Why did mortgage become so affordable?

If in the USSR housing people were given free, then in the present time there is no such social support, more precisely, it is, but for a very narrow circle of persons.

Instead of gratuitous housing, people offer buying housing on a loan at reduced rates. If you look 10 years ago, the mortgage rate ranged from 14% and higher. In 2014-2016, the minimum mortgage rate was 11.9%. Now we can observe the decline in the rate up to 7-8% and this is the usual rate today.

10 years ago, in order to get a mortgage loan, the borrower had to have the sum of the initial contribution from 30 to 40% of the cost of housing. For today, if the family falls under the state program, the initial contribution is not taken at all. If you buy housing without state support, the initial contribution is only 10%.

In modern times, the new building can be purchased at 6.5% on a preferential program that finances the state. Even without supporting the state, the rates are not particularly different and you can get a mortgage loan under 7-8% if we talk about new buildings, the rate of the home-based housing market is slightly higher and is about 9%. If you compare this moment from 2012-2016, then at that time the bet on new buildings were from 13.5%, and on secondary housing from 15.9% per annum.

Previously, it was impossible to repay the mortgage loan ahead of schedule, there was a number of rules that needed to be observed — the first three months from the date of receipt of the loan could not be used early repayment, after three months it was possible to carry out partial early repayment for a certain amount that is at least 15 thousand rubles. To repay the mortgage loan was not immediately possible.

To date, the mortgage loan can be closed at least the next day and the bank has no right to impede you!

If 10 years ago, Russian economists have just begun to understand what it is and how to use it, today it is a very popular type of credit product. If you have received a mortgage loan in 2007-2012, you had to pay it, despite the decline in loan rates in other banks, now at any convenient case you can go to another bank under a lower percentage or get more favorable conditions — thereby Saving on payments.

If earlier, it was very serious about the inspection and tested all the information about the potential borrower and its family, which in turn increased the periods of consideration of the application for a period of from 1 to 4 months, now there is enough pairs of weeks to check all data and make a positive decision.

Previously, you could get a mortgage loan in currency, but after well-known events of 2014

Thus, we can observe the availability of mortgage loans in our country, which allows