Mortgage as a Tool for Addressing Housing Needs

Abstract

Mortgage lending is investigated as an effective tool for solving residential problems of the country's population. The advantages and disadvantages of types of mortgage loans and models of the mortgage market are considered. The German (one-tier) model and the American (two-tier) model of the mortgage market are characterized. Conclusions have been made regarding the state of mortgage lending in European Union countries. The interest rates on mortgages in the countries of the world are analyzed and differences of mortgage lending are revealed in some of them. An estimation of the state of mortgage lending in Ukraine is given. The issue of state support to the mortgage sector is considered, which will facilitate the intensification of investment activity in this area and housing construction. The socioeconomic motives of effective solution of the housing problem of residents of the Vinnytsia region were revealed, the analysis of the domestic normative-legal base and application of its norms in practice were carried out. Study of foreign experience has provided an opportunity to highlight different methods by which the state regulates relations in the process of mortgage lending. The peculiarities of provision of mortgage loans to the citizens of the country are highlighted and ways of further development of mortgage lending in Ukraine are elucidated, which can timely and adequately respond to external and internal challenges and threats, and strengthen the economic security of the state. The ways of further development of mortgage lending in Ukraine are suggested: development of the strategy of mortgage market development taking into account foreign experience, introduction of a mortgage insurance system, stimulating the population to mortgage and increasing the amount of social programs, creating of a quality bail on mortgage loans, securitization of the mortgage lending market, reduction of interest rates on mortgages etc.

Sustainable Development of the Mortgage Market in Azerbaijan: Commercial Risks of Housing Construction, Social Vision, and State Influence

“…In foreign countries, financing is provided through both market-based financing mechanisms and credit institutions, as well as various mechanisms for accumulating people's savings in the form of non-governmental institutions and organizations. The American model is built on market-based mechanisms for accumulating and placing savings [34], German-uses a mutual lending mechanism with banks [35], and Chinese-uses mechanisms for the accumulation of funds through their transfer by enterprises to residential joint-stock companies, housing savings funds [36]. The different institutional structure of financing models reflects the essential features of the housing finance system, i.e., the specifics of the mechanism of accumulation of savings, such as American-savings through investment and issuance of securities, German-the use of credit and savings institutions, which are banks and mutual lending cash registers, and Chinese-the mechanism for the formation of special funds at the expense of the population with the participation of primary link (enterprises) under state control.…”