Solving the mortgage issue when a woman goes on maternity leave

Before I got married, I lived with my mother in a small dorm room. There was enough money for food, utilities and clothing for the season—there was no talk of buying an apartment. Having got my first job, I promised myself to change our living conditions at all costs.

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When I moved to my husband, my mother stayed in the dorm. A few years later, I became a successful sales manager with an average salary of about 70 thousand rubles per month. Then I decided to buy my mother an apartment and took out almost 3 million rubles on a 20-year mortgage with a monthly payment of 26,800 rubles. My husband and I discussed in advance that I would take on the loan obligations, since this was solely my idea.

A year later I became pregnant. We have long wanted a child, and here they are - the long-awaited two stripes. All that remains is to decide how I will pay the mortgage when I go on maternity leave and lose my usual income.

I set a goal for myself: to independently ensure uninterrupted mortgage payments during maternity leave, without affecting my spouse’s finances.

I will share with you the important stages of financial and mortgage independence.

Opening a deposit

For me, the ideal option was a perpetual savings account with the ability to replenish and withdraw. In banks, such deposits are often called a piggy bank.

I opened a deposit in rubles at 4% per annum in the bank where I receive my salary and pay off my mortgage. Other banks had more profitable options, but I wanted to have all my accounts in one place, so as not to bother with transfer fees between different financial institutions and to see the whole financial picture.

I saved at least 10% from every salary. I left the quarterly bonuses entirely - I decided that new shoes and the latest iPhone model could wait. Thus, by the time I went on maternity leave, I had saved up 150,000 rubles. From this amount, 500 rubles in interest are credited to the card every month. I admit honestly that I still spend the modest income from my piggy bank on coffee.

Contacting the Housing Mortgage Lending Agency (AHML)

Another option for solving a financial problem is to turn to the state. State assistance can be implemented through the Housing Mortgage Lending Agency, abbreviated as AHML. There is a program that provides assistance to borrowers with children who need financial support. The amount of this assistance is no more than 30% of the outstanding balance at the time of application. The maximum amount of assistance is 1,500,000 rubles. Money under this program can be transferred either entirely to the borrower's loan account or can be paid monthly for 1.5 years, reducing the monthly mortgage payment by 50% or more. If you choose a one-time transfer of money to the loan account, the bank will recalculate the loan amount and issue a new payment schedule accordingly. This way you can reduce the mortgage burden on the family budget.

Calculation of benefits

In order not to miss anything and to get the maximum from the state and employer, I turned to the mothers I knew for help. New parents know exactly where, when, how and what benefits they can receive. I'll tell you about the main payments.

Maternity benefit

For a singleton pregnancy without complications, maternity leave begins 70 days before the expected date of birth (EDD) and lasts 140 days. In my case, the PDR was set for August 30, 2021 - accordingly, I went on maternity leave on June 21. Maternity benefits are paid as a one-time payment.

To calculate its amount, we divide the income for two full calendar years preceding the decree by the number of days in this period. We get the average earnings per day. Multiply by the number of days of maternity leave.

The logic is simple: the higher the earnings, the larger the benefit, but not more than the maximum established amount.

To calculate my maternity benefits, I took a certificate from the accounting department in form 2‑NDFL for 2021 and 2021. My income for two years was 1,851,600 rubles. We divide this amount by 730 days, we get 2,536 rubles per day. Multiply by 140 days of maternity leave. This turns out to be 355,040 rubles - more than the maximum payment in 2021. In fact, I received 301,095 rubles. Even if you earn billions, you will receive no more maternity benefits than the maximum declared payment at the time of the PDR.

Limitations How the amount of sick leave and maternity leave will change in 2020 based on the amount of accruals from January 1, 2021 is as follows: the minimum payment amount is 55,831 rubles, the maximum is 322,192 rubles.

One-time benefit for the birth of a child

Paid to one of the spouses for each child, documented by the employer.

The amount of the benefit for the birth of a child in 2021 from February 1, 2021 is 18,004.12 rubles.

Documents I needed:

• birth certificate;
• birth certificate (issued at the maternity hospital upon discharge);
• a certificate from the spouse’s work stating that he did not receive a lump sum allowance (be careful: the certificate is valid for one month);
• application for payment.

The family is entitled to this benefit, even if no one works officially - in this case, apply for payment to the social insurance fund.

Child care allowance up to one and a half years old

The payment is received by the family member who cares for the child and is on appropriate leave. It could even be a grandparent.

The amount of the benefit is Childcare benefit up to 1.5 years in 2021, 40% of average earnings for the two previous calendar years. There are restrictions on the amount. From January 1, 2021, the minimum benefit amount is 4,852 rubles, the maximum is 27,984.66 rubles.

Calculation example: average daily earnings are 2,536 rubles. Multiply by 30.4 (average number of days in a month). We receive 77,094 rubles. We take 40% of this amount. We receive 30,837 rubles - this is more than the maximum payment amount. Accordingly, when you are on parental leave in 2021, you will receive 27,984.66 rubles monthly.

The benefit is provided financially by the employer. Documents that I needed to process the payment:

• birth certificate;
• birth certificate;
• a certificate from the spouse’s work stating that he does not take care leave and does not receive monthly benefits (the certificate is valid for one month);
• application for parental leave.

It is important to understand that parental leave begins from the end of maternity leave, and not from the date of birth, as many believe. In fact, 3 months pass from the moment of birth to the moment of receiving the monthly payment.

Let me explain. We count not from the actual date of birth, but from the planned one (in the antenatal clinic it is calculated at the beginning of pregnancy). We add 70 days to the maximum allowance and we get the start of parental leave. In my case, the work holiday fell on August 30 - accordingly, the vacation began on November 8, 2021, and I received the first payment only on December 10, payday.

Maternal capital

Good news for those expecting their first child: maternity capital is required What you need to know about maternity (family) capital and for the first child born after January 1, 2021.

• At the birth of the first child - 466,617 rubles.
• At the birth of a second child, if there was no payment for the first, 616,617 rubles.
• At the birth of a second child, if there was a payment for the first, 150,000 rubles.

An application for a certificate can be submitted online on the State Services portal or during a personal visit to.

Maternity capital funds can be used to pay off the principal debt and interest on the mortgage.

Where to get a mortgage while on maternity leave

First, consider mortgage options without mandatory proof of income. There are few such banks, but they can make a positive decision on your application even without income certificates. As a rule, a mortgage with a minimum of documents is issued at a higher interest rate, so first calculate the future payment in a loan calculator.

When choosing a bank, take into account mandatory contributions, for example, collateral insurance and the dependence of the interest rate on various factors. They can seriously affect the final cost of the loan, so it is better to first obtain detailed advice on the terms of the loan from a mortgage manager. Housing loans are issued for a long term; you should not neglect to find out the terms of payment, even if you are not approved for a mortgage anywhere else.

Which large banks have provided a mortgage loan under two documents in 2021:

1. Sberbank issues a mortgage from 300 thousand to 15 million rubles using a passport and a second identification document. Interest rate from 10.2%, payment period up to 30 years. You can attract a co-borrower to increase the loan amount. However, the down payment on purchased housing starts from 50%.
2. Rosselkhozbank . Interest rate from 11.4% per annum, loan term up to 25 years. You can get up to 8 million rubles here. It is not necessary to confirm your income, as stated in the terms of the program. But the down payment must be at least 40% of the cost of the purchased home.
3. VTB also did not stand aside. Here you can get a mortgage without taking into account income from 600 thousand to 30 million rubles. Interest rate from 9.95%, down payment from 30% of the cost of housing. It is not possible to make the first installment of payment for an apartment using maternal capital under this program.

Recommended article: Which bank should a foreign citizen get a mortgage from?

Pay attention not only to banks’ permanent mortgage programs, but also to temporary promotions. For example, during periods of recession, many financial institutions reduce requirements for borrowers and issue mortgages using two documents. Large banks tend to screen loan applications very carefully, but interest rates are low.

Small credit institutions are quite loyal to borrowers and even issue mortgages to clients with a bad credit history, but the interest rate may be 5-10% higher. In terms of the long term, this results in a decent amount of overpayment.

Conversation with family

I explained to my husband that benefits and my savings were being put aside to pay off the mortgage, and the rest of the expenses would fall on his shoulders. Before that, I took care of myself and bought clothes only at my own expense - in matters of personal needs, each of us provided for ourselves. The total budget in our family was only for vacations and repairs.

However, when I went on maternity leave, I had to temporarily forget about being “strong and independent” and live on my husband’s money. This turned out to be difficult: I was not used to asking a man for money. But over time it became normal. Once again I am convinced that all restrictions and prohibitions are in our heads.

With the birth of a child, we asked parents to give up thoughtless purchases. Instead of another toy and a nice blouse, it is better to buy a package of diapers and baby food.

By the way, the birth of a baby is exactly the case when money is the best gift. It is difficult to guess what a child and new parents really need.

Hobby monetization

From the moment you go on maternity leave until the birth of the child, as a rule, 2-3 months pass. During this time, I took an online knitting course and learned how to create scarves, hats and mittens. Initially, I did this for myself, to acquire a new hobby and to occupy time while waiting for the baby. And when it started to work out, I decided to make money on my skills.

I made several kits and created an Instagram account to sell my products there. I talked about my undertaking on every corner - all my friends knew what I was doing. Word of mouth paid off, and I began to receive my first orders.

But not everything went smoothly. I spent 7,000 rubles on knitting, including the cost of yarn. And I earned the same amount in a couple of months - the winter turned out to be warm, there were few orders. After a while I got burned out and stopped knitting.

Assessing my experience from the outside, I see that I made several major mistakes. My main mistake in the early stages of monetizing a hobby was investing in packaging. I spent money on beautiful boxes, name tags and other fluff. And having walked this path, I understand that a hobby can bring money only if you love your business very much and are ready to invest fully. And I knitted and thought only about money. This was also a mistake from the very beginning.

The love affair with the hats didn’t work out, but it was worth a try. I personally know girls on maternity leave for whom their hobby brings them a stable monthly income. One of them bakes cakes, the other makes hats for girls.

Mortgage options

5 main ways to get

credit approval:

• availability of co-borrowers and guarantors;
• posting additional collateral;
• large down payment;
• additional sources of income;
• deposit of parental housing as collateral.

Co-borrowers and guarantors

The more co-borrowers and guarantors are involved in the loan application, the greater the chances of approval. The first on this list is the husband. He is necessarily included in the number of participants in the financial transaction if the pregnant woman is officially married.

Co-borrowers are necessary in a situation where the expectant mother has no other sources of income other than maternity money. The guarantors are mostly close people. Various banking programs allow you to attract up to 5 participants.

Basic requirements for these people:

1. No unpaid loans or debts.
2. Good credit history.
3. No dependents to be supported.
4. An official certificate confirming the stable receipt of a large salary.

Co-borrowers will not become co-owners of a new apartment if the purpose of the mortgage is the acquisition of residential property. They only guarantee the solvency of a woman on maternity leave, like ordinary guarantors.

Can a legal husband not be a co-borrower? Maybe, but only in one case. This is the presence of a formalized marriage contract, the terms of which stipulate such a situation.

Additional collateral

Your own apartment is usually provided as collateral. The bank can issue a loan in the amount of 75-80% of the value of the property. If this amount suits the borrower (the expectant mother), the organization formalizes a financial transaction.

The main requirement for a mortgaged apartment is not to be in common or shared ownership. It should completely belong to the woman on maternity leave.

Good appearance and general acceptable condition are the next requirements for the property. Additional obligations include the absence of debts and seizures on the property. Also, the apartment should not be under encumbrance.

Placing a deposit is an incredibly important step because it limits the actions of the property owner. The borrower has no right to carry out repairs, donate or exchange housing during the bank encumbrance. Such an apartment is very difficult to rent and impossible to sell.

Additional sources of income

This could be a regular part-time job. For example, freelancing or outsourced homework. If the borrower has received an order to perform paid actions, she is required to enter into a formal contract with the customer. This document must be demonstrated to the bank as confirmation of your own solvency.

Receiving investment income. Variable but incoming income from bank deposits or other investments. Most banks will make a positive decision, making sure that the woman has additional income and financial literacy.

Opening your own business or private commercial practice. A woman can organize her own business and provide the bank with the relevant documents (executed OGRN, contracts, permission to conduct activities).

Registration of OGRN

A borrower who works as a teacher has the right to engage in tutoring and private practice at home. In this case, permission to conduct private activities will be required. Also, you should attach a completed tax return for the reporting tax periods to your application to increase your chances of approval.

Big down payment

It is required to pay at least 20% of the cost of housing as a down payment. This is the minimum bank limit. The larger the amount a woman provides on maternity leave, the easier it is to get the desired loan.

Mortgage holidays

On July 31, 2021, the Mortgage Holiday Law came into force. According to the new rules, the borrower can demand from the bank a reduction in the amount of the monthly payment or suspension of loan payments for up to six months. Loans issued earlier are also subject to the law. I haven’t gone on a loan holiday yet and I don’t plan to yet, but this route is my alternate airfield.

Here are the conditions that must be met so that you can apply for a credit holiday:

• Your average monthly income is down more than 30% compared to the previous 12 months. This can be proven using certificates in Form 2‑NDFL for the current and previous years.
• Mortgage holidays on the current loan should not have been applied previously.
• It is also important that the mortgaged apartment is your only property suitable for permanent residence. This can be proven using an extract from the Unified State Register of Real Estate.

Who can receive maternity capital

Maternity capital can be received by:

• women who gave birth or adopted a second child; women who gave birth to or adopted a third child or subsequent children, if they had not previously taken advantage of the right to maternity capital;
• men recognized as the sole adoptive parent of the second child or subsequent children.

Maternity capital is issued to women, but in some cases a man can receive it. A man (parent or adoptive parent) can receive maternity capital in the following cases:

• the woman is deprived of parental rights;
• the woman died;
• the woman was declared dead.

If for some reason the man cannot exercise this right, then this right passes to the child or children in equal shares. A child can claim this amount of money as a minor or as an adult, but up to 23 years of age if he is studying full-time.

Tax deduction

After purchasing real estate in the Russian Federation, you can receive a tax deduction.

For the purchase of real estate

The maximum amount from which the deduction is calculated is 2,000,000 rubles. For example, my apartment costs 3,150,000 rubles. I can only get a 13% deduction on two million. This is 260,000 rubles.

The certificate in Form 2-NDFL, which can be obtained from your employer, will indicate how much tax you paid to the budget. In one year, you can receive a deduction of no more than this amount. If you are not provided with the entire deduction at once, the balance will be carried forward to subsequent years.

If you purchased an apartment in a building under construction, you can submit documents for a tax deduction only the next year after you receive the certificate of acceptance and transfer of housing from the developer. This is what happened to me: I took out a mortgage in 2021, received an apartment in 2019, and I submitted documents for deductions for 2018–2019 only in 2020. Until the housing is rented out, you don’t have to wait for a deduction.

To pay off mortgage interest

Upon your request, the bank will issue a certificate of mortgage interest paid. It will be needed to process the deduction. The maximum amount from which the deduction is calculated is 3,000,000 rubles. That is, from the interest paid you can claim a maximum of 390,000 rubles.

Interest can be deducted every year.

It is important to repay on time

When submitting documents for consideration of a mortgage loan, it is better to tell the manager in advance about the fact of the impending birth. The chances of receiving a positive decision are reduced, but then bankers are unlikely to be able to impose penalties or demand repayment of the debt in full.

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Circumstances are different when a woman goes on maternity leave after 9-15 months. In this case, it is important for the bank to repay the debt on time. When young parents are provided with rubles to make monthly payments, then no one cares about the fact of maternity leave.

conclusions

• Stability is the key to success. Top up your savings account monthly.
• There are more government benefits than you think. Try to get everything possible.
• Plan your finances for several years ahead.
• Don't be afraid to ask your loved ones for help.
• Making money from a hobby is not at all easy; there is no perfect recipe for making money. Evaluate your investments and risks before starting a new business.
• Take advantage of credit holidays and apply for tax deductions.

My baby is now seven months old. I understand that I will go back to work in at least a year, or even more. I am not afraid of the economic crisis, because I took care of creating a financial cushion in advance. If you approach the matter responsibly, the birth of a child will not prevent you from realizing your dreams and achieving your goals.