Do not confuse mortgage and property. “Mortgage” apartment – the property the borrower purchased through mortgage apartment is given to the bank as collateral. However, the pledge – it is only a “charge” of the property. The owner purchased apartment becomes a borrower, and immediately after buying! The borrower can live in an apartment, there to register all family members can even rent an apartment to rent (with the permission of the bank).
The only charge (which will be officially registered) is that while the buyer does not repay the loan, he will neither sell nor exchange the apartment – that is unable to dispose of their property at their discretion. 4. Buy unfinished apartment – pledge in his own. When buying an apartment in the primary market unfinished apartment can not be a pledge. The apartment may be subject to pledge only after it is registered ownership – in the case of unfinished apartment that is impossible. When working with primary market banks use two schemes: – customer chooses a company builder and an object in which he buys an apartment. However, given the high risks in equity, the bank requires the borrower to pledge already available in his apartment. After completion of construction and appearance of the property rights to a new apartment, the bank takes a pledge to the old apartment and takes a new pledge – Bank accredits several construction companies in the past financial review. In this case, the number of companies and facilities that the borrower can choose is limited, but does not require collateral in the form of existing apartment.