Mass non-payment should have taught banks to inform potential borrowers about the real conditions of lending. However, this is still not observed. For example, employees of credit departments of banks either intentionally or unknowingly are not informed of the effective rate on the mortgage.

However, it later became clear that in addition to interest on the loan (19.5%) you will have to shell out more for insurance assets – 0,3% of the price, accident insurance – about 0,25-0,35% of the value, the assessment Apartments and the notary expenses. Plus you should pay contract fee mortgage, pension fund, credit card charges (three percent of the loan amount), and the commission for transfer of funds to a bank account. All this information somehow gets out from employees financial institutions.

Some banks offer mortgages for so-called floating rate, which depend on the interest rates on deposits. These floating rate, usually four or five percentage points below the bare fixed but financial institutions warned that they would change them. Deposit rates recently dropped significantly, and I assure you, they will fall even more. And the same pattern is observed with respect to interest rates. Therefore, the floating rate is more attractive,” – tried to convince the manager of one of the banks. Employee of another bank, conversely, did not advise to contact with floating interest. And other Banks offered loans at floating rates, which consist of a fixed margin of 11.25% (no change during the entire loan period) and the discount rate. By the way, floating rates also suggest the commission and charges.

It turns out that most banks are still trying to get the customer at any price, and therefore to conceal from him the whole truth. However, they are at risk of joining portfolios of troubled loans.

What did the crisis teach us?

Before crisis some financial institutions gave out mortgage loans, without demanding even an initial payment. Besides, many banks not especially gave attention of solvency of the client. Today financial establishments assure that have toughened requirements to borrowers. I have been warned that it is hard to receive any loan now: bank services will carefully recheck my incomes. However, this establishment while gives mortgage loans only to corporate clients (and to their employees) and to workers of bank. By the way, employees of the companies are the target audience of many banks today. For example, Banks promises to such clients more favorable conditions.

Can you remember those good times when everybody could take a loan if one required cash? And just imagine the state of those who have to carry that burden nowadays when the world economy is facing hard times. And for those people having credits the matter of credit monitoring is as crucial now as never before. It is not only about loan control, this also allows to save money, time, and nerves and be quick in solving loan related issues. Those who are searching for a spot where to find out about credit report with score, are invited to go to this credit report monitoring site – there is much information about credit monitoring and how to order the service.

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