Mortgage

Mortgage loans are, for many people, the most practical way of buying a home on credit.

A mortgage is, in essence, a credit agreement between the buyer and a bank, according to the terms of which the bank provides the requisite funds for the purchase of real estate (for example, an apartment). The buyer then repays the loan in installments, usually monthly, and, as remuneration for the provision of credit, an additional (monthly) sum according to the agreed rate of interest. Mortgage loans are long term, with repayment terms up to 20 years. Real estate purchased using a mortgage remains the property of the bank, as collateral, until the loan (and accompanying interest) have been repaid in full. Thus, should the buyer's financial situation worsen during the course of the term of the mortgage making him/her unable to maintain the requisite repayments, he/she will be obliged to sell the real estate and repay the loan. Real estate already belonging to the buyer can be used as collateral for a mortgage. Some banks make provision for early repayment of mortgage loans. Mortgages can be acquired to purchase properties on which construction is at an initial stage, or properties which are completed and have been previously owned. Mortgages are advantageous in that they enable the buyer to move in to the property immediately, and repay the loan in installments over the term agreed with the bank. 

Of the Moscow banks providing mortgage services for the purchase of residential properties, Knight Frank works with the largest – The Bank of Moscow, the City Mortgage Bank, and Raiffeisen Bank.

These banks offer favorable terms, and a flexible application system for mortgage loans to individuals.