Mortgage - a type of loan for new or secondary housing, which is developed in many countries, including the US and Russia. However, in Belarus it is not represented even in large banks, despite the fact that such transactions are not prohibited by law. What do those families who would like to receive such a loan to buy an apartment or a house? To solve this issue, let's see why there are no mortgage programs in Belarus, how they differ from the loan for the purchase of housing, and what alternatives to them in this state exist.

Why is there no mortgage in Belarus?.

Despite the fact that there is a law on mortgages in Belarus, which was adopted as far back as in 2008, this kind of lending was never received there. There are several reasons for this:.

Too high interest rates on such loans. According to the law, the mortgage rate can not exceed 10%. To banks, however, such a rate is not profitable, they set it at least 18%. And in the near future, many banks do not intend to revise such rates.

Restrictions on eviction of families from apartments in case of refusal to pay a mortgage. At present, in Belarus it is not easy to evict from a family apartment with minors, disabled people, pensioners. For this there must be an appropriate court decision. Banks do not benefit from contacting such customers.

Development of concessional lending in the state. Such loans have rates below 10%, which is very attractive for Belarusian citizens. After all, in this country the list of benefits for the population is wide enough. For this reason, this type of lending creates serious competition for the developing mortgage, despite the fact that the volume of its issuance in recent years has declined significantly.

It is for these reasons that it is almost impossible to obtain a mortgage loan in this country. Those people who claim to improve their own housing conditions need to consider other types of lending.

How to get a loan for housing in Belarus?.

Despite the lack of mortgage programs, it is still possible to take out a loan for housing in Belarus. This can be done in two main ways:.

Having issued a loan for the construction of housing. The average rate for such loans is 13%, the monthly payment reaches 600 rubles. The total loan amount and maturity dates are determined for each bank customer individually.

Having received an average rate for such programs reaches 12.5%. The repayment period for such a loan is from 5 to 20 years, depending on the chosen program. Such a loan can be issued for both secondary and primary real estate.

The main disadvantage of such programs is that the client of the bank has to agree on the type of housing with the bank.

If you are going to buy 2-room apartment in Minsk or one-room apartment, then to receive a loan you need to submit documents confirming their solvency. In some cases, it will also be necessary to submit a co-borrower's credit organization or collateral for large amounts. Fulfillment of such requirements will allow obtaining a loan on the most favorable terms with minimal overpayments.