With a mortgage, the solution to the housing problem has become more accessible to millions of people: it is enough to save up part of the cost of real estate, provide money to the bank and sign an agreement - after several years of monthly payments, the housing will completely become the property of the borrowers. But what to do if you don’t have start-up capital at your disposal? The article below contains current mortgage options in 2021 without a down payment from Russian banks.
Why do banks need a down payment?
Mortgage loans seem to be as safe as possible for banks, because according to their terms, borrowers receive money for a reason, but on collateral, usually the purchased real estate. Until the debt is repaid, the living space remains under encumbrance - the borrower will not be able to sell it or donate it. And if the mortgage is not paid at all, the property will become the property of the bank. It would seem that there are no risks on the part of credit institutions.
However, most mortgage programs still require an additional guarantee - a down payment. Why is that?
Preferential mortgage Gazprombank, Persons. No. 354
from 5.99%
per annum
up to 3 million
up to 30 years old
Get a loan
- In the real estate market, prices regularly rise and fall. If the mortgage was issued based on the peak cost per square meter, after a few years the bank is unlikely to be able to sell the apartment at the same price. As a result, the borrower's debt will not be covered if the latter is unable to pay the mortgage.
- It is believed that a borrower who is unable to save for a down payment is an unreliable payer in the future. Therefore, banks make the entry fee a condition in order to weed out people with low payment discipline and insufficient income.
As a result, most financial institutions require that the applicant have 10-15% of the cost of the purchased housing in hand. There are several ways to get around this condition - let's look at them, moving from the simplest solutions to more complex ones.
Why do banks require a down payment?
When planning to buy an apartment with a mortgage, you will in any case be faced with instructions from the bank to make a down payment. There are no organizations on the market that would issue housing loans without raising funds for PV. At least if we take the classic mortgage option.
Why do banks need a down payment?
- Its presence characterizes the borrower positively. The more PV, the more financially stable a citizen can be called. According to statistics, the smaller the contribution the borrower makes, the greater the risk of problematic loan repayment.
- It is used as a contingency reserve if the borrower stops paying. The property will have to be sold at a discount, plus the bank will incur legal costs. This 10-15% just covers possible losses.
Having a down payment increases the likelihood of mortgage approval. And the higher the contribution, the greater the chances of getting approval, the higher the bank can set a limit. If it is not there, the level of trust in the client decreases.
Bank offers for mortgages without a down payment in 2021
Bankiros.ru collects the most up-to-date information about the financial market for users. This also applies to mortgages. According to our portal, in 2021 Russian banks are offering more than 400 mortgage loans. Of these, a little more than 30 are programs available without a down payment.
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
Mortgage without down payment from Promsvyazbank
Promsvyazbank offers to purchase an apartment with a 0% starting fee on the primary market, but does not work with all developers: you should check with the bank’s specialists for a specific list of partners. Other privileges - for example, a lower rate - depend on the status of the applicant (for example, Promsvyazbank encourages salary clients and holders of premium packages).
Conditions
- Interest rate - from 8.09%;
- Credit limit - from 10 thousand to 30 million rubles;
- The loan term is from 3 to 30 years.
Promsvyazbank makes it possible to close the debt without costs: early repayment of the mortgage is valid without interest and penalties. Clients also save on registration: the commission for it is 0%.
Requirements
- Russian citizenship;
- Permanent registration;
- Age from 21 to 65 years;
- Total work experience - from 12 months;
- In last place - from 4 months;
- Deposit - available apartment.
Applications are accepted from individual entrepreneurs. In this case, the period of existence of the business must be at least 2 years.
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
Is it possible to get less than the minimum amount?
The minimum mortgage loan amount is calculated by the bank taking into account the costs of processing the transaction and the profit received from it. Therefore, the client will not be able to receive a smaller amount. For a financial institution, such a deal is unprofitable. The bank will lose more on drawing up a loan agreement than it will gain from its implementation.
Therefore, if you need an amount that is less than the minimum wage specified by the bank to purchase real estate, it is better to take a regular consumer loan. At Sberbank this program is called “Loan for any purpose”.
The minimum amount will be 30,000 rubles, the maximum - 5,000,000 rubles. The loan is issued for a period of up to 5 years. Interest rate - from 10.9%. The minimum repayment period is three months, while under any mortgage lending program it is one year. The borrower can take out the missing amount under this program for a short period of time and quickly give it to the bank with a small overpayment.
Inflated housing costs
A mortgage without a down payment is an absolutely transparent deal, albeit offered by a minority of banks. But the so-called overstatement is a way to circumvent the requirements of credit institutions. Its essence is to indicate the cost of the apartment/house higher by an amount equal to the down payment. In this case, the applicant submits supporting documents to the bank (usually a receipt from the seller).
What are the difficulties in this scheme?
The main feature of overstatement is its not entirely “honest” nature. Possible difficulties arise from this:
- Banks must evaluate real estate. If the amount specified by the applicant differs significantly from the market value, the transaction will be immediately rejected;
- Overstatement only works for the secondary housing market. Banks will accept a receipt from a private person, but not from a legal entity (developer or builder).
It is important to decide on an overcharge scheme in full agreement with the seller: there is a risk that he will demand a refund of the contribution calculated taking into account the changed price, or will not agree to cooperate at all.
Mortgage Bank DOM.RF, Lit. No. 2312
from 9.4%
per annum
up to 30 million
up to 30 years old
Get a loan
Is it really possible to remain homeless?
According to the terms of mortgage lending, it is possible to be left without pledged property, but in practice this is very rarely encountered. The bank has no goal of depriving the borrower of housing. It is much more important for lenders to return the amount with interest on the terms specified in the mortgage agreement.
When registering real estate as collateral, the living space remains with the borrower. You can live there and continue to be an owner. But the bank limits some options until the debt is paid in full.
If the borrower does not repay the loan, delinquencies appear, for which the bank charges fines and penalties. The credit institution will try to resolve the issue so that the borrower repays the debt. Only as a last resort will the bank go to court to obtain the right to sell the property at auction to compensate for its losses.
If you can’t cope with paying your mortgage due to temporary financial difficulties, contact the bank employees and apply for a mortgage holiday. You can also consider restructuring or refinancing your mortgage on more favorable terms with another bank.
Life and health insurance for the borrower will help reduce the risk of loss of ability to work or work. You can refuse insurance, but then the bank will increase the interest rate. But you cannot refuse home insurance that will be offered as collateral.
Consumer loan for down payment
Consumer loans are issued quite simply today: provided you have a stable income, attract guarantors or provide a car as collateral, banks will willingly issue a large amount. But there are several nuances:
- It is worth calculating the burden on the budget: soon you will have to pay both the consumer loan and the mortgage. With such a percentage of deductions, it is very easy for banks to go into negative territory and fall behind on monthly payments;
- Applying for a loan needs to be done well. If the bank from which the mortgage is taken manages to record a new debt in the applicant’s credit history, it may refuse: the financial burden is too great.
If this option, despite the disadvantages, turns out to be preferable to borrowing money or overstating it, Bankiros.ru suggests choosing a program in the “Consumer Loans” section. Users have access to options with an online application, on bail, for people of different ages and incomes.
How to choose a monthly payment type
Mortgage payments can be either annuity or graduated.
Differentiated payment
- a method of repaying a loan in which the principal amount of the loan is paid in equal installments, and interest is accrued on the balance of the debt. With differentiated payments, the main burden falls on the initial lending period. The payment amount decreases from month to month.
Annuity payment
- a method of repaying the loan in equal installments. The borrower pays the same amount every month - and so on for the entire loan term. With an annuity payment in the first months of the loan, a significant part of it is interest, and the amount of debt changes slightly.
Today, most banks issue mortgage loans with an annuity form of payment, and only a few offer a potential borrower a choice between annuity and differentiated payment.
Example.
With a loan amount of 3 million rubles, a term of 15 years and a rate of 8.5%, the differentiated payment in the first month will be 37,916 rubles. Every month it will decrease little by little, and in the last month you will have to pay 16,784 ₽. The monthly annuity payment will be 29,543 ₽.
With a differentiated payment, the bank will have to pay 1,923,124 ₽ percent, and with an annuity payment - 2,317,445 ₽.
But despite the obvious economic benefit for the borrower, differentiated payments are fraught with danger. During the first years, it will exceed the annuity payment, and this can be fatal if income falls: the payment will become unaffordable and lead to difficulties with servicing the loan. In our case, if a family chooses a differentiated payment, then in the first years it will have to pay 38% of its income - this is a significant financial risk.
Mortgage from the developer
You can take out a mortgage with a 0% contribution from the developer according to two schemes. The first is that the company issues an interest-bearing or interest-free loan for the amount of the contribution, which the borrower provides to the bank. Subsequently, the money is returned to the developer under the terms of the agreement:
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
- Typically, the rate in such a transaction is 3-7% higher than the bank rate;
- You need to return the money within a short period of time - up to 2-3 years;
- Not all developers can be trusted, so it is better to check the selected company by hiring a lawyer.
The second scheme is participation in a promotion or special offer. Since the down payment is impressive (up to 15% of the cost of housing), developers often offer to pay it in installments or at a discount. There is no way to know about this possibility in advance: you need to monitor proposals from developers. Typically, promotions are held at the stage of commissioning of a new residential complex and at the stage of active sales.
Conclusions:
1. You should save the down payment yourself and under no circumstances take out a consumer loan for these purposes. It is better that the amount you set aside monthly for these purposes is no less than the future mortgage payment.
2. The minimum down payment must be at least 20% of the value of the property. In this case, the likelihood of receiving bank approval increases and you can get a loan with a lower rate.
3. When calculating mortgage costs, it is worth taking into account one-time and annual costs. It is better to set aside funds for insurance monthly in the proportion of 1/12 of the cost of insurance.
Mortgage secured by real estate
You can compensate the bank for the zero contribution using additional collateral - real estate as collateral. For consideration and assessment, the bank will accept living space owned not only by the applicant, but also by third parties. For example, the collateral could be the apartment of a spouse or relative.
Documentation
The basic package of documents for most loans is similar - a passport, a certificate of income, a copy of the work record book, as well as a second document for identification (you can choose from SNILS, Taxpayer Identification Number, driver's license, international passport, etc.).
Mortgage with state support for families with children Raiffeisenbank, Lit. No. 3292
from 5.19%
per annum
up to 12 million
up to 30 years old
Get a loan
But collateralized loans have specifics - along with the main loan, a separate set of papers on the subject of collateral is submitted. In the case of a mortgage secured by real estate, this is:
- State registration certificate;
- The document on the basis of which ownership rights arose (sale and purchase agreement, exchange agreement, privatization agreement, gift agreement, etc.);
- BTI documents (cadastral passport, technical passport, etc.);
- Certificate of persons registered in the residential premises (extract from the house register);
- Real estate valuation report drawn up and agreed upon with the appraiser bank (statute of limitations - no more than 6 months);
In addition to the actual real estate documents, the consent of the seller’s spouse will be required for the sale of existing housing, as well as for the purchase/construction of a new one. If the seller is a minor, the bank requests the consent of the guardianship authorities.
Bank offers
Banks often issue consumer loans (targeted and non-targeted) using real estate as collateral. But the construction of new housing secured by existing housing is a rarer proposal. For example, in 2021 the following organizations are ready to do it:
Loan "New Building" Rosbank, Lic. No. 2272
from 7.85%
per annum
from 300 thousand
up to 25 years
Get a loan
- Program “Secured from existing housing” from Alfa-Bank. Rate from 13.69%;
- Program “Loan for any purpose secured by real estate” from SberBank. Rate from 9.2%;
- The program “Secured by an apartment” from DOM.RF. Rate from 9.3%.
As can be seen from the list, the interest rate on loans is average. You can reduce it by making a down payment in addition to the living space as collateral.
Requirements for the borrower when applying for a mortgage
Basic requirements for borrowers when applying for a mortgage with a bank as collateral for other real estate:
- having citizenship of the Russian Federation;
- minimum age – 21 years;
- maximum age – 75 years at the time of making the last payment;
- having a confirmed stable income.
The collateral can be not only housing, but also commercial real estate, a plot of land, even if they belong to third parties, who are usually relatives. If they do not mind, then the borrower can place their property as collateral. This is done in cases where a citizen does not meet any of the bank’s requirements, and his immediate relatives can apply for a loan. In order not to re-register property to other people, you can leave a relative’s property as collateral.
Mortgages secured by an apartment may not be issued to very young or elderly people. The most suitable age of the borrower, according to the bank, is from 30 to 40 years, when the client still has enough time to fulfill his obligations to the lender.
When applying for a mortgage secured by another home, it is not necessary to have a perfect credit rating. The pledged property already serves as a guarantee of the return of money to the bank, so employees will be more loyal to the borrower when evaluating it. However, the credit rating can affect the interest rate; the more often the client has made delays and the longer they were, the worse the conditions the lender will offer him.
Choose a mortgage without proof of income →
Young Family Program
“Young Family” is a federal program launched in 2011. Its goal is to help young married citizens build their own homes. It was planned to complete the program four years after the start, but in 2015 it was extended until 2026. It is believed that by this time more than 150 thousand families will have acquired a home.
Conditions for participation in the program
Young families that meet three criteria can receive government assistance:
- The age of the spouses is no more than 35 years;
- The couple is registered as in need of improved living conditions;
- At least one child was born in the family.
The latter requirement is not universal. But usually children are a plus because they increase the amount of government subsidies.
Mortgage for finished apartments SberBank, Lits. No. 1481
from 9.3%
per annum
from 300 thousand
up to 30 years old
Get a loan
Documentation
The spouse submits a package of papers to the executive authorities at their places of residence:
- Statement of intent to participate in the program (signed by both spouses);
- Identity documents (+ copies);
- Documents that the couple needs to improve their living conditions or acquire their own home;
- Documents confirming the family's solvency;
- Marriage registration documents.
Due to fairly lenient requirements, the queue of people wishing to participate in the program is constantly growing.
Is it profitable for a borrower to take out a minimum mortgage?
There is no interest-free mortgage at Sberbank as such. The policy of a financial institution and the need to make a profit do not allow it to allocate money without benefit to itself. Therefore, even if the bank offers a preferential lending program, it will still provide a loan at interest. What the client calls a low rate is subsidized by the government. At the same time, a limited number of Russian citizens can take advantage of the preferential loan.
Therefore, a borrower who does not belong to the category of socially protected groups of the population must take care of his own benefit. And he must understand that it makes no sense to take out a minimum mortgage to purchase an apartment or other housing.
A simple comparison example will help you understand this:
- If you take the minimum amount of 300,000 rubles. on a consumer loan at 10.9% for 6 months, you will have to pay 51,600 rubles monthly. As a result, the bank will need to pay 309,600 rubles, i.e. the overpayment will be only 9,000 rubles.
- With the same amount taken for a year under the “Mortgage for finished apartments” program at 10.1%, the monthly payment will be 26,389 rubles, and the total amount that the borrower will give to the bank is 316,668 rubles. The total is an overpayment of 16,668 rubles. Plus, according to the program, the client is required to make an initial payment, which will amount to 130,000 rubles.
It is easy to calculate that in cases where there is not enough amount to purchase a home that is less than the minimum threshold loan amount, it is extremely unprofitable to take out a mortgage.
Expert opinion
Irina Bogdanova
Expert in the field of mortgage lending.
It is much easier to take out a consumer loan, quickly and with minimal overpayment.
Receiving assistance within the program
State support consists of subsidies, which a young family can direct at its discretion. The most popular options:
- Make a down payment on your mortgage;
- Pay for the construction of private housing;
- Pay for the purchase of real estate on the primary or secondary market;
- Pay off your mortgage debt if it was issued before the start of the program in 2011.
Two significant nuances - financial assistance cannot be withdrawn in cash, and its volume cannot exceed 2.2 million rubles. For a specific family, the amount of subsidies is calculated, firstly, from the market price per sq. m. meters relevant for this region. Secondly, the number of children affects.
Loan "Ready Housing" Alfa-Bank, Person. No. 1326
from 8.94%
per annum
up to 50 million
up to 30 years old
Get a loan
Bank offers
Many banks participate in the federal program, and almost all of them are large credit institutions with a good reputation. A few examples:
- The program “Mortgage in sliders” from Investtorgbank. Rate 5.9%;
- Program “Mortgage with state support for families with children” from Raiffeisenbank. Rate 5.49%;
- Family Mortgage program from UniCredit Bank. The rate is 4.99%.
Apart from the percentage, mortgage conditions for young families are similar. Requirements vary slightly - length of service, certificates for presentation and age of borrowers.
Maternal capital
Maternal (or family) capital is perhaps the most high-profile and large-scale state assistance program implemented by the Russian government. Financial resources can be used within the framework of this initiative in several areas:
- Improving living conditions;
- Payment for education;
- Mother's pension savings.
Just like with the “Young Family” program, maternity capital cannot be cashed out. And using it to solve the housing problem has become very popular among Russians. You don’t have to wait several years for this: capital is available immediately after the birth of the child.
Mortgage documents
So, if a second, third and subsequent children were born/adopted in the family, parents can collect documents to take out a mortgage. For the bank, the package of papers includes:
- Certificate for maternal capital and an extract from the Pension Fund on the balance of funds on it;
- A document confirming marriage registration or divorce;
- Documents about the birth/adoption of a child;
- Agreement for the purchase of real estate;
- Documents for the purchased property (BTI certificate, registration certificate, extract from the home book);
- An application in which the borrower undertakes to register a new living space for all family members in shares.
Of course, the bank will also require a basic package - the borrower’s passport and SNILS, as well as documents of the co-borrower or guarantor, if any.
Pension Fund documents
After signing an agreement with the seller and the credit institution, you can contact the Pension Fund - funds for the down payment will be transferred from there. What does the package of documents for PF include:
- Documents confirming the identity of the borrower;
- Documents from the bank, including the loan agreement;
- Details for transferring funds from maternity capital.
Payments from the Pension Fund are made once every 6 months, so you need to contact your local branch in advance - at least six months before applying for a mortgage.
After registration
In any case, the mortgage is repaid in monthly payments. As a standard, this is an annuity schedule in which each month the payment is the same amount. If the borrower violates the terms of payment, there is a risk of losing the home.
The bank will not take away the apartment for small delays; this is only relevant for persistent defaulters. If financial difficulties arise, you can count on the bank’s help in the form of refinancing or restructuring.
If a mortgage was issued for a secondary home without a down payment (or for a new building) with maternity capital, then during the issuance process the borrower makes an obligation to allocate shares to the children after repaying the loan. If you don't do this, you could end up in court.
When you take out a loan for a down payment, you will have to pay two loans at once during the first years. The priority, of course, will be the mortgage, but both obligations are important. The main thing is to assess your financial capabilities in advance in order to cope with the burden of payments.
Military mortgage
Fundamental support for military personnel is provided by the Ministry of Defense, which is ready to take on the entire mortgage payment. True, only some military personnel will be able to avoid paying the loan at all: to do this, they need to meet the criteria of the ministry and go through registration in several stages.
So which military personnel will definitely receive support?
- Officers and warrant officers who have been in contract service since 01/01/2005.
On a voluntary basis, the following will be able to count on financial assistance:
- Reserve officers who have served since the beginning of 2005;
- Ensigns and midshipmen with service of three years or more;
- Sailors, soldiers and sergeants undergoing contract service for the second time after 01/01/2005;
- Graduates of military universities who have served for more than three years;
- Employees and workers of other departments - FSB, FSO, Ministry of Internal Affairs and paramilitary units of the Ministry of Emergency Situations.
You can lose state support due to dismissal, complete closure of the debt, or death.
Borrower risks
According to Irina Vekshina, there are no big risks for buyers associated with mortgage programs without a down payment.
“The only negative,” the expert comments, “usually banks conduct more stringent underwriting for such borrowers.”
But in addition to the banking institution’s meticulous assessment of the client’s solvency, it is important to be prepared for other consequences and to realistically assess one’s own financial capabilities. If, by the time the mortgage is issued, the buyer has not managed to save enough money to partially repay the payment, there is no guarantee that he will be able to cope with the payments. And this becomes a serious risk that in the future the apartment purchased on credit will have to be sold in order to pay off the loan. In addition, such mortgage programs usually require a higher interest rate on loan payments. And as a result, the client who tried to “save” initially is forced to overpay the banking organization for many years.
Step-by-step instructions for applying for a mortgage without a deposit
The procedure for obtaining a military mortgage itself is quite cumbersome. Funds for its repayment are stored in special registered accounts, so first you need to include yourself in the NIS - the savings and mortgage system. For this:
- 3 years before the planned purchase of housing, the employee writes a report to the unit commander in order to gain access to the NIS on the Rosvoenipoteka website;
- By attaching a copy of the passport and contract to the report, the employee receives a program participant card and access to a personal account;
- After writing another report, the employee receives a participant certificate - a document that remains valid for up to 6 months.
Having received the necessary papers from the ministry, the military person can contact the bank, and from there - again to Rosvoenipoteka with a package of papers, which includes:
- Application from NIS;
- A copy of the mortgage agreement;
- Account opening agreement;
- A report assessing the cost of housing (issued by a bank or an independent authority).
In the next ten days, the organization decides whether to approve the loan. If the result is positive, the applicant comes to the bank and draws up an agreement. Next, go back to the bank so that the apartment/house finally becomes the property of the borrower. The following documents are needed:
- Receipt for payment of state duty;
- Acceptance and transfer certificate of living space;
- Agreement for the purchase of housing on credit;
- Insurance contract (in case of unfavorable circumstances).
Afterwards, the borrower moves to the final stage - once again submits the papers to Rosvoenipoteka:
- A copy of the contract for the purchase of housing on credit;
- A copy of the insurance contract;
- Receipt for payment of the insurance premium;
- An extract from the Rosreestr upon provision of the borrower’s passport, a receipt for payment of the state duty and an application.
Only after multi-stage registration does Rosovoenipoteka transfer the money to an account previously opened for the military personnel in the bank.
Bank offers
Not all banks issue military mortgages. The Bankiros.ru portal offers, without wasting time, to familiarize yourself with the current list of financial institutions that work with military personnel. Below are a few examples of such mortgage programs:
- “Military Mortgage” program from Rosselkhozbank. Rate 7.5% per year;
- “Military Mortgage” program from Promsvyazbank. Rate 6.6% per year;
- The “Family Mortgage for Military Personnel” program from Bank Dom.RF. The rate is 4.7% per year.
The requirements for borrowers are similar: everywhere they ask for a NIS certificate and a passport. Sometimes you need an additional document - a marriage certificate or SNILS.
What additional costs may you incur?
There are also additional costs to consider when preparing to take out a mortgage. They can be divided into two parts: one-time and annual.
One-time expenses
These expenses will have to be incurred once when purchasing an apartment with a mortgage. These include:
- payment for appraiser services (up to 10 thousand ₽);
- payment to the realtor (can be either in the form of a fixed fee or as a percentage of the value of the property);
- payment of state fees for registering ownership of mortgage real estate (2000 ₽) and for registering a loan agreement (1000 ₽), notary services (if necessary) (from 2000 ₽);
- renting a safe deposit box (for cash payments) from 2000 ₽ or paying a commission to the bank (for non-cash payments).
Annual expenses
These costs will have to be borne annually. These include:
- life insurance of the borrower (voluntary insurance; in case of refusal, the bank has the right to increase the rate);
- property insurance (mortgage apartment, compulsory insurance);
- Title insurance (risk of loss of ownership) is issued only when purchasing an apartment on the secondary market.
Some banks do not require title insurance, although it is better to obtain it within the first three years. It allows you to protect the borrower from attacks by third parties on the purchased apartment. If, after registering the transaction in Rosreestr, third parties appear who manage to challenge the right of ownership in court, the bona fide purchaser will receive compensation from the insurance company.
Typically, the cost of mortgage insurance is 1% of the remaining loan per year.
You can choose a policy from any insurance company that is accredited by the bank. Their list can be found on the credit institution’s website or obtained from a branch. The cost of insurance in different companies may differ by 5-15 thousand rubles.
Choose profitable insurance
And apply online at Sravni.ru
Annual expenses must be taken into account when calculating your final monthly payment. Otherwise, in one month you will “unexpectedly” have to pay both the mortgage payment and insurance, which can become an unbearable burden, and you will need to urgently borrow money from somewhere. You should set aside money for insurance every month, allocating 1/12 of its cost for this purpose. It is better to store funds on an income card, which charges interest for storing money on a card account or bank deposit.
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In our example, if you don’t set aside 2,500 rubles for insurance every month (3 million rubles x 1% = 30 thousand rubles / 12 = 2,500 rubles), then one day you will have to pay 59,543 rubles one-time (29,543 rubles payment and 30,000 rubles insurance). Such a payment may be unaffordable with a total family income of 100 thousand rubles.
Social mortgage
State support for the construction/purchase of housing for state employees - teachers, doctors and scientists - works on a similar principle to military mortgages. The main requirement boils down to age and experience: the applicant must not be 35, and the period of work in the specialty must be at least three years. However, meeting these criteria does not guarantee a preferential mortgage.
The additional condition depends on the region, but the most significant is the current living conditions that need improvement. So, a state employee should have no more than 18 square meters. meters of living space so that he could participate in the state program.
Step 1: Documents for participation in the program
The start of the registration procedure is in the regional administration, where the applicant is registered. The following documents are required for this:
- Application for participation in the state program;
- The important thing is to take certificates from previous places of registration in the city (not village or district) archive as proof that the applicant has lived in this city all his life;
- A copy of the education document and work record book;
- Characteristics from the place of official employment;
- A certificate from the BTI stating that the applicant does not own real estate (valid for no more than two months);
- Document on registration or divorce;
- Birth certificate of children if they are under 14 years old;
- Copies of passports of all family members, including children over 14 years of age;
- Written consent to the processing of personal information.
There are many more people wishing to receive a preferential mortgage than the potential capabilities of the program. Therefore, advancing through the rotation can take years.
Step 2: Opening a bank account
If it’s your turn, the administration issues a certificate of participation in social mortgages. The future borrower is with him:
- Goes to AHML - Agency for Housing Mortgage Lending;
- Receives a list of partner banks that issue loans under this program;
- Having chosen one of the banks, he enters into a mortgage agreement and opens a personal account.
Further, all documentation goes through AHML in the same way as the Pension Fund for young families and Rosvoeipoteka for military personnel.
Step 3: Getting a mortgage
At the final stage, the bank issues a mortgage after receiving from the applicant identification documents, an AHML certificate, an agreement for the purchase of housing on credit and an insurance agreement. The money provided by the program can be used in different ways: use it for a down payment, take out a loan at a reduced interest rate, or purchase public housing at below market price.
Bank offers
Commercial banks operate within the framework of the state program along with state financial institutions. Let's look at examples of mortgage loans available in 2021:
- The program “New meters without a down payment” from Bank Russia. Rate from 11.5% per year;
- “Ready Solution” program from Koshelev-Bank. Rate from 7% per year;
- Program “Young family and maternity capital” from Rosselkhozbank. The rate is 7.7% per year.
As can be seen from the list, rates for public sector employees are quite affordable and are in the range of 7-11%. At the same time, the market rate is higher - it starts at around 12% per annum.
Requirements for collateral
The main requirements of banks for real estate that will be registered as collateral with the bank:
- The building should not be in disrepair.
- The age of the building is no older than 50-60 years.
- Housing must be located within the city in a seismically safe zone.
- The walls can be made of brick, reinforced concrete, monolith.
- It is advisable that the apartment is not on the first or last floor.
- All redevelopment carried out must be legalized.
- No arrears in payment for services.
Banks will not accept housing whose walls are made of adobe, frame-reed, as collateral.
If it is not your own living space that is offered as collateral, but property owned by third parties, it must also meet all the listed requirements. In some situations, this choice may be the most convenient, but the consent of relatives will be required.
