Rus News Journal

Legislative removal of restrictions

Legislative removal of restrictions on the maximum size of an insurance covering is not connected with possibility to give out a mortgage with a zero initial payment and an insurance covering at a rate of 100 %. On it BN have informed in Open Society Insurance company AIZHK .

insurers already now can conclude contracts of insurance of financial risks of the creditor with banks, - have explained in the company. – under these contracts the same risk &ndash is insured; risk of insufficiency of the means obtained after sale of put real estate, for a full covering of a debt of the borrower . As the insurer the creditor bank here acts, but payments under the insurance contract will be transferred, most likely, on the borrower – for example, in the form of small increase of the interest rate under the credit . No legislative restrictions on the size of the insurance sum in this kind are present.

we Will note, all publications in a press, devoted to the given legislative initiative, unequivocally treat it as intention AIZHK to stimulate creditors to reduce the size of the first payment up to zeroing.

we Will remind, in operating edition of the law About a mortgage for insurance of responsibility of the borrower on a mortgage loan the maximum size of the insurance sum is limited by a threshold in 20 % from cost of a subject of pledge. But at present in instances it is considered offered AIZHK the project of the legislative amendments increasing the size of the insurance sum to 100 %.

a source: the Real estate Bulletin