Russia

Mortgage loans - is a loan for the purchase of housing.

Necessary to distinguish between: mortgage lending and mortgage.

Mortgages - this is when a borrower takes out a bank loan for the construction, repair, purchase of new housing on bail already existing real estate.

When getting a mortgage to buy property, the very property as collateral to the bank as a guarantee of repayment. Like any other type of loan, a mortgage loan is granted on the terms of payment, maturity and repayment. Its features are: the use of targeted, well-defined deposit, providing long lines (10-30 years).

 Compared to the unsecured loans, the mortgage lending lowest possible interest rate. Mortgage application significantly increases the number of borrowers - in fact, almost always, only the presence of collateral makes the credit transaction real. The real possibility of losing the collateral in case of default of its credit obligations of the borrower discipline and stimulates the performance and management of credit. In addition, it also gives confidence to the creditor that the loan funds will be returned. Study of the economics of the leading Western countries showed that mortgage lending is the most preferred mode of providing a large loan for long term. Therefore, it is mortgage lending is one of the promising areas of the credit market and stimulate investment banking. After all, mortgage lending to cover all sectors of the economy: consumer, industrial, agricultural society. Consequently, the development of mortgage lending will positively affect the development of almost all sectors of the economy, which stimulates the growth of the national economy as a whole.

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