Features of a mortgage on a house with land at VTB Bank

Banks have begun to refuse mortgages to borrowers more often. According to the National Bureau of Credit History (NBKI), in October the share of positive decisions decreased by 4.3%, to 65.3%. Simply put, more than a third of Russians who applied to banks were refused a housing loan. This did not happen even in the spring, during the lockdown, when citizens found themselves without income and without work.

Financial organizations are interested in receiving income from lending to citizens, says Gulnara Ruchkina, dean of the Faculty of Law of the Financial University under the Government . It’s easier for a bank to refuse than to issue a risky loan.

What should you do to get the bank to approve your mortgage?

Question answer

How much to save for a down payment on a mortgage?

General conditions for mortgage loans at VTB

Currently, all Russian banks provide mortgage lending programs for the purchase of housing on the basis of commercial relationships, taking into account the solvency capabilities of all clients individually.
Accordingly, a small part of the population can get housing for free. To do this, VTB Bank has provided conditions that allow the use of government subsidy programs to partially repay a loan or reduce the interest rate. In 2021, the state offers the following programs: preferential mortgage at 5% for the second and third child, the “Young Family” program, the use of “Maternity Capital” to partially pay the required loan amount from funds allocated by the state. VTB Bank also has a “Mortgage for the Military” program, under which military personnel can partially or fully repay the loan debt at the expense of NIS funds. If you have already selected a loan option, you can submit a preliminary application online.

Mortgage repayment

There are several ways to make your monthly mortgage loan payments:

• Repayment through VTB without commission is carried out by depositing cash through a bank cash desk or ATMs; You can also pay using VTB Online.

• Repayment by wire transfer from accounts opened in other banks is subject to the sending bank commission established for ruble transfers.
• Repayment through branches of the Russian Post and the Zolotaya Korona-loan repayment network is carried out with a commission depending on the amount of the monthly payment and established tariffs (usually 1.9 and 1%, respectively, but not less than 50 rubles).

For all repayment methods, VTB does not charge a commission for crediting funds to the account.

When repaying a loan through third-party organizations, by transfers from other banks, it is necessary to take into account the timing of these operations and make payments in advance (based on reviews at least a week in advance).

VTB mortgage borrowers can repay their loan early: partially or in full, without commission payments, penalties and other restrictions through bank branches or through VTB Online.

How to apply online for a mortgage at VTB

To do this, you need to go to the official website page and fill out the form provided.
It takes 1-2 days to review the application (maximum 4-5 days). After which, you will be notified about the status of the application in your VTB Online personal account or by phone. A bank employee may indicate acceptable lending conditions, require additional documents, or offer more favorable lending conditions. Accordingly, the mortgage will only be issued at a bank branch.

How to calculate a loan

To calculate the basic parameters of a mortgage loan, such as: monthly payment, overpayment amount, maximum loan amount, mortgage calculators are used.

With their help, you can make preliminary calculations and choose comfortable mortgage conditions yourself even before contacting the bank.

Any mortgage calculator will be suitable for the calculation, including various applications for smartphones or computers. However, it is more advisable to use the mortgage calculator posted on the official VTB website. It is located on every page of the website with a mortgage product. For example, here is a calculator for calculating a mortgage for a secondary home.

Depending on the initial conditions, the borrower can choose the option of calculating based on income or the cost of the purchased property. Then you need to enter the requested parameters (term, loan amount, income, down payment) and click “Calculate”.

It’s convenient that the calculator will set the interest rate independently after filling out the basic loan parameters.

Self-calculation is preliminary. The exact parameters of the loan will be determined by the mortgage manager at the bank.

The main requirement of the bank from the client

To obtain a mortgage, the bank requires a total work experience of at least one year, with at least 6 months of experience at the current place of work. Accordingly, work experience must be confirmed by documents or by the management of the organization.

Required documents

• Passport of the Russian Federation (for citizens of other foreign countries - passport, visa and documents confirming the legality of employment in the territory of the Russian Federation);
• A copy of the work book or employment contract of the borrower, as well as guarantors (if any), certified by the employer (the company’s seal must be on each page of the copy);
• A document confirming income in the original - a 2-NDFL certificate or a certificate in the form of a bank.

Required documents when registering using 2 documents

The bank provides the opportunity for simplified registration using two documents, under the “Victory over formalities” program. Within the framework of this program, to obtain a mortgage, it is allowed to provide only 2 documents: a passport of a citizen of the Russian Federation and SNILS (pension insurance certificate). With this design, the down payment must be at least 40% of the cost of the apartment (50% of the cost of the apartments).

Main differences from other types of mortgages

A house with a plot of land, unlike an apartment, is more difficult to sell. This especially applies to suburban real estate. Therefore, the bank puts forward more stringent requirements for a mortgage loan for its purchase.

The main feature of such loans is the increased size of the down payment on the mortgage - from 40%, while for other programs the minimum threshold is 15%.

Loan programs

To buy a house with a plot, you can use two mortgage offers from VTB:

• mortgage for finished housing, where the purchased private house and plot of land will act as collateral;
• non-targeted loan secured by existing real estate (this program can be considered as an alternative to a mortgage without a down payment).

VTB does not have a separate loan program for a house with land.

The choice of program depends on the specific conditions of the borrower and is determined individually. You can purchase a house with a plot of land under the following conditions:

* The final interest rate may be reduced for salary and corporate clients, doctors, teachers, government employees. There are no additional benefits provided under the VTB mortgage with state support under the above programs.

** for Moscow, Moscow Region, St. Petersburg, Leningrad Region, Vladivostok, Yekaterinburg, Tyumen, Kaliningrad, Rostov-on-Don, Sochi, Samara

*** for other regions

It is not possible to purchase a house with a plot on credit through VTB in all regions of Russia.

The bank does not work with transactions on houses with plots in the following localities:

• Kaluga (and region);
• Magadan (and region);
• Krasnoyarsk Territory - Norilsk city district. and Taimyr region;
• Perm and Perm region;
• Khabarovsk and Khabarovsk Territory.

In other regions, you can safely apply and look for suitable options.

Bank requirements for collateral

If a house and land are used as collateral, the following must additionally be taken into account:

1. The house and land must be owned by the seller.
2. VTB does not provide loans for the purchase of part of a house.
3. Acceptable categories of land: individual housing construction, private plots, land for the construction of country houses or garden houses, land for gardening and vegetable gardening (for example, houses in SNT), agricultural land with permitted use for country house construction with the right to build a residential building.
4. The total area of ​​the purchased house is at least 60 sq.m.
5. The residential building must be located no more than 15 km from the nearest VTB mortgage center (exceptions: Moscow and the region, St. Petersburg and the region, Vladivostok, Yekaterinburg, Kaliningrad, Rostov-on-Don, Samara, Sochi, Tyumen - no further 30 km).

There are also separate requirements for the condition of the house:

• the age of the house is not older than 20 years at the time of the assessment (for houses made of timber/laminated veneer lumber - the year of construction is not earlier than 2000);
• acceptable house material - brick, concrete or concrete structures; timber or laminated timber; lightweight steel structures with wall insulation;
• all utilities are connected and in working order: heating, electricity, water supply or well, central or local sewerage;
• All windows are glazed, there are doors, etc.

That is, the house, first of all, must comply with the standards of residential premises. Therefore, you need to prepare for a possible lengthy search for suitable housing.

Types and general conditions of VTB mortgage programs

• Mortgage with state support at 5%. It assumes full insurance and a 5% rate during the grace period, according to the program “for the second and third child born on January 1, 2018.” The borrower must contribute up to 20% of the cost of the property (the use of “maternity capital” is allowed). At the same time, the amount of financial assistance ranges from 500 thousand to 12 million rubles. (depending on the region). Grant period up to 30 years;
• “Mortgages for the military. Having 15% of the cost of the apartment, a serviceman can take out a mortgage of up to 3.440 million rubles. at 7.3% per annum, paying off the debt over 25 years. The military member must be under 50 years of age at the time of loan repayment;
• "Collateral housing". Bank clients can purchase residential space owned by the bank as collateral and put up for sale at 9.5% per annum. Up to 15 million rubles can be allocated for the acquisition. The loan is provided for 20 years. When concluding a transaction, you must pay at least 50% of the cost of the purchased property;
• "New building". For housing in new buildings, the bank provides clients with between 600 thousand and 60 million rubles. (from 8.4% per year). Down payment from 10% of the cost. The mortgage payment period is up to 30 years;
• "For secondary housing." The terms and rates are the same as for mortgages for new buildings;
• “Mortgage refinancing” (for our clients and clients who have taken out a mortgage with another bank). At a rate of 7.9%.

Details on mortgage programs on the page.
All mortgage programs at VTB take into account not only the insurance of the property, but also the voluntary insurance of the borrower. If you refuse to insure your life, an increase in the interest rate and possibly the down payment is allowed.

Debts, income, documents

For a mortgage borrower, the so-called “three D rule” works: debts, income and documents, says Mikhail Chernov, co-founder and managing partner of the mortgage refinancing service. Let's look at them.

“In order for a bank to approve a mortgage application, the borrower must not have “bad” debts—long arrears on existing (and, ideally, closed) loans. The bank also includes credit cards as debts. Even those from which money is not spent. Therefore, before applying for a mortgage, you should try to close credit cards and also check your credit history. This can be done for free twice a year. You shouldn’t “treat” your credit history with microloans: the bank will doubt the financial literacy of a borrower who is ready to borrow at such high interest rates,” the expert warns.

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The second condition is sufficient income: banks adhere to the rule that the monthly mortgage payment should not exceed 30–40% of income. Moreover, net: minus taxes, payments on other loans, expenses for the maintenance of minor children (each child automatically “deducts” 10-20 thousand rubles per month from the family budget) and other mandatory payments. If the mortgage is not approved, perhaps the borrower asked for more debt than his income allows, Chernov argues. There is only one option: apply for a mortgage for a longer period. Or increase your income.

Banks also refuse mortgages to borrowers with an impeccable credit history and high income. Why? Because they fill out the documents incorrectly. “If a mistake was made in the borrower’s application form - accidental, due to inattention, or deliberate, in the hope of hiding something from the bank, it will most likely be discovered and the mortgage will be denied due to the provision of false information. Therefore, I advise you to carefully fill out bank forms or seek help from specialists,” says Chernov.

Is it possible not to pay the mortgage if the house is not built? More details

Important points

All documents for a house with a land plot must be properly executed and have no claims from a legal point of view.

When applying for a mortgage, insurance of the collateral is required. In the case of a house with land, insurance costs will amount to an amount many times greater than insuring an apartment.

Buying a house with land with a mortgage involves taking on long-term loan obligations that require a sufficient level of income. Therefore, it is important to realistically assess your own financial capabilities when choosing this type of mortgage loan.

In general, a mortgage on a house with a plot has certain nuances arising from the characteristics of the collateral, but otherwise the procedure for consideration, approval and issuance of a mortgage is the same as for any other mortgage loan.