Mortgage for foreign citizens: conditions and procedure for registration

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If a foreigner plans to live and work in the Russian Federation, he needs housing. Renting an apartment is not always advisable. It is much more profitable to take out a mortgage and make transfers to the bank. However, financial organizations prefer not to cooperate with foreign citizens due to increased risks. If a person leaves the country, getting the money back will be problematic. But a number of financial organizations are ready to accommodate foreigners who want to get a mortgage. However, the terms of cooperation may differ significantly from the classical ones.

Can a foreign citizen take out a mortgage?

There is no provision in current legislation prohibiting foreigners from obtaining a mortgage. However, in practice, few banks want to cooperate with people from another country. This is due to the unstable and unreliable status of a person who does not have Russian citizenship. The risks for the bank are increasing. It is easier for foreigners to leave the territory of the Russian Federation. If a person moves abroad, it will be much more difficult for the credit company to collect the debt. Additionally, it will not be possible to claim penalties and fines. If the bank tries to collect the mortgage amount from a foreigner, it will incur large costs. As a result, organizations are reluctant to contact foreign nationals.

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A mortgage differs from other loans in the presence of real estate as collateral. It is located on the territory of the Russian Federation. In case of violation of the terms of the mortgage agreement with a foreigner, the bank may sell the apartment. But there are a number of difficulties here too. The premises will have to be put up for auction. The proceeds will be used to cover obligations to the financial institution. There are additional costs associated with the procedure. In addition, the premises are being sold at a price below the market price.

But not all banks reject mortgage applications from foreign citizens. There are financial organizations that are ready to approve an application for a person from another country. The action is carried out to increase lending volumes and generate profits in an area that is associated with the least competition.

Attention

If a foreign citizen wants to get a mortgage in the Russian Federation, he must be prepared for a detailed analysis by a financial institution. Banks study the place of work, check the financial situation, find out the presence of additional obligations and family connections. The application is approved only if it fully meets the established requirements. Banks actively cooperate with immigrants from the CIS. Companies treat residents of non-CIS countries with great suspicion. However, international financial organizations are represented on the market. Thus, Raiffeisenbank can approve the application of a person who came to the Russian Federation from distant countries.

Is it possible for foreigners to get a mortgage?

If you do not have Russian citizenship, you still have the right to get a mortgage from a Russian bank to purchase housing in Russia. The basis for this is Federal Law No. 102 “On mortgage (real estate pledge)”. But having the right and freely exercising this right are two different things. In fact, banks are not eager to lend to foreign citizens, and for good reason. A foreign borrower may stop paying the loan and leave Russia. In such an outcome, the bank is subject to material losses (non-payment of interest) and costs (legal proceedings, sale of collateral, etc.). A foreign borrower needs to be prepared for a thorough check by the bank. Here's what you pay close attention to:

official salary level
place of work, employer reputation
presence of other property in Russia
credit history
marital status and citizenship of the spouse

It is worth remembering that documents confirming employment and income are valid for 45 calendar days. After this period expires, the bank will require fresh documents.

The legislative framework

The main legal act regulating the provision of housing loans is Federal Law No. 102 of July 16, 1998 “On Mortgage”. Here the rules of interaction between the debtor and the mortgagee, the specifics of the occurrence and removal of an encumbrance from the premises, and the procedure for action in the event of a violation of the terms of the contract are fixed. The regulatory legal act does not establish specific rules for obtaining a mortgage for a person with foreign citizenship. A person has the right to purchase a house, land, apartment or dacha on credit if he is legally in Russia.

Case studies

Banks have very high requirements for foreign clients. Case studies:

Foreigner A. , living and working in Moscow, submitted an application to Rosbank for a secured mortgage loan. According to the bank's policy, to receive the maximum loan amount, you must deposit 50% of the value of the property. Since a non-resident has a certain initial capital, he qualifies for lending conditions. However, according to the bank's rules, in addition to compulsory real estate insurance, the borrower himself must be insured. As a result, the interest rate for a foreigner is 11.89%, the loan amount is from 300,000 to 10,000,000 rubles, and the loan term is from 36 to 180 months (fifteen years).
Kazakh citizen B. has been in Russia for some time and plans to buy an apartment here. B.’s income level meets the bank’s requirements, but during the work it turned out that he had overstayed his legal stay on the territory of the Russian Federation, and according to the law, the maximum period is 3 months within six months. Because of this, B. cannot open a bank account, as a result of which he had to cross the border again and issue a document for temporary stay in Russia.

To increase the chance of a positive decision on a mortgage, a foreigner must either provide a significant down payment (half the cost of the property) or have work experience and a residence permit in Russia. The chances also increase if the subject works in an organization that has a salary project with a financial institution - the creditor.

Which banks provide mortgages to foreign citizens?

There are not many organizations in the Russian Federation that are ready to start cooperation with a foreign citizen. However, you can still find offers. We are ready to start cooperation on mortgages for foreign citizens:

Rosbank. In the company you can get a mortgage for new buildings or secondary housing, or purchase a room or house with the help of a financial institution. The interest rate on offer is from 7% per annum. The minimum loan size for Moscow and the Moscow region is 600,000 rubles. For residents of the regions, the amount is reduced to 300,000 rubles.
Raiffeisenbank. The company has a special offer for salary clients. Persons included in this category can obtain a mortgage at 10.25% per annum. For all other clients the rate starts from 11%. Amounts vary from 500,000 to 26 million rubles. The loan is provided for a period from 1 to 30 years. A decision on the application will be made within 2 - 5 working days. The loan is provided only in rubles, even if the foreigner receives a salary in a different currency.
VTB 24. The minimum overpayment is 8.9% per annum. The amount is relevant if the area of the apartment exceeds 65 square meters. In all other cases, the rate will be from 9.1%. The amount varies from 600,000 to 60 million rubles. Loans are provided for a period of up to 30 years. The down payment amount is from 10%. The total income of up to 4 co-borrowers is taken into account.
Alfa Bank. The company has separate offers for salary clients. They can get a mortgage at 9.29% per annum. If the applicant receives a salary from another bank, the rate increases to 10.29% per annum. The maximum loan amount is up to 50 million for residents of Moscow and the region and 25 million for persons living in other localities. The down payment ranges from 15% for salary clients and from 20% for other persons. Moreover, the requirements for the amount of payment may vary depending on the type of residential premises that the citizen wants to purchase.
Deltacredit. The interest rate varies from 8.25 to 10% per annum. The minimum loan size for residents of Moscow and the Moscow region is 600,000 rubles. For persons living in other regions, the amount is reduced to 300,000 rubles. The repayment period varies from 3 to 25 years. The starting payment starts from 15% and depends on the type of property.

IMPORTANT
The terms and conditions are valid at the time of writing. For more current information, please contact your consultant.

List of banks and basic conditions

Not many banks provide home loans to foreigners. The largest player in the financial market, Sberbank, cooperates with representatives of other countries only in the field of consumer lending.

VTB is more loyal in this regard. When applying for mortgages under home purchase programs in new buildings, the secondary market and refinancing, there are no restrictions on citizenship. However, persons with a passport from another country are subject to increased requirements regarding the duration of work in the Russian Federation and at their last workplace. They also establish strict requirements for the size of the down payment and interest rate.

Important! Raiffeisenbank and Rosbank cooperate most actively with foreign citizens.

Standard mortgage lending conditions for foreign citizens

The conditions for providing funds to foreigners do not actually differ from the nuances of cooperation with Russian citizens. The minimum amount available varies from 300,000 to 600,000 rubles. The calculation must be made within 1 to 30 years. A down payment is required. It demonstrates the solvency of a potential borrower. On average, you need to provide 15-20% of the loan amount.

The housing will be pledged for the entire period of cooperation with the financial institution. A mortgage will be issued for the premises. It will remain in the bank until the obligations are fully settled. Additionally, the premises must be insured. Refusal to perform the action may result in the application being rejected. Such rules do not contradict the law. Article 31 of Federal Law No. 102 of July 16, 1998 “On Mortgages” states that property insurance may be mandatory if this is provided for in the contract. The mortgagee is indicated as the beneficiary. Banks do not neglect the opportunity and always include requirements for the need for insurance in the contract.

Premises can be purchased with a mortgage for foreign citizens on both the primary and secondary markets. Additionally, there is a program that allows you to borrow money to buy a country house, private housing, or a room.

Attention

If the answer is positive, you shouldn’t delay getting a mortgage. Banks provide citizens with 30 to 90 days to obtain a loan. If the deadline is missed, you will need to fill out an application and contact the financial institution again.

Registration procedure

For foreigners, the procedure for obtaining a mortgage is practically no different from the rules in force for citizens of the country.

The whole procedure consists of several stages:

Interest and currency

The overpayment on the loan depends on the reliability of the borrower, the repayment period and the amount received. On average, the rate ranges from 9 to 15% per annum. In the Russian Federation, loans are issued mainly in rubles. This is due to the depreciation that occurred in 2014-2015. As a result, many citizens were unable to pay off their loans. Banks lost a large amount of cash and began to massively curtail foreign exchange programs.

Additionally, the Central Bank increased the risk ratio when calculating capital adequacy from 150% to 300%. As a result, it became unprofitable for financial institutions to provide foreign currency mortgages. It is still possible to find banks willing to issue an amount in dollars or euros. To do this you need to contact:

International Financial Club. The company provides funds at 2 - 30% per annum. The minimum mortgage size is 2 million rubles, 60,000 US dollars or 45,000 Euros. The calculation must be made within 5 years.
Energotransbank. Issues money at 8.5% per annum. There is no need to provide a down payment.
Moskommertsbank. The overpayment amount starts from 10%. The maximum loan amount is $600,000. The calculation must be made within 5-25 years.

There are many government programs in the Russian Federation that allow you to reduce interest rates. However, they are provided to Russian citizens. Foreigners should not count on preferential mortgages.

Bank conditions for mortgage lending to foreigners

There are few financial institutions left that offer mortgage lending to foreign citizens. But there is still a choice. For example, such large banks with international capital as Raiffeisenbank and Rosbank provide a mortgage with a down payment of 15%, but the work experience of a foreign citizen must be 6 years.

The conditions for issuing mortgages from the mentioned banks are quite favorable for foreigners; they offer solid repayment terms and low interest rates. Raiffeisenbank is ready to issue a loan for 25 years at a rate of 9.5%.

TransCapital reduces the length of service requirements to 3 years, and Eurasian Bank – to 1 year.

Requirements for the borrower and necessary documents

But the requirements for mortgage borrowers with foreign citizenship are more stringent. There is an age limit. On average, debt is issued to people aged 21 to 65 years. The maximum age is set at the time of closing of loan obligations. It is necessary to have a stable job in the Russian Federation. According to the requirements of banks, almost always the total length of experience of a foreigner must be at least 5 years. In the last position you must work for at least 2 years.

The salary amount should allow you to easily pay off the loan. The mortgage payment cannot be more than 40% of your monthly income. Cooperation is carried out only with persons who have a positive credit history. It is necessary to have official registration in the region where the bank operates.

Additionally, there are requirements for the premises. The bank assumes in advance that the foreign borrower may violate the terms of the contract, and the company will have to sell the apartment. Therefore, you can only purchase one premises, which will be easy to sell in the future. All communications must be available in the housing. It is important that it is located in the region where the bank operates. It is acceptable to purchase an apartment with a mortgage on the secondary market, but the house should not be dilapidated and subject to demolition.

Basic requirements for a non-resident borrower

The basic requirements for foreign mortgage applicants are almost the same as for Russians. Let's look at the list that needs to be met:

Must be at least 21 years old at the time of application. Although some banks, for example Kuban Credit, allow persons over 18 years of age to enter into loan obligations.
The age at the expiration date of the mortgage should not exceed 80 years, but many banks reduce it to 65 years.
Sufficient level of income: the mortgage payment “eats” no more than 40% of the monthly salary.
Clean credit history (no late payments).
Willingness to pay for a package of life and real estate insurance.
Willingness to attract co-borrowers who meet the same requirements.

Mortgage for citizens with a residence permit in Russia

If a residence permit is obtained, the person acquires exactly the same rights and obligations as Russian citizens in terms of receiving social benefits, benefits, fulfilling tax obligations and mortgage lending. This means that the loan will be processed according to the standard scenario. Typically, borrowers who have issued a residence permit are officially employed and are able to confirm their income. For the bank, this nuance is very important and plays a big role in the application review process. Financial institutions are more loyal to foreigners who have received a residence permit.

Content

Is it possible for non-residents in the Russian Federation to get a mortgage?
Which banks give mortgages to foreigners?
Mortgage for foreign citizens with a residence permit
Mortgage without a residence permit for non-residents
Requirements for a non-resident borrower
What documents need to be collected
Registration procedure for foreigners
How to get a mortgage if your spouse is a foreigner

We will tell you how to buy housing with a mortgage for non-residents of the Russian Federation, what documents are needed and what requirements banks impose on non-residents.

Mortgage for CIS citizens

If a person comes to Russia from the CIS countries and wants to take out a mortgage, banks will be loyal to such a borrower. The Russian Federation actively cooperates with Tajikistan and Belarus. Immigrants from these countries can obtain a residence permit without obtaining a temporary residence permit. The conditions for issuing mortgages have been especially simplified for Belarusians. They may not issue a migration card. To obtain a mortgage, you must provide the financial institution with information about your permanent place of employment and salary. The loyalty program in mortgage lending also applies to immigrants from other CIS countries.

Previously, a simplified version of mortgage lending was available to citizens of Ukraine. However, in 2014, the requirements became stricter. If a citizen of Ukraine wants to get a loan, he must confirm official employment, the legality of his stay in the Russian Federation, income, and the fact of paying taxes.

For your information

Foreigners who have issued a residence permit and immigrants from the CIS countries are considered one of the priority categories of borrowers. Therefore, they can get a mortgage using a simplified scheme. For people who come to the Russian Federation from foreign countries, it is much more difficult to obtain a housing loan.

Mortgage VTB 24 for foreigners

Non-residents can get a mortgage from VTB 24 and the Bank of Moscow, and they may not even live in Russia and do not have a permanent income. Financial organizations have developed a special program “Victory over formalities”, which allows you to obtain a mortgage using two documents.

Under the program, a foreign citizen who has the opportunity to pay 40% of the required amount at once receives a loan under a simplified scheme. You must present a passport with a translation certified by a notary, and some other document, for example, a license. It is not necessary to provide employment information.

However, the borrower must be employed in Russia, so the application must indicate the address of the employing organization, length of service there, and contact information. The transfer of information is previously agreed upon with the employer.

Often the role of employer is played by realtors or acquaintances. Usually, positive decisions are made according to a simplified scheme. Promsvyazbank has also adopted a similar program, but they offer mortgages at higher interest rates.

Mortgage for those who do not have a residence permit

If a potential client does not have a residence permit, the bank will be more wary of the potential borrower. Mortgages for foreign citizens will be approved only if the following conditions are met:

the person plans to move to permanent residence in the Russian Federation and permanently resides on the territory of the Russian Federation;
the person works in Russia;
the citizen pays taxes and fees;
the total monthly payment on all loans does not exceed 40% of monthly income;
the person is ready to provide a down payment on an apartment in the amount of 15%;
the citizen has a positive credit history;
there are no additional debts.

If the above conditions are met, the financial institution can meet the client and provide the required amount of funds. If a person has never received a loan before, his credit history will be considered negative. As a result, the risk of failure will increase. The fact is that it is difficult for a bank to assess the solvency of such a borrower. To reduce mortgage risks for foreign citizens, financial institutions sometimes put forward additional requirements:

increases the down payment amount to 50% of the price of apartments;
reduces the period during which mortgage payments must be made;
requires the involvement of co-borrowers or guarantors;
obliges to insure life and health;
increases the interest rate by 1-1.5% of the standard rate;
increases the requirements for minimum work experience in the Russian Federation.

Requirements for premises on the secondary market

The main characteristics that the finished object must meet:

connected to communications;
if the room is finished, plumbing, doors, and windows are required;
condition - not dilapidated, not in emergency condition, not subject to resettlement;
reinforced concrete foundation, stone or brick;
there are no encumbrances or interests of third parties.

Raiffeisenbank is the most demanding in terms of real estate. In order to lend, the following conditions must additionally be met:

the seller is not a legal entity whose work does not comply with the legislation of the Russian Federation, or a close relative of such;
the premises must have its own kitchen and bathroom;
there are requirements for the number of storeys of a building depending on its age and region.

Required documents

To demonstrate their solvency and reliability, the applicant for a mortgage is required to provide a package of documentation. The list must include:

completed application;
ID card of a foreign citizen with translation;
a document confirming the right of a foreigner to officially stay in the Russian Federation - a migration card with a border crossing stamp, visa, residence permit, temporary residence permit;
documentation demonstrating the fact of having an official place of work and receiving wages;
permission for official employment in the Russian Federation.

If a person has already chosen housing, it is necessary to provide papers for the property. The list will include a purchase and sale agreement, an appraiser's report, a cadastral passport, an extract from Rosreestr or a certificate of ownership. The financial institution has the right to request additional documents. Sometimes you are asked to provide:

education papers;
documents confirming the official registration of marriage;
documents of title to property owned by a citizen;
bank statements of the foreigner;
a document confirming temporary registration on the territory of the Russian Federation;
children's birth certificate.

Attention
Documentation prepared in a foreign language must be translated and notarized.

Documents from the borrower

Basic package of documents for approval of the amount:

application (questionnaire);
passport + translation;
marriage certificate, its translation;
consent to the processing of your data by the bank;
documents confirming the legality of residence and work in the Russian Federation;
confirmation of employment and income (tax returns, salary/pension certificates, copy of the contract with the employer, account statements).

Translations must be notarized. Credit institutions reserve the right to require additional documents. For example, a client may be asked for notarized translations of contracts under which he worked before arriving in Russia.

Documents confirming regular income may not be required when contacting the bank where the salary account is opened.

Read more about the requirements for mortgage documents in another article - Requirements for online mortgage documents

How to get a mortgage for foreign citizens?

If a foreigner wants to get a mortgage, he must follow the following procedure:

Get acquainted with the offers on the market and choose the most suitable one. It is recommended to compare conditions together. This way a person will be able to notice a profitable option. Information can be found on the official websites of financial organizations.
An application must be submitted. The bank will receive the application and evaluate the potential borrower. Then a decision is made. If it is positive, the foreigner will be able to find out the amount of the mortgage that the company is willing to issue for the purchase of a home.
Choose a suitable property. The premises must meet the requirements set by the bank. Money is issued only for apartments located in the region where the financial institution operates, which have high liquidity and all communications.
Contact the property owner and offer him to sell the premises with a mortgage. If the person agrees, an assessment of the apartment is carried out. Payment for the procedure is made at the expense of the borrower.
Prepare a package of documents for real estate, transfer the papers to the bank and provide a down payment. A mortgage agreement will be concluded with the client.
The financial institution will review the documentation. If no discrepancies are found, a final sales contract will be concluded with the seller.
The mortgage is registered in Rosreestr. Additionally, a mortgage is issued.
The mortgage is transferred to the bank.
The financial institution transfers funds to the seller. The approved amount will not be provided in cash.

Mortgage in St. Petersburg for nonresidents

Mortgage in St. Petersburg for non-residents. Most apartment purchase transactions come with a mortgage. Therefore, they often ask questions about mortgages, especially often asking how non-resident citizens can get a mortgage.

For many people, a mortgage is almost the only way to purchase a home. Housing purchased with a mortgage will be pledged to the bank and will become your property only when you pay for it in full. But you can move there, live and make repairs, gradually improving your property. The question of how best to save for housing is quite controversial in an unstable economic situation.

How to buy an apartment in another city? The first thing you need to know: if you are planning to buy an apartment in St. Petersburg, it is better to apply for a loan not at home, but in St. Petersburg. Firstly, banks are reluctant to provide loans for the purchase of a property in another city, and secondly, the transaction will be complicated. In St. Petersburg real estate agencies, a transaction with a nonresident mortgage (a mortgage taken in another city) is considered one of the most problematic transactions.

Purchasing a property with a mortgage consists of several stages, all stages require the approval and approval of the bank. This means that documents for the purchased object will need to be sent by email to another city, and then wait for a response. These approvals with the bank complicate the transaction and extend it over time. There are times when a deal falls apart simply because the seller does not want to wait long, is afraid of difficulties and eventually finds other buyers.

Mortgage in St. Petersburg for non-residents. Let's consider options for citizens of the Russian Federation who take out a mortgage in St. Petersburg. The procedure for applying for a mortgage by nonresident citizens is not much different from the usual one: first of all, you need to check with the bank about the package of documents, prepare all the documents, fill out a form, send it all to the bank and wait for approval.

Option one. In this option, you do everything yourself. You arrive in St. Petersburg, go to the bank with a pre-prepared package of documents, and wait for loan approval. If approved, you select housing for yourself. You do the entire procedure for applying for a loan yourself, you select the property yourself. Usually banks give a certain time to select an object. At Sberbank it is currently 90 days from the date of loan approval.

After you have found a property, you must approve it from the bank and only after that enter into an agreement with the bank and make a purchase and sale transaction, then submit documents for registration and wait for a certificate of ownership. This may take several months. If you do not have such a reserve of time, then option number 2 is for you.

Option two, remote. You prepare a package of documents yourself, send it by e-mail to one of the bank’s branches in St. Petersburg, wait for approval, it will also be sent to you by e-mail. Then you look for a property. It is difficult to do without your presence or the presence of a trusted person. You can get a mortgage loan in absentia, but you can entrust your relatives, friends or a real estate agent to find a suitable property for you.

To do this, you enter into an agreement with an agent and make an advance payment. It is a common practice in the city that agents do not work to find housing without prepayment. After the agent has found you a property and you are satisfied with it, documents are submitted to the bank for approval. After approval of the property, you come to the purchase and sale transaction in St. Petersburg. By the way, there are different options here. There were cases when I selected options, and my daughter studying here or other relatives looked at them in St. Petersburg. It happened that clients came for a day or two to look at the selected options. This option is much shorter in time. You can entrust your agent with a power of attorney to receive documents after the state registration of the property. This is a proven mechanism that works successfully in the market.

Option three. You take out a mortgage in your hometown. You arrive in St. Petersburg, find an apartment. You approve a real estate property from a bank in your city. But it is advisable to transfer the transaction to a bank branch in St. Petersburg. The buyer and seller must come to the transaction at one of the bank's branches in St. Petersburg.

Important! The purchase and sale transaction must take place in St. Petersburg, otherwise the seller has every reason to refuse the transaction. On the day of the transaction, the seller and buyer come to the bank to sign all necessary loan and insurance agreements and sign the purchase and sale agreement. The seller and the buyer deposit money in the locker or sign a letter of credit agreement. The seller must see where and what amount is reserved for transfer to him for the sold apartment, and he must also clearly understand when and under what circumstances he will receive this money.

Which bank to choose?

You need to choose a bank that you trust. Experience shows that most often our citizens trust Sberbank; the majority of the mortgage lending market belongs to it. How to choose a bank?

Do I need a residence permit or temporary registration to get a mortgage in another city? “ Is it possible to get a mortgage without registration ?” is one of the frequently asked questions. No, not needed. Citizenship of the Russian Federation is sufficient. To obtain a mortgage loan, you need a certificate of income, it can be in the form of a bank or 2-NDFL. But in any case, you need official employment, with a work book. In addition, you need to fill out a loan application form.

If you have maternity capital as your first contribution, you need a certificate and an extract from the pension fund. A real estate agent can always provide you with a list of all documents.

Sberbank has a program “Mortgage on two documents”, according to which you do not need to confirm your income. But there, the amount of the down payment must be at least 40%, and the percentage of approval of these loans by the bank is quite low. That is, you can apply for a loan, but it is not a fact that you will be approved.

Mortgage for foreign citizens.

80-90% of mortgage loans are issued by Sberbank, but it has not worked and does not work with foreign citizens. Only some banks issue loans to foreign citizens. For example, Delta Credit Bank, VTB24 works with foreigners and gives them loans, and on the same terms as its citizens.

If you have questions about mortgages, ask in the “Realtor of St. Petersburg” group on the VKontakte social network. The community widget is on the right. You can enter the group through the widget and write your question directly on the community wall. I will definitely answer.

Nonresident mortgage at Otkritie Bank

Mortgage realtor Galina Cherkis

Possible problems and solutions

The procedure for obtaining a mortgage for a foreigner does not always go smoothly. In the process of cooperation with a financial organization, you may encounter the following difficulties:

The applicant provided an incomplete package of documentation, the papers do not meet the established requirements, there are errors or inaccuracies. To prevent your application from being rejected, you must carefully approach the collection procedure or involve an expert.
The bank will refuse to cooperate with a person who has been in the Russian Federation for less than 183 days. It is advisable to contact a financial institution after this period has expired.
There are other outstanding debts. The bank will refuse to cooperate with an overly over-leveraged client. To increase the likelihood of your application being approved, it is recommended to close small loans in advance and only then apply for a mortgage.
There is a negative credit history. Banks do not issue mortgages to persons who have previously failed to fulfill their obligations. Your credit history can be corrected. To do this, you will need to take out several consumer loans one by one and repay them, avoiding delays. The information will be transferred to the APK. If a foreign citizen demonstrates that he is able to comply with the terms of cooperation with the bank, the financial institution may reconsider its decision and issue a mortgage to the foreigner.
There is no registration in the region where the bank operates. It is necessary to obtain official registration before contacting the company.

Requirements for a facility under construction

The legislation of the Russian Federation regarding mortgages for housing under construction is at the stage of serious changes. Bank requirements are also changing.

The best option for the client is to have the facility accredited by the bank. In this case, you do not have to delve into the intricacies of the law. If you are buying an apartment in a multi-storey building, it is advisable to ask the developer which banks the building is accredited with. There may be a financial institution on the list that suits you.

If the building is not accredited by the bank from which you want to get a loan, you will have to collect a package of documents for approval (licenses, permits, etc.). Check with your lender for current requirements.

Mortgage without down payment for foreign citizens

The lack of a down payment increases risks for financial institutions. The bank cannot verify that the person actually has the ability to repay the mortgage. That's why most companies refuse a home loan. If a foreigner does not have money for a starting payment, you can try to contact financial organizations that specialize in issuing housing loans without a down payment to Russian citizens. Similar offers are present in:

Alfa Bank;
Raiffeisenbank;
Uralsib;
Rosselkhozbank;
Zapsibkombank.

Please note
However, companies may request additional collateral, increase the interest rate, or require new co-borrowers. Additionally, the refund period will be reduced. Usually the amount is provided for no more than 10 years.

If a foreigner wants to purchase inexpensive housing or buy a room, you can take out a consumer loan. The offer limit usually does not exceed RUB 2,000,000. The rate is 15% - 20% per annum. The calculation must be made within 5 years. However, in this case the premises will not be included as collateral, and there is no need to provide a starting payment.

Additional Information

If a foreign citizen finds it difficult to independently find a bank willing to issue a mortgage loan without a down payment, you can contact a credit broker. For a certain fee, a representative of the organization will independently select a suitable tariff.

How to Apply for a Mortgage Online

Banks provide the opportunity to submit an application through the website. The filling procedure is usually clear intuitively. Please indicate/provide:

Personal Information;
contacts;
desired loan amount;
income level;
consent to the processing of personal data;
consent for the bank to receive information from the credit history bureau.

If you have already paid off a loan in Russia, online applications will help you contact several banks in a short time and compare their offers. For those who do not have a credit history in Russia, it is better to apply in person. A mortgage with a residence permit for citizens of foreign countries requires a detailed analysis of the available documents. A bank employee will help you collect and prepare them correctly.

How to get a mortgage if your spouse is a foreigner?

If a person is married to a foreigner, and one of the spouses wants to be the sole owner of the mortgaged home, a prenuptial agreement can be signed. Then the financial institution will not consider the husband or wife as a co-borrower. The foreign spouse will not have ownership rights to the premises. In case of divorce, a share in the mortgaged apartment is not provided.

Attention

If a marriage contract has not been drawn up between the spouses, the company considers both citizens as borrowers. They bear financial responsibility equally. A couple’s chances of having their application approved are significantly higher than when a single foreigner receives a mortgage.

One of the persons may act as a financially responsible co-borrower. In this situation, the income of the husband or wife will not be taken into account. However, a check of the documentation and credit history of the person who does not pay, but acts as a second co-borrower, is still carried out.

If Russian citizens are involved in obtaining a mortgage by a foreigner, you can try to take advantage of the benefits. Thus, a family will be able to obtain maternity capital if at least 1 parent and offspring have Russian citizenship. The right to preference appears after the birth or adoption of the second and subsequent children. The presence of foreign citizenship of the child’s father will not be a reason for refusing to provide a certificate and use the subsidy to cover the principal debt and interest on the mortgage.

Registration process

For foreigners, the rules for obtaining a mortgage loan are similar to the scheme under which Russian citizens receive mortgages. The process is carried out in a certain sequence:

Studying offers on the banking services market, which will allow a foreigner to choose the most profitable option.
Selecting a specific mortgage program.
Preparation of the necessary package of documents (given that many certificates need to be waited for a long time, you need to take care of this in advance).
Visiting the bank and submitting an application.
Waiting for a decision (more careful consideration of documents from foreigners entails an increase in the processing time - up to a month from the date of writing the application).
If the bank's decision is positive, the necessary documents are signed (the financial institution provides an agreement with an established detailed payment schedule).
Making a down payment from your own funds (at least 15% of the cost of the purchased home).
Registration of the transaction (the purchased object must be registered with the Registration Chamber or MFC, with the further imposition of an encumbrance from the bank).
Transfer of the remaining amount to the person selling the property.

After all operations are completed, the borrower becomes the owner of the home, which, according to the documents, is pledged to the bank.