Interest rate% per year% per month Repayment scheme
One-time fee % ₽ Monthly fee % ₽ Annual fee % ₽ Monthly payment ₽ Monthly fee ₽ Overpayment in monetary terms ₽ includingLoan interest ₽ Monthly interest payments ₽ One-time commission ₽ Monthly commission ₽ Annual payments ₽ Percentage overpayment % Total repayment ₽
Also, do not forget about the credit history. Any problems with it significantly reduce the likelihood of approval of a loan application in the future.
If you strictly follow the sequence of steps for applying for a loan, you can significantly reduce the time for the procedure. Moreover, it will remove most of the problems when obtaining a loan.
5. Where to get a loan secured by an apartment – TOP-4 banks with the most favorable lending conditions?
Choosing the right bank requires a lot of time and effort. Reviews, which are regularly issued by experts, greatly facilitate the tasks. Below is one of them.
Alfa-Bank is one of the leaders in the Russian lending market. They offer a wide range of loans: secured and unsecured, as well as credit cards. The latter are especially popular.
Here you can get a credit card up to 750,000 rubles. When returning borrowed funds for 100 days, interest is not charged.
The bank provides special conditions for those who receive wages on its cards. These categories of customers are offered a discount from the rate up to 5%.
2) VTB Bank of Moscow
Here you can borrow up to 3 million rubles. There are quite a few programs offered, both with and without a deposit. The minimum rate is set at from 14.9% per annum.
Discounts are provided to payroll clients, as well as government employees. To obtain a preliminary decision on a loan, it is enough to submit an application on the bank's website.
If financial problems arise, any client can use the credit holiday service. In this case, the borrower may not make payments for 1–2 months.
3) Renaissance Credit
Renaissance Credit is a bank that is quite loyal to potential borrowers. Here it is enough just to get a loan for one of the many programs.
If you need a small amount, experts advise you to take advantage of the offer to get a credit card with a limit of up to 200,000 rubles. Its release and maintenance are absolutely free. To speed up the process of issuing a card, an application should be submitted on the website.
Those who apply to Renaissance Credit not for the first time can expect to receive money at a rate of from 13.9%. They will have to be returned within 60 months.
Sovkombank– Another bank that, when considering applications, practically does not find fault with applicants. There is no need to verify income. In addition, without any problems, Sovcombank will be able to get a loan for pensioners.
If you provide an apartment as collateral, you will need a minimum of documents. In this case, the rate starts from from 18.5% per annum. The loan amount is from 300 thousand to 30 million rubles. However, do not forget that more than 60% of the cost of the apartment will not be given.
The obligatory requirement of the bank is that the property must be located in the territory where loans are issued under the programs of Sovcombank.
To make it easier to compare the programs described above, we have presented their main characteristics in the table.
Comparison table of banks and their loan terms:
|Credit institution||Maximum loan amount, in rubles||Rate||Lending details|
|Alfa-Bank||750 thousand on a credit card
3 million on a consumer loan
|From 14.90 percent per annum||Clients who receive wages through the bank can receive a discount on the rate|
|VTB Bank of Moscow||3 million||From 14.90 percent per annum||Apply online, reply within a quarter of an hour|
|Renaissance Credit||Up to 200 thousand by card, up to 700 thousand in cash||From 13.90 percent per annum||The rate depends on the number of submitted documents|
|< em>Sovcombank||30 million||From 18.90 percent per annum||Apartments, rooms, houses and non-residential buildings are accepted as collateral|
|Loan organization||Maximum loan amount||Maturity||Rate|
|Alfa-Bank||8 million rubles||20 years||From 17.00% per annum|
|RosEurobank||9 million rubles||20 years||From 18.50% per annum|
|Trust Bank||12 million rubles||25 years||From 20.50% per annum|
We also provided a list of banks that do not check the borrower's credit history in one of our articles.
Question 3. Is it possible to get a loan secured by a share in an apartment without the consent of other owners?
On the one hand the apartment acts as a quality collateral, which significantly increases the likelihood of a positive decision on a loan application. Moreover, you do not have to collect a huge package of documents.
In order to be able to receive a loan secured by it, an apartment must meet 2 main criteria:
- high level of liquidity;
- ownership of the borrower.
Liquid property is considered to be property that can be easily sold if necessary.
However, it is important to understand that it is impossible to conduct a transaction without the consent of all the owners of the apartment. That is why most banks refuse to issue a loan secured by a share in the apartment.< /p>
The chance of getting a positive decision increases if you enlist the support of all owners. However, in this case, the probability of refusal is quite high.
In order to get almost 100% approval, you can re-register the property completely in the ownership of a citizen who plans to receive a loan.
Question 4. What are the conditions for obtaining a loan on the security of a room (in a communal apartment)?
With high-quality collateral, the likelihood of a positive decision on a loan application increases significantly. However, it is important for a bank that the collateral be as liquid as possible. In other words, if the borrower refuses to repay the debt, the collateral should be easily and quickly sold for the highest possible price.
The level of liquidity explains why not every property is easily accepted by banks as collateral.
It can be difficult for room owners trying to get money against their bail.These objects have very low liquidity, it can be very difficult to sell them. However, non-banking organizations issue loans secured by rooms without any problems.
Terms of lending secured by a room in an apartment
There are several reasons that will definitely lead to a refusal to issue a loan:
- the emergency condition of the room – the wear and tear exceeds 60%;
- one of the owners of the room is a minor (in this case, you will have to obtain permission from the guardianship authorities);
- the property is owned by several owners who do not agree to pledging it;
- the apartment or house in which the room is located is not connected to water supply, electricity or sewerage.< /li>
If you plan to get a loan secured by a room located in a communal apartment, the situation becomes more complicated. On the one hand, the requirements for real estate do not change, but the bank's decision can be either positive or negative.
There are 2 options for the development of events when using a room in a communal apartment as a deposit:
- A positive decision on the application< b>. This option is possible if you plan to take a loan, to buy the last room in a communal apartment, the bank can meet the borrower halfway. This is explained by the fact that he becomes the sole owner of the premises.
- Refusal to issue a loan. If the number of owners remains large enough, it is unlikely that you will be able to get a loan. In this case, the liquidity of the room remains too low, because the creditor will not be able to sell it without problems if necessary. To sell a room in a communal apartment, you will have to obtain permission from all owners. What's more, it will be those living in the adjacent rooms that will be eligible for priority redemption.
There are usually quite a few reasons why the sale of a room in a communal apartment can be delayed:
- the owners do not live in the apartment;
- no one knows where they are find;
- the owners refuse to buy the room and issue a permit to sell it.
10. Conclusion + video on the topic?
Having a liquid apartment in the property significantly increases the chance of positivedecision on a loan application. However, in order to avoid problems, you will have to contact reliable credit organizations, arrange a loan in accordance with all the rules.
In conclusion, we recommend watching a video on how to take loans (loans) secured by housing:
We want to wish all readers of “RichPro.ru” success in the field of personal finance. If you need to take a loan secured by an apartment, we want to find the most profitable option.
If you have any questions about the topic of the publication, then ask them in the comments below, and also evaluate this material and share information on social media with your friends. See you soon on the pages of our online magazine!