Pros and cons, reviews of banks. Is mortgage refinancing profitable? Pros and cons, reviews of banks Mortgage refinancing in a plus bank

The decline in mortgage rates has led to the fact that the Russians began to apply for refinancing loans more often. Banks do not satisfy these requests. In July 2017, the average loan rate was 11%. This is a new record in the history of the Central Bank. Two years ago, mortgages were issued at 15%. How do citizens achieve favorable credit conditions?

Essence

Refinancing is a program that allows you to pay off an old loan by applying for a new loan. The service is divided into two types:

1. Internal re-registration of a loan on new terms by drawing up an additional agreement.
2. External re-registration is the receipt of a loan from another bank. In this case, the client will have to go through the procedure of registration of the contract again. The process involves the issuance of a new loan account and its security in the presence of documents confirming ownership.

Is mortgage refinancing profitable?

It makes sense to re-register the contract if the size of the regular payment is reduced or the rate is reduced. For example, a client has received a mortgage in the amount of $200,000, which he must repay in 30 years. The contract is serviced at 12% per annum. The monthly payment will be $2,057. Is it profitable to refinance a mortgage if the loan rate drops to 9%? Yes, this will save the borrower $488 monthly. Over thirty years, the savings will amount to 16 thousand dollars.

Experts advise refinancing mortgages if the interest rate drops by at least 2 percentage points. The average market rate on the market today is 10%. Accordingly, it is more profitable to deal with the issue of refinancing for customers who took out a mortgage in 2015. Then the average market rate was 12%. Those who bought a home just a year ago need to wait for the rate to drop to 9%.

Is it profitable to refinance a mortgage if the contract provided for annuity payments? No, according to this settlement scheme, the first payments will be used to pay off interest. If more than half of the term has passed since the execution of the contract, then refinancing will only bring losses.

You can check whether it is profitable to arrange mortgage refinancing at VTB Bank as follows:

1. It is necessary to take the current payment repayment schedule and add up all the remaining payments under the contract.
2. Next, you should enter the initial conditions into the loan calculator on the bank's website: the period remaining under the current contract, the calculated balance of the debt.
3. The calculator will calculate your monthly payment.
4. This amount should be multiplied by the number of months corresponding to the term of the new loan.
5. You need to compare the results. If the difference is significant, then refinancing will be profitable.

Advantages

As a result of on-lending, the interest rate will decrease, but the term of the contract will be extended. Is it profitable to do? Customer reviews confirm that borrowers with a stable high income can save money significantly. If it is not possible to renew the agreement at the bank that issued the loan, you can always contact another financial institution.

There are positive aspects to the rate cuts as well. According to the Central Bank, as of August 1, 2017, mortgage loans were provided by 20% more than in the same period last year. The total volume of lending increased by 4.7 trillion. rubles.

Preparation

To answer the question "Is it profitable to refinance a mortgage at Sberbank?" in a particular case, the costs should be calculated.

• first of all, you need to study the contract, pay special attention to the clause that concerns interest-free early repayment of the debt;
• then you need to calculate the size of the commission and adequately assess your capabilities;
• if a decision is made to re-register the contract, then you should contact the creditor;
• banks go to a meeting with responsible clients and draw up debt restructuring, it does not always provide for on-lending;
• if it was not possible to achieve a result in one bank, you should contact another credit institution.

Documentation

To arrange mortgage refinancing at Tinkoff Bank, a number of documents should be prepared:

• a copy of the passport;
• a certified copy of the work book (agreement, contract);
• certificate of income (2-NDFL) from the place of work;
• borrower's life insurance contract;
• initial agreement and bank statements with a debt repayment schedule.

After filling out the questionnaire, the bank begins to assess the solvency of the borrower based on his data and the loan agreement. If the application is approved, the borrower should provide documents for the property, certificates with the balance of the debt and the absence of restructuring, a letter with the details of the account from which the repayment is made.

Drawing up an application

As soon as the client receives the consent of the bank to re-register the contract, the process itself begins. The borrower will receive funds to repay the previous loan. The property will be transferred as security to a new banking institution.

The client should immediately prepare for additional costs. If the insurance company is not an accredited partner of the bank, then it will have to be replaced. Otherwise, the lending rate will increase. At Sberbank, the refusal to lend to life will be compensated by an increase in the rate by 1 p.p., at Absolut Bank, and even more - 4 p.p.

If the insurance was issued at the conclusion of an agreement with the first bank, then the document will simply need to change the beneficiary. Also, during the period of execution of a new contract (until the old one is paid off), an inflated rate (1-2 p.p.) for life insurance is charged. It lasts no more than a month.

What's going on in the market?

Sberbank lowered the mortgage refinancing rate to a historical level of two hundred rubles. You can buy housing in a new building at 7.4-10% per annum, in the secondary market at 9-10%. The VTB Bank Group issues mortgages at 9.9-10%, and issues funds for the purchase of new housing at 9.6-10%.

On the same terms as in Sberbank, you can arrange mortgage refinancing at Otkritie Bank - at 10.2%. Absolut Bank and Uralsib also cut rates to 6.5% on a limited number of new apartments.

The refinancing rates of Russian banks are presented in the table below.

One of the important conditions for on-lending is the absence of delays, penalties and fines. If there are any, then you must first pay off the debt, and then apply.

Problem

Is Mortgage Refinancing Beneficial for Lending Institutions? In most cases, no. As market rates decline, banks are trying to maintain interest income, which is of great importance in an unstable system. Therefore, they refuse to change the terms of credit. Clients are not even given formal reasons for refusal.

By law, the borrower has the right to refinance the loan, if the contract does not contain a direct prohibition on this operation. However, today banks are increasingly including this clause in the contract. This has already attracted the attention of the regulator.

Clients have only one chance to change the decision of the bank. It is necessary to provide a letter of guarantee or a preliminary agreement from another credit institution, under the terms of which the bank undertakes to close the loan ahead of schedule and issue a new mortgage to the borrower on the same terms, but at a reduced interest rate. In this case, the lender will meet the client halfway, since early repayment of the contract will greatly reduce his interest income. The deal will become unprofitable.

Is mortgage refinancing profitable: cons

It is almost impossible to achieve a revision of the terms of the contract if part of the debt was paid with maternity capital, the property is registered in the shared ownership of parents and minors. It is very difficult to implement such an object.

The revision of the terms of the agreement may affect the requirements of the Bank of Russia. According to the regulations of the regulator, a financial institution must form a reserve for each issued loan. This entails a freezing of funds and may affect compliance with the regulations.

Is it profitable to refinance a mortgage? Not always, because you will have to pay money for the procedure for reissuing documents. The first payments on the new loan will be used to pay off the reduced interest. And finally, the most important drawback - the borrower will lose tax benefits. In the case of refinancing, it is no longer a mortgage, but a loan agreement secured by real estate. Therefore, borrowers are deprived of tax deductions.

When is the best time to refinance a mortgage? Such an operation is economically justified only in one case: if the new creditor's rate is at least 2 percentage points lower than that of the previous one. Therefore, there are so many people who want to get refinancing.

Mortgage refinancing has become one of the most popular banking products in 2017. Every fifth new housing loan this year is a refinancing of the old one. For some banks, this figure exceeds 40%.

Benefits of refinancing mortgages

Benefit #1: Reduced monthly payment

When refinancing, the borrower can take a mortgage for any period approved by the bank. This makes it possible to significantly reduce the monthly payment - both by lowering the rate, and by "stretching" the loan period for several more years. But keep in mind: if the difference in rates is small, the overpayment will also increase.

Let's take this example: we bought an apartment worth 3 million rubles on a mortgage. with a down payment of 20% for 10 years at 13.5%. They paid for a year, then refinanced at 11% for the same period.

With savings of 4500 rubles on a monthly payment the total savings, therefore, is about a million rubles even taking into account the actual increase in the loan term for a year after refinancing. The calculation is made without taking into account additional costs, which will be discussed in the example below:

Mortgage reviews

They took a mortgage from Sberbank in 2014 for an apartment in a house under construction. Under 14.25% while construction is underway and 13.25% after the house is commissioned. They paid for two years, rejoicing that they had time before the growth of rates, and then they began to grieve.

By the end of 2016, our rate began to seem already cosmic. We explored a mountain of offers from banks and settled on Absolut Bank. Then he offered excellent conditions - 11.25% instead of our 13.25% per annum. The monthly payment thus decreased by 4300 rubles, taking into account the preservation of the loan term. We grabbed a calculator and calculated that we would gain more than 885 thousand over the remaining years.

But they soon realized that there would be additional expenses. In the new bank, we had to insure not only the apartment, but also life and health. This is plus 10.3 thousand rubles a year. The only consolation was that Sberbank paid 7600 a year for insurance, the difference is not too big. In addition, they paid 2,500 rubles for an assessment, 300 rubles for an extract from the USRN, and a state duty for re-registration of 668 rubles for two. But even after deducting expenses, they gained more than 830 thousand, and the monthly payment became, albeit not by much, but less stressful.

Benefit #2: Reduced loan overpayments

If the monthly payment is left the same, shortening the term of the mortgage after refinancing, the amount of overpayment on interest will drop sharply. Let's use the same example:

Overpayment, thus, is reduced by more than 1.7 million rubles for the entire term of the loan.

Benefit #3: Removal of encumbrance from the property

This is possible when substituting a mortgage loan. Now the rates offered by banks already make it possible to do this, if not with profit, then at least with zero losses. The meaning of such refinancing is that the apartment is transferred to the full disposal of the borrower and ceases to be a bank pledge. It can be sold, donated, and so on without any consultation with the bank.

Let's say we took a mortgage on the same apartment worth 3 million rubles. with a down payment of 20% for 10 years at 13.5%, but they paid 5 years, and for the remaining period they were refinanced with a consumer loan at 12.9% per annum (the real rate of Sberbank, which is difficult, but still possible to obtain).

In total, we see that the cost of both loans, taking into account insurance and other incidental costs, will be approximately the same. However, your apartment will be pledged for only 5 years instead of 10.

Benefit #4: Change loan currency

An extremely relevant opportunity for borrowers who took out a mortgage in dollars and paid for it after the rate jump at the end of 2014. Another thing is that not every bank is ready to change the loan currency. Such services are now provided, for example, by Gazprombank.

Benefit #5: Improved credit serviceability

If Sberbank, VTB24 and several other large credit organizations have reliable and more or less convenient Internet banks, then the borrowers of many other lenders have to pay through branches, ATMs and terminals.

Mortgage refinancing can be a good opportunity to ease the burden of traveling around the city to the one and only operating ATM with a bill acceptor. It is also convenient to transfer the mortgage to the bank where you receive your salary.

Cons of refinancing a mortgage

• Unprofitability of refinancing in the second half of the loan term with annuity payments. In this case, you pay most of the interest in the first years, and refinancing only makes sense if you want to get additional service convenience.
• High additional costs. When refinancing a mortgage, you will have to submit the entire package of documents for real estate to the bank again - including a new opinion of the appraiser. You will also have to insure the collateral again.
• The need to go through all the stages of lending again. If your income has decreased over the years of mortgage payments or your property situation has changed for the worse, refinancing may not be approved. However, a bank may issue a refusal or unsuitable conditions without good reasons - the procedure is not transparent and is carried out according to the internal standards of a credit institution.

Mortgage reviews

Appealed to VTB24 for refinancing a mortgage loan in the amount of 1.6 million rubles. By phone, and then in the office, they confirmed that I fit in all respects, so to speak, with a margin. I have a high salary, a large stable company, we have a salary project just in VTB24. the manager promised refinancing at 9.7% per annum.

Waited a week. A girl calls and says in a cheerful voice: "You have been approved for a loan at 10% per annum in the amount of 1 million rubles." What? What million? He asked why such a decision. The girl promised to clarify - and ... that's it. Nobody else called. I asked a question on Banki.ru. The bank's technical support replied that these are the conditions, if you want - take it, if you don't want - go to another place.

Who is eligible for mortgage refinancing?

• holders of loans with an interest rate of at least 1% higher than that offered by the “new” bank; for annuity payments - in the first half of the payment period;
• borrowers who find themselves in a difficult life situation;
• holders of a foreign currency mortgage taken before 2015;
• customers of small banks with an underdeveloped system of branches, ATMs or inconvenient Internet banking.

When is it not profitable to refinance a mortgage?

It makes little sense to get into refinancing if you took out a home loan a few months ago under market average conditions: rates in most banks have not dropped enough since then for refinancing to have any serious effect.

Keep in mind that you will have to re-order the valuation of the property, extracts from the registers, pay for insurance and incur other expenses.

What mortgages can be refinanced

The loan you are going to refinance must meet the following requirements:

• The loan must be repaid on time for at least the last 12 months (in fact, throughout the entire credit history, since the presence of at least one delay in payment, even many years ago, significantly reduces your chances of being approved for refinancing). There must also be no current arrears.
• As a rule, refinancing a mortgage loan is impossible before six months of its validity. Some banks have a limit on the amount of refinancing - the client must pay on the initial loan from 20% to 50% of the value of the object.
• The same applies to the expiration of the mortgage - you cannot refinance the loan if there are less than three months left before its expiration.
• Credit does not have to be earlier.

Which bank is more profitable to refinance a mortgage

Here are offers from 12 leading Russian banks providing mortgage refinancing services. They are aimed at various borrowers, and if you wish, you can easily find "your" bank.

Mortgage refinancing: step by step instructions

1 We contact the bank offering refinancing for advice on the terms.

2 We collect a package of documents, which includes:

• Questionnaire-application in the form of a bank (you can either directly from the manager).
• Passports (most often the Russian Federation, Sberbank allows passports of other states) of the borrower and co-borrowers, if any. Please note: The borrower's spouse is the default co-borrower, regardless of income or employment.
• Income verification. These can be certificates, 3-personal income tax, a certificate in the form of a bank, an extract from a personal account, certificates of additional income part-time, etc.
• Confirmation of employment (not relevant for payroll clients of any bank). Usually this is a copy of a work book or a civil law contract.
• and (VTB24 requires it without fail, Alfa-Bank - as a document of choice, and all other credit organizations enter the number of the insurance pension certificate in the questionnaires, if any).
• Documents for a valid mortgage (loan agreement, certificate of the balance of the debt, some banks require a certificate of the quality of the loan repayment - a monthly payment schedule and an extract on the movement of funds in the mortgage account).

3 If the bank is satisfied with the submitted documents, then a positive decision is made within 2-5 days. The term can be extended both for objective (additional study of documents and credit history) and for subjective reasons (the manager, having accepted a package of your papers, went on vacation / to / quit without transferring the case to anyone).

Refinancing approval is valid for 90-120 days - during this period you must settle relations with the bank in which you have the original mortgage.

4 We obtain permission from the original bank to transfer the collateral or a denial of such permission. We clarify the procedure for early repayment (do I need to write an application).

5 We collect a package of documents for a mortgage property. It includes:

• extract from USRN
• cadastral passport
• extract from the house book
• certificate of no outstanding utility bills

We transfer a package of documents to the bank, which will refinance the loan.

6 Signing of the loan agreement. Issuance of a loan: the "new" bank transfers a non-cash payment to the account of the former one. The refinanced loan is repaid (do not forget to take a certificate of no claims against you from the original bank - it will be issued free of charge in 28 days, for a fee - within three days, the cost is 500-1000 rubles, depending on the bank; this document must be submitted to the "new »bank).

7 Change of pledgee. In different banks, this procedure is carried out differently. Somewhere, a credit organization takes over the work with the original mortgagee, and Raiffeisenbank, for example, requires the borrower to pick up and bring the mortgage himself.

One way or another, the process lasts from 1 to 4 months, during which your new loan is considered unsecured, and it has an increased rate of 1-3%. It is impossible to avoid these expenses, take them into account initially, calculating the benefits of refinancing.

8 We insure the collateral against the risks of loss. These are also mandatory expenses. In some cases, it is possible to maintain insurance when transferring a loan from one bank to another. However, more often than not, insurance companies are in one way or another with banks and refuse to continue insurance when changing the pledgee.

9 We start paying on a new loan.

• No restrictions on early loan repayment
• The possibility of obtaining a tax deduction for the purchase of an apartment in a mortgage
• Preliminary decision in 2 hours
• Opportunity to purchase finished and under construction housing
• The possibility of buying apartments with various redevelopments
• A loan for any purpose secured by existing housing
• No commission for issuing a loan
• Individual approach to each borrower
• Loan repayments in the same amount, which allows you to plan a family budget
• Possibility of transactions between relatives
• The possibility of participation in the transaction of minors
• Possibility of obtaining several mortgage loans
• The possibility of using maternity capital
• The bank is a partner of leading companies in the field of real estate, insurance and valuation services
• Verification of income in various ways, as well as lending without proof of income
• Your mortgage transaction will be as comfortable and fast as possible

Basic requirements for the borrower

• The borrower/co-borrower/guarantor of a mortgage loan may be an adult legally capable individual.
• The minimum age of the borrower is 21 years.
• The maximum age is not more than 65 years at the end of the loan term.
• A citizen of the Russian Federation, as well as a foreign citizen who is a tax resident of the Russian Federation, can act as a borrower/co-borrower/guarantor for a mortgage loan (the requirements depend on the chosen mortgage product.
• The borrower must have a permanent (stable) source of income.
• The borrower must have the amount to pay the down payment for the purchased property.

Real estate requirements

• The object of real estate is a residential building (apartment).
• The real estate must be located on the territory of Moscow and the Moscow region, St. Petersburg and the Leningrad region, Omsk and the Omsk region, Novosibirsk and the Novosibirsk region, Tyumen and the Tyumen region, Yekaterinburg and the Sverdlovsk region.
• The property is not in a state of disrepair.
• The premises are not registered for major repairs.
• Ownership of the seller must be registered.
• The premises should not be under arrest, encumbrance, or other types of restrictions.
• If the owner of the premises is a minor, incapacitated or partially capable, permission from the guardianship and guardianship authorities is required to sell such premises.
• For a number of products, lending to premises with unauthorized redevelopment is allowed - check with the Bank's loan specialists for a list of products and types of such redevelopment.

The list of requirements, depending on the specific product chosen, may be wider, check with loan officers for details.

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