Is it possible to take out a mortgage while on maternity leave? Conditions of registration

As sad as it may be, a bank mortgage requires mandatory proof of income. Banks have tightened the requirements for “housing borrowers” ​​so much that a young mother will not be able to take advantage of a classic mortgage.

But, as opposed to mortgages, many credit products have been created that provide families with small children with considerable benefits and subsidies.

It is taken into account here that the programs require confirmation of the borrower’s official earnings. This suggests that a young mother cannot do without attracting co-borrowers and guarantors.

So, what “indulgences” can a borrower who is on maternity leave take advantage of when applying for a mortgage?

1. When a second child is born in a family, the maternity capital allocated to the family can be used as a down payment on a mortgage or to repay an existing loan for the purchase of a home. In Russia, many banks work with maternity capital, so you can easily add extra money.
2. Banks practice the “Young Family” program, according to which, upon the birth of a child, borrowers are provided with discounts and benefits on mortgage products (deferments in repayment of principal debt, reduction in interest rates).
3. The state program “Affordable Housing for Young Families” can help even single mothers under 35 years of age. A woman on maternity leave has the opportunity to purchase housing at a reduced price or count on a cash subsidy of 35-40% of the estimated cost of housing to obtain the same mortgage.
4. Different regions offer different housing program options for single mothers or families with children that are worth considering.

How to get a mortgage while on maternity leave

When considering a borrower’s candidacy, the bank checks all the ins and outs of the person:

1. Verified income level. The salary at the main place of work, part-time work, and income from renting out property are indicated. However, the data will need to be confirmed with a 2-NDFL certificate or using a bank form.
2. Work experience and profession. Banks prefer to issue loans to people whose official work experience is at least 1 year, and whose continuous work experience at the time of application is at least 6 months.
3. Marital status, presence of a spouse, children and dependents.
4. The amount of cash to pay off the down payment. A mother's certificate is used, but the bank prefers to use personal savings for the first mortgage payment.
5. Credit history. The presence of frequent arrears and open debts on loans is a guarantee of mortgage refusal.

The chances of getting a mortgage for a mother on maternity leave increase under the following circumstances:

1. A husband with a high salary who will act as a financially responsible co-borrower. In this case, the mother's income may not be taken into account.
2. If, after maternity leave, a well-paid job awaits the mother, where she is a recognized and sought-after specialist.

1. Down payment (at least 30% of the cost of housing) from personal savings.
2. Part-time and permanent part-time work that brings in enough income to pay off the loan.
3. Own real estate, which can be mortgaged to the bank to buy a new apartment.
4. Co-borrowers or guarantors from among relatives or third parties with a good credit history and work. Banks allow you to have up to 5 guarantors for one loan.
5. Passive income - renting out housing.

If a single mother on maternity leave goes to the bank, having only a child benefit from her income, and a maternity capital certificate as a down payment, the probability of getting a mortgage is zero.

Summing up

In most cases, parents decide to improve their living conditions after the birth of a child. But during maternity leave, the mother’s income level decreases significantly, which becomes a problem when deciding to take out a housing loan.

Many banks do not want to contact mothers on maternity leave, basing their refusal on their insufficient solvency. The way out of the situation may be additional income, attracting several co-borrowers, or providing good collateral for the loan.

How can a mother on maternity leave pay for her mortgage?

It’s good if you have a husband with a high salary or wealthy relatives who are ready to help with loan repayments. However, sometimes a woman on maternity leave relies only on her own strength and earns money while raising a child.

Ways to earn income while on maternity leave:

• if it is possible to delegate care of the baby after childbirth, you can take on part-time work on a rotating schedule;
• If the expectant mother is not employed during pregnancy, she can master one of the digital professions: administrator of a public page on VK or an Instagram page, content manager, copywriter. However, not everyone achieves success in these areas, and freelance work requires dedication and effort no less than office work;
• find a part-time job at night, but to do this, someone needs to help with the child during the day;
• take maternity leave from work and return to work and defense remotely a few months after giving birth. This is not possible for all professions.

The level of earnings depends on several criteria:

• qualifications and professional skills of the woman;
• availability of connections and willingness to retrain if necessary;
• personal qualities;
• desire to earn money;
• health;
• having an assistant to help with the children.

Moms on maternity leave earning 40-50,0000 a month is not a myth. But mothers who got caught up in a scam like working remotely as a manager calling a cold client base are also real. If you set yourself the goal of earning money while on maternity leave and securing a mortgage, you need to soberly assess your strengths and trust only reliable employers.

Why do expectant mothers take out a mortgage?

Firstly, to acquire more spacious living space. Future additions to the family often require more favorable living conditions for the child and parents. This goal is realized after receiving a housing loan during maternity leave.

Secondly, this is a significant replenishment of the family budget. A newborn baby needs a furnished room, diapers, hygiene products, special food, a crib and much more. Not all parents can afford this, especially young couples. Moreover, things become more expensive, and the child constantly needs larger sizes of clothing as he grows. Borrowed funds can become a financial support for necessary children's expenses.

Thirdly, expansion of the current living space. The expectant mother understands that the child needs his own room, but there is not enough space in the apartment for arrangement. But purchasing new real estate is impossible due to certain reasons. The only way out is to redevelop the current house and expand it.

A mortgage provides the financial side of achieving this goal.

State support and maternity leave

Since increasing the birth rate is a priority of state policy, in 2021 you can receive benefits and subsidies for a mortgage while on maternity leave:

1. If a mother is on maternity leave with her second child, she can use maternity capital to pay off debt or mortgage interest. At the same time, banks prefer that the funds on the certificate be used not as a down payment (there are few such loan programs), but for early repayment of an already issued loan.
2. Mortgage at 6% for families whose second or third child will appear between 2021 and 2022. The program has features: the benefit is issued only when purchasing a new building from a developer, while a previously received loan for primary housing is refinanced at 6%.
3. Assistance to large families in obtaining a mortgage by paying a one-time subsidy to pay off the down payment. The program is regional and not available in every city and region.

Even if government support is used, the family’s income should be enough to cover the monthly mortgage payments. Otherwise, the bank will not approve the loan application.

Reviews

Elena Nikolaeva, Voronkzh Three years ago, while on maternity leave, she applied for a mortgage to two banks at once. The first one was denied to me, but Sberbank approved it. But I had my own apartment, but it was very small. I used it as collateral. Perhaps that is why they gave me the loan.

Svetlana Nikitina, Omsk I also decided to buy an apartment while on maternity leave. I am a hairdresser by profession, and after birth I worked at home. To receive a loan, I had to officially legalize my part-time work as a private practice. There were a lot of clients, so the income was quite decent. My mortgage application was approved, but the loan amount was still slightly reduced.

What do banks offer?

Which banks give mortgages to mothers on maternity leave? If you have income and a sufficient down payment, you can contact any credit institution. But not everyone has these benefits. Therefore, special offers from banks that are loyal to family borrowers are of great importance.

The national credit institution in the country is Sberbank. Sber has a special program “Young Family”, which allows young parents to receive money for an apartment on favorable terms:

• rate from 10.2%;
• term up to 30 years;
• the age of the borrower is from 21 to 35 years (if at least one spouse is under 35, the family has the right to participate in the promotion);
• choice of housing on the primary and secondary market;
• saving on the rate by having a salary card and choosing housing in the Domklik database;
• amount from 300,000 rubles;
• use of maternity capital for early repayment;
• refinancing or obtaining a mortgage with state support at 6%.

Under the terms of the Young Family program, spouses with children and single mothers can apply for a loan. In this case, the woman must have a down payment of at least 20% of the cost of housing and sufficient income to repay the loan.

At Sberbank you can get a mortgage for a room in a dorm or in a communal apartment. With a small budget and low income, buying a room with a mortgage for a mother and baby will be an affordable solution to the housing problem.

A mortgage broker provides guaranteed assistance in obtaining a mortgage during maternity leave. The work of a specialist is not free, however, when it comes to purchasing a home, the commission for assistance is justified.

Making a large down payment

Typically banks require you to pay at least 20% of the cost of the home. If the borrower provides a significantly larger amount, then getting a mortgage is much easier.

For example, there is a simultaneous sale and purchase of an apartment. The new apartment costs 300 thousand more than the old one. It turns out that the down payment is almost 70% of the loan cost.

Or, if you already have two or more children, you can take advantage of government assistance in the form of a Maternity Certificate. Its size is 453 thousand rubles, and this money can be used both to pay the first installment and to repay the principal debt, look for details here.

Procedure for completing a transaction

Registration of a mortgage transaction for a woman on maternity leave is no different from the standard procedure. All actions can be carried out in several steps:

This concludes the transaction. After signing the mortgage agreement, the necessary funds will be transferred to the account of the company that is selling the property.

Apply for a mortgage to your husband and list yourself as a dependent

If a woman is not sure that the bank will approve the application, or has already been refused, she can involve her husband in the process. The husband takes out a mortgage for himself, and the wife on maternity leave becomes a co-borrower. In this case, spouses have equal rights to the acquired property.

When submitting documents, the wife is indicated as a dependent. The man must have a high income (above the average in the region where he plans to take out a loan). The bank needs a guarantee that the borrower is able to make monthly payments.

The maximum monthly payment should not exceed half of the husband's income. For example, a spouse earns 55,000 rubles. This means you can give the bank no more than 27,500 rubles.

If the spouse acts as a co-borrower, her maternity payments are taken into account.

Sometimes banks still refuse to provide loans to families with dependents. But there are financial institutions that do not take dependents into account. These include VTB, Raiffeisen Bank. The conditions may not be the best (high interest rate or start-up fee), but the chance of getting a mortgage increases.

Documents you will need

Applying for a mortgage requires collecting a large number of documents. However, the list of papers will not always be the same.

It is worth understanding this and checking with the lender in advance what documents are needed to complete the transaction.

The standard package of papers contains the following basic confirmations:

In order for a woman on maternity leave to receive approval for a mortgage, the following documents are provided:

If a woman has a husband, then it is worth providing a marriage certificate and documents about the spouse’s salary.

Because this will increase the chances of getting a mortgage from a bank - due to an increase in the borrower’s salary.

Possible difficulties

If you are planning on adding to your family, correctly assess your financial capabilities when choosing a mortgage program. With the birth of a child, family expenses increase significantly, and earnings decrease with maternity leave. It is necessary to calculate the family budget in advance and compare the expected costs.

You need to be prepared for the fact that banks set a higher interest rate on a mortgage loan for children. Women on maternity leave fall into a high-risk category. The rate is influenced by the ratio of the loan amount to the real estate valuation and the liquidity of the collateral.

Keep in mind that the mortgage is issued for a long period of time: from 10 to 20 years. During this period, the economic situation in the country will change, working conditions may change, living standards may deteriorate, and inflation may rise. These and other factors complicate the return of credit resources.

The bank is not interested in your financial problems; it is important for them that you repay your debt on time. The terms of the agreement stipulate the right of the creditor to return the funds lent through the sale of real estate. If the repayment schedule is violated, arrears occur. Penalties will be applied to the debtor.

To avoid them, notify the lender of your difficult financial situation and ask them to sign an additional debt restructuring agreement. Typically, banks accommodate customers and extend the term of the mortgage. Sometimes they provide a temporary deferment on the payment of interest charges while the client is insolvent. Lawyers advise paying at least part of the payment, but not ignoring debt repayment completely.

Nuances when registering as a single mother

If a single mother wants to get a home mortgage, then there will be many nuances. After all, you will have to prove the presence of a high and stable income for the entire period of loan repayment.

Privileges in issuing mortgages have:

• private entrepreneurs - whose profits do not depend on going on maternity leave;
• those who have income from dividends - securities, investments, etc.;
• if you have profitable property - cars and real estate that can be provided as collateral;
• guarantor with a high salary.

Each of these points influences the decision of a banking organization. Therefore, before applying for a mortgage, you should prepare in advance as many guarantees of debt repayment as possible.

It is worth looking for programs that allow you not to provide evidence of earnings and high income.

Then, with a high probability, you can get a mortgage, but at a higher interest rate and strict conditions.

Other lending options for the purchase of real estate

If you need to add a small amount to purchase real estate, you can get a simple consumer loan. Then the question of how to get a mortgage while on maternity leave automatically disappears. Many banks issue cash loans based on two documents:

• Tinkoff;
• Home Credit;
• Post Bank;
• Renaissance Lending, etc.

Another excellent lending option for a woman on maternity leave is to take out a loan secured by existing real estate. If you own an apartment, land or other object, you can pledge it to the bank for the loan repayment period. This method is good because it allows you to receive a large sum for a long period of time without having to report on the expenditure of money.

In addition, the interest rate of a secured loan is not much higher, and you will not have to worry about whether you can get a mortgage while on maternity leave. For example, Sberbank issues such a loan at 13%. You can mortgage the property of your parents or spouse, but then they must act as guarantors or mortgagors. After full payment, you will remove the encumbrance from the property and will be able to dispose of it without restrictions. But if the debt is not paid, the bank has the right to sell it through the court to pay off the debt.

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Author:

Mortgage specialist Maria Yurievna Sokhan

Date of publication May 17, 2019 July 16, 2019

Conditions for providing real estate in Sberbank

Programs for issuing mortgages at Sberbank of Russia have favorable conditions. In 2021, there is one profitable loan program for young families:

It is worth noting that the loan program offers borrowers a loan on favorable terms.

Since you can take it out before the birth of the child, and during the maternity leave - for three years - you can only pay interest. And there is no penalty for such a service. As well as additional commissions.

Mortgage and maternity capital

Regardless of the region of residence, after the birth of the second and subsequent child, a woman receives a certificate for receiving Maternity Capital. This is federal assistance in the amount of 450,000 rubles.

By law, a woman can use maternity capital to improve her living conditions. There is also no need to wait until the child is 3 years old. Typically, maternity capital is enough for a down payment; in some regions, there is money left over for several monthly payments.

But one certificate is not enough. If a woman is not employed and there are no alternative sources of income, the bank will refuse to lend. The refusal is motivated by the fact that the borrower does not have a regular income and cannot guarantee timely payments.

Applying for a loan before going on maternity leave

It is advisable to think about solving the housing problem in advance. The regional program “Young Family” gives young parents the opportunity to solve their housing problem. Social support measures are provided at the place of registration. You should contact your local administration.

Two conditions for participation in the program:

• Mom and Dad are under thirty-five years old;
• the marriage union is officially registered.

Young parents receive two benefits: a preferential interest rate and the opportunity to get a deferment.

The question often arises: I’m on maternity leave, what should I do with the mortgage? The deferment is given for a period of up to five years. During this time, the problem can be solved.

Consequences of bank fraud

Some clients do not inform the financial institution about maternity leave. Instead, women on maternity leave ask their employer to issue a certificate following the sample of the selected bank stating that the funds issued are not maternity leave.

If the accounting department confirms that the woman receives a salary, the loan will most likely be approved. But when it turns out that the borrower was pregnant or on maternity leave at the time of concluding the contract, the financial organization has the right to terminate the contract, citing the fact that the client tried to hide important circumstances. After this, the woman will be blacklisted and it is unlikely that at least one bank will want to cooperate with her.

Reasons for denying women maternity leave

Any bank has its own “black list” of borrowers - that is, those clients for whom it is undesirable to issue loans. These include:

• debtors - former and current;
• individual entrepreneurs;
• unemployed;
• large families;
• low-income families - in which only one family member works;
• borrowers without expensive property;
• young borrowers - from 18 to 25 years old. Read about at what age you are more likely to get a mortgage approved here.

It is logical that in this situation she will not be able to pay off a large amount of borrowed funds; after that she will have nothing to feed herself and her children.

But this does not mean that it is impossible to get a mortgage

The main requirement of the bank must be met - the borrower must be creditworthy.

In practice, this means that the client will have to provide certificates indicating that he has received sufficient earnings to secure the loan. By default, the amount of mortgage funds will be obviously smaller than with a standard loan.

It is also necessary to have insurance - this will increase the monthly payments and reduce the size of the home loan. In any case, you can return part of the money that was used to pay for insurance

.

Additional sources of income

A simple way to prove solvency is to provide evidence of additional sources of money. For example, these could be:

1. Main job. Yes, no one forces a woman on maternity leave to work. But the Labor Code allows you to work up to 2 hours a day, even in the first months of a baby’s life. The salary, of course, is less than at full time, but this is already a plus.
2. Part-time job. If she was unable to get to work, a woman can find a part-time job - for example, freelancing or outsourcing work from home. In all cases, you will need to demonstrate to the bank the agreement concluded with the customer and receipts for the transfer of funds.
3. Private practice or business. For example, a female lawyer, even while on maternity leave, can provide legal advice at home. In this case, you need to bring to the bank a permit to conduct private activities and a completed tax return for the current and previous tax periods.
4. Benefits, pensions, social payments. If you were able to apply for one of the benefits - for example, subsidies for paying rent - then you need to attach documents confirming this to the application.
5. Income from investments. For example, from a bank deposit or a share in a mutual fund. Of course, such a profit is not permanent, but it indicates the financial literacy of the borrower, and this has a positive effect on the status of the application.

Thus, the main task of a woman who is on maternity leave and wants to take out a mortgage is to show that her income will be enough to provide for herself, her child and to pay off the loan.

What should you not do to get a loan?

Never try to deceive banks! For example, hiding the fact of your pregnancy. Many women do this, considering this the only way to successfully obtain a loan.

The bank can issue the necessary loan with such a trick. But the borrower will face negative consequences when the fraud is revealed (this will definitely happen). The financial institution will terminate the contract due to the client’s concealment of important facts, and these are not the worst measures taken by the deceived party.

Do not prove your solvency by providing fictitious certificates. For example, there are 3 months left before going back to work. One of the “knowledgeable people” may advise you to agree on the issuance of an income document confirming that you have allegedly already started work.

Your company will face the financial and legal consequences of falsifying documents. Because the bank will definitely reveal this deception. Then problems will begin with the social insurance fund and other organizations.

How to increase your chances of approval?

To help you get a positive decision:

1. Paying a large down payment. Ideally, it should be 40-50% of the appraised value of the property being purchased.
2. Attracting guarantors and co-borrowers. Almost all mortgage programs provide the opportunity to attract additional participants. You can ask close relatives and friends to participate in the transaction. When reviewing the application, the loan officer will take into account the income of all individuals.
3. Providing collateral. Having additional real estate increases your chances of approval.
4. Income documents. The maternity leaver will need to prove that her income is sufficient to pay the mortgage. To do this, you can provide documents about employment, part-time work, your own business, etc.
5. Applying for a mortgage for my husband. Regardless of who the property is registered in, it is considered the joint property of the spouses. In case of divorce, it will also be divided in half, just like loan debts.
6. Attracting maternity capital. You can take out funds to pay a mortgage without waiting for your child to reach three years of age. This will help reduce your monthly payment.

Who can take a mortgage holiday

A mortgage holiday can be taken by a borrower who finds himself in a difficult life situation. The list of such circumstances is established by law. Difficulties need to be confirmed by documents - the list is also in the law, banks do not influence it.

Difficult life situations for a grace period on a mortgage

The borrower registered as unemployed. That is, you need to officially stand on the labor exchange

Supporting documents Extract from the register of unemployed to confirm registration with the employment service

The borrower was recognized as a disabled person of the first or second group

Supporting documents Certificate of disability

Borrower on sick leave for more than two months in a row

Supporting documents Certificate of incapacity for work

Revenue over the previous two months fell by more than 30%. They will compare it with the average income over the last 12 months. At the same time, the amount of mortgage payments according to the schedule for six months in advance must exceed 50% of the average income for the previous two months

Supporting documents Certificate of income, certificate of income for professional income tax, book of income and expenses in the approved form

The borrower now has more dependents: minor children, disabled people of the first and second groups, relatives under guardianship. They will compare it with the number of dependents on the day the contract is concluded. At the same time, income must decrease by more than 20% two months before the month of application, and the amount of payments according to the schedule for six months must be more than 40% of this decreased income

Supporting documents Birth certificate, adoption certificate, act of the guardianship and trusteeship authority on the appointment of a guardian or trustee, certificate of disability (if a family member is recognized as a disabled person of the first or second group), certificate of income, certificate of income for professional income tax, book of income and expenses according to the approved form

Supporting documents Work book or information about work activity

Is it safe to take out a loan online?

Yes, online registration is in no way inferior to in-office registration. Moreover, it has many advantages:

• saving time;
• ease of registration;
• Most often, banks offer reduced interest rates for online loans. After all, this way organizations can save on office payments and employee salaries.

A paper loan agreement and an electronic one have the same legal force. Instead of signing with a pen, confirmation of an online transaction usually involves entering a digital code in a special field. The code is sent to the client after successful registration. All further manipulations with the loan can be performed in mobile or online banking.

How to repay a mortgage taking into account the grace period

You do not need to pay anything during the grace period. Or you can make the payment that you indicated, taking into account the reduction.

After the end of the grace period, you need to make payments according to the usual schedule; they will not increase. When the regular payment period ends, you will need to make deferred payments. The bank must prepare an updated schedule taking into account the extension of the payment period.

There should be no additional interest or penalties due to the holiday deferment.

Your credit history will not deteriorate due to the deferment, but information about the provision of holidays will appear there.