How to get a mortgage without the participation of a spouse is a fairly common question among mortgage borrowers. Nowadays, many married couples take a responsible step in their lives together - take out a mortgage loan to purchase a home. As a rule, one spouse takes out a mortgage, and the second is automatically a co-borrower (). In other words, both spouses bear the same burden of mortgage debt. Many banks by default include a spouse as a co-borrower if they see that the borrower is married.
In what cases does a spouse not participate in the mortgage?
However, there are cases when one of the spouses wants to take out a mortgage only for themselves, without involving their spouse in this process. A mortgage without a spouse may have the following reasons:
- division of property of spouses, the desire to protect real estate from division in the event of a possible divorce;
- one of the spouses works unofficially and his income is not confirmed;
- one of the spouses has a bad credit history;
- the wife, for example, is a housewife and has virtually no income.
Very often, a family has to take out a mortgage only for the wife if the husband already has several loans.
It is possible and quite legal to take out a mortgage without the consent of your spouse.
What is the difference between a co-borrower and a guarantor?
A co-borrower is a person who has equal rights and obligations with the title borrower. It is involved in order to increase the chances of receiving a loan. The income of the title (main) borrower and co-borrower are added up, so the likelihood of a positive decision on the part of the bank increases. Co-borrowers are subject to the same requirements as the main borrowers.
The guarantor is also a third party in the loan agreement, who acts as a guarantor of the borrower’s fulfillment of obligations to the lender. Unlike a co-borrower, a guarantor does not bear joint and several (equal) liability under the loan agreement. His liability arises if the main client does not fulfill his obligations to the bank. The diagram looks something like this:
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- The borrower stops paying on the loan.
- The bank issues demands for debt repayment.
- The borrower is unable to fulfill his obligations.
- The bank issues demands to the guarantor.
Consequently, the co-borrower fulfills the obligations under the agreement together with the title borrower, and the guarantor - instead of him. In this case, the first one has the right to dispose of funds, as well as to a share of ownership in the real estate purchased with a mortgage. The guarantor does not have these preferences, since he does not bear joint liability on an equal basis with the main client of the bank.
Methods for completing an application without taking into account a spouse
Answering the question - is it possible to take out a mortgage without the knowledge of the spouse, we give an unequivocal answer in the negative. Even though one spouse is excluded as a co-borrower, his or her participation will still be required.
To take out a mortgage without a spouse, you need to contact a notary and register your consent to the purchase of real estate by the second spouse. The document contains data on the property and the consent itself.
The notary certifies the identity of the spouse and records this consent. This document has a default term of 3 years, like most notarized documents. Such consent will be required to register the transaction, that is, when registering ownership of the apartment.
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However, the apartment will still be joint property, to which the non-participating spouse has the right to claim. And debt obligations also apply to both spouses.
Option 4: Surety
The guarantee scheme is usually used between common-law spouses - for officially married people, banks are more likely to refuse this option.
The guarantor is a guarantor of loan repayment, but cannot lay claim to the property itself. The presence of a guarantor may be required if the lender's income is not too convincing for the bank. By accepting responsibility, the guarantor risks receiving an obligation to pay, and therefore must be confident in the reliability of the other party.
Nuances of registering a marriage contract
What kind of document is this? This is an agreement between husband and wife, in which they can establish ownership of certain real estate objects or redefine shares, or generally change the procedure for disposing of joint property (). The agreement is concluded in writing and certified by a notary, who acts within the framework of the rules for performing notarial acts on the basis of the laws of Russia ().
cannot contradict civil legal acts or limit the rights and legal capacity of spouses.
The database cannot be changed unilaterally, that is, on the initiative of only one spouse. The marriage contract is considered invalid after the divorce of the spouses (). When one of the spouses receives a loan, the marriage contract must be presented to the financial institution. A mortgage without a spouse as a co-borrower is formalized through such an agreement.
Who pays the mortgage after divorce?
Before breaking up the relationship, the procedure for paying off the mortgage must be agreed upon with the bank, since divorce changes the terms of the loan agreement. An exception is if a marriage contract was drawn up, which must stipulate:
- who is the borrower;
- who will become the owner and what share they are claiming;
- who will pay the mortgage, as well as insurance, interest, utilities;
- how the apartment and credit debt will be divided after a possible divorce;
- what conditions may affect the revision of the obligations of both spouses regarding the mortgage.
If there is no prenuptial agreement, it will be useful for the spouses to enter into an agreement with each other on the division of property in the mortgage to avoid litigation. The document can be certified by a notary's signature (this is optional, but desirable). It is necessary to provide for the procedure for repaying the loan - who pays and how much. Then you need to submit an application to the bank to change the terms of the loan agreement
When the court takes over the case, most often the mortgage, like the apartment, is divided in half. The former couple repays the loan jointly. Although in some cases the court may distribute financial responsibility unevenly - if it is proven that one of the divorced parties contributed more money to the mortgage.
What does a marriage contract contain?
The husband and wife agreement for a mortgage without the consent of one of the spouses must contain the following:
- information about the person taking out the loan (full name, passport details, place of residence);
- information about who will own the property;
- information about the amount of the down payment and its payer;
- information about who will make monthly payments;
- those responsible for violations of the marriage agreement are identified.
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Let's look at each point in more detail.
The first clauses of the agreement clearly and clearly define which of the spouses is the borrower and who will be the future owner of the home.
About mortgage payments
An important point in a prenuptial agreement when it is drawn up to take out a mortgage without the participation of a spouse is the down payment. After all, unless otherwise stated, all money in the family is considered joint. Therefore, it is important to indicate the source of the down payment.
The point about monthly payments is also very important. It must be indicated that such payments are part of the income of the future owner, and not joint family income.
About the norms of civil contract
A BD is an ordinary civil contract, in this case it decides the question of whether it is possible to take out a mortgage without the consent of the spouse. Therefore, in a situation where the clauses of the agreement of one of the parties are not fulfilled, the norms of the Civil Code of the Russian Federation apply. That is, the second party has the right to make demands for elimination of violations and even compensation for losses, as under any civil contract.
Termination of a marriage contract occurs in connection with the divorce of the spouses, unless other conditions are specified in the agreement
In each specific case, the agreement may contain information about the bank that issued the mortgage, the terms of this mortgage, or additional information about the property itself.
How do banks review mortgage applications?
The easiest way to apply for a mortgage is online. Fill out the form and wait for a response. Bank employees will check your solvency, assess your credit load and credit rating. If the monthly payment amount exceeds 40% of the family income, banks will refuse. But a lot depends on the bank’s credit policy. Some companies are ready to issue loans when the monthly payment amount does not exceed 50%.
Banks assess the client's solvency based on monthly family income, the presence of additional loan obligations and the cost of living for each family member. If you already have a loan and have to fulfill obligations to another bank, the new lender will calculate the loan load taking this into account.
For example, you work alone in your family and earn 100 thousand rubles, but you have a loan and the monthly payment is 20 thousand rubles. The mortgage will be denied because you cannot pay the mortgage of 20 thousand rubles. The average monthly mortgage payment for residents of Moscow and the Moscow region is 50-60 thousand rubles.
Where to draw up a marriage contract
Although this agreement is registered by a notary, its drafting can be entrusted to a competent lawyer. After submitting the documents, the specialist will quickly and accurately formulate the main points and conditions of the marriage contract relating to a mortgage without the consent of one of the spouses. Documents you will need:
- passports of husband and wife;
- marriage document;
- ownership documents and mortgage agreement.
Only after a competent drafting of the agreement, if there are no contradictions with existing legislation, will the notary register the marriage contract. It will come into force, and there will be a chance to take out a mortgage without the participation of a spouse.
How to get a mortgage without your wife's consent
First you need to make sure you have the right to take out a mortgage loan without obtaining your wife’s consent. To do this, you need to take care of having a marriage contract certified by a notary, or prepare documents confirming that your wife does not have Russian citizenship. Otherwise, the registration procedure will be standard and include 7 steps:
- Choosing a suitable bank. I recommend not relying on advertising, but comparing the conditions of different credit institutions yourself and only after that making a decision on where it is more profitable to get a mortgage.
- Preparation of the necessary package of documents. Usually collecting them is not a problem, but sometimes you have to wait a little until all the necessary certificates are prepared by the employer.
- Filing an application. It is issued on the website or in the office. All previously prepared documents in the form of originals or scanned copies must be attached to the application.
- Receiving a positive decision from the bank. It is usually accepted within 2-7 days, but sometimes financial institution specialists take a little longer to verify the borrower.
- Selecting an object to purchase. It must also usually be assessed by an independent company and then agreed upon with the bank.
- Signing documents and conducting a transaction. At this stage, it is important not to forget about the need to insure the property, which will act as collateral. Insurance is paid by the borrower.
- State registration of the transaction. To do this, you will have to contact Rosreestr directly or through the MFC. Many banks also offer electronic registration of transactions.
What documents will be needed
You must approach the collection of documents necessary to obtain a mortgage loan responsibly. It largely depends on him whether the bank can approve the application. When applying for a mortgage without the participation of his wife, the borrower must, in addition to the marriage contract, prepare his own passport, as well as documents on employment and income. Usually for these purposes it is enough to provide a salary certificate and a copy of the work record book.
The following documents also allow you to confirm your income:
- tax returns (for individual entrepreneurs, business owners);
- lease agreement (to confirm additional income);
- a certificate from the Pension Fund (to confirm the amount of pension payments if the borrower is already receiving them).
Important. The bank has the right to request other additional documents, taking into account the situation of a particular client and the information contained in the application.
After selecting a property for purchase, the seller must provide an extract from the Unified State Register of Real Estate, as well as a document providing the basis for the emergence of ownership rights (for example, a purchase and sale agreement). For a new building, another package of documents is provided: an extract of land ownership, an investment agreement, and the developer’s constituent documents.
Requirements for borrowers
The requirements for the borrower to obtain a mortgage without the participation of the wife will not change in any way. This category of loans is available to citizens of the Russian Federation and in some banks to foreigners. The potential client must also meet the following parameters:
- adult age and full legal capacity;
- presence of registration on the territory of the Russian Federation (sometimes in the region where there are offices of the selected bank);
- constant income, which is enough to make payments on time.
The decision on each application is made individually. It is largely influenced by the following points:
- client's credit history;
- borrower's solvency;
- current credit load;
- the presence or absence of debts collected through the court.
Important. The bank has the right to refuse any loan application. He is not obliged to explain the reasons for making a negative decision. It may also be caused by the credit policy of a particular organization.
A mortgage without the consent of the wife is possible in strictly prescribed cases by law. Usually, to do this, you need to have a marriage contract with a separate regime for the use of property, including real estate. In other cases, the husband will have to agree on the deal with his other half.
How to increase your chances of getting a mortgage approved without the participation of your spouse?
This will happen if:
- the borrower's income is greater than average (at least twice);
- continuous work experience of more than 3 years;
- a co-borrower with a good stable income, preferably related to the borrower by family ties;
- the borrower will make a large down payment.
If there are two or three such points, there is a possibility of getting a mortgage without a spouse.
It should be noted that at any time the database may be:
- terminated by agreement of both parties;
- renegotiated on different terms.
That is, during the term of the mortgage loan, the spouse not participating in the loan can, for example:
- receive a pre-agreed share in housing;
- make monthly payments under any conditions.
Option 3: Equity participation
If for some reason spouses want their shares of property to be different, then this should be written down in the marriage contract - there is no other legal way. Here, lawyers also recommend fixing a loan repayment scheme in case the marriage breaks up before the entire amount of the mortgage loan is paid: who will repay and in what shares.
For our compatriots, it is still quite difficult psychologically to move from belief in eternal love to rationally specifying shares in a marriage contract during a divorce, although gradually this practice is becoming more and more popular in Russia.
Which bank can approve a mortgage without a spouse as a co-borrower?
First of all, it must be a large bank. According to statistics, VTB often approves mortgages in such situations. In any case, when you first contact the bank, you should immediately ask the employees the question - is it possible to get a mortgage without the consent of the spouse. Bank specialists can advise the most effective method.
List of banks in which the mandatory participation of the spouse as a co-borrower is not required and only the notarial consent of the spouse is sufficient:
- Sberbank
- House of the Russian Federation
- Gazprombank (even without consent)
- Promsvyazbank
- Sovcombank
- Uralsib Bank
- Absolut Bank
- Bank "Saint-Petersburg
- BJF (Housing Finance Bank)
- Moscow Industrial Bank
- ICD
- Primsotsbank
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Author:
Mortgage specialist Maria Yurievna Sokhan
Publication dateMarch 27, 2020May 11, 2021
Joint purchase of housing
Real estate is always in demand on the market. Since not everyone can buy an apartment with one payment, most citizens take out a housing loan. If a person is married, before concluding a mortgage agreement, you should consult with your life partner. But is it necessary to obtain his consent?
When purchasing real estate without using borrowed funds, the spouse’s permission to purchase an apartment is not required:
- if the transaction is concluded by proxy;
- if housing is transferred into ownership on the basis of shared ownership or as joint ownership, both transactions are documented;
- in case of purchasing a commercial property.
Before issuing money, bank employees will request notarized permission from the second spouse. .
Advantages and disadvantages of a mortgage without a bank
The main advantage of a mortgage without a bank for the buyer is the reduction in the overall costs of purchasing a home. Savings are achieved through lower interest rates and no insurance costs. For the seller, the main advantage is the higher cost of sales, which is impossible without providing the buyer with an installment plan. A common disadvantage of the transaction for both parties is the lack of legal control on the part of the bank, which requires the participants to make greater efforts on their own.
Legislation on the possibility of obtaining a mortgage during marriage
The process of taking out a mortgage loan is regulated by several legislative acts of the Russian Federation. First of all, this is the RF IC, Article 35 of which states that transactions involving state registration must have a notarization.
Also, according to Art. 20, a loan for the purchase of housing is a procedure that requires state registration, which means that it cannot be done without the consent of the second spouse.
Consent to conclude a mortgage lending agreement for the purchase of real estate by all its owners is a requirement regulated by Art. 7 Federal Law No. 102.
Conditions for refinancing a mortgage
The ability to change the terms of the mortgage is, first of all, convenient for the debtor. As a rule, the agreement involves revising the terms of loan repayment. Refinancing is used to:
- reduce monthly payments;
- change the validity period of the agreement;
- reduce the interest rate.
To determine whether you need your spouse's consent to refinance your mortgage, you should consider the status of the property. For example, if the property is shared, the mortgage in most cases is repaid from the funds of the joint budget. In this situation, the spouse must choose one of three options:
- Conclude a surety agreement.
- Issue a notarial consent.
- Become a co-borrower.
By setting such conditions for the client, the bank thus minimizes its risks.
