Russia

According to realtors, about 20 - 30% of the apartments sold for investment purposes, that is, customers have a place to live. They just put money in real estate. Given the fact that about 7 - 10% of the population can afford to buy an apartment in the mortgage. It turns out that even investors are forced to use credit money. What are the risks borrower mortgage renting an apartment to rent?

                 This - and the early repayment penalty

A person who buys an apartment on credit, in fact it can only live to make cosmetic repairs and prescribe immediate family. At least, that's indicated in most loan agreements. Of course, hardly any of the banks will be checked monthly, what you do at home. After all, these customers had hundreds, if not thousands. However, this possibility is registered in the federal law "On mortgage". The law reads as follows: "The Bank has the right to inspect the documents and actual availability, status and conditions of the property pledged under the mortgage. This right can be used by the bank in the event that the mortgaged property was transferred to the borrower at the time of the possession of third parties. "

     It is not necessary to complicate relations with credit institutions

Thus any action with the apartment (remodeling, renting or selling) the borrower must notify the bank. Otherwise the landlord threatened trouble. If inspectors find that housing is rented, but it is not specified in the contract, the borrower can solder fine (possible amount stated in the contract) or even require him to repay the loan early.

Of course, before such drastic measures comes rarely. Especially if you pay the price in good faith with the bank. But to complicate relations with the credit institution is not necessary. This way you can ruin your credit history - what goes around comes around you in the future. Especially since, as a rule, banks do not object to the borrower rented their homes to rent. After all, it will automatically mean that increase your income, and you will have more opportunities to repay the payments on time.