Is there any difference in mapping mortgage to new building and secondary housing?

When the need to acquire real estate appears, in front of many people there is a choice between new housing and secondary. Most are convinced that the mortgage mapping to the new building is less problematic than on secondary housing.

First you need to understand the difference in the terms of the «new» and «secondary» housing.

New building, or new housing, it is customary to consider that apartment, which has no ownership of anyone else. Before the moment the owner of the apartment does not issue property rights, real estate and will be considered a new building.

By purchasing this type of real estate, you can be sure that the apartment is clean, it does not have debts behind it, do not need to repair, eliminating the errors of previous owners.

From the moment of registration of property rights, housing goes to the status of «secondary». Such an apartment can be used immediately after the mortgage. A good advantage of selecting secondary housing is a large number of offers on the market. As a rule, such an object is already located in an area with a well-developed infrastructure.

The main difference in the design of the mortgage to the primary housing from the mortgage to the purchase of secondary real estate is considered to be directly, the transaction itself. In the case of a mortgage to a new housing, first of all, you need to choose the developer, make sure of its reliability, apply to the bank, where all possible risks will exclude and approve the mortgage. As a rule, developers already have certain banks as partners, therefore the design of the mortgage contract will be easier.

In the case of a secondary, you need only once again write a statement and filed it with documents for registration, after which the ownership itself will be registered, and the mortgage itself.

In the situation with a new building, there should be several aspects that distinguish credit from a transaction with secondary housing. First, the price of the apartments under construction is significantly lower, which makes this option for buying a housing more affordable. Secondly, acquiring a new building must be remembered that while housing will be at the construction stage, the mortgage percentage will be increased. And only after the house is built, and the ownership of this housing will be issued, the percentage of the bank will be reduced. As a rule, the percentage difference is about 1-2% per annum.

In conclusion, I would like to say that the mortgage design in the secondary market will require greater actions from you, such as an independent search for housing, the conclusion of the contract of sale, the choice of a creditor bank, but also new housing also requires care, for example, in choosing a reliable developer. We wish you good luck in acquiring real estate.

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