What will a Sberbank client spend on when applying for a mortgage?

What are the costs of a mortgage?

Before making a final decision on the advisability of taking out a mortgage loan and submitting a loan application, each potential borrower must be extremely careful in summing up all the upcoming expenses that make up the final cost of the mortgage.

A standard mortgage loan involves basic (mandatory) and additional costs. The first include:

• making a down payment to the seller's account;
• payment of interest for the use of borrowed funds from the lender;
• registration of insurance (payment of insurance premium);
• ordering a report on the assessment of the purchased property;
• payment of the state fee for registering a mortgage transaction;
• expenses for settlements between the parties (via a safe deposit box or letter of credit).

In this case, the client may additionally be charged the following fees:

• application processing fee;
• notary expenses (for registration and certification of consents, powers of attorney, contracts, etc.);
• banking costs (for example, a one-time fee for lowering the lending rate on a mortgage);
• expenses for a realtor and lawyer.

IMPORTANT! The tariff and credit policy of each bank may or may not provide for the above expenses for borrowers.

Mandatory expenses

Let's look at the nuances and approximate cost of obtaining a mortgage, which are mandatory.

Insurance

In accordance with Russian legislation, only insurance of collateral property against destruction and loss is mandatory. Registration of personal insurance occurs at the initiative of the client himself.

As for the priority of the procedure, at the stage of receiving official approval of the mortgage application, the borrower must enter into an insurance agreement and pay the insurance premium for the selected type of policy.

Typically, the lending bank provides the borrower with a list of accredited insurance companies that he trusts and does not find fault with whose insurance policies. The cost of insurance varies depending on the insurer and the range of risks included. Property insurance in monetary terms on average in the market ranges from 0.1 to 0.5% of the market price of the purchased living space. Personal insurance will be a little more expensive - from 0.3 to 0.6%.

Also, the client can additionally insure the title (loss of property rights). The costs of such a policy will be approximately from 0.2 to 0.5% of the price of the property.

You can find out the cost of mortgage insurance using this calculator:

Important point! Using the calculator on our website, you can issue an insurance policy online with a discount to the regular price of 10-15%, so we recommend that you make a calculation before applying for a policy at an insurance company or bank.

Grade

It is also better to have real estate appraised by companies recommended by the lender. The cost directly depends on the subject of the Russian Federation and the type of housing being assessed. It is logical that the rating is 1-k. apartments will cost significantly less than the valuation of a country house. The same applies to regions - an assessment report in Moscow will cost more than in any other Russian locality. Typically, the cost of an appraisal in Moscow and St. Petersburg ranges from 5-8,000 rubles, in the regions from 2 to 5,000.

The final report on the assessment of collateral property is drawn up in the form of a structured folder listing the assessment methods, attaching photographs and certification by an appraiser.

Interesting fact! In some cases, starting from 2021, an appraisal for a mortgage at Sberbank can no longer be done thanks to the capabilities of the DomClick website. You can find out more details from our post.

An example of an appraiser's report can be downloaded here.

Issuance and transfer of funds

Bank costs for obtaining a mortgage loan consist of:

• expenses for transferring funds from the buyer to the seller;
• commission costs for money transfers;
• additional options (for example, a one-time fee for lowering the interest rate for the entire loan term or for a certain period of time - usually at least 1% of the loan amount).

Transfer of money under a mortgage transaction can be carried out by agreement of the parties using a safe deposit box or letter of credit. Both options are paid. Bank prices can vary significantly. The minimum price for a letter of credit is from 1.5 thousand rubles, for a cell – from 2 thousand rubles.

State duty for registering a transaction

The mortgage agreement is registered with the MFC or Registration Chamber, subject to the mandatory payment of state duty. Currently you will have to pay 1 thousand rubles. If it is necessary to make changes, as well as upon termination of the contract, the client will have to add another 200 rubles.

If one plot of land serves as collateral, then the state fee for registration will be 350 ₽.

NOTE! If the assignment of rights under a mortgage is made (replacing one borrower with another), the amount of the fee will increase to 1,600 rubles.

What expenses should you avoid at Sberbank?

When applying for a mortgage at Sberbank, you will have to pay:

1. Insurance cost. It is impossible to do without concluding an insurance agreement for the loaned object in any bank, since this condition is laid down at the legislative level. Taking out personal insurance is not mandatory, however, within the framework of certain programs operating at Sberbank, a loan cannot be issued without a life and health insurance agreement. For example, for participants in the NIS program receiving loans under a military mortgage, taking out personal insurance is a mandatory requirement. And here you need to understand that in response to refusal to comply with mandatory requirements, a sanction will follow in the form of an increase in the interest rate.
   In addition, it is important to mention the possibility of choosing an insurer. Typically, a credit institution offers to choose an insurance company from the list of its partners, however, the borrower is not prohibited from finding an insurer on his own, for example, one that will offer a lower cost of insurance. However, you should not enter into an agreement without the approval of the insurance company by the bank.
2. Appraisal company services. To increase your chances of receiving the required loan amount, it is advisable to order a report from an appraiser accredited by Sberbank. The prices in this case, depending on the chosen contractor, will not differ significantly and this is due to the fact that the final cost is largely influenced by factors such as the type of real estate being appraised and the location of the appraisal company. It is reasonable to assume that a report on the market value of a one-room apartment will cost less than a document drawn up in relation to a country house. In addition, the cost of services of an appraiser working in the capital differs significantly from the cost of similar services in the regions.
3. Checking the loaned property if the borrower purchases housing in a new building. At Sberbank, expert analysis of such housing is mandatory and is carried out on a paid basis. When buying an apartment on the secondary market, the borrower can take on the costs of checking the property, however, in this case, he is forced to incur expenses (for example, when requesting extracts and certificates).
4. Costs associated with issuing a loan. In this case, it will be necessary to repay the down payment amount and this is perhaps the most significant basic cost. You can save only when the lender offers a reduced down payment percentage as part of certain programs or in connection with a promotion. However, a value of less than 10% cannot be counted on.
5. Costs associated with registration. This type of cost directly depends on the amount of duty determined by the state, so the opportunity to save is completely excluded.
6. Tariff for using a letter of credit or safe deposit box for settlements with the seller. Since a mortgage loan is not issued in cash, the borrower will have to choose a convenient payment method. Moreover, both of them require payment of a fee to the creditor. To this category of expenses you can add a commission fee for transferring funds to the recipient.

Additional expenses

Additional costs may be added to the mandatory costs listed above. Let's take a closer look at them.

Consideration of the application

Most Russian banks have already moved away from the practice of charging fees for processing loan applications. In the mid-2000s, it was paid by every client who applied to the bank for a mortgage.

In modern conditions, there remains a small percentage of credit institutions in which borrowers still bear such costs (for example, DeltaCredit and some regional banks).

Notary costs

Notary expenses include:

• payment for registration of the spouse’s consent to conclude a loan agreement and a collateral agreement (in the regions, prices start at 1000 ₽);
• certification of the marriage contract (from 10 thousand rubles);
• drawing up and certification of any power of attorney in relation to a mortgage transaction (from 1 thousand rubles).

Each case is individual, and often only notarized consent to the transaction from the spouse is required.

Banking

Some banks offer mortgage borrowers an additional product to change the established interest rate. The idea is to make a one-time payment, which averages 1-4% of the loan amount, after which the rate will be reduced.

It is important to understand that not a single bank will agree to significantly reduce its profits, therefore, after paying such a commission, the percentage will decrease by 0.5-1.5%. A striking example is the “Set your own rate” option at DeltaCredit Bank, where the rate can be reduced by a maximum of 1.5% if you deposit 4% of the loan debt at a time.

Costs for a lawyer and realtor

Borrowers who do not have the opportunity to independently handle the mortgage registration procedure from start to finish, and in some cases simply do not have sufficient competence, hire specialists for these purposes - a lawyer and/or a realtor - for an additional fee.

The costs include paying for the drafting of a purchase and sale agreement, checking the legal purity of the transaction being concluded, searching for a property and obtaining other advice. The total amount of such costs for the client depends on the amount of the contract, its type and a number of other factors. The starting point is from 1% of the price of real estate.

How to reduce the amount of financial expenses?

A housing loan refers to long-term loans, the cost of which can reach several million rubles. A borrower who wants to reduce financial costs when obtaining a mortgage loan must adhere to the following rules:

1. Carefully study all mortgage programs offered by the bank. You should also carefully read the loan agreement and additional agreements to it. You should not certify documents with unclear terms and vague wording. Before signing the papers, it is necessary to clarify all unclear points. Work with documents can be entrusted to a professional lawyer;
2. Try to make a large down payment. If you have the right to receive maternity capital, subsidies and other government payments, then you need to use these funds to pay off the first payment;
3. Close your mortgage early. In this case, you will shorten the contract term and significantly reduce the total cost of the loan;
4. Avoid purchasing a life and health insurance policy every year. Insurance premiums greatly increase the cost of your mortgage;
5. Do not use the services of realtors, lawyers or insurance brokers. If you own computer equipment, you can easily find any law and by-laws. The knowledge gained will allow you to act confidently in the real estate market;
6. Use the electronic registration service when completing transactions. This will reduce financial costs and avoid personal visits to the MFC;
7. Try to make annuity payments on time. A delay in transferring the contribution may result in the accrual of a penalty.

Financial savings can be saved if the borrower actively uses the domclick.ru website. The Domklik service, developed by bank specialists, is designed to solve the following problems:

• Remote application for a mortgage;
• Search for real estate on the primary market;
• Valuation of residential and commercial real estate;
• Legal examination of documents;
• Checking the business reputation of counterparties.

The Domklik digital service brings together the bank’s partners, employees and clients. A convenient personal account allows the user to quickly contact a personal manager and receive the necessary advice. The site also makes it possible to track the approval process of a loan application in real time.

Additional costs for a mortgage at Sberbank

Sberbank, as one of the most popular mortgage lenders, offers its clients a number of additional services that are designed to save a lot of time and effort for the parties to the transaction. Let’s take a closer look at what optional expenses exist when applying for a mortgage at Sberbank.

Secure payment service

The essence of the service is that the buyer transfers the amount under the contract to the nominal account of the Central Tax Service (a specially designated structure of Sberbank), which only in case of successful registration in Rosreestr will be transferred to the seller’s account. By using settlements through such a service, the rights of each party are taken into account as much as possible, with continuous monitoring by Sberbank.

After concluding an agreement with the Central Tax Service, the buyer (borrower) will have to pay 2 thousand rubles.

Electronic transaction registration

Remote registration of a mortgage agreement allows you to avoid unnecessary visits to the Sberbank branch and the Registration Chamber. For a set fee (from 5,550 to 10 thousand rubles, depending on the type of housing and region), the transaction will be processed remotely (using an electronic digital signature) through a personal manager from Sberbank. This item of additional costs when applying for a mortgage at Sberbank has recently become increasingly popular.

Utility payments in a new building

When buying an apartment in a new building, you will most likely be asked to pay utilities for several months in advance. Such an advance payment allows the management company to establish an uninterrupted supply of necessary resources and reliable service. The amount may vary depending on the company and region, but most often it is about 20-30 thousand rubles.

To plan for these expenses, study the contract with the developer and clarify all issues related to the management company at the stage of signing it.

Additional costs for a mortgage at VTB

The client may incur the following additional costs when applying for a mortgage at VTB Bank:

1. Fee for transferring money to the seller's account (if the client purchases a primary home and the money will be transferred to the developer).
2. Costs for a letter of credit or cell rental.
3. Personal and title insurance (the bank, of course, recommends VTB Insurance).
4. Notary services (if necessary).

That is, in comparison with Sberbank, additional expenses at VTB are standard and do not imply the use of additional products and services.

The total amount of all mortgage costs

For secondary housing

If we take a standard transaction, for example, for the acquisition of a secondary 2-k. apartments worth 3 million rubles with a 20% down payment in a Russian city with a million population, then the final costs for borrowers will include:

• estimate – approximately 4,000₽;
• insurance (property only) – 3,600₽;
• state duty – 1,000₽;
• rent of a safe deposit box for payments – 2,000 RUR.

The total is 10,600₽. These are mandatory expenses that cannot be avoided. This minimum should definitely be laid down at the planning stage of applying for a mortgage loan.