Within the framework of the law, it is possible to repay the principal debt or interest on a mortgage loan using maternity capital. There is no need to wait three years after the birth of the child - you can immediately issue a certificate and use it for its intended purpose. To repay a loan or interest, you must contact the bank and write an application. You can also pay off a refinanced loan. After receiving approval from the Pension Fund, the amount on the certificate will be transferred to repay the mortgage.
Since July 8, 2021, some banks have launched a service that allows you to submit an application for repayment via the Internet using maternity capital funds. Let's look at how to pay off a mortgage with maternity capital through a bank and in real time.
Features of repaying a mortgage with maternity capital
The procedure for repaying a mortgage using maternity capital funds is regulated by Federal Law dated December 29, 2006 N 256-FZ (last amended June 29, 2021) “On additional measures of state support for families with children”
Basic requirements
:
- The property must be located in any locality of the Russian Federation.
- Property must be divided among all family members, including minor children. For example, if there are 2 children and parents in a family, then each will be the owner of a share of the apartment, and the share can be any (it is customary to allocate to children a share approximately corresponding to the share of the amount of maternity capital from the total cost of housing).
- Maternity capital can be used to pay off not only debt, but also to use funds for construction or to pay the down payment.
- You cannot pay off penalties and fines.
- Money is transferred in one amount. You cannot pay off part of your mortgage and leave part to pay for education.
- The deal is coordinated not only with the bank, but also with the Pension Fund of the Russian Federation.
Problems with refinancing
The rate on my loan was 10.4%. In 2021, when mortgage prices on the market dropped to about 9.5%, I wanted to refinance it with another bank on more favorable terms. But since refinancing involves repaying the loan from the first lender, within six months after this transaction I am legally obligated to allocate shares in the apartment to the children. And then the new creditor will receive an apartment with the children’s shares as collateral.
Banks (at least in 2021) did not want to get involved with objects in which children’s shares are involved: in case of delay and sale of the collateral (apartment), this will definitely have to be coordinated with guardianship. So I was denied refinancing precisely because of my participation in paying for the maternity capital mortgage. I contacted both a mortgage broker and directly one of the largest banks with this question. The bank immediately refused me over the phone after learning that matkapital was involved. The broker also returned empty-handed.
How does refinancing a mortgage with maternal capital work?
Some borrowers actually encounter problems when refinancing a mortgage on an apartment purchased using maternity capital. Some banks ask the borrower to obtain consent from the guardianship authorities to pledge such housing as collateral. Difficulties also arise due to the need to register an apartment as common property of the family when the creditor changes. Bankers drew the attention of the authorities to this problem back in 2021. In January 2021, a bill was even introduced to the State Duma to simplify this procedure. But it hasn't been considered yet.
However, not all banks refuse to refinance a mortgage partially repaid with maternal capital. Thus, VTB, Raiffeisenbank and the Dom RF bank Sravni.ru stated that they have no restrictions on refinancing such a mortgage.
How to pay off a mortgage with maternity capital through a bank?
The procedure for repaying a mortgage using a certificate is standard in all banks. We invite you to read the step-by-step instructions.
How to contribute maternity capital to pay for a mortgage:
- Visit the bank office where the mortgage loan was issued. Most likely, you will need to contact your credit manager and ask for a certificate for the pension fund. It will contain all the necessary information about the issued loan: borrower information, expiration date, amount of debt and details for repayment.
- Visit the Pension Fund. Then you need to contact the Pension Fund with the received certificate. An employee of the Pension Fund of Russia will give an application that should be filled out, and copies of documents should be attached to it: passports and SNILS of the spouses, a loan agreement, an agreement for the purchase of real estate. Plus the original certificate is attached. The period for reviewing documents is no more than 10 working days. If the decision is positive, the money will be transferred to the specified details. If it is not possible to contact the Pension Fund, you can fill out an application through the MFC, send documents by registered mail or through the State Services website.
- Write an application to the bank for early repayment. In order for the bank to write off the money received and revise the payment schedule, you must write an application for full or partial repayment. After full repayment, the encumbrance is removed from the property, and the data is submitted to Rosreestr.
Note!
Before March 12, 2021, a notarial undertaking was required. This is a guarantee that children will receive a share in the mortgaged apartment after full repayment or removal of the encumbrance. Now it is not necessary to pay for a lawyer’s services and formalize a notarial obligation, since the obligation to allocate shares is enshrined in law.
How to submit an application through State Services
Only those with a confirmed account on State Services can submit an appeal. You will need to log in and select .
Then go to the “Management of maternity capital” section.
A full list of services will open. You should select “Consideration of an application for the disposal of funds (part of the funds) of maternal (family) capital to improve housing conditions”
.
You must then fill out all sections of the application.
, having previously answered several questions: purpose of use, whether the loan was refinanced or not, etc. Next, a list of documents that will be required to submit an application will be displayed. You should familiarize yourself with it and prepare it. If everything is available, then click “Go to application”.
The following information is requested:
- applicant data (will be loaded automatically, you just need to check it);
- residence address;
- personal data of the child.
to the completed application and submit for review.
. Within 10 working days after submitting documents to the Pension Fund, a response will appear in your personal account.
Why can they refuse to transfer maternity capital to a mortgage account?
Pension fund specialists review the application within 30 days. They may refuse to transfer maternity capital funds to the mortgage account if there are problems with the documents. Among the common reasons for refusals is that the loan is not non-targeted, i.e. it does not indicate that it was issued for the purchase or construction of residential premises. Also, the reason for refusal may be a discrepancy between the dates of signing the purchase and sale agreement and the date of registration of the mortgage loan.
If the pension fund accepts the application, the next step is to submit an application to the bank to repay the mortgage with maternal capital. If the maternity capital funds are only enough to write off part of the loan, you should agree with the bank on a new payment schedule. Depending on the loan agreement, you can use matkapital to shorten the loan repayment period or reduce the amount of monthly payments.
How to pay off a mortgage with maternity capital through your personal bank account?
On July 8, 2021, online mortgage repayment was launched using family capital, without visiting a bank office or pension fund
. So far, only VTB Bank has offered this opportunity to its clients.
To fill out an application, the client needs to log into his personal account (and it is logical that he should already have one). Then select “Public Services” and fill out an electronic application. Afterwards, the bank itself sends a request to the Pension Fund, which then transfers the money.
Thanks to this system, the application process is simplified and the time frame is reduced
. Plus, the status of the application consideration can be monitored in real time.
Other banks should join soon
. To clarify the availability of a jar, you should call the hotline operator or write a question to the online chat, if available.
Sale
To peacefully resolve our differences, I offered to sell the apartment. But this, as it turned out, is very difficult to do. To sell an apartment with capital capital, you need to fulfill 2 conditions:
- allocate children shares in other real estate, the area of which is no less than the current one;
- obtain the consent of the guardianship authorities.
In our case, we need to buy 23 “squares” in someone’s apartment. Moreover, the new living space must also be located in St. Petersburg, and here even a studio costs more than 3 million rubles.
In addition, the law on maternal capital states that shares are allocated for all children, including subsequent ones. My ex-wife has already given birth to a child from another man, and it turns out that she may even seek to allocate a share in this apartment to him.
Possible risks and reasons for refusing to repay a mortgage
In the last section, we propose to study the risks that exist when using maternity capital.
Risks:
| Receiving a tax deduction | According to the law, you can receive a tax deduction only if the property was purchased with your own money. Payment is not provided for state aid (that is, the deduction will come only from the amount that the buyer paid with his own funds or with the bank’s money. |
| Sale | Difficulties may arise, since each child has a share in the apartment. To sell the share of a minor, it is mandatory to obtain permission from the guardianship and trusteeship authorities. |
| Refinancing | Not all banks will agree to refinance, since as part of this procedure the debt is transferred from one bank to another. In this case, it is necessary to remove the encumbrance and re-issue the contract. In such a situation, children's rights are violated. |
Reasons for refusal of payment may be:
- errors in the completed application;
- parents were deprived of parental rights;
- cancellation of adoption;
- the bank does not meet the requirements of the Pension Fund of Russia.
What you should pay special attention to
If maternal capital is used to pay off the mortgage, minor children must receive their share in the apartment or house. In the future, when the family wants to expand their living space and sell the property, this cannot be done without the consent of the guardianship authorities. That is, you will first have to buy a new home, again allocate square meters to the children (no less than in the previous one) and only then put the old one up for sale. The guardianship needs to make sure that the minors’ living conditions have not worsened as a result of the transaction. As practice shows, collecting the necessary documents can take several months.
Another pitfall is that a mortgage partially repaid with government support cannot be refinanced. The family will be forced to pay the original interest rate until the end of the loan term. In addition, only 7 credit organizations work with maternity capital: Sberbank, ATB, VTB, Rosselkhozbank, Gazprombank, Otkritie Bank, DVB.
Despite the existing shortcomings, young families note that maternity capital has many more advantages than disadvantages.
Consequences of taking out a mortgage on your husband
If the mortgage was issued to one of the spouses , in particular the husband, then you should first determine when it was issued:
- before marriage;
- married;
- in a civil marriage.
A loan for housing that was purchased before marriage is considered entirely the property of the spouse. He is the borrower of the loan and the sole owner of the property.
The same situation arises if the spouses are not officially married . The spouse cannot in any way claim the property of her common-law husband. But there are also advantages. If she defaults on the loan, she is not a co-borrower and does not have to give anything to the bank.
Important! If the loan was received in an official marriage, then in such a situation it does not matter which spouse is the borrower and which is the co-borrower. All joint property, including debts, is divided in half.
We discussed in a separate article whether it is possible to use and spend maternity capital to repay a loan to a co-borrower.
The spouse can safely claim half of all jointly acquired property.
The exception is those cases where the spouses signed a marriage contract, which indicated how the joint property will be divided and who is considered its owner.
For whom should maternity capital be registered?
According to the legislation of the Russian Federation, such a subsidy is given to a family in which a second or subsequent child is born . In order to receive a certificate, you must submit a written application to the Pension Fund at your place of registration.
To whom should maternity capital be registered, even if the mortgage is on the husband? The only owner of maternity capital is the woman who gave birth to children . It cannot be issued to another person. There are exceptions.
If the mother died
In this case, it is necessary to provide all the necessary documents to the Pension Fund , and after consideration of the case, the father or legal guardian of the children can receive the subsidy funds.
She was deprived of parental rights
In this case, it is also necessary to collect the entire package of documents proving this fact. After consideration of the issue, the father or legal guardian can receive the certificate.
Is it possible to use maternity capital for a mortgage without waiting 3 years?
According to the legislation of the Russian Federation, funds allocated by the state can be used only after the child turns 3 years old. A mortgage against maternity capital is an exception to this restriction. Immediately after the birth of the child, the family can use the certificate for the following purposes:
- down payment on a mortgage loan;
- repayment of interest and part of the loan debt.
