Is mortgage possible without the initial contribution possible?

Some citizens have insufficient accumulations for the first contribution of the mortgage loan, then they are asked if there is an opportunity to arrange a mortgage without the initial contribution. In our article, we will consider this question more details and learn what can act as an initial contribution of the mortgage.

The initial contribution of the mortgage is a certain amount of money that you must pay when buying housing on credit. This requirement is mandatory, and it is almost impossible to find a bank where you would approved a mortgage without a first installment. The amount of such a fee, at a minimum, is one tenth of the cost of housing. But, each bank establishes the size of the initial contribution individually. For example, if your apartment costs 3 million rubles, and the bank asks for the first contribution of 15% of the cost, then you need to pay 450,000 rubles, and the remaining amount in the amount of 2,550,000 bank will issue a loan.

To begin with, imagine that at some point you stop paying a mortgage loan, and then the bank in court implements your real estate to compensate for the loss of funds. To quickly sell your real estate, the Bank needs to reduce the cost of housing, thereby risking to incur losses. Therefore, the initial contribution is a kind of discount in the real estate market, which under adverse conditions can exclude financial losses.

Secondly, the initial contribution is a guarantee of your solvency. Any bank wants to see in its client a bona fide borrower, which will fulfill its credit obligations on the mortgage agreement in time in full.

The most difficult, but reliable way to make an initial contribution of mortgage is the accumulation of funds. It can take you a large amount of time, but will be the most correct solution in this matter. Just postpone a certain percentage of wages, right away how to get it on your hands. Percentage invent for yourself, based on the financial situation. If you are married, agree with my spouse / oh to postpone a little from the salary together. Also, some banks offer the function of the virtual piggy bank, where the percentage of the incoming amount is automatically written off.

If you are confident in your financial opportunities, you can ask the amount on the initial contribution to the debt in relatives or acquaintances. It will be a good alternative to accumulation, and will not require you a lot of waiting time.

The most risky way to obtain an initial mortgage contribution can be safely called a consumer loan. The presence of two credit products imposes a huge financial burden on you. Therefore, this option is better to consider in the latter order.

If you have children, then you have the opportunity to take advantage of the means of maternal capital on the initial contribution of the mortgage. Banks willingly go to such transactions. From 2020, even if there is a single child, this state support program is available.

Thus, on the basis of the foregoing, it can be concluded