Borrow an apartment in a credit union?

As the president told the National Association of Credit Unions of Ukraine (UNASCU) Peter Kozinets, today issuing loans for housing (or rather, the issuance amount of mortgage) is not a priority for credit unions (CUs), the vast majority of which this type of loan does not offer. According to him, this year home loans accounted for about 8% of the total loan portfolio of Ukrainian COP. However, this portion includes not only the money for housing, and unsecured loans for its reconstruction and repair.

Such a small number of mortgage loans due to the peculiarities of the COP. Profile law defines a credit union as a non-profit organization bringing together at least 50 people on territorial, occupational or other status. In essence, KS - a financial cooperative, in which all members can be and depositors and borrowers. Key financial resources COP originally formed by the voluntary contributions of its unit members, and the active involvement of deposits. Unlike deposit investors receiving a fixed percentage, shareholders can expect a higher income in the distribution of income union.

COP can also raise funds and lend not only to individuals but also to financial institutions, but the financial institutions to raise funds they need to get an additional license regulator. Banks, in contrast to the COP, raise funds through deposits, both physical and legal persons, the issue of securities, and income from cash management services and other banking services. Variety of sources provides greater flexibility to plan and build credit program for a period of 20-30 years. The resources of the COP is largely made up of short-term deposits "physics" with an average period of about 1 year. Therefore, unions have to limit the term of mortgage lending. Thus, some of the largest COP First Credit Company and Kharkiv charitable fund makes loans for up to three, and Sevastopol Multizaym - up to five years. The leader in terms of mortgage lending is now Kiev COP Valadar who is willing to lend money for 10 years.

The majority of the COP, if outstanding loans, then no more than a year and a half. Value of the cash resources of the COP is higher than that of banks. Even strong enough COP will not issue a loan cheaper 19-30% annually in local currency. As the chairman of the board of the COP COP Valadar Maxim Gorbatyuk, development of "allies" niche mortgage lending limits and difficulties that arise in the case of non-repayment of outstanding loans. The banks of the scheme with the debtors and the subsequent sale of collateral through executive service in the auction carefully designed. Many of the same COP little experience, and the procedure laid down flat implementation may be delayed by more than half. Individually and expensive According to the director of the Department of supervision of credit institutions Financial Services Commission Andrew Olenchyk, unions usually profess universal credit.

These portfolios may be living next to consumer loans, social, business loans and others. At the same time, Ukraine has a COP that are trying to work primarily with the mortgage. Typically, these organizations are closely linked to the real estate brokerage business. COP, as well as some banks, often limit the maximum amount of mortgage credit. Some of them can offer only 40%, other - 80% of the appraised value of the property. The Union may request additional collateral in the form of another apartment. In most cases, interest is charged on a monthly scale for the remainder of the debt, and the resulting overpayment is, for example, about 17% per year at the rate of 30%. COP issued mortgage loans in hryvnia, sometimes tied to the exchange rate. For comparison, the banks offer dollar loan 12-17% (including commissions). At the same time, as Peter Kozinets, today, the question of where it is profitable to make out a mortgage, becomes secondary. Buying an apartment on credit is not available in the big cities is not so much because of high interest rates in banks or COP, and by imbalances in housing and the average wage in Ukraine.

There are some similarities in the programs of the COP. Allies are usually quite hard on debtors. For example, in just one day of delay in the payment rate for the loan in the UK Valadar increased by 1.2 times, and in Kharkov benefit society - set an additional 1% per day for as long as the borrower does not again enter the normal repayment schedule. On the other hand, most of the COP approach to serving its members individually and flexibly. They usually do not charge a penalty for early repayment and do not need to insure the property. It is possible that long-term and active membership can earn unique rewards, which reduced the price of the mortgage loan. Required documents often limited passport, identification code, documents of title to the apartment and, if required, the consent of the other spouse. Some associations also require proof of employment.

As told Maxim Gorbatyuk specialists COP "COP Volodar" very carefully checks to the borrower, and the apartment, because it acts providing a refund. Guarantees and prospects novice Union today is not easy to instill confidence in your potential members after a series of scandals to bad buy in groups, which is characterized by tempting low mortgage interest and the need to pay a certain amount before it is received. At the same time wishing to invest in similar structures or young COP prevent scrutinize their conditions, as evidenced by the very recent history with the COP Berliner Bausparkasse. This alliance is known to be lacking in the end of October, the Financial Services Commission license, promised loans 4,6-6% per annum for 30 years, which required to deposit 20% of the cost of purchased housing and pay a few months the interest on the loan is undistinguished.

By the way, Berliner Bausparkasse interested in membership UNASCU in his early work, but passed to the association was not. In general, entry into UNASCU (association established in 1994) is only possible under certain financial performance, regulatory compliance, and co-operative principles and transparency of the COP. The association is not only provides technical assistance to its members, but also administers a number of financial assets - for example, in case of a threat of bankruptcy may provide funds from the stabilization fund created by contributions COP (now more than 6 million USD). Today UNASCU initiates the creation of its own program based deposit insurance.

Experts hope for an early adoption of the new Law "On credit unions", expanding the list of financial services and tools that will increase the share of COP mortgage. The bill incorporated the right of association to take deposits and lend some legal entities (small businesses, farms and so on.), Exercise and settlement services to connect to the payment system, which will ultimately lead to cheaper resources. In addition, the document opens the possibility of a COP of mortgage funds. Peter Kozinets notes that the adoption of the new law, and a trend towards consolidation trend today unions, will in a few years to fully enter the market.