What is Two-Level Mortgage Model

Instruments of financing at the housing market allow increasing the efficiency of branch operation, accumulating more money resources, and redistributing them among the segments of this market. The chapter is based on the analysis of the housing markets' functioning in different countries, taking into account the possibilities of their financing. Recommendations have been formulated on the use of the foreign countries' experience in Russian practice in order to improve the efficiency of financing for the housing market in Russia. It is determined that the main instrument of financing at the majority of national housing markets is mortgage lending. The author has analyzed single-level and two-level models of mortgage lending to determine the advantages and disadvantages each of them has. In the German model, such a mechanism is implemented as a system of “building saving,” which involves gradual accumulation of the initial contribution.