— This is an expertly established value — so that banks have what is the normal internet speed the opportunity to really compete with each other. Unfortunately, in practice, such a rate reduction can still be accompanied by an increase in the price of an apartment. But to a much lesser extent than before, so the risks are limited.
The rate is lower than the market
rate by more than 1/5, then it is difficult to justify it economically. In essence, the bank starts dumping. Banks are not altruists, and there may be a scheme with an overpricing of the apartment or other hidden payments. And then the prohibitive reserves start working. If the rate is reduced by more than 1/5, then the loan are lead generation companies worth it? reserve will be 30%, and if by more than 1/2, then 50%. And the more reserves it creates, the more it hits its profit.
Addition to programs with reduced rates
there is also, for example, tranche mortgage. What’s wrong with it?
— The borrower may not be ready for the growth of loan payments. For the developer, this may not be very good either, because the payment for the apartment is not immediately america email transferred in full to the escrow account, therefore, the project financing rate will be higher. But this program is not yet widely used, and the risks are generally limited.
