A young family paying off a mortgage loan should be aware of a number of opportunities developed by Sberbank for various cases. In particular, it is worth studying what kind of mortgage deferment is provided for the birth of a child at Sberbank.
A special feature of mortgage lending to young families is the opportunity to get a deferment in the event of the birth of a baby
Is it possible to get a deferment if a child appears in the family?
Most banks already provide for a situation where a client may become insolvent. This applies not only to the birth of a child, but also to a number of other possible situations:
- one of the co-borrowers died;
- staff reduction, as a result of which the borrower was fired;
- serious illness requiring expensive treatment;
- Moving to another city;
- any other reasons that greatly affected the client’s financial situation.
It is worth noting that the set of documents for each case will be different. For example, if a child appears in the family, then you only have to attach a copy of his birth certificate to the application.
In other cases, it may be necessary to find a number of certificates proving that the client has a good reason.
Is it possible to defer mortgage payments upon the birth of a child?
A bank client who has entered into a mortgage agreement can count on deferred payments not only upon the birth of a child. If you find yourself in a difficult financial situation and there is not enough money to pay the loan, contact the lender without waiting for trouble. The bank may approve your application for a credit holiday in the following cases:
- death of one of the co-borrowers;
- dismissal from work;
- the need for expensive treatment;
- forced relocation;
- other reasons that led to a significant decrease in the level of family well-being.
The birth of a child is a joyful event. And to obtain a deferment in this regard, you only need documentary evidence of this fact. In other cases, you will have to involve a guarantor who will convince the lender’s representative that at the end of the credit holiday you will resume payments in full.
Features of obtaining a deferment at Sberbank or VTB-24?
Of course, all banks are interested in the client being able to repay the entire debt. The leaders in the banking services market, Sberbank and VTB, have proven themselves to be excellent in terms of customer loyalty and are ready to provide deferred mortgage payments upon the birth of a child.
Sberbank understands young families and, if problems arise with their financial situation, they can issue a deferment for 3 years if the first child is born in the family.
If there are already several children in the family, then at the birth of another one you can get a deferment for up to 5 years. But it is worth noting that this option is only available to those spouses who are under 35 years of age.
The conditions at VTB are slightly different, since each application is considered individually.
If financial difficulties arise, specialists will help resolve this issue. The client will only be required to pay monthly interest while the principal debt is suspended.
“Credit holidays” with Promsvyazbank
The loan payment deferment service is also available at Promsvyazbank. The conditions here are somewhat different from those offered by Sberbank of Russia:
- can only be provided to reliable, trustworthy borrowers;
- You can defer payments for a period of no more than 2 months;
- convenient deferment processing: via Internet banking, a phone call or a personal meeting with a bank employee;
- The deferment can be applied as early as 6 months from the date of receipt of loan funds.
Remember, if you have a difficult situation in your life, then it is you who must make sure that the amount of your loan payments is reduced. Otherwise, if this is not done, the borrower will be considered late in payment, which will entail the imposition of certain sanctions.
What do we have in practice?
Since signing a long-term loan agreement is actually a serious step, the client must be confident in his financial situation at least for the duration of the agreement.
The client should remember that a deferment in making payments increases the total loan term, and the final overpayment on the loan will be significantly higher.
This is due to the fact that during the deferment the principal debt will be frozen, and the client will be required to pay interest on the agreement.
The state has prepared many programs to help young families with children. At the same time, there are federal (which operate throughout Russia) and regional ones. Be sure to check the latest information at the local government information desk.
If the family already has more than 2 children, then first of all you need to focus your efforts on obtaining maternity capital. Most banks allow them to repay part of the loan debt.
The set of documents is always standard: the borrower’s passport, a completed application, the original and a copy of the child’s birth certificate and marriage certificate.
How to apply
In general, applying for a mortgage deferment consists of the following procedures:
- Notifying the bank about difficulties encountered.
It is better to personally contact the bank’s credit/mortgage department and outline the essence of the problem in detail. Also during the conversation, it is worth consulting about the possibility of obtaining a deferment or debt restructuring. The management of the credit institution will advise what is best for the borrower to do and what actions to take in the future.
- Submitting an application for deferment.
The client must write an application requesting benefits for the payment of mortgage debt, indicating compelling reasons. Relevant documents and evidence are attached to the application. If the borrower himself, for objective reasons, is not able to solve problems and prepare documents, this can be done by an authorized person upon presentation of a notarized power of attorney.
- Waiting for a decision from the bank.
Practice shows that any bank that issues mortgage loans can provide preferential terms for debt repayment. However, large banks, especially those that issue loans under special programs of social significance, are more willing to make concessions due to the scale of their activities. Each client request and application is submitted to the next Credit Committee and is considered as planned. After this, the final decision is announced to the borrower.
If the bank makes a positive decision, the parties conclude and sign an additional agreement to the loan agreement, which specifies new conditions for making payments, indicating the terms and minimum amounts. An alternative option would be to designate in such an agreement a period during which the client is exempt from making all payments on the mortgage loan.
After the expiration of the additional agreement, events may develop in the following directions:
- the previous schedule of monthly payments is restored while the repayment period is extended;
- current payments increase taking into account the preservation of the original debt payment period;
- Monthly payments do not increase immediately, but gradually (the period will be extended).
Each borrower, before concluding a mortgage lending agreement, must realistically assess their ability to repay the debt, taking into account potential force majeure circumstances, from which no one is insured. However, material difficulties can directly affect the inability to fulfill one’s obligations to the bank to the required extent. A completely natural option here would be to request a deferment of payments until the situation is resolved.
Depending on the specific case, the bank may exempt the borrower from paying the principal when paying accrued interest, provide a credit holiday (usually for several months) or significantly reduce the monthly payment. In any case, it is important to remember: only trustworthy clients with a positive credit history who, due to objective reasons, find themselves in a difficult life situation will be able to receive such a benefit.
If you are already in arrears on your mortgage, then urgently read our post on this topic, and also immediately contact our mortgage lawyer for a free consultation. He will definitely tell you the right way out of your situation. Sign up in a special form in the corner. Otherwise, you risk having a big problem for many years to come.
You will also definitely find our post “What to do if you have nothing to pay your mortgage with” to help you.
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The birth of a child in the family is not only a pleasant chore, but also an extra financial burden for those who regularly pay a mortgage loan. Banks, taking into account the additional expenses of young parents, meet them by offering preferential conditions that can improve the income status of borrowers.
What mortgage programs exist today for young families in various banks, read our article.
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What conditions must be met?
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Documents for obtaining a mortgage - .
It is more difficult to obtain a deferment of mortgage payment upon the birth of a child for 3 years than for 1 year. It can be provided by the bank only if one of the spouses is on maternity leave to care for a child and there are several additional conditions that we will now consider.
The fact is that when drawing up a mortgage agreement for a young family, the income of both spouses is calculated. And then, if the burden on their budget is a little greater with the birth of a child, then they can count on receiving a deferment for only 1 year.
But this situation is typical only for young families in which both spouses work. For a single mother, in this case, there is no point in deferring for one year, because she has partially lost her income and it will be problematic for her to repay the debt.
Such cases will be considered by bank specialists individually and only then a decision will be made.
In fact, just the appearance of a child in the family does not in itself provide a 100% guarantee of receiving a deferment, because not all banks can accommodate the borrower halfway.
Young families and single parents have the best chance; by the way, such couples can take part in mortgage subsidy programs with the help of state support, then they will be able to repay part of the debt at the expense of the state.
Step-by-step instruction
ATTENTION !!! According to statistics, the majority of mortgage loans are issued by Sberbank.
Here are step-by-step instructions for obtaining deferred payments specifically for this bank:
- Consulting a lender
Contact your bank for comprehensive information regarding the possibility of deferring loan payments. Most often, banking specialists offer the option of loan restructuring, i.e. the payer can choose the best option for repaying the debt, designate the amount that he can spend monthly on the loan without harming himself and his family. Restructuring with a reduction in monthly payment requires the conclusion of an additional agreement. It is signed for no more than one year, and the funds deposited under it are used to pay off interest on the loan.
- Odds assessment
When submitting an application, you do not immediately receive an answer: the bank reserves time to consider the issue and make a decision. Thus, one of the most common reasons for refusal to defer a mortgage loan is the monthly income per family member is more than one subsistence level or the presence of additional living space that can be sold and the money used to repay the loan.
- Statement
It is imperative to specify the objective reasons that prevent you from making loan payments, the amount of payments that the borrower can afford monthly, as well as the amount of income for each family member. Copies and originals of supporting documents must be attached to the application form: certificate in form 2-NDFL, copies of sheets of the work book, certificate of pension payments, etc.
- Waiting for the bank's decision (about 2 weeks)
If the bank has made a decision in your favor, you will need to sign an additional agreement to the contract, which will indicate its validity period, the amount of the monthly payment, as well as other special conditions. The monthly payment cannot be less than 500 rubles.
In case of refusal, the bank's decision can be appealed.
VTB mortgage for large families: news 2018
On January 1, 2021, VTB/VTB24 Bank launched an updated program of state subsidies for mortgage loans. Its essence: a gradual reduction in the mortgage rate to 6% for borrowers eligible for government support. Families with more than one child should be considered as such.
Who is eligible for this VTB preferential mortgage program? These are families of Russians in whom a second or third child was born from January 1, 2021 to December 31, 2022.
VTB's social mortgage program assumes that borrowers have the right to take out a loan on preferential terms: at a low rate of six percent per year for three or five years. Under the terms of the agreement, they are offered the opportunity to:
- take out a loan to purchase housing on the primary market (new building);
- refinance a previous loan.
The standard conditions of the VTB 24 preferential mortgage mean that to participate in the program you need to submit a standard set of documents plus a “Birth Certificate” in the family of the second or third child in the period indicated above.
Special conditions for receiving mortgage benefits from VTB:
- down payment - at least 20% of the total mortgage loan amount;
- for residents of Moscow, St. Petersburg, Moscow and Leningrad regions, the maximum loan amount is 8,000,000 rubles, other Russians can count on 3,000,000 rubles.
VTB will take into account your problems with late mortgage payments
Types of deferment
There are three types of deferment:
- simple postponement of the payment deadline;
- deferment of principal payment while paying monthly interest;
- payment of the principal without interest.
Restructuring allows you to reduce payments
Each client chooses his own restructuring method, since, for example, with annuity payments, interest is paid in the first months of the loan, and, therefore, the payment amount, even if there is no share of the principal debt in it, is large. In this case, it makes sense to choose a principal payment scheme or a complete waiver of monthly contributions for a certain period. At the same time, the bank does not prohibit the client from paying fees during the restructuring period. They are unlimited in amount and can be either lower or higher than the monthly payment. In any case, these contributions will be taken into account towards the repayment of the loan, and the loan period will be reduced. But a formalized restructuring scheme will help the borrower organize financial protection for himself.
Who can take out a preferential loan at 6% (5%). Mortgage Broker Video Explanation
Preferential lending conditions under the state program are available subject to the following parameters:
- if the mortgage applicant is 21 years old at the time of the birth of the second and next child. The loan can be taken out by persons who will not be older than 65 years at the end of mortgage payments;
- preferential conditions apply to family members who work for 6 months for one employer;
- Individual entrepreneurs who have a profitable business during the year before applying for a mortgage;
- if the second or third child was born into the family between January 1, 2021 and the end of 2022;
- participation of four co-borrowers is possible: wife, husband or parents.
The program does not apply to children born before the start of the program. Help is also provided to families who took out a mortgage before the beginning of the year. It is allowed to be refinanced under new conditions.
Program “Providing Housing for Young Families”
How to reduce your mortgage debt? The most obvious option is to take advantage of government programs to improve housing conditions. For example, take part in the social project “Providing housing for young families”, developed by the Government of the Russian Federation in 2011 as part of the “Housing” program, and apply for a subsidy from the federal budget.
How much can you write off?
The amount of the subsidy depends on how many children you have. According to established rules, mortgage write-off at the birth of the first child is limited to the market value of 18 m² of credit living space. In this case, the money is transferred to pay off the principal debt, and not interest on the loan.
After the birth of the second, parents can count on writing off another 18 m² from the budget. The presence of three or more children in a family gives it the status of having many children. This means the right to write off 100% of the mortgage loan.
Scheme of family participation in the state program
Requirements for participants
Only citizens of the Russian Federation can participate in the program. In this case, the following conditions must be met:
- The age of one of the spouses is up to 35 years.
- Monthly income - no more than 21,621 rubles. for two family members and 32,510 rubles. - on three.
- The area of a subsidized apartment is no more than 15 m² per person.
That is, if you have two children, then the apartment should not be more than 60 m². If 3 - 75 m². Otherwise, approval of the write-off application will be denied.
We should not forget that not all commercial banks work with government programs. Therefore, if you expect to partially write off your mortgage upon the birth of your second child, ask in advance whether this is possible with the financial institution you have chosen. And, if the company does not have a legal mechanism for writing off or deferring, look for a more suitable option. For example, you can contact Sberbank PJSC to implement the program.
The rules for the provision and use of social benefits to pay for a mortgage are contained in Appendix No. 4 to Government Decree No. 1050 of December 17, 2010
Why can they refuse?
A bank’s refusal to grant a deferred payment may be received in the following cases:
- When the loan agreement does not provide for the possibility of changing the terms of the loan agreement in terms of providing a deferment or increasing the loan term;
- If there is an existing overdue debt under the contract;
- If less than 3–6 months have passed since the transaction was completed.
If the borrower is denied a deferment, he can contact another lending company with a request to refinance the debt.
