Mortgage down payment amount in 2021

Living in your own house or apartment is the dream of many. However, purchasing a home is not always an easy task. Sometimes you have to resort to the help of banks when applying for a loan. However, not everyone has the ability to pay a down payment on a mortgage. Then potential borrowers begin to look for ways to take out a mortgage without a down payment or other possible options.

What is a down payment and why is it needed?

Down payment is the amount from the borrower’s personal funds that must be paid when applying for a loan. This is part of the cost of the purchased property in the case of a mortgage. How much the down payment will be in rubles or percentage will depend on a large number of factors:

• selected bank and loan program;
• the cost of the purchased property;
• loan period;
• income of the potential borrower.

The minimum down payment can range from 0% to 30%. Typically, the more the borrower is willing to deposit immediately, the lower the interest rate on the loan for him in the future.

In addition, the monthly payment is also significantly reduced in the future, since the more money you deposit, the less you need to borrow from the bank, and accordingly, interest will be charged on the smaller amount.

Preferential mortgage Gazprombank, Persons. No. 354

from 5.99%

per annum

up to 3 million

up to 30 years old

Get a loan

At a time when mortgages had just appeared on the domestic financial services market, many banks issued funds for the purchase of housing without a down payment, and subsequently had many problems with unscrupulous borrowers.

When applying for a mortgage at a bank, it is better to make as much of a down payment as possible. Thus, the overpayment will decrease not only due to the fact that the interest rate will decrease, but also due to the reduction in the loan term. The optimal ratio is 50/50 of the bank's funds and the borrower's own money.

The source of the down payment can be the borrower’s personal money or funds from the sale of real estate and other property. In some cases, banks allow the use of maternity capital as a down payment on a mortgage.

It is also possible to use credit funds as a down payment on a mortgage, but this will greatly complicate the payment for the bank client, since the debt burden will increase and not everyone will be able to cope with it.

Expert opinion

Evgeny Konoplev, real estate market expert at the Moscow Guild of Realtors:

Almost all banks expect the borrower to already have 10%, or better yet 20%, of the cost of the property being purchased.

It is important to understand that when applying for a mortgage loan, the so-called “alternative scheme” also works. If you are selling your old apartment, you can show it to the bank as a down payment for a new home. For example, if a client sells a one-room apartment for 5 million rubles. and wants to take out the same amount as a mortgage from the bank, he can provide a preliminary purchase and sale agreement as proof that the funds will soon be in his hands. It is better to launch such a scheme with the participation of a real estate market specialist. It can be difficult to figure it out on your own. But banks are willing to work in this format. They perceive funds that are ready to appear in your account in the near future as funds that are already there.

If you do not have a down payment, but have a property that will definitely sell at a price of at least 20% of the cost of the future apartment, you can take out a mortgage loan.

What is the down payment for a mortgage in 2021?

Loan “Collateral Loan+” Norvik Bank (Vyatka Bank), Person. No. 902

from 8.8%

per annum

up to 8 million

up to 20 years

Get a loan

In 2021, the amount of the down payment ranges from 0 to 50 percent of the cost of the property. The exact value depends on the selected property and the bank program. For apartments in the primary fund, the contribution is usually minimal. Resale properties require a one-time payment of 0 to 20 percent of the price. The maximum contribution is assumed for individual residential buildings and townhouses - up to 50 percent.

However, getting a loan for a new apartment is more difficult. If you can’t raise money quickly, it’s better to take out a mortgage for a secondary home. The down payment in most banks will be much lower - 15%.

Regardless of the cost of housing, the down payment on average should be at least 30%, so before applying for a loan it is recommended to check whether it is possible to collect such an amount, and if not, probably look for a cheaper apartment or house.
How much is the down payment for a mortgage in banks in 2021?

Loan “New building with state support” TransCapitalBank, Lt. No. 2210

from 5.34%

per annum

up to 12 million

up to 25 years

Get a loan

When is it deposited?

Transferring the down payment is the penultimate step in the mortgage loan process. It is carried out after:

• the bank studies the borrower’s documents and determines his solvency;
• issuing pre-approval for a loan;
• studying the papers of the selected property - cadastral passport, assessment report, and so on;
• signing a preliminary agreement between the bank and the borrower.

At this stage, the borrower must transfer funds to the bank, after which a final decision is made on the terms of the mortgage. The bank needs the transfer of the first installment before signing the agreement because if the transferred amount turns out to be less than the regulated amount, the bank will have time and the opportunity to reconsider its attitude towards the borrower, his solvency, and so on.

This is why the final mortgage agreement is signed after the deposit has been transferred.

Where can I get money for a down payment?

The desire of many to take out a mortgage rests on the 20-30% required down payment, without which the bank simply will not agree to issue a loan.

To avoid getting into trouble by submitting an application and, after approval, discovering that there are not enough funds to make the down payment, you must:

1. Choose housing and find out its exact cost.
2. Then you should consider the available loan programs of various banks, compare the conditions and choose the most suitable ones. Using a loan calculator, which is available on the websites of all major financial organizations, such as SberBank or VTB, you can calculate the down payment required from the mortgage amount. From the developer, secondary housing or just a new apartment - all these aspects need to be taken into account when studying offers. This will allow you to understand how much money, for what period and at what percentage you can receive.
3. After calculating the monthly payment, it is recommended to start saving this amount each month by depositing money into a deposit account. This way you will be able to save up funds for a down payment.

Mortgage Bank DOM.RF, Lit. No. 2312

from 9.4%

per annum

up to 30 million

up to 30 years old

Get a loan

What documents need to be prepared

The list of documents for obtaining a mortgage is similar for most banks. It can be divided into two groups: documents of the borrower and documents for the purchased property.

Borrower's documents:

• passport or other identity document;
• the second document from the list proposed by the bank (it is better to provide a foreign passport or driver’s license);
• for men under 27 years of age - military ID;
• marriage certificate and marriage contract, if available, for spouses;
• children's birth certificate (if available);
• a copy of the work record book certified by the employer;
• income certificate in form 2-NDFL or in bank form.

If you have several jobs, it is better to provide information on each of them (this will increase the chance of approval of the application). It is worth remembering that the statute of limitations for all documents provided from work is 30 days from the date of certification.

Documents for the purchased property:

• a certificate from the BTI with a house plan and an estimate of the cost of the apartment;
• cadastral passport;
• technical certificate;
• a report from an accredited appraisal organization that reflects the market value of the property.

It is better to start collecting documents for the purchased property after receiving mortgage approval. As a rule, at least two months are allocated for searching and accrediting a property from the moment of a positive decision on the loan.

Maternity capital as a down payment

Government subsidies can be used as a down payment on a mortgage. Some banks require you to contribute from 10 to 20% of the cost of the property from personal funds, even with the participation of maternity capital. It should be taken into account that maternity capital implies the mandatory allocation of shares to children.

Mortgage with state support for families with children VTB Bank, Individuals. No. 1000

from 4.3%

per annum

up to 12 million

up to 30 years old

Get a loan

What is the purchasing procedure

“Suppose a person has 20% of the cost of the housing he plans to buy,” comments lawyer Ruzanna Khanamiryan. — He comes to the bank, discusses the terms of the mortgage agreement. On the day of the transaction, he brings this money and receives the missing 80% in the cash register for the purchase of real estate. The funds are placed in a safe deposit box or on a letter of credit account. If the seller is a legal entity, the bank transfers the money to his current account.”

The seller receives money for the property in full immediately, while the buyer gradually repays the loan to the banking organization. Payment terms are agreed upon at the conclusion of the contract, and the amount of the first payment does not affect further payments.

We broke even

The ideal solution for those who for some reason cannot save is to take out a mortgage with a zero down payment. The problem is that there are practically no such credit programs left: domestic bankers, taught by the mortgage crisis in the United States, have almost stopped working with “zero” borrowers - despite the fact that there have been fewer unscrupulous debtors in recent years.

In the fall of 2018, the number of mortgage loans in Russia for which payments were not made for 90 days or more was at a historically low level. The share of bad mortgages was 1.9 percent last October. Just two years ago this figure was approximately three percent, in 2010 it was seven percent.

A mortgage with no down payment at all, however, can be obtained when purchasing apartments in a number of new buildings - developers and real estate agencies privately agree to provide such preferences to their clients.

In Moscow, for example, according to BEST-Novostroy, an apartment or apartment without a down payment can be purchased in projects accredited by Vozrozhdenie, SMP Bank and Rossiya banks - these are residential complexes Domashny, Grinada, Orekhovo -Borisovo”, “Kakhovskaya”, “Eco Vidnoe 2.0”, “Vavilov House”, “Festival Park”, “Headliner”, “Hometown of Oktyabrskoe Field”, “Mir of Mitino”, “Hometown of Orekhovo-Borisovo”.

There is also a group working with “nuleviks” (according to information on the developer’s website) that is implementing several large projects in New Moscow. In “Novye Vatutinki” (Novomoskovsky district) they give a mortgage without a down payment, but the loan amount is limited to eight million rubles.

The conditions for ultra-affordable loans can hardly be called favorable - the rate is usually no less than 14 percent - almost like during the black mortgage period of December 2014 - March 2015, when loans became practically unaffordable due to a sharp increase in the Central Bank's key rate.

Low payment mortgage programs

Brief information about such programs is contained in the table.
Find a detailed description below. Low down payment mortgage

Avoid the risk of spending your saved money

If you save money every month, you may be tempted to spend your savings. For example, go on vacation abroad. To avoid this, create an additional savings reserve for yourself, from where you can take funds for unexpected expenses. And never deny yourself everything, otherwise your motivation and enthusiasm for raising money for an apartment will quickly disappear.

Don't be tempted by "lucrative" investments. For example, your friend advises you to invest money in shares of a company whose profit growth is expected to be around 25% per annum. For investments, always use only free money that you won’t mind parting with.

Is it possible to take out a mortgage for construction without proof of income?

It is possible, but the conditions will not be very favorable. The presence of a stable source of income for the borrower is another important signal for the bank, allowing it to reduce the rate and offer more favorable conditions.

“Some banks do not request proof of income, and also issue loans to individual entrepreneurs and self-employed people, allowing up to four co-borrowers,” continues Andrei Mozol. — Moreover, if a mortgage is requested to build a house on a plot that is already owned, then the property under construction serves as collateral. And if a loan is taken out to purchase a plot of land and build on it, then a lien encumbrance is placed on the house and often on the plot of land too.”

Many lenders require life, health and property insurance. Without insurance, lending conditions worsen or a loan is denied.

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Mortgage with state support

Under this program you can take out a home loan at 6.5%. The difference between the preferential rate and the market rate is compensated by state banks. The minimum contribution is 15% of the property value.

The maximum mortgage size depends on the region of residence. For Moscow and the region, as well as for St. Petersburg and the region, it is 12 million. For the rest of Russia, it is 6 million rubles.

Who can get such a mortgage? Citizens of Russia who buy an apartment on the primary market from a legal entity. A transaction with an individual and an individual entrepreneur will not work.

Mortgages at 6.5% are available in Sberbank, Rosbank, Rosselkhozbank, VTB, Gazprombank and other large banks.

The program is valid until July 2021.