Mortgages for Russians abroad are becoming more accessible every year. Get financial resources in most of them it will not be difficult, the main thing is to prove your solvency. Below is a table with the lowest interest rate in the world for 7 countries and the US.
The Land of the Rising Sun offers an interest rate on lending - 1.21% per annum. The state is characterized by low inflation, but expensive housing. Here it is more profitable to take financial resources for real estate and have your own housing than to rent an apartment.
Terms of Service
There are few banks in Japan that provide loans to Russians. Those who are ready to do this put forward the following requirements for customers:
To receive funds from a Japanese bank, you must have citizenship or a residence permit.
Peculiarities
There are several features of lending to Russians in Japan. Here are the main ones:
Important! Realtors are prohibited from hiding from buyers any significant information on the property. If a crime or suicide was committed in the apartment, this must be announced before paperwork. In some cases, the prices for such apartments are reduced several times.
In the country of the Alpine Alps, real estate loans are issued at 1.42% per annum. It is possible to obtain the right to own property for both local residents and foreigners only within the framework of current law Lex Koller. (link to law)
Terms of Service
In Switzerland, borrowers are treated with loyalty and provide good opportunities for lending. The main conditions for them are as follows:
A favorable factor for obtaining a mortgage is a good credit history. To earn a positive response from banks, you need to take several small loans and pay off debts without delay. It is best to do this in the Swiss branches.
Peculiarities
One of the main differences of Swiss lending is the definition of a fixed rate. % is derived from the averages of the 65 major institutions in the country. In some cases, interest rates on loans are even lower than 1%.
The country has the opportunity to take a life mortgage. It is issued for up to 100 years, payment on the debt is inherited. If the descendants refuse to pay the debt, then the bank takes the property into its ownership at the market price. If the latter has increased over the past period, the branch will return the difference to the borrower, and if it has decreased, it will recover the losses incurred.
You can also take a mortgage at a low interest rate in Suomi. Here, the minimum% rate is 1.53% per annum, in some banks in August 2017 the average percentage was 1.07%. Russian with good credit history It won't be hard to get funding.
Terms of Service
German banks issue loans to Russians for the purchase of a house or for commercial real estate. The main factor for getting financial resources is the amount of capital to be invested in the object.
Terms of Service
In Germany, the minimum mortgage interest rate is 1.9% per annum. The main requirements for obtaining a loan are as follows:
The loan process takes 4 to 6 weeks. The average interest rate depends on the property and the size of the down payment. In Germany, Russian citizens can take out a mortgage at the branches of Sberbank and pay the debt via the Internet on the official website anywhere in the world.
Peculiarities
German banks may require the borrower to open a deposit account and transfer a certain amount to it (goes to pay for the loan). In this way, banks receive confirmation that the client is working and able to pay the mortgage, and also insure themselves for a reserve of funds if, for some reason, the debt cannot be repaid on time.
In the Czech Republic, mortgages are issued both for finished housing and for real estate under construction at an average rate of 1.99% per annum. Credit can be obtained by legal entities and individuals.
Terms of Service
Funding for the purchase of real estate is provided by Hypoteční banka, GE Money, Fio Banka, UniCredit Bank, Raiffeisen Bank, LBBW banks, as well as branches Russian Sberbank. The requirements for clients are as follows:
Application processing time is 4-6 weeks.
Peculiarities
In the Czech Republic, banks can take into account the income of all family members received in any country in the world. The main thing is that all funds must be legal and documented. The interest rate depends on the availability of a residence permit and permanent residence:
The advantage of Czech lending is that there is no mortgage tax, which is provided for in most other countries.
Getting a loan in America is not easy. Mortgage funds are issued to non-residents of the country belonging to the following groups:
The easiest way to get money is for people who fit into the first two categories.
Terms of Service
In the US, there are two main requirements without which the borrower will not receive a loan. The recipient of the mortgage must have:
Banks issue mortgages to foreigners on the following terms:
The terms, interest and amount of lending depend on the chosen rate: floating or fixed.
Peculiarities
There are several ways to get a mortgage loan in the USA:
All organizations require credit report. Without it, you can only take funds from the FHA, but for this you need to be a member of their cooperative.
In the US, the additional costs of mortgage lending are expensive. The total one-time amount of all services is $6931. This includes all necessary payments, both basic and one-time.
Loans to Russians are provided by many banks around the world at various interest rates. The lowest offer: Japan - 1.21%, Switzerland - 1.42% and Finland - 1.53%. Good conditions lending and the average interest rate are provided by the following countries:
Most high stakes in Belarus - 11.5-15.95%, in India - 9.50-11.75% and in Ukraine - 23.00-28.80%.
In the countries of the East, the most cheap mortgage in the world offers Japan. Here you can take a loan at 1.21% per annum. In Europe, the lowest percentage of lending in Switzerland - 1.42% per annum. Both states are in the top republics with the lowest% rate for Russians.
You can get a loan for real estate in almost any country, but the rates are different everywhere. Thus, in Lithuania the average rate is 2.03% per annum, in Taiwan - 2.04%, in Austria - 2.1%, in Monaco - 2.3%, in Israel - 3.0%, in Greece - 3. 5%. With restrictions and at an average percentage, you can get a mortgage in Croatia - 4.0%, in Montenegro - 4.0%, in the UAE - 5.0%, in Thailand - 8.7%.
Recently, a mortgage loan with a negative rate was issued in Denmark: the bank pays extra to the client for the use of capital. Kirill Schmidt, director of financial services at Tranio, told how common this is in developed mortgage markets.
In the last quarter of 2015, a Danish couple paid off their mortgage at a negative rate of -0.0562%, meaning the borrowers didn't spend money on loan installments, but the bank paid them 249 Danish kroner ($38) a month. The negative-rate mortgage was reported last week by The Wall Street Journal. This news caused a heated discussion among Russian mortgage borrowers. However, it is important to understand that not all borrowers in Denmark receive loans and the opportunity to earn money. Firstly, the case described in the WSJ article is more an exception than a rule, and secondly, we are talking about a floating rate mortgage loan taken several years ago.
Floating rates in Europe are calculated from the Euribor (interbank lending rate in Europe), to which the margin is added a separate bank(1.5-2.0%). Since the Euribor is constantly fluctuating, buyers who have taken loans at a floating rate also take on certain risks: for example, if at the end of 2015 a couple from Denmark paid at a negative rate, then there is no guarantee that in a few years they will not have to pay 2-3 % per annum or higher, depending on what happens to the general level of interest rates in Europe.
In some European countries, such as Germany, loans with fixed rates are more common. A buyer who has taken a loan in Germany for 15 years at 1.9% per annum today can be sure that in 10 years he will continue to make payments at the same rate (if loans become even cheaper, refinancing is possible, but that's another story) .
In some cases, floating rates are lower than fixed ones, which attracts risky borrowers. The fixed rate in Denmark is by no means negative: its average value is about 3% per annum. The lowest fixed mortgage rates as of April 2016 are observed in Japan, Switzerland, Finland, Germany and Luxembourg. Their average value does not exceed 2% per annum.
Top 5 countries with the lowest rates for mortgage loans
Such low rates Japan and the listed European countries are explained by insignificant inflation and high credit ratings of these states. According to the Trading Economics website, inflation in the eurozone is zero, in Japan it is slightly above zero (+0.30%), in Switzerland it is negative (-0.90%). For comparison, inflation in Russia is +7.30%, and the average mortgage rate is 13%.
There are few banks in Japan that specialize in issuing loans to foreigners, and in most cases, in order to obtain a mortgage, you need to have permanent place residence or even citizenship of the country. In addition, you need to earn ¥2-5 million per year ($18.4-46 thousand). The loan term is from 1-5 to 35 years, the loan amount is up to 90% of the value of the object, and the loan amount is from ¥ 1-10 million to ¥ 200 million.
AT Switzerland and Germany the payment of the body of the loan is practiced after the expiration of the loan period. That is, the interest payment period can be 10 years, and the body of the loan is paid for another 10-20 years. If an investor buys commercial real estate, then the income from the object will also be taken into account. In Switzerland, loans are most often issued for up to 10 years, the loan amount is up to 80% of the property value. In Germany, permanent residents and citizens can get a loan of up to 80% of the property value for up to 20 years. The borrower's income must be at least €20,000 per year, and monthly loan installments cannot exceed 35% of his earnings.
AT Finland the maximum loan amount is 75% of the property value. With additional guarantees and insurance, loans are issued for 100% of the cost for up to 25 years.
AT Luxembourg loans are issued in the amount of up to 80% of the value of the object for a period of up to 30 years.
Russian residents can get a loan to buy real estate abroad in the country of purchase for less than favorable conditions than the citizens of that country. The rate will be slightly higher, and the amount of funds issued will average no more than 50-60% of the value of the object.
In European countries, obtaining a mortgage loan usually requires documents confirming solvency (income certificates), information on regular expenses (rent, alimony, other loans) and data on the acquired object.
Kirill Schmidt especially for RBC Real Estate
The European values that the countries of the European Union are striving for are created in order to maintain a comfortable standard of living for the middle class. This applies not only to the quality of services, products, salaries, medicine, but also to mortgage interest rates. In this regard, countries European Union for several decades ahead of the post-Soviet countries, where mortgage loans are issued at 12-18% per annum. Today we will identify the countries of Europe (EU) with the lowest and highest mortgage rates in 2018. The British, Belgians, French, Swedes, Finns and Germans (including other European nations) use mortgages as an everyday tool. Including mortgage loans are in demand even among wealthy Europeans who have enough money to purchase housing without borrowing money. Even in these cases, they still prefer to use mortgage loans, which in countries with stable and stable economies are issued at 1.5-3% per annum. On our site you can also compare the average year.
This list included 28 countries that are part of the EU. Despite the fact that they have a single economic zone, the interest rate may vary depending on economic situation in one state or another. We determined the average annual rate on a mortgage loan for a period of 20 years. European banks offer borrowers favorable interest rates if they take a loan for a period of 10 to 30 years. As a result, the average loan term in the EU averages 20 years.
| List of countries | Average mortgage rate - per annum % |
|---|---|
| 1. Croatia | 5.38 % |
| 2. Austria | 2.09 % |
| 3. Netherlands | 2.55 % |
| 4. Bulgaria | 4.86 % |
| 5. Sweden | 1.85 % |
| 6. Latvia | 2.93 % |
| 7. Lithuania | 2.00 % |
| 8. Malta | 3.67 % |
| 9. Estonia | 2.34 % |
| 10. Germany | 1.89 % |
| 11. France | 2.09 % |
| 12. Finland | 1.47 % |
| 13. Italy | 2.56 % |
| 14. Ireland | 3.85 % |
| 15. Denmark | 2.20 % |
| 16. Czech Republic | 2.01 % |
| 17. Poland | 3.77 % |
| 18. Portugal | 2.81 % |
| 19. Romania | 3.30 % |
| 20. Luxembourg | 1.95 % |
| 21. Slovakia | 1.93 % |
| 22. Slovenia | 3.60 % |
| 23. Cyprus | 4.15 % |
| 24. UK | 3.24 % |
| 25. Spain | 2.27 % |
| 26. Hungary | 5.84 % |
| 27. Belgium | 2.47 % |
| 28. Greece | 4.35 % |
This list included 5 EU countries, where the average interest rate does not exceed 2% per annum. The most favorable conditions are observed in the northern countries of the EU, as the first two places are occupied by Finland and Sweden. The top five were Germany, Slovakia and Luxembourg.
The most unfavorable conditions for mortgage loans in the EU are offered by banks in Hungary, Croatia, Bulgaria, Greece and Cyprus. Here the average rate fluctuates between 4-6% per annum.
What is the percentage (rate) on loans and mortgages in European countries in 2016-2017?
The last year has been a year of dramatic changes for mortgages in Russia. The mortgage rate for the year has dropped significantly, by almost 5 percent, but mortgages in the country are still not cheap and are not available to a large number of citizens. For 10 years at a rate of 10% per annum, for example, for an apartment worth five million rubles, you will have to overpay almost three million. This is quite a lot - especially if you know that somewhere abroad servicing such a loan will cost only 300 thousand rubles.
We will find out where you can get a chance to buy a home without falling into heavy debt dependence on the bank.
Land of the Rising Sun.
The cheapest home loans are in Japan. According to the Numbeo portal, which collects information on the cost of living in different countries world, now the average mortgage rate in the Land of the Rising Sun is 1.2 percent. Some banks offer loans at a lower interest rate - 0.5 percent per annum.
Foreigners can borrow money to buy property in Japan, but there are a number of restrictions. Most banks require the applicant to have a resident card (issued to those who plan to stay in the country for 90 days or more), and also take into account how many years a person has already lived in Japan. If you have lived in Japan for less than 3 years, your chances of being approved for a mortgage are very low. Of course, it is much easier to get a mortgage if you have a Japanese spouse who can act as a guarantor for the loan. Despite the relatively liberal rules for issuing mortgages, there are few foreign borrowers in Japan, and all because local real estate is one of the most expensive in the world. In the center of Tokyo, according to Numbeo analysts, the average price per square meter of housing is 768 thousand rubles, on the outskirts - 352 thousand rubles.
The cost of living index in the Japanese capital is 85 percent higher than in Moscow. According to this indicator, the city ranks 24th in the world (out of 521 cities where data is collected). At the same time, prices for the purchase of real estate are already beating Moscow's indicators by 130 percent or more.
Europe is always happy to see you?
Second place in the list of countries with a very affordable mortgage is Switzerland. The average rate here is 1.4 percent per annum. There are no special requirements for borrowers from abroad, however, housing can only be bought in those cantons where the country's authorities have issued permits for the sale of real estate to foreigners. Moreover, the number of such permits is limited.
Living in Switzerland is even more expensive than in Japan. Zurich, for example, ranks third in the world in terms of cost of living. In the city center, a "square" of housing costs almost 818 thousand rubles, outside it - 528 thousand rubles.
"Bronze" mortgage rating went to Finland, where mortgage loans are issued at 1.5 percent per annum. However, the prices for apartments in the capital of this country are also quite undemocratic, for example, in Helsinki, you need to pay 268 thousand rubles per square meter in houses on the outskirts and 467 thousand in the center. However, the average price tag for the cities of the country is quite acceptable - 285 thousand rubles per square meter in central regions, 175 thousand - in non-central. But recently, the possibility of buying a home in Finland can also be affected by politics. The Finnish authorities have not favored Russian buyers lately. In the fall of 2016, a loud scandal was even associated with this. The Finnish Security Police presented to the Parliament a review indicating that the Russians are buying up real estate in the country suitable for accommodating the military. As a result, some transactions for the acquisition of real estate, concluded with Russian citizens, were terminated. In particular, purchases were canceled real estate located in close proximity to strategically important facilities.
The fourth position in the list of the most affordable mortgage rates is occupied by neighboring Sweden, where the average mortgage rate is 1.87 percent. An unpleasant feature for potential borrowers is that it is impossible to take a loan secured by the purchased apartment, it is necessary to pledge some other property. In general, mortgage conditions for foreigners here differ little from the requirements for citizens of the country.
The last paradise for borrowers is Slovakia. Here, the rate also does not exceed two percent per annum (1.92 percent), while real estate is relatively inexpensive: 93 thousand rubles per square meter on the outskirts of cities, 125 thousand - in the central regions. In Bratislava, housing in the center, according to Numbeo experts, is 44 percent cheaper than similar offers in Moscow.
We don't give money.
While some countries issue mortgages at a minimum and even negative interest rate (when a bank pays a borrower extra for using credit money - for example, rates on mortgage loans in Denmark have recently gone negative), others are real mortgage terrorists.
In Argentina, according to Numbeo data, the average mortgage rate by November 2017 was almost 27 percent. This means that in ten years the average borrower pays almost triple the cost of an apartment, and if the loan is issued for 20 years, the overpayment will be almost six times.
The situation in Ukraine is slightly better: loans for housing are given at an average of 21.1 percent per annum, and only a few banks - according to previously published materials, these are the state-owned Ukrgasbank and Oschadbank, Globus Bank, Crystalbank and the bank " Arcade". To attract customers, banks are launching mortgage programs in cooperation with developers, setting preferential credit rates - but only for a short period (a year and a half). Then the rates increase to the standard 22-25 percent. Another country intolerant of borrowers is Venezuela, where the average mortgage rate is 21 percent. Completing the top five worst countries for obtaining a mortgage are Belarus (19.9 percent per annum) and Iran (18.9 percent).
Some statistics about Russia.
Russia ranks 77th in the world in terms of the average mortgage rate (there are 88 countries in the Numbeo list). According to the portal, housing loans in the country are given at an average of 12.6 percent per annum. Domestic analysts have different data - according to the results of the third quarter, the rate was 11.1 percent.
The high cost of housing loans compared to other countries does not prevent Russians from getting involved in the so-called mortgage slavery: the Central Bank calculated that in the first nine months of 2017, the volume of mortgage loans in Russia increased by 25 percent. In total, in January-September, citizens issued more than 700 thousand loans for total amount about 1.3 trillion rubles.
Every second Russian who buys overseas real estate is considering a mortgage, realtors say. Russians give preference to Europe, then to America and the countries of the East. For example, a small apartment (38 m2) in Germany can be bought for 14,000 euros, a villa in Turkey (270 m2) for 58,000 euros, and a two-bedroom house in America for 200,000 dollars.
Despite the attractiveness of these prices, many still choose to purchase Russian real estate. And it's not about patriotism. The procedure for obtaining a mortgage and a residence permit in another country is quite complicated.
Russian banks do not provide mortgage loans to buy real estate in other countries of the world. First of all, due to the high cost of verification procedures foreign object real estate, which Russian banks would have to organize. As a result of this, interest rates, which are already 2-3 times higher than the rates of Western banks, would simply turn into sky-high.
There is a large group of countries where obtaining a mortgage loan by Russians is in principle possible, but the requirements and procedures of banks in these countries are strict in relation to non-residents (primarily, in relation to non-residents of the EU). In practice, this leads to the fact that the percentage of approval of mortgage loans for Russians is relatively low. The above applies to Italy, Greece, Portugal, Czech Republic, USA, Turkey, Croatia, Finland.
It is in these cases that come to the rescue Russian banks. If it is fundamentally important for a buyer to purchase an object of foreign real estate using a loan, but get a mortgage in foreign bank fails, then the Russians apply for a loan to a Russian bank - even if the interest on the loan is higher there.
Real estate market experts agree on one thing: it is much more profitable to take a mortgage loan to buy foreign real estate in foreign bank where the property is purchased. The average fixed mortgage rate in the EU and the US was 3.5-6% per annum, the loan term was 30 years, the loan amount was 60-80% of the value of the property being purchased.
According to experts, it is easiest for Russians to get a loan in the UK, Germany, Spain, Cyprus, France and Israel. The lowest mortgage rates are observed in Finland and Israel (within 3.1-4.5% per annum). Mortgage rates in the "basic" EU countries are also not high - an average of 3.1% -5% per annum. Other conditions for granting loans are basically similar for developed countries.
It depends on the term for which you take out a loan. If this is a period of 1-3 years, then, perhaps, loans in euros will be more effective, the exchange rate of which now reflects the relative weakness of the recovery processes in the European economy. It is impossible to get a ruble loan in a foreign bank in a Western country. You will most likely have to choose from local currency, dollar or euro. Thus, you will bear the currency risk - with income in rubles, the loan will either rise in price or become cheaper.
To obtain a mortgage, you will have to incur large transport costs to visit the country where the property is located. It is important to eliminate visa problems - in the absence of permission to visit foreign country it makes no sense to buy real estate in it. In addition, if you do not know the local language, you will have to pay for translation of documents and consulting services. These problems can be solved by the real estate agency, which will have to pay a percentage of the transaction.
Despite certain difficulties and inconveniences when obtaining a mortgage on foreign real estate, your money and nerves will pay off handsomely, because today abroad they offer more favorable conditions than in Russia.
Comparison.ru advice: There are always companies abroad founded by Russians. Contact them - it will be easier to conduct a mortgage transaction.
