What is social mortgage?

For many ordinary citizens of the mortgage, offered by banks, simply overwhelming. Then comes to the aid social mortgage with their many advantages. Social mortgage, as the name implies, is designed for poor people - young families, government employees, so the square footage they are selling at discounted prices. For example, today a "square" in Moscow is about 4 thousand dollars. If state employees to buy the apartment under the social mortgage, every inch of it will sell at a deep discount. Plus the borrower receives from the bank to insure their lives, and guarantee not to raise rates. Metropolitan gift for residents of Moscow, standing in the queue for housing improvement, since 2005 operates a social mortgage. Loans are granted on such conditions: • Accommodation can only be purchased in a house built by the Government of Moscow • mortgage lending by the Bank which has entered into an agreement with the Government of Moscow • the loan is granted for a period of 3 to 30 years • early repayment is permitted only on After 6 months • Interest rate is fixed lending bank.