Getting a mortgage without permanent registration is possible

Private practicing lawyer Yulia Fedonina answers:

Freedom of contract is a fundamental principle of Russian civil legislation, which allows the conclusion of contracts on any terms that do not contradict the provisions of the law. A mortgage agreement is an agreement to pledge real estate, which secures the obligation of the owner of this property (the mortgagor) to repay the debt to the bank or another person (the mortgagee). The place of residence (registration) of the owner of real estate has no legal significance, that is, the law does not prohibit a person registered or residing in one subject of the Russian Federation from acquiring ownership or entering into another transaction (including a mortgage agreement) in relation to real estate located in territory of another subject of the Russian Federation.

However, the bank may extend the period for verifying the documents of the person who submitted the application for concluding a mortgage agreement if this person is registered or lives in a different area from the location where the bank is located. The same provision regarding the location of the bank applies to the location of the property.

5 tips on how to choose a bank to take out a mortgage

How do banks check mortgage applicants in practice?

Is it possible to get a mortgage without registration?

Practice shows that nothing is impossible - and some banks actually agree to this deal with clients. But a decision in favor of the borrower is usually made with great reluctance. This is due to the need to check income information, which is not easy to do when registering a client in another city or region. Also problematic is the potential need to look for the defaulter. Without permanent registration, this is much more difficult to do.

Registration is important for banks

No mark in passport

Do they give you a mortgage in another city without registration if you don’t have a stamp in your passport? The answer is yes, but you will have to carefully search for a bank that is ready to take responsibility for cooperation with such a client. It is noted that the registration stamp is a kind of guarantee of permanence. Some kind of assurance that the citizen will not run away as soon as he reaches the desired goal. It is rare that a bank will refuse additional confirmation of the borrower’s reliability.

Registration in another city

The second situation is when registration is available, but not where you currently live. Is it possible to take out a mortgage without registration if you find yourself in this situation? And again the law is on the side of the citizen. They will give you a mortgage, but with difficulty. Financial organizations will be a little more willing to act if you issue a temporary registration; it provides at least some guarantees.

Damir Zhantlisov, assistant legal adviser at Legal Services Center LLC, answers:

Execution of a mortgage loan agreement is possible regardless of registration at the place of residence. The current civil legislation does not contain any mandatory conditions for obtaining a mortgage. However, it should be borne in mind that banks have the right to set their own requirements for the borrower. At the same time, the bank may refuse to provide any loan (including a mortgage) at the stage of concluding an agreement if it considers that the loan amount may not be repaid by the borrower. Such a circumstance may also include a discrepancy between the place where you received the loan and your place of permanent residence.

The fact is that a mortgage loan is provided for a long period and for a fairly large amount. Therefore, if a borrower applies for a mortgage in one region, but is registered in another, then this is an additional risk factor for the bank. Thus, the legislation does not contain a ban on obtaining a loan in a region other than the place of permanent registration, and many banks lend to all citizens of the Russian Federation, regardless of place of residence or place of stay. Therefore, if you want to get a mortgage loan, first visit one or another bank to find out more specific lending conditions.

How to get a mortgage: instructions for beginners

To whom do banks give a mortgage for an apartment, and to whom do they refuse?

Which banks require temporary registration?

Temporary registration significantly increases the list of banks where you can apply for a mortgage:

VTB;
Raiffeisen;
Delta;
Absalut Bank;
Russian capital;
Opening;
Rosselkhozbank;
Svyazbank;
AK Bars;
Promsvyaz;
Uralsib;
Sovcombank;
Dom.RF.

All these banks issue loans without reference to the region of circulation.

Attentively! Sberbank has a mortgage without registration on a temporary residence certificate, but there are very strict requirements for it in terms of registration.

Answered by K. Yu. Sc., Chairman of the Arbitration Court of Construction Organizations, lawyer Yulia Verbitskaya:

Yes you can. The law does not provide any obstacles to this. You should study the banking product, banking rules and choose the most suitable one for yourself. The bank is guaranteed in any case by mortgage and universal jurisdiction (disputes regarding property are considered at the location of the property in Novy Urengoy), for this reason your registration is not of fundamental importance for the bank.

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Applying for a mortgage loan without permanent registration

When purchasing a home with a mortgage, the following stages go through:

Approval of the client's questionnaire. After submitting a package of documents, employees of the banking organization check the borrower’s identity, his lending history and select the appropriate loan size. This process takes from 7 days.
Search for suitable real estate. After the banking organization approves your application, look for housing. The main condition is the value of the property both at the time of purchase and during the period of repayment of the mortgage loan. Old housing in disrepair cannot serve as collateral. It is not allowed to purchase an apartment with an illegal redevelopment using a mortgage.
Property approval. After you find a suitable apartment, order its appraisal, take photocopies of the documents for it from the seller and bring it to the bank. Only organizations accredited by the bank can evaluate housing. This is necessary for a financial institution to avoid various risks.
Applying for a loan. If all the papers are collected and confirmed, a transaction day is set, at which three parties are present - the seller, the banking organization and the buyer. The borrower signs a loan agreement, receiving money to purchase an apartment, and a purchase and sale agreement.

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To obtain a mortgage on convenient terms, it is desirable that the applicant be registered (permanently or temporarily) where he takes out the mortgage. A study of the conditions of mortgage loans shows that the absence of such registration threatens:

reducing the loan term;
an increase in interest rates;
imposing comprehensive insurance (except for compulsory home insurance regulated by the Mortgage Law, the borrower has to take out title and personal insurance).

List of banks loyal to job seekers

A number of financial and credit organizations are quite lax towards clients who want to take out a mortgage in a location other than their official place of residence.

These are large banks with an extensive network of branches and operational offices:

Alfa Bank;
VTB;
Promsvyazbank;
Rosbank;
Rosselkhozbank;
Sberbank;
SvyazBank;
UralSib;
FC Otkritie.

Lending conditions in the absence of permanent registration in the region of purchasing a home with a mortgage should be viewed on bank websites and clarified through customer support. Some of the listed banks directly require a copy of the certificate of temporary registration (like FC Otkritie); in other financial and credit organizations, information about the obligation to provide the document must be further clarified.

A mortgage without registration is in principle impossible: the bank will conclude that such a client is unreliable and refuses the loan. However, obtaining a housing loan in the absence of permanent registration in the place where the lender is present is possible. It is optimal to provide a certificate of temporary registration and other documents proving that the client is committed to a long-term, and in the future permanent stay in this region.

How to Avoid Rejection and Increase Your Chances of Getting a Mortgage Loan

A potential borrower has several options to increase their chances of getting a mortgage.

Contact a large financial and credit organization with branches in many cities of Russia. Even if the applicant wants to take out a mortgage in a place other than where he lives or works, the chance of getting approval for it will remain high. IT technologies allow bank branches to communicate with each other, and a single database allows one to find information about the client of any branch of a financial credit organization.
Contact a bank that works with Russians remotely. Banks like Tinkoff have practically no offices, and for them the question in which locality the borrower plans to buy real estate does not matter.
Taking out a mortgage on a finished home: when purchasing it, the borrower, by law, must immediately register ownership of it. Since this housing has already been rebuilt, the borrower registers it as collateral. In case of non-payment of the debt, the housing will go to the bank. When taking out a mortgage on housing under construction under a sales and purchase agreement (SSA), issued to a borrower without registration, the bank risks losing money and not receiving collateral in return.
Provide the bank with a rental agreement for an apartment in the region where you plan to apply for a mortgage (if the owner of the rented property refuses temporary registration).
Provide the financial institution with a copy of the agreement on the applicant’s transfer to a new place of work in the region where the bank operates.
Find co-borrowers or guarantors and note this fact in the applicant’s application form. Co-borrowers and guarantors are one of the forms of securing a mortgage loan. The presence of co-borrowers who bear joint liability with the borrower is also proof of the financial solvency of the bank’s loan counterparties.
Meet the other requirements of the bank: have sufficient and documented income to obtain a mortgage, have assets (real estate, car, deposit accounts).
Apply for a mortgage in the bank through which the salary is transferred or in which the applicant previously opened an account for a large amount. This will indicate the financial solvency and stability of the applicant’s income.

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How to register in a Sberbank secured apartment

According to legislative norms, citizens of the Russian Federation are required to register at a new address no later than 7 days after being discharged from their previous place of residence and a maximum of 3 days from the date of submission of the required documents; a period of 90 days is established for temporary registration. There are several options for obtaining registration:

usual - when visiting the passport office;
at the local FMS branch;
online on the State Services website;
This service is now offered by multifunctional centers.

Today, citizens have 4 options for places where they can go to carry out the registration procedure

Procedure

The borrower is allowed to begin the procedure for registering a residence permit in a collateral apartment of Sberbank only after completing its registration in the Unified State Register of Real Estate.

The client needs to act according to the following scheme:

submit an application to the bank about your desire to register third parties, indicating the degree of their relationship and their data;
approximately 7 working days the bank considers this application and announces its decision;
If the applicant receives approval for his application, he approaches the passport office or other authorities to carry out the procedure.

If the bank requires additional information or documents, the process may be delayed. If the owner of the mortgaged apartment receives a refusal, he has no right to oppose this decision. Due to the client’s self-will, the bank reserves the right to terminate the contract with him subject to early payment of the debt.

The State Services website makes it possible to save time as much as possible - all documents are submitted electronically and a person is invited for a certain time only to register in the passport

Required documents

If Sberbank has decided that, in addition to the owner of the encumbered property, other persons can be registered, then they must be present when submitting documents to the passport office. This condition does not apply to children under 14 years of age.

Passport office employees must provide:

handwritten applications from persons wishing to register (form No. 6);
their passports;
for men - military ID;
if the spouse of the main borrower is registered in the living space, a marriage certificate will be required;
if there are minor children, their birth certificates;
a copy of the document certifying ownership of the property.