Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Models of Mortgage Lending: Cross-Country Evidence

Author(s): Mariia Ermilova, Veronika Nikeriasova

The purpose of this article is to consider different types of mortgage lending and determine the most favourable one in the context of current economic conditions. European (USA, Germany, United Kingdom and Russia) experience analysis has shown that creating and developing cooperatives makes it possible to improve the efficiency of housing market financing systems. Construction savings system implementation that allows increasing the level of affordable housing provision is regarded as an essential process. The use of mechanisms of a balanced autonomous model is substantiated. The study has showed that housing market financing tools analysed can be divided according to the degree of priority. Mortgage is used for real estate purchase while construction savings system when a person has time for accumulation of money. The latter also brings its participants an additional income in the form of deposit interest payments.