What is the minimum and maximum mortgage loan amount, how is it calculated, what does it depend on?

How to calculate how much to pay for a mortgage?

Purchasing a home with a mortgage is a serious step that requires not only long-term financial stability, but also preliminary weighing of this decision, taking into account the smallest details.

It is hardly possible to answer unambiguously and accurately the question of how much to pay per month for a mortgage. It all depends on the amount and term of the loan, as well as other nuances.

However, still: how to calculate how much to pay for a mortgage? Examples of preliminary calculations are provided later in the article.

What is the monthly payment made up of?

The size of the monthly mortgage payment is a multi-level system of calculating interest on the loan and for servicing, as well as the body of the loan. Depending on the interest calculation system, the total amount for the month is formed.

In this case, the payment can be annuity (in the form of equal values) or differentiated, i.e. decrease from month to month.

There are several factors that influence the size of the monthly payment:

• Individual bank policy. Despite the fact that mortgage interest rates have decreased significantly in recent years, each bank sets its own value. In some lending institutions the rate is more attractive, in others it remains frighteningly high. If we assume that the borrower took out a mortgage for 25 years, then the total amount of interest will be quite large, and a difference of even 1% significantly affects the final cost of the loan.
• Loan terms. The longer the loan term, the larger the final overpayment for the loan will be.
• Insurance fee. A mortgage loan is unthinkable without insurance (title, life, health of the borrower). The insurance interest increases the amount of the monthly payment. About a fifth of the monthly payment is insurance. You cannot refuse insurance.
• An initial fee. The minimum advance required by banks is 10% of the appraised value of the property. You can find programs without a down payment, but it is better for the borrower to contribute part of the funds themselves. Then the loan will be generally cheaper.

Expert opinion

Evgeniy Belyaev

Legal consultant, financial expert

Ask

Each bank's website has a loan calculator that can be used to calculate approximately how much you will have to pay for a mortgage. By specifying the basic data (amount, down payment, rate), you can find out the size of the monthly payment.

Let's give an example.

Let’s say the borrower intends to take out a mortgage loan from Sberbank, commensurate in value with the property on the secondary housing market. To determine the income required for loan approval, just enter the loan amount in a separate field of the Sberbank calculator. Next, we enter the amount of the down payment (at least 20% of the amount) and the period during which the borrower will be able to repay the loan. Additionally, we indicate special conditions, for example, life and health insurance, the ability to confirm income, the presence of a salary card, and then ask the system to calculate.

Through simple manipulations with changes in the amount of the down payment and the loan term, it is not difficult to determine that the maximum mortgage amount at Sberbank for a salary of 45,000 rubles will be 1.5 million. In this case, the monthly contribution will reach almost 32,000 rubles, the rate will be 10%, the borrower will have to contribute 500,000 rubles to repay the down payment and repay the debt in 5 years.

If the down payment is increased to 600,000 rubles and the loan term is reduced to a year, the maximum mortgage amount at Sberbank for a salary of 150,000 rubles will be 1.4 million. At the same time, the rate will remain at 10%, and the monthly payment will reach 123,000 rubles.

It is worth noting that the presented indicators were calculated using a mortgage calculator from Sberbank, subject to input parameters such as:

• the cost of the acquired object is 2 million rubles;
• housing for purchase was selected on the secondary market.

If you change the initial data, the amount of income required for loan approval may change significantly. Since the calculator takes into account only the main factors, it is more advisable to determine the final result of lending with the help of a specialist at the bank chosen for obtaining a mortgage.

How to calculate how much to pay for a mortgage in 2020?

As mentioned above, the amount of the monthly payment depends on many factors, and most of all, on the interest on the loan.
To calculate the approximate amount of the minimum deposit, you need to find out from the bank not the advertised interest rate, but the effective rate, which includes:

• interest on the fact;
• insurance fee;
• interest for servicing and maintaining the account;
• bank commissions for issuing and accruing funds.

It turns out that the final amount of the interest rate depends on many components that the borrower did not even know about. That is why it is worth finding out the amount of the effective rate from the bank.

Banks that advertise interest rates do not indicate that the additional interest on a compound loan exceeds 4-6%.

The monthly payment is calculated based on the above indicators and can be calculated according to an annuity and differentiated scheme.

Most often, banks use an annuity payment scheme, when the borrower pays the same amount every month . You can calculate it yourself or through a calculator online.

A differentiated or equally decreasing payment involves paying off 2 parts: debt and interest . Every month the borrower pays the principal, the value of which does not change, and interest, which is calculated based on the balance of the debt, due to which the payment becomes smaller every month.

Maximum mortgage loan amount

The maximum mortgage amount also depends on the banks and some factors. There are restrictions on government programs - no more than 12-15 million are allocated for a family mortgage in Moscow and the region, St. Petersburg and the Leningrad Region. No more than 5-6 million rubles in other cities of Russia.

For a military mortgage, the maximum value does not exceed 3 million rubles. Basically these amounts are 2.2-2.9 million rubles.

When purchasing primary housing, the bank will set a limit of 85-90% of the cost of housing. If the secondary market, then the loan may not exceed 50-75% of the value of the property.

Another factor is the stability of the bank. Companies with a small network cannot risk large sums, while large companies issue multimillion-dollar loans secured by purchased housing.

Review of the best bank offers

At Gazprombank, the borrower will be able to obtain a loan of up to 60 million rubles. If a program is issued for new housing, the interest rate will be 9.2% per annum.

60 million rub. – maximum amount for the Moscow and Leningrad regions. In other regions, the borrower can borrow up to 45 million rubles. A minimum percentage of 9.2% per year will apply if a loan of 10 million rubles is issued in the Moscow region, and in other regions - from 5 million rubles.

Alfa-Bank provides a loan with a maximum mortgage loan size of up to 50 million rubles. for finished and under construction housing. For housing under construction the interest rate is from 8.89, and for finished housing from 9.69%.

What can affect the final mortgage amount?

Several factors can affect the final amount. Here are the main ones:

• client income;
• age;
• Family status;
• place of residence;
• credit history;
• provided package of documents;
• participation of co-borrowers in the transaction;
• cost of housing.

It is worth considering in detail the most important factors - what income the borrower has, how the loan amount is added up from the appraised value of the home, and whether the borrower has additional collateral. More on this in the following sections.

Borrower's regular income

Typically, the bank will calculate a loan that will not take away more than 40% of the borrower's total income. Therefore, to increase the maximum mortgage size, it is worth submitting documents to the bank not only about the main source of income, but also from part-time work, passive income.

It will be difficult to get a loan if part of your income is spent on regular payments such as alimony or debts, fines. The presence of children is also taken into account by the bank as a financial burden.

If there are additional consumer loans or a credit card, the bank will take into account expenses on them, even if the person does not use the card. And will reduce the maximum loan size.

Estimated value of housing

Regardless of the price of housing, the bank does not issue a loan exceeding 75-85%, in rare cases 90% of the value of the property. The rules for the secondary real estate market are even stricter.

Some banks issue a loan that does not exceed 50-60% of its value. The amount is determined based on the values ​​​​in the report on the estimated value, which was carried out by an expert commission.

The borrower can use the services of a commission that is accredited by the bank or find another independent company. But then the processing time may be delayed if the bank finds a discrepancy with the requirements.

Is there a deposit

The presence of additional collateral will guarantee not only the repayment of the debt, but also reduce various risks of the bank. Therefore, if property is pledged, the bank will be able to issue a large loan for the purchase of a home.

Sometimes borrowers specifically provide collateral so that the bank increases the maximum possible loan amount. The property is subject to encumbrance in the cadastral chamber for the entire loan term.

Borrowers can provide collateral for the period prior to registration of the transaction in Rosreestr for the main apartment being purchased. But bail can be replaced by attracting guarantors.

Mortgage 1 million for 10 years: how much to pay per month?

According to statistics, 65% of Russians close their home loan within 8-10 years, trying to quickly part with the mortgage burden.
Experts also advise taking out a mortgage for a period of no more than 10 years. The most optimal period is 5-8 years: the overpayment will be less, and if you make an initial payment of at least 25%, then the monthly payment will become moderate.

Mortgage for 1 million... Nowadays, such a figure for housing sounds ridiculous for residents of many large cities in Russia. But it is sometimes difficult for residents of the constituent entities of the Russian Federation to save even this amount. Therefore, a mortgage of 1 million in small towns is very relevant.

So, an approximate calculation for the declared amount of 1,000,000 for a period of 10 years. Let's assume that the loan rate is 9.35%, an initial payment of 15% of the amount has been made; in this case, the annuity payment (excluding monthly commissions) will be 10,929 rubles. The total overpayment for the loan will be 461,493 rubles. If the mortgage is issued without making an advance, then the monthly payment increases to 12,858 rubles, and the overpayment – ​​to 542,933 rubles.

Review of bank offers with the lowest minimum amount

A number of banks are unwilling to issue small amounts for mortgages due to economic considerations. For the same reason, many companies set the minimum mortgage term at 3 years.

There are banks with which borrowers can enter into a mortgage agreement for a small amount comparable to consumer loans. Such companies include:

• VTB;
• Sberbank;
• RSHB;
• Gazprombank;
• UnicrediBank;
• Alfa Bank.

It is worth taking a closer look at what is the minimum amount you can take out for a mortgage, and with whom it is more profitable to enter into an agreement among those presented. To do this, it is worth mentioning the current products and their conditions.

VTB

The minimum mortgage amount under the program for the purchase of housing under construction and secondary real estate is 600 thousand rubles.

Other conditions:

1. Repayment up to 30 years.
2. The minimum period is 1 year.
3. The initial payment is at least 10% of the housing price.
4. Property and health insurance is required for interest rates to apply.
5. Interest from 8.9% per year.

If the borrower does not have the funds for a down payment of at least 20% of the value of the property, then the bank will give an interest rate of 0.7 per annum more.

Up to four solvent co-borrowers can be involved in the transaction; they are subject to requirements similar to those for the main applicant.

Sberbank

A mortgage at Sberbank is issued for a minimum amount of 300,000 rubles. It is available for the following cases:

• primary market;
• ready housing;
• purchasing a garage;
• buying a country house;
• construction of a cottage, etc.

All loans are issued in rubles. If the borrower participates in shared construction, then the funds can be transferred in parts: the first part after registration of the agreement, and the second part on the date determined in the agreement.

Rosselkhozbank

At the Russian Agricultural Bank you can take out a mortgage for a minimum amount of one hundred thousand rubles. This loan is available under the following programs:

1. Construction or purchase of a house.
2. According to the DDU agreement.
3. Purchasing housing from a bank partner.
4. Purchase of housing in the primary and secondary markets: apartments, apartments, townhouses, houses with a plot of land.
5. For families with children.
6. With maternal capital.
7. Target mortgage.

The application from the borrower is considered within a period not exceeding 5 working days. The maximum repayment period provided by the bank is up to 30 years. The down payment must be made at least 20% of the cost of housing. All transactions are executed in rubles.

Gazprombank

The minimum size of a mortgage loan at Gazprombank is 100 thousand rubles. But there is a condition: the loan should not be less than 15% of the value of the property. Loan term from 12 to 360 months. The down payment on the loan is at least 20%.

Here are the programs currently operating in the company:

• family;
• refinancing;
• new residents;
• renovation;
• military

In the case of new residents, you can make a down payment of 10% of the cost of housing. Most programs have an interest rate of at least 9.2%. The exception is the family program, but the rate here is subsidized by the state. It is proposed to draw up an agreement at 4.9 percent for the entire loan period.

UniCredit Bank

The minimum amount for several programs is 5 million rubles. These include “mortgage is calling”, refinancing of the secondary market, a program for purchasing housing in a new building, refinancing of the primary real estate market, for an apartment.

But there are programs where the minimum mortgage size is 250 thousand rubles. This is a program for purchasing a cottage, refinancing the secondary market (for a cottage).

On a note! Programs can be issued if you have 2-3 documents.

The maximum mortgage term is up to 30 years. The application age is 21 years old.

Alfa-Bank

The minimum mortgage size at Alfa Bank is 600 thousand rubles. Only 4 programs are presented:

1. New buildings.
2. Secondary housing.
3. Refinancing.
4. Pledge of existing housing.

The latest program does not work in all regions. To check, you need to go to the website and open the case.

Borrowers are provided with loans for up to 30 years. It is not necessary to be registered at the place of application. The minimum loan term is 3 years. It is necessary to make a down payment of at least 15% for the secondary market and at least 10% for the building under construction.

Examples of interest rates in different banks for 2020

To be more specific in terms of interest rates, let's look at specific banks and their offers in 2020:

• Sberbank. Mortgages for young families, secondary and using maternity capital - from 8.5%, special promotion for new buildings - from 6.5%, countryside real estate - from 9.2%, mortgages for the military - 8.8%, construction of a residential building – from 10.9%;
• Gazprombank. Primary and secondary – from 7.5%. There are special programs, for example, a family mortgage from 5.5% per annum. Military mortgage – 8.1%;
• Alfa Bank. Apartments on the primary market - from 7.99%, on the secondary market - from 8.39%.

Keep in mind that such information becomes outdated very quickly, rates change almost every month.

Payment type

There is another factor that affects the amount of monthly expenses - the type of payments.
There are 2 types:

1. Annuity – fixed LP until the end of the loan term.

The advantage is that the same amount is paid every month. The downside is that most of the payment goes to pay off interest on the loan.

2. Differentiated - unequal units that decrease with each mortgage payment.

In this case, in the first quarter of the term, payments are high, but most of the deposited funds go to pay off the principal debt, and interest is charged on the remaining amount.

How to use the calculator

To make calculations using a mortgage calculator, you must first study the loan terms offered by the bank. It is important to pay attention not only to the rate, but also to additional payments, such as a fee for transferring the monthly premium or the need to purchase personal and title insurance policies.

What data do you need to enter?

To carry out calculations, you need to set 4 initial parameters:

• loan size;
• duration of full repayment of the debt;
• rate;
• type of payment (annuity or differentiated).

With their help, you can take into account additional factors in calculations, for example:

• the presence of one-time or regular commissions;
• benefit from lower rates by taking out personal insurance.

What formula is used to make the calculations?

How the mortgage is calculated and what formula is used depends on the repayment plan. For annuity payments, calculations are made using the following expressions:

Contribution = Debt Amount x Annuity Ratio

Annuity coefficient = Rate x (1+Rate) number of payments / ((1+Rate) number of payments – 1)

For a differentiated scheme, the formula is used:

Payment = (Amount of debt / Number of periods) + (Balance of debt x Rate x Length of the payment period in days / Number of days per year)

Average mortgage interest rate in 2020

In 2020, there was a sharp decrease in the key rate. It entailed a decrease in the cost of all loans, incl. and mortgages.

The percentage at which the bank issues money depends on the chosen program and on average is:

• 8-10% if we are talking about purchasing a secondary home or refinancing an existing loan;
• 6.5-7.5% – for those clients who want to purchase a new building;
• 4.5% -5%, if the borrower is eligible for assistance from the state and becomes a participant in the preferential program;
• 2-3% – for housing located in rural areas.