At the primary and secondary markets it is issued the credits on mortgage mainly on 1 – or 2-bedroom flats of economy-class with area of 50-100 square meters (60-70% of all housing in this class), since clients do not have the necessary sum for the purchase of apartments. However, accommodation of “business” class and “premium” is also acquired in a mortgage (30%).

Developers, distributing apartments in the primary market, say that a mortgage loan activity is sold 40-70% of the accommodation they had built.

It is wondering to what extent profitability of this project will grow, if buyers take mortgage loans more actively. Experts’ opinions were divided. Some claim that the builder operates with such indicators as the value of construction and sales plan, and that is why the mortgage does not impact the profitability of the project. We can speak only about the rate of turnover of developers. Others – that yield still increases, since thanks to the mortgage lending a developer obtains a full pay for the apartment at once, but no monthly fees, like in the case of installment plan.

Received funds can be invested, for example, in new projects. With the emergence of mortgage loan activity the buyers have a wider range of payment options (full payment, installment system prior to the end of construction or long-term loan) and this contributes to the increase in the rate of sales. Others said that yield of the builder increases with the overall growth of mortgage market, but this is a temporary phenomenon, which may have the opposite effect in future. They say that with the enhancement in loan conditions the mortgage will become more popular that leads to the growth in housing prices and, consequently, to destabilization of the market.

Typically, the builder starts selling the flats when there is an official place for building (project is coordinated and a building permit is obtained. Theoretically you can buy such housing with the assistance of bank loans. In practice, prior to issuing a mortgage loan to the customer to buy an apartment, the banks analyze not only paying capacity of the client, but also the level of risk, which happen to collide when dealing with a specific builder.

The bank is ready to credit the construction (including through the issuance of mortgage loans) only if the flats are sold through the fund to finance construction, established by the bank. Builders also are not enthusiastic about this scheme of work. This system has a lot of negativity for the builder. Inter alia, the developer must put a house into operation in a certain time without reference to funding and its terms.

Therefore, plenty of builders though recognize the work through this system still tend to finance building by other ways, such as through the issuance of obligations by mutual venture capital, the organization of housing cooperative.

It is still actively used various direct contracts between the builder and the customer (an investment agreement, commission agreements, assignment, joint activities), the legality of which experts impugn. However, it is necessary time and material costs for all official permits for building, as well as the organization entirely “fair” scheme.

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