Mortgage without a down payment in 2021, conditions for issuing a mortgage without a down payment

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?

Loan “State support for families with children” SberBank, Individuals. No. 1481

from 0.1%

per annum

up to 12 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.

Which banks operate under the scheme of inflating the value of real estate?

Today there are a lot of banks on the Russian market, so they operate in conditions of fierce competition and struggle for every client. Such conditions have led to the emergence of banks that are loyal to overvalued transactions.

Such financial institutions include:

Sberbank.
Raiffeisen Bank.
VTB.
Promsvyazbank.
Rosselkhoz.
AK Bars.
Russian capital.
Opening.
Transcapitalbank.
Metallinvestbank.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

It is important to understand that even if you decide to contact one of these banks and carry out an overpriced transaction, the deviation from the real market price should not be more than 20%. Anything more is too suspicious and it’s unlikely that anything other than refusal awaits you.

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.

Preferential mortgage Gazprombank, Persons. No. 354

from 5.99%

per annum

up to 3 million

up to 30 years old

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 “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

When is it better not to overestimate?

Do not inflate the cost of an apartment if you do not have a stable income. If you repeatedly delay payments, you can not only be left without an apartment, but also find yourself under investigation.
In addition, it is dangerous to inflate the price of expensive real estate: in the absence of competitive comparisons, the appraisal company is unlikely to recognize the obviously inflated value.
Refuse to inflate the price of an apartment if you are not sure that the seller will not pass on information about your agreements to third parties. One of them may be a bank.

It is worth recalling that inflating the cost of an apartment with a mortgage is an illegal scheme. Therefore, both parties to the transaction must understand what risks may arise as a result of such an arrangement.

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.

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

How to reduce risks?

The easiest way to reduce risks is to avoid agreeing to dubious schemes. Neither the buyer nor the seller knows what is in the other's head. Maybe the seller was initially looking for a buyer who needed to close the deal at an inflated price in order to profit from it. Or maybe it's quite the opposite. Unfortunately, no matter how the situation turns out, it will be difficult for the law to protect someone who signed the papers in their right mind and sober memory.

It is very important to try to protect yourself from unfavorable situations. And one of the options for such protection is a safe deposit box. There you can not only leave funds until you take ownership, but also freeze the money until all the terms of the contract are met.

Another option to reduce risks is to carry out all transactions only by bank transfer. After all, the transfer of funds from the buyer’s current account to the seller’s account is direct evidence that exactly the same amount was paid/received.

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.

Risks and possible consequences

The described scheme is not legal, which means that when resorting to it, all parties must be well aware that there is a danger and they are taking risks. The buyer should weigh everything again before taking such a step, because:

if the income is not stable, and he fails to make payments on time, then there is every chance of being left without real estate, and also under investigation;
Without a trusting relationship with the seller, you definitely shouldn’t try to play with fire;
if the appraisal company does not find a sufficient number of similar objects with approximately the same price for the report, then, most likely, it will refuse to inflate its value.

Let's look at the consequences if the overstatement is revealed:

It is clear that there will no longer be any talk of any mortgage loan.
If the advance agreement and receipt are not drawn up correctly, the buyer may subsequently demand payment for them, and it is unlikely that it will be possible to prove that they have already been made.
This act is fraud and threatens problems with the law - of course, this is an extreme case, but you can be investigated under paragraph 1 of Article 159 of the Criminal Code, which is fraught with a fine of up to 120,000 rubles or in the amount of income for the year, or compulsory or correctional labor - and so on, up to imprisonment for up to 2 years.
And even if everything goes without problems, you will have to pay interest on the mortgage for the amount for which it was ultimately taken out - that is, if the price of the apartment is inflated, the overpayment will be higher.
Another problem may arise with applying for a deduction: during an audit, the fact of deception may be revealed, as a result of which the borrower will be held accountable, so one cannot count on receiving it.

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 4.7%

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.

Apartment cost

When making real estate transactions, it is extremely important to understand the true cost of housing so that it does not become significantly cheaper in the future. When valuing real estate, different types of values can be used. It is worth knowing them and being able to distinguish them.

The following types of prices are distinguished:

inventory , which is determined periodically during inventories and accounting audits;
investment, which depends on the amount of investments made in a given project;
cadastral, determined according to state standards;
liquidation, calculated in case of bankruptcy of a company or demolition of a building;
market-oriented, depending on the current supply and demand for a given object;
consumer, depending on the individual assessment of the consumer;
other types.

The sale of real estate can be carried out at any type of this value if the seller and buyer agree to all the terms of the contract. But it is worth noting that in most cases all these amounts can differ significantly from each other. Therefore, when selling or searching for a home to buy or sell, people sometimes get lost and don’t know what price to focus on.

When applying for a mortgage, banks always focus on the market value of the property in the current period. Since it is this price that takes into account all factors and shows the real liquidity of housing at the present time. Artificially inflating the cost of an apartment can provide certain advantages for the borrower, since the bank can offer the most favorable lending conditions.

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 5.49%

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 7.1%

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.

How does real estate valuation work for a bank?

There are several types of real estate values:

market;
cadastral;
evaluative;
inventory and so on.

For an apartment, a real buyer pays the market value of the property. The market price is fixed in the purchase and sale agreement and in the mortgage agreement. The cadastral value of the property is indicated in the BTI documents, and the appraiser calculates the estimated value for the bank. The amount that the buyer plans to receive for his property is not taken into account when approving the mortgage. What is important for the bank is the estimated value of the mortgaged property. In fact, the estimated value is close to the average market price of the property and consists of several components:

type and area of the object;
availability of repairs, redevelopment, quality of interior decoration, appearance of the facility;
location, transport accessibility, availability of developed infrastructure in the area;
state of engineering communications;
landscaping and appearance of the building where the apartment is located;
floor, view from the windows and other individual features of the object.

The cost of an independent real estate assessment starts from 3,000 rubles. These costs are traditionally borne by the buyer interested in obtaining a loan. A real estate appraisal for a bank is ordered from an appraisal company that has the appropriate accreditation. In this way, the bank is insured in case of manipulation of the real and desired price of mortgage real estate.

For the future buyer, the amount at which the purchased apartment will be valued is of great importance. If the seller set a price of 2 million rubles, and the appraiser valued the property at 1.5 million, the bank will not provide a sufficient loan to purchase the property. In such a situation, the buyer has two options - try to reduce the price and negotiate with the seller, or look for another object within the given amount.

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.

Loan "Ready Housing" Alfa-Bank, Person. No. 1326

from 6.05%

per annum

up to 50 million

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.

Cases of overpricing

Issuing a loan based on the market value of housing gives rise to one important consequence - some borrowers seek to inflate it in order to obtain a mortgage for a larger amount. This may allow you to bypass the down payment requirement.

At first glance, everything is simple: you just need to enter a higher amount into the contract than what will actually be paid, because you cannot control how much is paid. Previously, this practice was indeed widespread, but then banks began to require an assessment confirming the cost of the apartment, which means it became more difficult to inflate it.

The only way to achieve this is to reach an agreement with representatives of the company conducting the assessment and distort the real data, but there are also many pitfalls here. Of course, this is not possible in all cases, because if the fraud is discovered, the company will suffer serious reputational losses, and may even lose bank accreditation, or even get into trouble with the law. Nevertheless, most often there are loopholes, and often it turns out that there is no need to distort information about housing; it is enough to just “correctly” calculate the result and change the assessment in the right direction.

It is also difficult to reach an agreement because of the banks, because they are well aware of the practice of inflating prices for mortgages, and therefore offer clients to make an assessment in those companies that are accredited with them. If the choice is made in favor of another, more accommodating one, this may cause distrust. Typically, the bank checks the assessment and, if its results are questionable, either greatly reduces the amount or refuses it altogether. Accredited appraisers value their accreditation, and therefore it is more difficult to negotiate with them.

In addition to the appraisers, you also need to come to an agreement with the seller: this is usually done through an advance agreement. The parties, having agreed that the contract will indicate an inflated price, then pull off a simple trick: the overstated amount appears in the advance agreement as an advance.

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.

Mortgage refinancing Bank DOM.RF, Lit. No. 2312

from 7.6%

per annum

up to 30 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.

When should you not overestimate the amount?

Of course, this scheme is not legal, since the transaction indicates a fake amount, so both parties must understand all the risks they are taking. And only after fully assessing the whole situation can you agree to this adventure. First of all, the buyer is at risk, so he must consider this situation from the following angles:

if he is not able to accumulate the required amount for a down payment in the near future, is his income so stable and high that he can repay the mortgage on time without any problems;
how strong is the trust in the seller , what will happen if he wants to deceive;
Are you sure that the appraisal company will agree to this overstatement?

The seller is least exposed to risks in this case, but certain circumstances can also jeopardize the deal. The main danger here lies in incorrectly drawn up receipts, since upon receiving an advance and terminating the transaction on his own initiative, the seller will have to return the advance.

The second unpleasant point may be an income tax of 13%, which will have to be paid if the apartment is sold earlier than 5 years from the date of its purchase. In some cases, owners are exempt from paying taxes after 3 years of ownership. But in any case, it is necessary to take into account the difference in the purchase price and further sale, if the specified number of years has not passed.

The buyer bears higher risks, so before offering such an adventure to the seller, it is worth remembering that this offense may be classified as fraud, and in this case you will have to answer before the law. Troubles may also arise with the seller who decides to profit, takes advantage of the situation and changes the terms of purchase and sale in his favor.

You can learn more about this from the video presented.

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.

Procedure for purchasing an apartment

Despite all the problems and risks described, sometimes by inflating the cost it is actually possible to buy real estate with a mortgage. The main reason for this is the high range of prices, which makes it difficult to say unambiguously whether there is an overstatement in a particular case or not.

If the buyer nevertheless decides to resort to this trick and inflate the cost of the purchased home when obtaining a mortgage, then the scheme of action will be as follows:

An apartment is being selected.
An agreement is reached with the seller, because he will also bear risks due to participation in inflating the value of real estate. He will be required to provide a receipt indicating that he has been provided with the down payment amount. Let’s assume that the apartment costs 3 million rubles, and in order to make a down payment of 25% it is necessary for the bank to consider the apartment worth 3.75 million - then an advance agreement is drawn up for 750,000 rubles, and the seller issues a receipt for this amount, indicating that it was accepted as an advance. To eliminate the possibility of deception on the part of the buyer and subsequent demand for money on a receipt, he also gives a receipt for the same amount, stating that he borrowed it.
Next, you need to agree with representatives of the company conducting the appraisal so that they value the purchased property at 3.75 million rubles, that is, higher than its real market value. This stage is often the most difficult, since the assessment is carried out by organizations with which the bank cooperates, and it is not so easy to come to an agreement with them.
After the documents are ready, the buyer takes them to the bank: with the help of a receipt, he confirms the payment of the required amount, and with the help of an appraisal report, he confirms that the apartment is worth the money. You will also need a purchase and sale agreement, which states that the property is being purchased for 3.75 million.
If the documents pass the check, the bank will approve a loan for the remaining 3 million, which is believed to be 75% of the cost of the apartment, but in fact is its full cost. The documents you will need are an appraisal report, an advance agreement, a seller’s receipt and a draft contract.

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.

Home mortgage

A mortgage is a targeted long-term loan issued for the purchase of housing, in which the purchased housing itself acts as collateral. Or, instead, other real estate owned by the borrower can be used as collateral.

A mortgage provides much lower rates than a regular loan, but on the other hand, to obtain it you need to meet the strict requirements of banks, first of all, have a permanent job that provides a stable and fairly high income. Another important requirement is the down payment, which is usually 10-30% of the price of the purchased home.

The mortgage market is dominated by the same banks that are leaders in the country in the field of banking services in general, primarily Sberbank and VTB, and, in addition, there are also specialized financial organizations that focus primarily on mortgages. Some of the banks provide mortgage loans under certain government programs with partial government financing, which can further reduce the interest rate for the consumer.

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.

Cadastral and market value: what is the difference?

Any property has 2 prices:

Cadastral.
Market.

The market price is the real, objective cost of the apartment. It depends on renovation, location, infrastructure, etc. This figure is also influenced by the general state of the real estate market and the competitiveness of housing: the first floor is cheaper than the rest, and other similar “rules”.

Cadastral price is the amount that is used to calculate property taxes. It is always below the market price. What is beneficial for the owner is that he pays less taxes. The cadastral value depends on the region where the housing is located. Each region has a certain coefficient that is used to calculate the price per square meter.

When obtaining a loan to purchase an apartment, it is important to know exactly its market value. It is she who is being overestimated.

Take out a mortgage with a high monthly payment for a short term

Some borrowers take out a loan for a shorter period in order to end up paying less interest. But at the same time, their mandatory monthly payment increases. For example, if you take out a loan of 4 million rubles at 8% per annum for 25 years, the overpayment will be 5,260,651 rubles, and the monthly payment will be 30,872 rubles. And if you shorten the loan term to 10 years, then the overpayment will be 1,823,373 rubles - but every month the bank will need to pay at least 48,531 rubles.

Another mistake is to take out an apartment that is too expensive on credit. Then, even if you extend the loan term, the monthly payment will be too high for the borrower.

Why is this an error

“The total amount of payments for all loans should be no more than 30–40% of the borrower’s income. The remaining 60% goes to other family expenses - usually this is a comfortable amount for the budget,” says Ekaterina Golubeva. For example, if the borrower’s salary is 50 thousand rubles, then the monthly mortgage payment (provided that he has no other loans) should be 20 thousand rubles or less.

A mortgage is a long-term loan, and it is short-sighted to burden yourself with too high payments for a long time. It's difficult to predict what will happen to your income in, say, 10–20 years. It is better to take out a mortgage with a low monthly payment and contribute more money towards early repayment, says a financial expert.

To reduce the amount of the monthly payment, you can increase the loan term, make a larger down payment, or choose a different apartment - for example, a smaller one or further from the center.

Don't have an airbag

A safety net is money for “safety net”, a reserve fund that should ideally cover 3-6 months of your monthly expenses (this also includes expenses on your mortgage loan). Such a cushion must be constantly available - it cannot be kept in securities, spent or loaned out. The best place for an emergency fund is a deposit or savings account.

Why is this an error

If a person does not have a safety net, then, having lost income - for example, due to dismissal or illness - he will not be able to pay his loans. There will be fines and penalties, this will lead to a significant overpayment and a damaged credit history, explains Ekaterina Golubeva. And if the borrower does not make payments for a long time, he may lose the apartment, which is pledged to the bank.

Some borrowers who have temporarily lost their income and are left without a safety net can take out an additional loan or use a credit card. This is a trap that further aggravates the situation, says the financial consultant.