How much can you save in Moscow thanks to a preferential mortgage?

Before purchasing a home on credit, it is important to calculate the overpayment on the mortgage. Borrowers borrow a large sum from the bank for a long period of time, which means they will have to pay considerable interest. It is necessary to analyze all the terms of the loan in advance so as not to overpay significant amounts to the lender. Plus, there are a number of ways to reduce mortgage overpayments that are already in place. We will tell you in our article what affects the amount of interest, how to calculate and reduce it.

What constitutes an overpayment on a mortgage?

When buying an apartment, it is important to understand what overpayment on the mortgage you will face in order to correctly formulate your budget in the coming years. Its final size is one of the main factors when choosing a bank and lending program. The amount of overpayment on a mortgage depends on many parameters, taking into account which you can save significantly.

What is it formed from:

loan amount;
interest rate;
debt repayment period;
type of payments - differentiated or annuity;
the cost of property and life insurance for the borrower;
other expenses (preparation of an assessment report, commission for transferring money, state duty for registering a transaction, etc.).

All these characteristics form the full cost of the loan, which banks are required to warn about before signing the mortgage agreement.

The client is given a document reflecting all planned loan payments. A separate column will show how much the mortgage overpayment will be in your case. You can see this amount in the payment schedule, but it reflects only interest without additional costs, so the information is incomplete.

The main reason why many are afraid to take out a loan to buy a home is the significant amount of interest that will have to be paid to the bank. Indeed, when issued under standard conditions, it may exceed the issued loan. Why is there a large overpayment on a mortgage? To a greater extent, this depends on the amount taken to purchase housing, and usually it is quite large - 70-80% of the price in the contract. In addition, you will have to repay the debt over a long period, during which the bank will charge interest.

Let's look at it with an example. If a person takes out a housing loan at 12% per annum for 20 years in the amount of 2 million rubles, he will have to pay 3,285,213 rubles only for accrued interest. Taking into account mortgage insurance and other expenses, the amount will be even more impressive.

How much more will you overpay on a 20-year mortgage than if you pay it off in a shorter period? If the borrower repays the debt to the bank in 5 years, he will overpay in interest only 669,334 rubles, in 10 years - 1,443,303 rubles. But you should not think that the payment term is the main factor in the calculation; others are also very important. Reducing the interest rate even by 1 point in our example will reduce the overpayment to 2,954,504 rubles, that is, by 330 thousand rubles.

How to calculate overpayment

Each borrower must calculate the mortgage overpayment before applying for a loan. It will differ with seemingly almost identical loan conditions in different banks. A loan calculator will help you make the correct calculations, but you need to know exactly the initial parameters. This means that you can calculate the overpayment on your mortgage only after the bank’s approval, when you are sure of the interest rate and loan amount.

To calculate your mortgage overpayment online, you can use any service that allows you to freely enter initial parameters. But if you make calculations on the website of the bank of your choice, remember that the data obtained is not always true. The fact is that lenders set a minimum rate in the calculation service in order to attract customers. As a result, the future borrower receives a reduced payment, which, of course, will be higher when signing the contract.

Let's see how to calculate the overpayment on a mortgage using the Sberbank calculator. To do this, it is better to use the credit institution’s own portal – DomClick. Here you can perform all operations related to housing lending - from submitting an application to removing the encumbrance from the mortgage property.

How to calculate the amount of overpayment on a mortgage on the DomClick website:

Go to the main page and select the mortgage section from the menu, then find the loan calculation service.
Follow the link directly to the mortgage calculator, where you can plan your mortgage overpayment online.
Fill out the calculation form. Indicate the purpose of the loan, the cost of housing, the size of the down payment, and the repayment period. If you meet special lending conditions, check the appropriate boxes (you have a Sberbank salary card, you plan to have life insurance, etc.).
To see how much your mortgage overpayment is, open the payment schedule. The specific amount based on the parameters you specified will be indicated here.

The calculation of the amount of overpayment on a mortgage
is only preliminary; when applying for a loan, conditions may differ.

This calculation option is suitable only for future borrowers of Sberbank, because the calculator contains its interest rates and conditions. After the calculations, you will know your future mortgage payment and recommended income. If you wish, you can immediately submit an application for consideration by the bank for the selected program and monitor its status online.

Recommended article: Sale and purchase agreement with a mortgage - important points for the seller and buyer

Example of overpayment calculation

If the bank’s website does not allow you to calculate the exact overpayment or you doubt the data received, use the mortgage calculator on our website. The loan calculator contains a formula for overpayment on a mortgage, which will allow you to quickly and accurately calculate the amount of interest.

How to find out the overpayment on a mortgage in this case:

Indicate the loan amount, repayment period in months, interest rate. You can use the slider or enter numbers from the keyboard.
The service will automatically make the calculation. It will be visible just below the loan parameters you entered. If necessary, you can open a payment schedule in which each monthly payment is divided into principal and interest.

Let's do the calculation in the online mortgage overpayment calculator and see how the amount changes depending on the repayment period. Let's say a client takes out a loan of 1 million rubles for 20 years at 10% per annum. He will have to pay interest to the bank in the amount of 1,316,051 rubles, subject to repayment according to the schedule. The overpayment on the mortgage for 10 years will be 585,808 rubles, for 15 years - 934,289 rubles. Using a loan calculator, you can choose the optimal loan terms and avoid paying the bank extra money.

How to calculate the monthly payment amount

Let's look at a specific example. Let the apartment cost 2 million rubles. You decided to repay the loan to the bank over 8 years. The interest rate on your mortgage will be approximately 13.5% per annum. Now let's do the calculations.

Monthly payment. If we take the annuity repayment scheme (in equal parts throughout the entire loan period), then the contribution amount for each month will be 34,176.32 rubles. We multiply this figure by 96 months (8 years) and the result is 1,280,926.66 rubles. This will be the amount of the overpayment that the bank will take from you.
Increasing the loan term. In this case, the amount of the overpayment increases, but the amount of monthly contributions is reduced to an affordable amount. And this is an important condition for planning a family budget. For example, let’s take the payment period to be 15 years. We recalculate the amount of the monthly payment and get a figure of 25,966.37 rubles, which is significantly less than the previous result. But, the percentage of overpayment for all 15 years will increase significantly to a figure of 2,673,946.75 rubles. And this is more than 2 times.
If calculations are made for a short period of 3-5 years, then the monthly payment amount will be 43,025.11 rubles. In this case, the overpayment under the annuity scheme will be slightly more than 1 million rubles.

There are many mortgage calculators on the Internet, using which you can independently make approximate calculations of upcoming payments. For example, set the same 2 million as the cost of an apartment or house and see what amount of contributions is received in one or another bank.

Important!

Using a special online calculator, you only get approximate calculations.
They do not include individual bank commissions or the cost of additional services. More accurate data can be obtained. To do this, you need to contact a specific bank and approach a loan officer. The manager will make preliminary calculations and announce the amount of monthly payments as accurately as possible. The bank employee will take into account individual mortgage conditions in the following cases:

if you are a salary client of the bank, you have a salary card, which receives sufficient funds every month to repay the mortgage. In this case, you will be given an additional discount or a larger amount will be approved for issuance;
if you belong to a preferential category of citizens - you are a young family, support a disabled person as a dependent, have the right to a state subsidy for low-income citizens, are considered to have many children;
if you are entitled to a social mortgage, the program is designed for employees of budgetary enterprises, military personnel, and young employees in the “specialist” category.

A reduced interest rate on the purchase of housing is available to those families who have had a second (subsequent) child since January 2021.

A banking expert's advice is to try to pay off your mortgage in under 10 years.
The main advantage is the lower overpayment of commission. As we already calculated earlier, the amount is almost halved. Secondly, you will pay off the bank faster and become a full-fledged home owner. This means you can carry out any operations with the living space: remodel, exchange, rent out or sell. Statistics kept by banks show that the majority of Russians (65%) are trying to pay off their mortgage faster. It takes 8-10 years for such borrowers to fully repay the financial institution and no longer worry about a long-term loan.

How to reduce overpayment when applying

It is possible to reduce your mortgage overpayment even before you take out a loan. It is important to understand what factors determine this amount and how it can be reduced. So, what can a future mortgage borrower do to pay less interest:

Reduce loan size. If you have the opportunity to make a larger down payment with your own funds or borrow money without interest from friends, you should take advantage of it. The smaller the amount you borrow from the bank, the greater the chance of reducing your mortgage overpayment.
Choose a shorter repayment period, but only if you can handle the payments. As we have already seen in the examples above, it is more profitable to take short loans. If you compare what the overpayment for a mortgage is for 15 years and 30 years, the first option is preferable.
Reduce the interest rate in every possible way, because the actual overpayment on the mortgage largely depends on it. Even a slight reduction of 0.5-1% will give good savings. Typically, the best percentage is intended for salary card holders, employees of partner organizations, and bank deposit holders. Participation in promotional mortgage programs, making a larger down payment, a short loan period, and fulfilling certain conditions of the lender will also help reduce the rate.
If the bank has a choice of the type of schedule and your financial situation allows you to deposit large sums, it is better to repay the loan with differentiated payments. This way you can pay off your mortgage with less overpayment.
Additional payments. Ideally, obtaining a mortgage should not be accompanied by fees for transferring money to the seller, processing the application, subsequent payment of the loan, etc. There are mandatory expenses that cannot be avoided (for example, apartment insurance, state duty for registering a transaction, notary fees, drawing up an appraisal report etc.). At the same time, it is desirable that there are no other expenses, because they also form the average overpayment on a mortgage.

A mortgage without overpayment
is impossible, but you can significantly reduce it even at the stage of filling out a loan application.

How much should your salary be to get a mortgage?

It is impossible to give a specific number. A lot depends on what and where you plan to buy. The most expensive real estate is in Moscow, St. Petersburg and Sochi. If you want to buy something there, your income level must be decent.

If we are talking about a regional city, especially its outskirts or region, then you can get a mortgage even if you have a low income.

It is better to calculate based on exactly how much you receive. For example, let’s take Sberbank; after all, this is the bank that most mortgage borrowers choose. We will take into account an ordinary borrower who is not a salary client of Sber.

To apply for a mortgage, you must have funds for a down payment - at least 15% of the property price.

The base interest rate in Sberbank is 9.5% per annum (information for the third quarter of 2021). If the borrower makes a down payment of no more than 20%, the rate increases by 0.2 points. If the client is not a salary client, then by another 0.5 points. As a result, our potential borrower will obtain a mortgage from Sberbank at a minimum interest rate of 10.2% per annum (if he refuses personal insurance, it will increase by another 1%).

Reducing overpayments on an existing mortgage

If you already have a home loan, you can reduce the overpayment on it. There are many ways to do this, which we will discuss in more detail. How to pay a mortgage so that the overpayment is less:

If possible, make early repayments , because each time you deposit a larger amount, the interest is recalculated. The bank accrues them only for the actual time of using the loan funds, as if you had taken out a loan for a short period (). The overpayment on the mortgage in case of early repayment is revised, the borrower pays less. As a result, he receives a reduced monthly payment or a shortened loan term.

After each early repayment, the mortgage client is given a new payment schedule.

Repayment using federal maternity capital , the amount of which in 2019 is 453,026 rubles. You can use budget money to pay a mortgage without waiting for your child’s third birthday (). To do this, you should collect the necessary package of documents and draw up an application at your Pension Fund branch. Within 1-1.5 months, the money will be received to pay for the housing loan. As a result of partial repayment of the mortgage, the overpayment of interest will decrease.
Similarly, a housing loan is paid for using regional capital funds . Its size and rules of use are set locally. On average, 100-200 thousand rubles are given at the birth of a third or other child in the family. Whether there is such a social program in your region or region, you should check with the regional administration.
Payment to families with many children to pay off their mortgage in the amount of 450 thousand rubles , which began to operate in September 2021 (). Families in which a third or subsequent child was born from 2021 to 2022 can apply for state subsidies. Documents for paying the mortgage should be submitted to your bank, after which it will send them to the state mortgage agency.
Refinancing an existing mortgage or getting a new one at a reduced rate of 5-6%. Families in which a second or next child was born between 2021 and 2022 () are eligible to subsidize loan interest. Please note that to participate in the state program you must strictly comply with the rules established at the legislative level. As a result, the borrower will reduce the overpayment on the mortgage for years to come.
Refinancing with another bank. If you are not satisfied with the interest rate and other loan repayment terms, it is quite possible to transfer your mortgage debt to a new lender. However, this opportunity is only open to responsible borrowers who have always made loan payments on time. When refinancing, you will face the same expenses as when applying for a mortgage (insurance, appraisal report, etc.), so the profitability of switching to another bank must be carefully calculated. Calculating the mortgage overpayment using the calculator, which we discussed in the section above, will help you with this.
You can return mortgage interest for overpayment to the tax authorities. If you officially work and pay taxes to the budget, you have the right to a partial refund of the deposited funds (). It is necessary to obtain a mortgage statement from the bank annually and attach it to the declaration. The tax base is 3 million rubles, that is, the maximum possible return for overpayment on a mortgage is up to 390 thousand rubles (3 million rubles * 13% personal income tax).
Some organizations provide compensation for mortgage interest paid. Typically, such motivational bonuses are used by large enterprises interested in retaining qualified personnel.

In certain regions of the Russian Federation, there may be other government subsidies that can be used to pay off an existing loan. You can combine the above methods of returning overpayments on mortgage interest. Receiving a tax deduction does not exclude repayment of the loan using capital funds or refinancing at 5-6%. This way you can significantly save on interest payments to the bank.

How to get a mortgage without overpayment

A mortgage is usually perceived as an enslaving loan, by issuing which the bank profits from the hopelessness of the client. However, in Russia there is a completely interest-free mortgage, when the borrower returns an amount equal to that which he took. There are few such programs, and most Russians do not know about them.

In fact, the bank or mortgage agency always sets interest on payment. It’s just that with a preferential mortgage, they are repaid by the state, not the borrower. How much interest will the mortgage overpayment be in this case? Not at all, the client only has to return the loan amount to the lender.

What options for an interest-free mortgage loan are possible in Russia:

Military mortgage. Although it is issued at a certain rate, the loan will not cost the serviceman himself anything, because repayment comes from the funds of the Ministry of Defense of the Russian Federation (the rules for receiving and using are established). Including the down payment, interest and the body of the loan, that is, the borrower receives housing completely free of charge, but subject to continued service. If he decides to quit early, he will have to give up the apartment or continue paying on his own.
Residents of the Kuril Islands can get a mortgage at 0%. Housing construction under the state program to support the Far East has already been underway since 2021. The loan is available to preferential categories of citizens.

Other regions also have their own mortgage programs at 0% for certain categories of residents. For example, until recently, residents of Ingushetia could take out an interest-free housing loan.

As an alternative to a mortgage, an interest-free loan from the employer can be used. Money for the purchase of housing is provided only to employees subject to their fulfillment of certain requirements.

An option for an interest-free mortgage could be purchasing an apartment from a bank partner developer. When applying for a loan for a short period (for example, 5 or 10 years), the organization can make a discount on real estate in the amount of the planned overpayment or part thereof. Such conditions are available only as part of joint promotions and will help you save a lot on interest payments. Such profitable offers are worth monitoring on the websites of large mortgage lenders: Sberbank, VTB, Rosselkhozbank, Alfa-Bank, etc.

Please note that you should not agree to dubious terms of interest-free mortgages from unknown banks. It is likely that scammers may be hiding behind an attractive sign. The main risk is that the obligation to repay the loan is your property, which can be lost.

Residents of the Far East will be able to get a virtually interest-free mortgage from December 2021. They will have access to a housing loan at 2% per annum for the purchase of a new building or the construction of a residential building on a hectare received free of charge from the state (the rules can be read in).

You can now calculate online the mortgage overpayment at this rate and compare it with the current conditions of banks. The benefits of the new program are obvious. For example, a loan of 1 million rubles for 20 years will result in an overpayment of only 214 thousand rubles.

Unfortunately, a mortgage without overpayment is not provided under the Young Family program (). But many other social benefits are available to this category of borrowers. In particular, it is allowed to use government subsidies to repay a housing loan (maternity capital, payments to large families, etc.) or refinance it at a low interest rate.

If you are planning to take out a loan, before calculating your mortgage overpayment on a calculator, check out the preferential programs currently available. Probably, the rate will not be so high or there will be an opportunity to seriously reduce the interest overpayment. As a last resort, you can always save on repayments by regularly making early repayments. When is it better to pay off your mortgage early? Read the next article.

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Author:

Mortgage specialist Maria Yurievna Sokhan

Publication dateOctober 7, 201October 7, 2019

How much do you need to save for an apartment or is it worth taking out a mortgage?

The habit of saving money and storing it in a pillow (at best, in a bank account) was inherited from grandparents who carefully put money in savings books and were afraid to spend an extra penny. Everyone knows what such frugality led to: savings depreciated and if previously the family could afford to buy a car, then just two days later it was impossible to even buy a box of matches for the same money.

Some still believe that it is better to save for 10 years on real estate than to get involved with a mortgage. After all, firstly, banks profit from their clients, receiving almost double benefits from each loan. I took four million for a one-room apartment and gave it back eight. But you could buy a two-room apartment for eight. And, secondly, in case of delay, you can lose everything. In fact, if you approach the purchase of a home with a mortgage wisely, you can, a couple of months after applying to the bank, already live in your own apartment, paying the same amount monthly as for renting a similar property.

So, for example, let’s take a one-room apartment in the nearest Moscow region in a new building for 2.5 million rubles. The average salary in the capital, according to Rosstat, is 67.8 thousand rubles. We subtract 13% of income tax from it, as a result the employee receives just under 60 thousand rubles. Let’s imagine that a person has a place to live (for example, with his parents) and does not pay rent. But he needs to eat, travel to and from work, get dressed, pay for his mobile phone and internet. We set aside at least 20 thousand rubles a month for expenses (although the cost of living in Russia is 17.6 thousand rubles. In total, he will be able to save 40 thousand rubles monthly. Ideally, you can save up for an apartment in five and a half years. But do not forget about inflation when money instantly depreciates. Plus, sometimes it is tempting to take a little from your savings, for example, for a trip to the sea, for gifts, for new gadgets.

If a person rents a house and gives “someone else’s uncle” about 25 thousand rubles a month, then he will be able to save 15 thousand rubles. In total, he will be able to become the owner of his own apartment, at best, in 14 years. And during this time he will limit himself in everything. The figures are provided subject to stability in prices for both food and housing.

Advantages of a mortgage

The most important advantage of a mortgage over a lease is the availability of an asset that will only grow in value every year. If problems arise, the property can be sold and even after paying off debts to banks, there will be money left over. Now mortgage rates are not so high; the same Sberbank offers options at only 8% per annum. Plus, a down payment is not required everywhere; some construction companies are ready to enter into an agreement without an advance payment.

In addition, if this is the purchase of a first home, the buyer receives a property tax deduction, which can be used to partially repay the mortgage. You can “reduce” the amount with the help of maternity capital. And if loan rates drop in the future, the client can simply contact the bank to refinance the loan. We subtract the maternal capital from 2.5 million 453 thousand, as a result, the mortgage is taken for 2 million rubles. But let's consider the option where the apartment is purchased on general terms and there is a down payment of 375 thousand. If you pay 40 thousand rubles monthly, you will pay off the debt in 6 years. But at the same time you will have your own housing. If you take out a loan for 10 years, you will have to pay only 28 thousand rubles. The interest rate in this case is 10%.

If you buy a property from certain developers at 8% per annum, then you can pay off the mortgage in 7 years, paying 33.2 thousand rubles each.

When is the best time to buy your own home?

It is better to take out a mortgage if:

you have a stable income, you have worked in one place for more than 6 months;
the mortgage payment is equal to the rental rate or, if it exceeds, then not by much;
housing prices are rising faster than savings can be achieved;
purchasing real estate will not affect the family’s well-being.

But it is better to rent if there is no confidence in the future, salaries are paid with delays, there is no certainty about the place of residence, rent is an order of magnitude lower than monthly mortgage payments.

Your own home in Moscow

Thus, according to studies, teachers (at least 19 years), medical personnel (about 15 years), engineers (12 or more years) will save the longest for their housing in the capital, and the least of all will be managers and top managers of serious companies.

“Considering that a one-room apartment in Moscow costs about 7 million rubles, it makes sense to collect for housing for people with a salary of 90 thousand rubles a month, and this takes into account that this entire amount will not be spent. Those. If the spouses have such income in the family, they can afford to save this money. True, in this case it is still more relevant to purchase real estate with a mortgage,” shares Alexey Shmonov, CEO and co-founder of the online real estate portal Move.ru.

According to experts, when compared with prices and wages over the past 5 years, saving now is a little easier and faster. The term was reduced by an average of 2-3 years (for example, instead of 22 to 19). But, again, this is provided that all income will be deferred for the purchase. Don’t forget that many still rent apartments in Moscow, so this option is unrealistic for them. Therefore, it is not surprising that last month the number of mortgage loans repeated the record of 2014. In July, more than 84 thousand loans were issued. Since May of this year, mortgage issuance volumes have been growing by leaps and bounds. The reason is low interest rates on home loans. Not only bank representatives, but also Russian residents themselves are talking about the increased affordability of housing and mortgage loans. If the rate drops to 6% and the same conditions for borrowers remain, then the majority of citizens of our vast homeland will be able to afford their own housing.