In France, for example, about 1 / 4 of all consumer loans granted by banks and 3 / 4 - specialized credit institutions. But since the latter receive their funding to a greater extent through bank loans, the actual 9 / 10 the entire amount of consumer credit provided by banks. In some countries (Norway and Denmark, for example), people give out loans to state savings banks with very low (1-3%) percentage of service to them. In this way the authorities try to stimulate economic growth.

But life has lent downside. As the saying goes: "Anyone who takes the loan, sells his freedom." Consumer credit can be "a debt pit. In the U.S., in particular, to 5-8% annually borrowers faced with the impossibility of paying money for the loan. In most cases, as "retribution" they have to give the lender a house or apartment, and with "markdown" (ie, with partial loss of money).

Other negative aspects of consumer credit is also a fact that often the credit and expenditure account gives people the illusion of wealth and lead to overspending, and subsequently as an increase in debt difficulties with monthly payments. In addition, buying on credit more expensive than paying cash.

House in installments

As the Western economy is based on consumption in the developed nations housing lending is a powerful stimulus for economic growth. The most precious asset which is sold for money in the world was and remains real estate. Hence, the role of mortgages in the total consumption.

For example, in the U.S., according to 2002, approximately 73% of acquired land for housing to effect an on credit and felt it was beneficial, because they had the opportunity today to enjoy the benefits of civilization, which under a different scenario, would save money for 15-20 years. The State is also advantageous to engage in trafficking in the means of citizens, who for many years would lie in a stocking in anticipation of the cherished purchases. Due to the flexible housing market, create effective long-term scheme of redistribution of funds in the economy of the United States, Canada, Europe and even Latin America poured billions of dollars the amount of monetary savings. And, most importantly - of the mortgage, which have emerged in Western countries, making it the cheapest possible. For example, today the cost of a mortgage loan in the U.S. and Canada usually does not exceed 7% per annum. Moreover, loans are at least 15-20 years (sometimes 25 years).

Classical scheme of housing loans would run in the world for many decades. In some countries, they worked out a long time, in others (such as in Malaysia) have been introduced from the outside and got rapid development in just a few years. Now on the market for mortgage loans and mortgage-backed securities accounted for a significant proportion of all operations of financial institutions of the West. The best examples are taken to study, here are the U.S., Germany and, as it may seem strange, Malaysia.

The basis of western know-how "- a two-tier market structure, through which banks accumulate in the securities market" for many "trust money intended for the mortgage, and have the opportunity to give as" long "and" soft "housing loans. The primary level here - yourself credit, and secondary - special mortgage-backed securities (bonds, mortgages), with which there is a makeup of creditor banks.

Mortgage classical

A classic in this regard is the experience of the United States. The huge market of housing crediting this country was originally developed under the auspices of the state. Institute of mortgages originated during the Great Depression of the twentieth century with the advent of the Federal National Mortgage Association "Fannie Mae". Now this system is the largest financial institution of the secondary mortgage market in the world. For 2002, Fannie Mae was holding in its portfolio of mortgages worth more than $ 700 billion.

"Fannie Mae" is a direct refinancing of banks by buying their mortgages sheets in times of shortage of long-term loan capital, and then selling them on the open market. The owners of mortgages, bought them, become the bank's creditors, which leads mortgage lending. Thus, the issue of mortgage-sheet contributes to the replenishment of the target resources of banks for mortgage lending.

Experience in the credit market of the United States said that, although over time in this country, the mortgage bond market received a huge development and there is a host of specialized mortgage companies, the state has always been on the market, maintaining its stability.

And along with economic, government intervention in the free market process is carried and the traditional social function. State National Association of Mortgage USA "Ginnie Mae" through the mechanisms of the secondary mortgage market encourages the provision of mortgage loans to certain categories of the population, based on the existing priorities of domestic policy. Protectionism "Ginnie Mae" can help those sectors of the housing market, who can not access conventional methods of lending.

European Mortgages

In Germany and the Scandinavian countries, there is a bit different, distinct from the American system of mortgage. It primarily differs from the closeness of bank interest rates and stock market. The primary source in this model are not lending bank resources, and contributions of citizens who wish to build and buy housing. Buyer for the period of construction is a contributor (co-investor) under 1,5-3%, and then - the recipient of a mortgage loan, the rate which is usually 5-7% per annum.

Under the terms of Germanic mortgage system, 20% of the apartment or house is included in the course of construction, in his completion of housing is made in property, and the remaining 80% is given a mortgage, in fact, in the form of commodities - finished apartment, with a repayment period of up to 25 on it years.

If the buyer for whatever reason can not pay the balance of the loan, he risks being on the street: in any case he will be given apartment or house, however, another value. All mortgage transactions necessarily insured. If the owner of housing - the debtor on the loan - have problems paying for health reasons (for example, he became disabled), all costs for an apartment under the contract is an insurance company. It was her client reimburses the debt, and the apartment remains the owner.