Monthly Archives: July 2018

Fine Mortgage Options with the Best Mortgage Deals

Underestimation of the cost of an apartment in a contract of sale means the indication of the price of such a dwelling below its market value. This is done when buying and selling apartments in the secondary real estate market. At the same time, the cost of such apartments, as a rule, is more than 1 million rubles, and in property they were no more than three years. Underestimation of the cost of apartments is primarily due to the future reporting to the Federal Tax Service when filing a tax return, where the income received from the sale of an individual is reflected, after which the tax is paid to the state.

When issuing a mortgage loan, the understated value of an apartment does not affect anything, because the borrower takes a specific amount, and banks willingly go to the conclusion of such transactions (almost all give out mortgage loans). True deals for the mortgage are there by the mortgage broker Geelong .

However, some banks may issue mortgage loans with certain conditions, among them:

  • an increase in the initial installment of a mortgage;
  • increase in the interest rate;
  • the indication in the mortgage agreement of the loan amount, and not the cost of the apartment.

Thus, the understated price when buying and selling an apartment is quite common now, and you will not hear a definitive “no” from the bank. However, each bank has the right to formulate special conditions for concluding such transactions.

To whom do banks give mortgages for an apartment, and who is denied?

Which secondary apartments are not worth buying?

In general, banks are fairly loyal to such conditions for the transaction of buying and selling an apartment with the involvement of mortgage funds. And such transactions are not uncommon. Another thing is that the indication of the value, which will be understated relative to the market, affects how sellers will continue to implement tax planning. In most cases, after the sale of an apartment, such salespeople become buyers and purchase money from selling real estate to buy a new apartment or, for example, a country house. But, of course, it is best to indicate the full cost of the apartment, pay taxes and continue to use the right of property tax deduction (provided that the sellers previously did not use such deduction).

  • It is impossible not to mention the risks that the buyer of an apartment with such a cost bears. Sometimes the difference in cost is very significant. After all, in case of disputing the transaction, recognizing this transaction as invalid and restitution, the buyer will receive the amount that was specified in the contract of sale. Before you carry out such a transaction, you must carefully check everything, study the history of the apartment as thoroughly as possible, or instruct the experienced specialists to check it.