The concept of “mortgages” has not appeared in Russian long ago. However, few know that since 1917 there have been services that provide residents with cash loans to buy housing. It is worthwhile to say that these operations have been very popular these days because such transactions have been strictly regulated. However, when housing began to expand, this practice was lost and renewed only recently.
Today, unfortunately, such transactions are associated with citizens with the most unpleasant things. This is not surprising because at present the problems with mortgages in Russia and the prospects for the development of services of this type are quite acute. What happens to loans. Why are they now less popular and causing so much criticism?
Own real estate citizens and subsidies
Primarily problems with mortgage loansGet started with today that only 10% of citizens have their own living space, totaling more than 18 m² per person. As a result, only 1% of people can buy property for money.
Citizens ultimately do not see another way out to get a mortgage, even under unfavorable conditions. Moreover, on the basis of the economic situation, most debtors should receive State aid. However, this is not always possible because of the large population of the country that wants to receive government subsidies. Today, more than 20 million Russian citizens want a mortgage. Based on these crazy figures, it is clear that developers must constantly build houses, which is also almost impossible to do in such a short time.
The main problem of mortgage lending in Russia lies in the fact that with this situation the state will be able to provide to all those who need it housing on social programs for only 26 years.
It is worth considering this legislation the fundamentals of mortgage lending in the country are still quite damp. This gives rise to other problems with housing lending and subsidies.
Does it seem that there may be an improvement in the economic situation in the country and problems with the development of mortgage loans? Yes, in fact, about 15 years ago, the situation in the state was very complicated and the level of inflation in the literal sense of the word was out of scale. Today, the situation looks much more positive, but still far from complete stability. This applies in particular to the credit system.
Due to the unstable situation, citizens are elementary. They do not want to have money in banks. So, state credit organizations simply have nowhere to take the money to lend to the population. This also leads to higher annual rates and other disadvantageous lending conditions.
In the end, a mortgage does not become a mass product, but a service that not everyone can afford.
General economic situation
Everyone knows what a mortgage is. A loan that pays off after quite a long time. Such a loan is normally granted for a period of 20-30 years. Problems with the provision of mortgages in the Russian Federation.
The fact is that banks that provide similar long-term loans must have at least some payment guarantee in order to avoid losing their economic stability. The borrowers themselves want to be sure that they will be able to pay for housing for which they have already made a rather impressive down payment. But how can you get some guarantees if population income changes regularly? This leads to financial jumps and falls, which in turn are closely related to the overall economic situation worldwide.
As a result, credit institutions are forced to weigh up the risks and impose fines on the borrower if the loan is not paid. That is why not everyone can get a mortgage today because, in case of delay or inability to repay the loan, the person must provide additional resources that the bank can receive due to the outstanding debt.
Low solvency of citizens
Speaking of the problems and prospects for the development of mortgage loans, you have to understand that this sector depends directly on the people of the country and, more precisely, on their earnings. Today, more than 60% of the population needs to improve housing conditions. It seems that a mortgage can be a real salvation for these people. Unfortunately, not everyone can provide the bank with the necessary documents confirming the amount of earnings.
Under the terms of a mortgage loan, a loan is granted to a person if the amount of the monthly payment does not exceed 40% of the official income of the citizen and his relatives. Therefore, if the borrower pays about 30 thousand dollars each month, he must earn at least 75 thousand dollars.
Unfortunately, the average wage today is not reaching this level. This leads to further housing mortgage problems. In order to obtain a sought-after loan, many citizens state higher salaries in their certificates and then default on their credit commitments.