The refinancing rate fell
Reduce the burden of a mortgage loan, reduce monthly payments – today it is possible.
A surefire way to repay the debt ahead of time and take a new mortgage loan on more acceptable terms is refinancing the mortgage.
Such lending in Russia is offered by several large banking organizations.
In this article we will examine Gazprombank – mortgage refinancing in a bank, conditions and peculiarities of implementation, reviews of borrowers.
- 1 Time to refinance a mortgage
- 2 Refinancing mortgages at Gazprombank in 2018. Credit terms
- 3 Borrower Requirements
- 4 Requirements for documents
- 5 Making a mortgage loan step by step
- 6 Features of on-lending mortgage in Gazprombank. Pledge valuation and insurance
- 7 Refinancing forex mortgages
- 8 Refinancing a mortgage in Gazprombank: the pros and cons
Time to refinance a mortgage
Mortgage loans are usually taken for a long time. Compared to previous years, mortgage interest rates in Russian banks have decreased markedly. In 2018, a loan secured by acquired property is much cheaper than before.
What should a Russian citizen do when he took a mortgage earlier – feel sorry for himself and his money, grieve where these low interest rates were so many years ago? Not. You can change the terms of the loan for more profitable by refinancing, or refinancing the mortgage.
Signing a contract with a credit institution that, like Gazprombank, refinances mortgages from other banks, gives the borrower one or more of the excellent opportunities:
- save by getting a new loan at a lower rate;
- reduce the monthly payment, increasing the term of the mortgage loan;
- reduce mortgage overpayment, reducing its term;
- reduce overpayment by changing the currency of the loan;
- replace the loan security with less valuable for the client, while quite satisfying the bank.
Gazprombank has attracted the attention of those who decided to refinance the mortgage with a low base refinancing rate – only 10.25% . From autumn 2017 until the end of the year, preferential terms are valid at a rate of 9.5% for registration of not only property (subject of mortgage), but also personal insurance.
It is time to consider all the conditions and decide whether to refinance in this particular bank if the borrower:
- current loan debt does not exceed 85% of the value of real estate under the current contract (it was repaid over a long period and the value of real estate did not fall so significantly);
- the credit history of the current mortgage loan is positive without delinquency;
- it remains to pay the debt to the primary creditor for at least 36 months.
Mortgage refinancing in Gazprombank in 2018. Credit terms
A loan for full repayment of a mortgage debt to another bank is provided on the following terms:
- the base rate is 10.25% per annum with a margin discount above 50%;
- 11% per annum, when the loan is less than 50% of the value of the collateral inclusive;
- the rate is increased by 0.5% for clients who are not clients- “salary” of the bank.
The mortgage discount here is the percentage of the value of real estate pledged compared to the amount of the mortgage loan. The loan amount may be the following:
- The minimum loan amount is 0.5 million rubles, but not less than 15% of the value of the collateral;
- the maximum amount is 45 million rubles, but not more than 85% of the value of the collateral.
The loan term for refinancing will be up to 30 years, there are no commissions for loan processing. Repayment of the loan is carried out by annuity or differential payments at the discretion of the borrower; early repayment – without restrictions on the term and the minimum amount.
Important: For the period between the withdrawal of the immovable object from the pledge at the primary creditor and the transfer to pledge of the GPB rate is increased by 1%, but only in the absence of other basic security.
This security may be the written consent of the primary creditor bank to a subsequent (repeated) pledge or a guarantee. Depending on the loan amount, it is necessary to guarantee at least one or two persons whose solvency is easy to confirm. You need to be prepared for the failure of the primary bank to re-mortgage housing mortgage – this is a common practice in Russia.
The borrower, to which Gazprombank is ready to provide mortgage refinancing, must meet the requirements of:
- Russian citizenship;
- permanent residence in the Moscow region or the location of a branch of a credit institution;
- age not younger than 20 years;
- age not older than 55 years for women and 60 for men at the expiration date of the on-lending agreement (by decision of the lender, the limit may be increased by 5 years);
- total length of service not less than 12 months, continuous at the current place of work – not less than 6 months;
- positive credit history.
Important: The key requirement is the availability of income that allows servicing the loan. Usually, the calculation is made on the basis of the formula that no more than 50-60% of monthly income should go to pay for a loan.
Requirements for documents
The package of documents required for the processing of mortgage loans at Gazprombank includes:
- application form;
- original and copy of customer ID;
- a copy of the work record certified by the employer;
- a copy of the agreement with the primary creditor;
- certificate of the primary creditor about the debt balance (validity / acceptance is not more than 14 days);
- consent to re-encumbrance and / or guarantors receipts;
- The document on the client’s income is one of three options: a reference 2-NDFL from the place of work; certificate in the form of a bank; bank account statement on the receipt of salary amounts transferred.
The borrower has the right to provide the lender with additional papers from the list in the “ Documents and Forms ” section of the GBD website. Particular attention should be paid to the documents taken as confirmation of additional income, indicating solvency.
Making a mortgage loan step by step
According to the lender’s website, mortgage refinancing at Gazprombank in 2018 is carried out according to the following step-by-step procedure:
- the borrower fills out an application in the office or on the website gazprombank.ru;
- up to 10 working days a bank representative informs the borrower about the result of its consideration by telephone;
- in case of a positive decision, the client orders a real estate valuation;
- a mortgage agreement is signed, borrowed funds are transferred to the client;
- in case of a subsequent pledge, a second encumbrance on real estate is registered;
- the client extinguishes the debt to the primary creditor, draws up the removal of the first burden from the immovable object and its transfer to a full-fledged pledge to Gazprombank.
A deal with a subsequent pledge can take 2-3 months to complete, it may also require additional costs for registration in Rosreestr and the services of a lawyer.
Features of mortgage lending
Evaluation of a residential property (apartment, house, townhouse, etc.) offered to the lender as security may be carried out by any valuation company. Assuring this, Gazprombank nevertheless lists on its website a list of appraisal organizations recommended for some regions – here the practice of GPB does not differ from the practice of other banks. You just have to call all the recommended appraisers and choose a cheaper one (convenient).
The lender makes claims to insurance:
- be sure to insure mortgage property from damage or death;
- be sure to insure against loss of rights to the mortgaged property, if it is owned by the client for less than 3 years, otherwise the creditor may not insist on title insurance;
- whether or not to insure life and health is at the discretion of the borrower.
Useful: The insurance policies of any insurer are accepted by the lender from the relevant bank requirements (from an accredited list), therefore it is also recommended to choose the cheapest one.
Currency Mortgage Refinancing
A borrower who wants to refinance a mortgage loan in foreign currency with a transition to a mortgage in rubles can also apply to Gazprombank with a request. In this case, it is recommended to contact the office of the credit organization and clarify all the nuances of a specialist.
The credit programs of private clients of GPB provide for the conversion of loans in foreign currency, including mortgage loans. After the currency conversion of the loan contract renegotiated becomes the Russian ruble. Conversion is carried out at the current dollar / ruble or euro / ruble rate established by the Central Bank of the Russian Federation.
Refinancing a mortgage in Gazprombank: the pros and cons
The undoubted advantage of refinancing a mortgage loan at Gazprombank is a low interest rate. This is especially true of the bank’s payroll clients, employees of the oil and gas sector and companies from Gazprom’s structures.
Another big plus is the ability to repay the loan in a differentiated payment. If the financial situation allows it to be used, the borrower receives a reduction in overpayment and a gradual relief of the credit burden.
A significant advantage of the GPB program is the large range of available loan amounts, which makes refinancing available to homeowners of different cost (class).
An attractive option is the absence of bans and restrictions on early repayment of the loan. If the client’s financial situation improves in the future (for example, he receives an inheritance), he will save a lot of money by reducing the overpayment on the loan.
The lack of on-lending, common to all banking organizations offering such programs: a considerable amount of money and time to collect and execute a package of documents.
At the same time, any creditor can both approve the requested amount necessary to repay the debt to the primary bank, but also refuse or offer a smaller amount.
Meanwhile, the long-term prospect of paying monthly mortgages by N thousand rubles less is worth the time. It is usually recommended to start refinancing when the mortgage rate ultimately decreases by more than 1.5-2%.
Borrowers applying to GPB are faced with specific risks associated with the organization’s low customer focus, the questionable level of competence of many of its employees, and the specific policy of the credit committee making approval / rejection decisions. This is evidenced by quite numerous negative reviews about refinancing mortgages in Gazprombank.
Customers complain that:
- the lender refuses to meet in the event of a temporary financial difficulties for the borrower;
- Bank employees inform borrowers of information that subsequently does not find confirmation, which entails both moral and material damage;
- GPB employees allow inaction, and then require updating the documents submitted, which are overdue due to no fault of the borrower.
The list of claims, unfortunately, does not pretend to be complete, while the authors of negative reviews state that they were forced to apply to other financial and credit organizations. This does not mean that Gazprombank should be avoided and, moreover, it cannot be argued that Gazprombank is worse than other state-owned banks.