«A mortgage for 1 ruble»: what is tranche mortgage and why is it worth considering
Today we will talk about such an interesting financial instrument as a tranche mortgage. If you are thinking about buying an apartment in a new building or are just interested in mortgage lending opportunities, then this article is for you.
Tranche mortgage – let’s figure out what are the features of this tool and to whom it can be especially useful.
Tranche mortgage is a loan in which the bank transfers money to the developer in installments, and interest for the client is accrued only on the issued part of the loan. As a result, in the first months of the mortgage payments are significantly reduced, which, of course, pleases future tenants.
Some tranche mortgage programs even provide for a symbolic first tranche - only 100 rubles! Thus, the borrower's payments before the completion of the construction of the house are limited to one ruble per month. Doesn't this sound like a financial fairy tale?
As a rule, the bank transfers two or three tranches to the developer. For example, the first one for a symbolic amount of 100 ₽ — when signing a partnership agreement. The payment will be 1 ₽ per month; six months or a year later, the bank transfers the second tranche to the developer - half of the entire loan, and after the house is put into operation — the third for the remaining loan amount. This is exactly the case when each next tranche is like a new stage in the game "Who wants to be a millionaire".
What are the benefits? Firstly, this is a great option for those who rent an apartment and are waiting for the house to be commissioned. In fact, at first you will pay a symbolic mortgage payment, and not a full payment at the same time as renting an apartment. It's like two in one - cheaper housing and the opportunity to save up for new furniture.
Secondly, a tranche mortgage is suitable for those who live in their apartment and are going to sell it after the completion of new housing. As soon as the payment increases, you can repay the mortgage ahead of schedule by selling the previous apartment.
Also, a tranche mortgage can be useful for those who want to save money for the renovation of a new apartment. After all, thanks to low mortgage payments, you can use the saved money to improve your home. It's like investing in your own comfort.
If you plan to rent an apartment after the house was commissioned, then a tranche mortgage is suitable for you. After all, before receiving the keys, you will not have to spend money on a full mortgage payment due to the low first tranche. After the house was commissioned, it will be possible to use the money earned from the lease to repay payments. This is exactly the case when your mortgage can become almost free.
And finally, a tranche mortgage may be of interest to those who plan to sell a new apartment after its price rises after the house is put into operation. After all, the return on investment in a new building can grow significantly if you spend only a small amount on mortgage payments. It's like a strategy game on the stock exchange - the right move can bring big dividends.
Thus, a tranche mortgage can be an excellent choice for various situations. Check out the terms of the program from banks and developers to choose the best option for yourself. We hope that our article was useful for you!
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