Today’s topic: An Initial instalment of a mortgage
Let's talk about such an important aspect when buying a home as an initial instalment of a mortgage. If you are just thinking about purchasing real estate and considering mortgage lending options, then this information will be very useful to you.
What is the initial payment?
This is the amount that you contribute to the seller from your own funds as payment for part of the value of the property. The remaining amount under the purchase agreement in the case of a mortgage is paid for by the bank. Thus, the initial payment is a kind of guarantee of your seriousness and financial solvency in front of the bank and the seller.
What can be used as an initial instalment?
You can make your own savings, as well as use the funds of maternity capital or various housing certificates. This is a great opportunity to use the available resources to purchase your own home.
What should you remember about the down payment on a mortgage?
Firstly, this is a prerequisite for obtaining a mortgage loan. For the purchase of housing on the secondary market, the initial payment is from 10% of the cost of housing, and for new buildings – from 20, 1%. It is necessary to be prepared for the fact that in the future 2024 this percentage may be increased to 30%. Thus, if now you need to invest 1 million of your funds to buy an apartment worth 5 million rubles, then soon you may have to look for 1.5 million already.
In addition, it is important to know that various housing certificates, subsidies and maternity capital are allowed as an initial instalment. This opens up additional opportunities for those who are looking for their own housing.
It is also worth noting that the higher the down payment, the more likely the mortgage is to be approved. A larger initial instalment may also affect the amount of the monthly loan payment and/or its term.
The Initial instalment of a mortgage is a serious step towards purchasing a home. Be prepared for this stage, plan your finances in advance and do not forget about using various preferential programs to support mortgage lending. We hope this information was useful to you. Good luck in implementing your housing plans!
If you have any questions about real estate or you need professional advice, you can contact the «Nevsky Prostor» real estate agency. We provide free consultations by phone or in person at the office. Our team of experts is always ready to help you figure out complex issues and offer ready-made solutions.
Contact us:
• Tel: +7 (812) 325-38-38 (from 9-00 to 21-00 on weekdays; from 10-00 to 18-00 on weekends and public days)
• Address: Russia, 199406, Saint Petersburg, Nalichnaya Street, 22
• You can also ask our specialists online
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