Self-calculation of the amount of insurance premiums that will go in conjunction with monthly payments and increase the overall credit burden is not an easy task.
To begin with, you must have full information about the total cost of the mortgage and the interest rate that will be set by the bank.
If you already have a mortgage loan and a valid contract with an insurance company, the task is a little easier.
First, you need to pay attention to what kind of insurance is concluded when applying for a mortgage loan.
Usually banks try to offer the borrower a range of services, which includes both insurance of the object itself (loss, damage, title) and personal insurance (life, health, ability to work, job loss).
IMPORTANT TO REMEMBER! Comprehensive insurance is not required by law, and in without fail the borrower must conclude a contract only for insurance of the object (risks of loss, damage, and others).
And these are just additional nuances that ultimately affect the amount of your obligations to insurers. The basic calculation is made on the basis of the main parameter: the balance of the loan debt to the bank.
Let's look at this issue in more detail.
The insurance parameters and the amount of annual contributions depend on the amount of your debt to the bank, multiplied by the annual interest rate. Based on these parameters, the calculation is made.
Every year, 3-4 weeks before the end of the insurance liability period, the loan sends information about the amount of your debt to the UK. Based on this amount, insurers calculate the amount payable.
You took out a mortgage loan in the amount of three million rubles with an interest rate of 14.5%.
The insurance premium must cover 3,435,000 (loan amount multiplied by the annual interest rate) rubles.
Depending on the type of the concluded agreement (complex or individual risk), the amount of the insurance premium will be from 0.3% to 0.6% per year.
Comprehensive insurance is always more expensive, as it takes into account a number of additional factors that we talked about a little higher.
In this example, we will take the average size– 0.4% applicable for complex agreement nearby insurers.
Calculation example.
In the first year, you will have to pay: 3,435,000/100*0.4 = 13,740 rubles. During the year, you paid the bank 600,000 rubles as a debt. For the next year, the calculation will be as follows: 3,435,000 - 600,000 = 2,835,000 (the balance of the loan debt to the creditor).
2,835,000 * 0.145 = 411,075. 2,835,000 + 411,075 = 3,246,075. In this case, the annual insurance premium will be 12,984 rubles.
Based on this example, you can see that the amount of payments changes annually, and depends on two factors: the balance of the debt to the bank and the interest rate on the mortgage loan.
This is a classic example of a calculation based on the basic conditions of an insurance contract. But there are a number of additional nuances that affect the cost of insurance.
Typically, the bank applies fixed interest rates for the entire term of mortgage payments. But this rule applies to already rented housing. In the case of new buildings, the rate may change at certain stages.
How much does mortgage insurance cost under these circumstances? In this case, the calculation is made on the basis of data from the payment schedule issued by the bank upon signing mortgage agreement, and the outstanding balance is multiplied by the current interest rate.
Another factor that affects the amount of annual insurance is early and partial early repayment.
At full early repayment mortgage loan, the insurance contract continues to operate, but the obligations to the bank have already been repaid.
In this situation, the borrower can terminate the contract with the insurance company and return the funds paid to the insurance account.
In case of partial early repayment of the loan, the amount of the principal debt is recalculated, in connection with which the amount of the insurance premium also changes.
In this case, it is necessary to obtain a new payment schedule from the bank, which will contain information about the current balance of the loan debt, and draw up a new agreement in the UK. Further recalculation will be made, and the amount of annual contributions will be reduced.
If you have comprehensive insurance, the UK may change rates depending on your age. This is especially true for borrowers over 40 years old. Typically, the amount of the tariff for this category of customers increases annually.
IMPORTANT NUANCE: You can refuse life insurance, as it is not mandatory (except for clients of retirement age), or change the insurer serving you, choosing the most favorable conditions for yourself. You can change the IC annually, but only from among the companies accredited by the bank.
Now let's on concrete examples calculate the cost of insurance different types situations.
How much does mortgage insurance cost living space in a new building? In order to find out the cost, you need to take into account the factors that are described below.
Amount of debt: 4,000,000 rubles, the rate for the first 3 years is 15.9%, after the transfer of ownership of the new building - 12.9%. Insurance of the object only, the rate is 0.297%. The payment term is 15 years.
First year: 4,000,000+ 0.159*4,000,000= 4,636,000/100*0.297 = 13,768 rubles payment amount for the first year.
Second year: 3,930,040 + (balance of debt)*0.159*3930040=4,554,916/100*0.297= 13,528 rubles.
After changing the rate - 4 years of payments. Balance of debt: 3,751,889.
3,751,889 + 0.129 * 3,751,889 = 4,235,882 / 100 * 0.297 = 12,580 rubles - payment for the fourth year, after changing the rate.
The amount of debt is 3,000,000 rubles, the rate is 14.7% per year. Comprehensive insurance in the amount of 0.494% of the premium amount. The payment term is 20 years.
Standard payment calculation: 3,000,000 + 0.147 * 3,000,000 \u003d 3,441,000 / 100 * 0.494 \u003d 16,998 rubles.
With partial early repayment, 500,000 rubles were paid on account of the principal debt. By the end of the year, the balance of the debt was 2,976,528, after paying the amount (reduction of the loan term was chosen) - 2,513,734.
Calculation: 2,513,734+0.147*2,513,734= 2,883,252/100*0.494 = the insurance payment will be 14,243 rubles.
The borrower is 45 years old, comprehensive insurance was 0.521% of total amount premiums. Mortgage amount - 2,500,000, for a period of 15 years, at a rate of 13.9% per year.
Calculation for the first year: 2,500,000 + 0.139 * 2,500,000 \u003d 2,847,500 / 100 * 0.521 \u003d 14,835 rubles.
For the next year, the tariff is indexed and amounts to 0.535%. The balance of the debt is 2,447,174 rubles.
2,447,174+0.139*2447174= 2,787,331/100*0.535 = 14,912 rubles.
As you can see, calculating mortgage insurance on your own is possible without much difficulty. All the necessary data can be found in the mortgage payment schedule and the insurance contract, where the tariff rate and the possibility of its indexation are precisely specified.
Apartment insurance is one of the mandatory conditions put forward by banks when registering mortgage loan to buy a home.
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Due to the length of the mortgage lending period, organizations need to have guarantees that the client will repay the mortgage in cases of loss or damage to the home, as well as deprivation of its ownership rights. As such a guarantee is the obligatory insurance of the apartment as a collateral.
When paying off mortgage debt, insurance will be an additional cost item for borrowers. For this reason, in the process of choosing an organization, it is necessary to thoroughly study all the conditions for providing a mortgage loan and insurance requirements. Some banks may offer only an insurance policy, while others require comprehensive property insurance against various risks.
According to the laws Russian Federation, the client may refuse and not take out insurance for housing, but this is not recommended. Banks take a certain risk by approving a loan to a client for such long term, and insurance is needed as a way to reduce the risk of financial loss.
There are the following types of insurance when applying for a mortgage loan for the purchase of housing:
These types of insurance are the main ones, in addition to them, the bank can offer many more options and programs for insurance when applying for a loan to buy a home.
When applying for a mortgage loan, only the pledge (purchased property) is insured without fail. But many credit organizations insist that comprehensive insurance be issued.
It implies the following risks:
Peculiarities:
The list of cases when the insurance company can compensate for losses should be clearly stated in the contract. We present the most common cases.
Under the insurance policy mortgage apartment compensation is provided in the event of:
When applying for a title insurance policy, payments are provided in the event that the borrower has lost the rights of the owner of the home due to a court decision or other reasons.
If an insured event occurs, the homeowner must immediately report this to the insurance company and credit organization to receive insurance compensation.
In cases where the apartment is lost, the payment will be made not to the borrower, but to the bank in which the client has issued a mortgage loan. If the lost property was insured to its full extent market value, then the insurer will pay the remaining amount after the settlement with the bank to the homeowner.
It is not uncommon for a company that issued an insurance policy to a client to refuse to pay damages for one reason or another. In this situation, there is only one option for solving the problem, this is going to court.
If, when drawing up a mortgage housing insurance contract, the client hid information about the presence of any factors that directly or indirectly contributed to the occurrence of an insured event, then he has no chance of winning a lawsuit.
In most cases, the annual insurance payment in the first year is approximately equal to the monthly mortgage payment. In subsequent years, the payment will decrease in proportion to the decrease in mortgage debt. The amount of payment for insurance of mortgage property is calculated taking into account many factors.
In this situation, the type of insurance chosen, the quality and location of the collateral housing, the client has acquired new or second-hand housing is also important.
It also takes into account the fact how many previous owners the apartment had (if we are talking about a secondary housing).
The average percentage of insurance premiums is 1-1.5% of the total amount and is paid once a year.
Depending on the loan term and the ratio of own and borrowed funds of the client when buying an apartment, this indicator may vary slightly.
Programs mortgage lending for military personnel allow citizens serving under a contract in various branches of the military to purchase housing on favorable terms.
The benefit is that cash payments for repayment military mortgage transferred to credit institutions budget funds states. When buying an apartment under the military mortgage program, an insurance policy is a prerequisite for signing a loan agreement.
If the mortgage payments are borne by the state, then the payment insurance policy not included in the military loan program, and insurance premiums paid to military personnel.
You can use our payment calculator to calculate your annual premium. This function is available on the official websites of each bank that issues mortgage loans to citizens, but you can do the calculation yourself.
To calculate the amount of insurance payments, the following calculation formula is used:
The decoding of the formula is as follows:
P - sum insured;
S - the amount of funds received under the mortgage;
C% - the rate on the loan.
Let's assume that the initial data is:
S= 1,500,000 rubles
C% \u003d 12% (calculated as 0.12)
Annual premium for insurance = 0.5% of the amount.
We perform calculations:
Now we calculate the payout:
B=1,680,000*0.5/100
B = 8,400 rubles.
When calculating, you need to take into account that the amount of insurance will decrease every year, since the amount of the principal debt is taken into account in the calculations.
Reading 5 min. Published on 07.08.2014
Mortgage insurance is a prerequisite for obtaining a loan for the purchase of real estate. With such a measure banking institution strive to protect yourself from possible financial risks.
In fact, this insurance protects the interests of both the borrower and the lender, but the recipient of insurance in the event of an insured event is the bank.
There are several types mortgage insurance :
To date, companies are promoting mortgage comprehensive insurance
. It combines life and health insurance of the client, acquired real estate, title.
How much does mortgage insurance cost a borrower?
The amount of this amount, which reflects home insurance, ranges from 03.-0.5% of the total amount of the policy and depends on the presence of many factors (floor material in the building, technical condition of housing, and so on).
The amount of life and disability insurance is influenced by age data, the level of health of the borrower and his profession - this parameter ranges from 0.3-1.5%.
If the income of the co-borrower is taken into account when issuing a mortgage, there is a high probability that the bank will insist on life insurance as well.
Title insurance will be 0.2-0.7%, it all depends on how legally clean the property is.
To understand how much mortgage insurance costs, you need to understand it main nuances:
Consider an example of calculating comprehensive mortgage insurance, as the most common
Initial mortgage loan parameters:
Base sum insured on the date of insurance payment calculated using the formula:
B is the sum insured.
S the total loan amount is 750,000 rubles, or, as in this case, the loan debt on the date of payment under the insurance specified in the payment schedule.
I – loan interest rate 14.75 (substitute 0.1475 in the formula).
Substituting the values we get base amount insurance:
B=712375+0.1475 x 712375= 817450.31
Then we consider payment amount on the specified date:
Insurance = 817450.31 x 0.404/100 = 3302.50
It is clear that with each subsequent year the amount of the contribution will decrease.
When choosing a company, it is important to focus not only on the amount of the contribution (naturally, the lowest figure looks more attractive), but also on the conditions. Of great importance are: the procedure for paying contributions and sanctions at the time of their delay, the most complete package of stipulated cases for payment, discounts for prolongation of credit real estate insurance. Only by comparing all the criteria, you can choose the best company with the best conditions.
An Insured Mortgage Loan Provides Confidence and Maximum Protection in the event of an insured event from the burden of debt obligations.
Table with approximate rates of some insurance companies:
| Insurance company name | Insurance type | ||
| life | property | title | |
| Tariff in % of the sum insured | |||
| Alliance | from 0.19-0.3 | from 0.12 | from 0.13 |
| renaissance | 0,15-5 | 0,1-0,77 | 0,2-0,4 |
| Ingosstrakh | from 0.267 | from 0.2 | from 0.2 |
| GUTA | from 0.075 | from 0.07 | from 0.11 |
| Rosgosstrakh | 0,1-5,6 | 0,12-0,65 | 0,15-0,35 |
Other notable companies include: Alfa Insurance, KIT Finance Insurance, Megaruss-D, Sogaz, VSK and others.
How much will mortgage insurance cost a borrower?
The amount varies between 0.3-6.5% of the total amount of the policy and depends on the presence of many factors (the material of the floors in the building, the technical condition of the housing, and so on).
The amount of life and disability insurance is influenced by: age, gender, the degree of health of the borrower, working conditions. This value fluctuates between 0.1-5.6%. If the income of the co-borrower is taken into account when issuing a mortgage, there is a high probability that the bank will insist on life insurance as well.
Title insurance will be 0.13-0.7%, it all depends on how legally clean the property is.
More information about the tariffs can be found on the official website of the selected company.
The legislation in force in Russia today provides for the registration compulsory insurance mortgaged real estate. However, in addition to this, almost always banks offer additional insurance for the life and health of the borrower, disability, as well as the so-called title insurance.
Types of mortgage insurance | Which cases include | Is it possible to refuse |
Property |
| Insurance is mandatory. |
Life and health |
| Optional. However, in case of conclusion of an agreement, the amount of the rate reduction is 0.5-1% |
Loss of title |
| Optional. |
When applying for a mortgage, it is obligatory to take out insurance on the mortgaged property. Any other types are possible only if the borrower voluntarily agrees to them. The imposition of any related services is considered a violation of the law. Legislation requirements in terms of mortgage insurance are set out in No. 102-FZ.
Mortgage insurance companies offer different conditions issuance of policies. For selection best option, use the service for the selection of SC. On it, you can calculate the preliminary cost of a mortgage insurance policy, compare the cost of services from different insurers under the same conditions, and apply for an insurance contract with an insurance company online. This will save money and time. The paid work policy will be sent to you by e-mail within a few minutes.
To insure a mortgage, you will need the passport of the insured, documents for real estate.
The contract concluded with the insurance company contains a list of actions that the borrower must take in the event of an insured event. In most situations, you need to do the following:
An insurance policy is usually not purchased. After all, this is a voluntary process. Another thing is mortgage insurance at Sberbank. Stricter rules apply here cash provided for decades. And the policy protects not only the bank, but also customers, in case of unforeseen situations.
You can insure yourself in a subsidiary of Sberbank by selecting projects and signing an agreement.
If an insured event occurs, the company will pay an amount equal to the cost of the loss, but within the total amount of insurance. Exceeding is not allowed.
There are no clear requirements for insurance premiums, except for one - the value must be less than 1% of the loan amount for one year. Otherwise, individual rules apply.
By purchasing a policy, you can protect yourself or your heirs in case of:
As we can see, although life insurance is not mandatory, it has a number of advantages. In addition, Sberbank creates more attractive conditions for those who sign a policy: a 1% reduction in mortgage rates.
