Additional payments when you make a mortgage
In addition to the mandatory monthly installments, the mortgage is accompanied by other payments. Overpayment at registration. In the future, every year the borrower will again overpay for additional services and actions directly related to housing received in the mortgage.
Costs: The contract with the insurer is for the entire period of payment of the mortgage, while housing is pledged to the bank. The fee is charged annually at a rate of certain percentage of the mortgage debt. When concluding a mortgage agreement, the borrower must pay about 1% for insurance for the first year of insurance services.
Mortgage insurance is a legally confirmed obligation, since the bank, after issuing a large amount, requires collateral in case of non-repayment of the mortgage debt, damage or complete loss of property. However, only property insurance is mandatory, while most banks practice comprehensive property, health, title insurance.
The terms of the mortgage loan agreement often contain the obligation of comprehensive insurance, and in case of refusal of it, the bank raises interest (for example, in Alfa Bank overpayment for refusal of comprehensive insurance increases by 3 points). The borrower with the mortgage is forced to agree, because it is more profitable to pay insurance coverage annually than to pay the bank.
Sometimes a bank obliges you to connect only 2 out of 3 insurance services, or it raises a percentage equivalent to the cost of insurance. It is possible to refuse title protection, starting from the 4th year of the mortgage, because disputing the transaction by a third party is allowed within the limitation period, i.e. for 3 years. It is necessary to carefully read the clauses of the mortgage agreement in different banks, choosing a more profitable option, because the agreement is for 10-15 years. It is easier at the initial stage to choose a lender with acceptable conditions than to subsequently try to reduce insurance costs.
Some insurers go even further in the offers of related services. For example, when insuring finishes. Before issuing additional services, it is worth wondering who will be the beneficiary. Insurance with reference to the mortgage agreement means that the bank will receive a refund. To insure yourself with the possibility of receiving compensation in person, the contract is entered into separately from mortgage insurance.
Without an assessment it is impossible to issue a contract for the issuance of a mortgage loan. This is confirmed by the provisions of the law on mortgage (clause 1 of article 9), which obliges to indicate in the agreement with the lender the cost of housing. Appraisal services allow you to correctly determine for the bank the correct value of the acquired object. Obtaining an expert opinion is the responsibility of the buyer and included in general expenses during preparation.
The rates of experts may vary, but the bank will require that the apartment be evaluated by an organization from a list of accredited companies. Using the services of other appraisers, the borrower will face the opposition of the bank, or the process of preparing for the transaction will be delayed for a couple of weeks. The refusal to accept the opinion of third-party experts is caused by a lack of confidence in the company’s results or inconsistency with the report parameters. Applying to an accredited appraiser does not guarantee that you will not have to redo the assessment and spend money again, since the document is drawn up before obtaining the approval of the mortgage. If the bank rejects the application for the purchase of the selected object, it will be necessary to search for a more suitable object for acquisition, which means again to spend money on the appraiser.
You can save the results of the assessment, if the already prepared report will be accepted in other banks. Realtors are advised to select companies for evaluation that are accredited in several banks, so that if one bank fails, try to reconcile a mortgage with another.
Fees at registration
Costs: State duty receipts are paid twice – when you make a right to mortgage housing with the burden of a mortgage, and after – when you remove the encumbrance. For the secondary housing fee is 2 thousand rubles, for new buildings – 350 rubles. For expedited receipt of the mortgage charge 1.5 thousand rubles.
The costs of registration services cannot be avoided and they are also included in the amount required at the initial stage of registration of the mortgage. It is not possible to postpone or refuse payment, as required by law.
To reduce costs, use a digital signature in the electronic filing of documents. If there is no EDS, electronic registration is more expensive than the usual visit to the registering authority. The promise of an accelerated process of renewal through remote circulation is not always fulfilled, since public services often malfunction, there are some system imperfections that have an impact on the timing.
At the end of the mortgage payments will again apply to Rosreestr for the removal of encumbrances from property rights. When issuing a mortgage also pay a fee.
Notarization is required when registering a mortgage, if:
- The property is issued by the spouses, before the conclusion of the transaction, the bank demanded the execution of a marriage contract for the property of interest or the certification of the deed.
- From the second spouse required a notarized consent to purchase a mortgage.
- A lawyer is involved in drawing up the transaction and drafting the documents. To perform a series of actions, a lawyer requires a power of attorney from the buyer, certified by a notary.
- Mortgage use of MSC (maternity capital). Before agreeing on a tranche from the budget, the FIU will ask you to issue a notarial obligation to allocate all family members a share after the final repayment of the debt and the removal of encumbrances from real estate.
Cell rental and other banking services
Costs: To arrange settlements with the seller, they use a cell rented in a bank, a letter of credit or a nominal account. Everyone used to have their own rates for a bank, their own rates for services. For example, it is necessary to postpone an additional 3 thousand rubles per cell.
A bank box is rarely used; banks prefer to use a letter of credit. If the seller opens an account with another bank and requires that funds be transferred to it, an interbank transfer will also have to be paid according to the tariffs set by the lender.