Repaying a mortgage with maternal capital - is it possible and what do you need to know, conditions for using the down payment and partial repayment, how to apply and what documents are needed, tariffs and conditions of banks, review

How are maternity capital and mortgage related?

Maternity capital is provided within the framework of Federal Law No. 256 of December 29, 2006. The Law defines who the payments are intended for, the procedure for obtaining a certificate at the birth of a child, and for what purposes the funds can be spent.

One of the areas for spending money is the purchase of finished housing, an apartment in a building under construction, or individual housing construction. The funds can be used to pay off existing mortgage debt or to make a down payment on a loan to purchase real estate. (Article 10 of Federal Law No. 256).

Repaying the mortgage if the child is under 3 years old

As you know, the certificate can be used immediately after the child turns three years old. If parents or guardians try to use the cash payment early, then this action may be considered illegal. By the way, there are even companies that are ready to buy maternity capital, but this procedure will be illegal, which should be remembered. If we are talking about a mortgage to buy a home or to build a house, then you can apply the payment ahead of time.

Specific conditions will need to be met before the capital can be used. First of all, it is important that the housing is registered as common shared ownership, and a specific part is allocated to the child. You also need to register the apartment with the state. If the loan is on a man, then he must be officially married to a woman.

To receive funds, you will need to contact the Pension Fund and obtain the required certificate. Next, a profitable bank program is selected to use the money as a down payment. Appearing in person at the financial institution, you need to submit an application and documents. Then all that remains is to wait for the decision of the Pension Fund, and if the answer is positive, the money will be transferred to the bank. At this point, the procedure for using capital can be considered completed.

What can the funds be used for?

Repay a loan. If there is enough money to fully repay the mortgage with maternity capital, the borrower will be able to pay the debt in final payment.
Pay interest and partially the loan body. This option is suitable for borrowers who have paid their mortgage not long ago and still have an impressive debt balance. In case of partial early return, the amount of overpayment for the transaction is reduced. The debtor will be able to reduce monthly payments or the loan term.
Making a contribution using your own funds. Having a down payment will allow you to obtain a mortgage on more favorable terms, a favorable interest rate will be offered, and the loan amount will increase.

Banks allow early and partially early repayment of debt, no penalties are collected, and no additional conditions are imposed. The main thing is to fill out the application correctly and comply with the repayment regulations.

Having a certificate does not guarantee getting a mortgage!

Banks allow funds to be invested in a mortgage transaction, but this does not increase the likelihood of issuance. If the applicant is declared insolvent or has a bad credit history, the lender will refuse to issue the loan, regardless of whether the client has maternity capital.

Basic requirements and mortgage repayment procedure

Basic requirements are established in Art. 10 Federal Law No. 256:

You can purchase real estate located in Russia.
In residential premises, a share must be allocated for spouses and minor children.
Funds are provided to one of the parents, most often the mother is the owner of the certificate.
Funds can only be used to improve housing conditions: for the purchase or reconstruction of housing, for concluding a management agreement, for individual housing construction.
The loan must be obtained from a bank, credit cooperative or AHML (House of the Russian Federation).
You can pay off the actual debt and/or interest; the funds cannot be used to pay fines, accrued penalties, commissions, etc.
The transaction is carried out in a non-cash form, so the real estate seller must have an account to which the funds will be transferred.
In order to prevent fraudulent cash transactions, purchasing residential premises from relatives is not allowed.
You can use all or part of the funds in the account. Money is allocated not monthly, but in one amount.

Regardless of who the certificate is issued for, the state allocates funds for the whole family. Therefore, if a spouse who is not the owner took out the mortgage, you can use the funds to pay off the debt.

You can spend money on repaying a housing loan without waiting until your child turns 3 years old

In order to repay the mortgage, you will need to agree on a deal with the pension fund and the creditor bank.

How is an apartment divided if you have to get a divorce?

As mentioned above, even if the husband has used up his wife’s maternity capital, this does not give the spouse the right to an apartment. Therefore, if the apartment was registered entirely in the name of the spouse, then the wife does not have the right to claim part of the living space after a divorce.

We have collected original reviews on this topic here, reviews from real people, many comments, worth reading.

4 banks that are happy to issue mortgage loans

You can get a cash loan right now, just select a bank:

However, if she has nowhere else to live, she can retain the right to live in the living space.

Contacting the Pension Fund

The owner of the Certificate applies to the Pension Fund of the Russian Federation with an application for the disposal of maternity capital, indicating the type of expenses and the amount of funds.

In accordance with GD No. 862 dated December 12, 2007, the following documents will be required:

For spouses: ID cards of husband and wife; marriage certificate or divorce certificate if the applicant is divorced;
For real estate: documents confirming the purchase of real estate and its ownership by the borrower;
From the lender: a loan agreement with a repayment schedule, a collateral agreement, a certificate of the balance of the loan debt and interest on the date of application, confirmation that the loan was issued by transferring funds to the account;
A written obligation of the borrower to register a share for each family member, certified by a notary;
Certificate with account details of the certificate owner;
If maternity capital is used to improve housing conditions, a permit for construction or reconstruction is additionally provided, as a result of which the area of housing will be increased in accordance with the accounting norm;
With individual housing construction, documents for the land plot are submitted.

The rules for submitting documents are established by Order of the Ministry of Labor of Russia No. 606n dated 08/02/2017. They determine that the certificate holder must submit a request personally or through an authorized representative. The application can be submitted at any time, regardless of the child's date of birth.

Application methods:

Visit to the Pension Fund;
Visit to the MFC;
Sending by mail;
Online through the websites of State Services and the Pension Fund.

Conditions for repaying a mortgage issued to the husband

Citizens who have family ties often decide to take out a mortgage on an apartment (although, in the event of the tragic death of one, the second may qualify for pension payments, simplifying this issue: details here). Its repayment is usually handled by the person who took out the loan. There are several ways to repay a mortgage that is registered in the husband’s name:

pay the debt on your own;
apply for a loan with lower interest rates from another banking institution. This method will be more effective if the difference in interest rates is at least 2-3 percent;
apply for a cash deduction - from the principal amount of the loan and interest. In both cases, 13% of the money paid is subject to a refund. The maximum amount of the main deduction is 2 million rubles, from which you can return 260,000 rubles. For interest deductions, the maximum amount is 3 million rubles, from which 390,000 rubles are refundable;
repayment of the mortgage issued to the husband can be done through the use of maternity capital;
renting out a mortgaged apartment;
use of state support in obtaining preferential mortgages. Provided to young families, large families and low-income families, citizens in government positions or military personnel.

If the husband is trying to pay off the debt on his own, then he will need to choose a convenient method of calculating the debt - annuity and differentiated. In the first case, the amount of payments remains unchanged throughout the payment period. The second method is characterized by larger payments at the beginning and smaller ones at the end of the mortgage repayment.

The condition for repaying the mortgage with maternal capital is that the purchased apartment is in shared ownership of the family, and these funds can only be used to pay off the debt and interest on it, but it is impossible to pay off fines accrued for late payments.

Procedure

Maternity capital is issued to families raising at least two children as state financial support. Indexation of the amount of funds was carried out annually, but since 2015 it has not been carried out due to the difficult financial situation in the country. Now the amount of maternity capital is 453,026 rubles. These tools can be used in several ways:

improving the quality of housing conditions (taking out a mortgage);
payment for educational services for children;
establishment of funded pension payments to the mother;
reimbursement of cash costs for the purchase of goods for disabled children.

In the first case, we are talking about using maternity capital to pay the down payment of a mortgage, the basic amount of debt or interest on a loan.

Repaying a mortgage loan issued to the husband requires compliance with the following algorithm of actions when using maternity capital for these purposes:

the bank employee who issued the mortgage loan is notified of the upcoming partial coverage of the debt with maternity capital;
an employee of a credit institution issues a certificate about the remaining amount of debt and interest on it;
documents are collected for the Pension Fund;
within a month, the application and documents submitted by the applicant are reviewed by Pension Fund employees and a decision is made;
after another ten days, the maternity capital money goes to the bank to pay for the mortgage.

It is possible to pay off your husband’s mortgage by using maternity capital if you follow Russian legislation and know the specifics of this procedure.

If the mortgage was taken out before marriage

It happens that before the marriage is officially registered at the registry office, the future husband takes out a mortgage for himself. Repayment of the resulting debt with maternity capital is possible. The main condition that must be met is state registration of marriage. This fact is confirmed by documents in the banking institution and the Pension Fund.

Another main responsibility of the husband, who has used maternal capital in his own interests, is a written obligation certified by a notary to formalize shared ownership of the children in the future. Fulfillment of this agreement is mandatory after the removal of the encumbrance on the apartment purchased with a mortgage. For failure to comply with this rule, the husband and father may be held criminally and administratively liable.

Interesting to know! Allocation of shares to common children is considered the main responsibility of the husband, after repaying the mortgage. The allocation of a share to the spouse whose maternity capital was used is not considered the spouse’s responsibility and she does not have the right to be considered the owner of the acquired property (apartment).

If maternity capital was received before marriage

A situation is possible when a woman gave birth to a second child from another marriage and then formalized the receipt of maternity capital. A future husband who has taken out a mortgage for himself and married a woman with two or more children has the right to claim maternity capital to pay off the resulting debt.

The husband has the opportunity to use the certificate only under one condition - when officially registering a marriage with a woman who has the right to receive maternity capital. It does not matter whether the mortgage was taken out before the state registration of the marriage or during the marriage.

If the child is under three years old

According to the law, the certificate can be used only after 3 years, after the birth or adoption of a second child. However, many family units in society are in dire need of financial assistance before the expiration of the three-year period. In this regard, the Government of the Russian Federation decided to make adjustments to the current legislation to allow young families to use maternity capital immediately, without waiting for three years.

This decree only applies to:

making a down payment on a mortgage loan;
repayment of principal or interest thereon;
making payments to purchase goods for incapacitated children for their better integration into society.

It is legally permitted to repay the mortgage issued to the husband before the expiration of the three-year period after the birth of the baby. Procedure for using maternity capital by a husband:

collection of documents;
contacting the Pension Fund branch with an application for early use of maternity capital;
contacting the credit institution where the mortgage loan was issued with the received certificate.

The husband and wife may not spend the entire supply of funds at once; they can leave the rest of the money for the future. Indexation carried out in subsequent years will increase the remaining amount of money.

List of documents

A husband who wants to pay off his mortgage using maternity capital should collect an impressive package of documents for the bank and the Pension Fund.

The husband will need to present the following official documents to the bank:

ID card of a citizen of the Russian Federation;
received certificate for receiving maternity capital;
a statement of desire to repay early part or all of the mortgage debt from a credit institution.

Based on the documents submitted, the bank employee will issue the husband with a certificate indicating the remaining amount of the existing debt. It is also possible to obtain a corresponding certificate of ownership of the purchased apartment. Next comes an application to the Pension Fund for a maternity capital certificate. You can download the application to the bank using the link .

The Pension Fund will require the following set of title documents:

passport of the spouse who has the right to receive a certificate for maternity capital;
husband’s passport and marriage certificate, if the mortgage is issued to the spouse;
duplicate of the mortgage agreement;
a certificate from a banking institution about the balance of debt;
a duplicate of the mortgage agreement;
an extract from the Unified State Register confirming ownership;
statement of desire to use maternity capital funds to pay off the mortgage;
a written commitment from the husband to register the apartment as a common shared property to remove the encumbrance on the living space (must be certified by a notary).

Thanks to the collected set of documents, the husband will be able to arrange early repayment of his mortgage debt with maternity capital.

Documents to the bank

To agree on a transaction with the lender, you must inform the financial company of your intention to repay the loan and/or interest within the established period before the payment date.

To pay the debt, the creditor will need to provide a Certificate, a certificate from the Pension Fund about the balance in the account. It is better to draw up the application in two copies, so that on the second the authorized employee signs the visa to take note of the document.

The settlement date of the transaction will be determined, and the lending company will make a preliminary calculation of the loan amount and interest to be repaid.

Step-by-step instructions for investing mat capital in a mortgage

How to pay off a mortgage with maternity capital:

Carefully study the conditions for early repayment of the mortgage established by the loan agreement. Banks set different requirements for paying debts ahead of schedule; usually you should apply 15–30 days before the date of the next scheduled payment. The debtor must formalize his intention in writing.
Receive a certificate from the credit company about the balance of debt and interest with account numbers for transfer.
Notify the regional office of the Pension Fund;
Receive a list of necessary documents on the website of the State Services or Pension Fund and collect them;
Prepare an application. The form can be downloaded on the website or obtained from its representative office on site.
Submit a package of documents for review.
Wait for a decision.
Contact the bank with an application for early repayment.
After approval, the money is transferred to the accounts specified in the bank certificate.

After the transaction is completed, in case of partial early repayment, the lender will create a new debt repayment schedule.

Deadlines for transferring money

According to Art. 8 Federal Law No. 256, the application is considered by the Pension Fund within up to 30 days. Within the next 5 days, the applicant will receive notification of the decision. If a refusal to pay is received, the document must contain the reasons. If a positive decision is made, the money is transferred in accordance with the application within ten days (clause 17 of PP No. 862 of December 12, 2007). This must be taken into account if the funds are included in the final settlement of the mortgage repayment, since during the consideration of the application interest the debt balance is accrued as standard, and the amount payable can be changed.

How to submit an application electronically

In accordance with PP No. 553 dated 07/07/2011, the State Services portal has implemented the ability to electronically fill out an application for preliminary consideration and sign up for a visit to the Pension Fund to provide original documents. When applying through the State Services portal, you must first register on the site and confirm your account.

The procedure is as follows:

Log in to the site;
Select the “Services” navigation panel;
Go to the “Family and Children” category;
Open “Management of maternity capital”;
Select the type of receipt;
Read the package of documents;
Click “Get service”;
Complete an application and submit it for consideration;
After 1–2 days, the user will receive an invitation at what time he can come to the Pension Fund with the original documents.

How to pay off a mortgage with maternal capital at Sberbank

You can repay your mortgage with maternity capital in 2021 at almost all credit institutions that issue loans secured by real estate. The largest volume of issuances falls on Sberbank, VTB, Dom. Russian Federation, Delta Credit mortgage bank.

Sberbank offers families with children to use the “Mortgage plus Maternity Capital” program to purchase finished housing or housing under construction. Certificate funds can be made as a down payment or used to pay off existing debt.

Conditions for repayment:

The money was spent on the purchase of finished or under construction housing from an accredited seller company.
The owners of the real estate are the borrowers and their children.
The debt can be repaid after 6 months from the date the loan was issued.
It is necessary to submit to the bank a Certificate and a certificate from the Pension Fund about the balance of funds in the account. The certificate can be submitted to the bank within 3 months after approval of the transaction, along with real estate documents.

Loan repayment conditions in other banks are similar

After a divorce, the following actions usually occur:

The apartment remains entirely with the husband, subject to an obligation on his part to allocate a share to the children after repaying the debt.

Loan without refusal Loan with arrearsUrgently with your passportLoans at 0%Work in Yandex.TaxiYandex.Food courier up to 3,400 rubles/day!

The wife retains the right to reside in the living space - usually for a period of 1 year. If the court determines that the children should live with her, then until the children reach adulthood.
The amount of all paid mortgage payments made during the period of marriage is calculated, including children's capital funds.
This amount is divided in half, and the husband is obliged to pay one half to his wife. Payments made are considered an investment in joint property, and their value must be compensated.

Thus, you can pay off your husband’s mortgage with maternity capital. However, the spouses then have certain obligations to each other, and in the event of a divorce, these can be the subject of serious litigation. In this article we tell you how an apartment taken on credit is divided after the spouses divorce.

Question-answer section:

2020-04-21 06:25

Catherine

Hello, my husband purchased a mortgage before marriage, can we pay it off now with financial capital, the marriage is currently registered

View answer

Hide answer

Consultant

Ekaterina, if you are included in the agreement as a co-borrower, you will be registered as the owner, your children will be allocated shares in the apartment, then yes

2020-04-07 17:54

Anna

My husband and I have mortgaged apartments, he has his own, I have my own, the apartments were purchased before marriage. Can I pay off his mortgage debt with maternity capital?

View answer

Hide answer

Consultant

Anna, if you are registered in his mortgage agreement as a co-borrower, and your children are registered in his apartment as owners, i.e. they are allocated shares there, then yes, you can

2020-03-03 20:35

Oksana

Hello. My husband and I decided to get a divorce, before marriage he had an apartment with a mortgage, after the birth of our second child we partially paid it off with maternity capital, my husband certified the obligation to allocate shares from a notary. The mortgage has not yet been paid off. The question is: can I legally live in this apartment after a divorce if my husband is against it?

View answer

Hide answer

Answered by Elena Sharomova, expert on credit and financial products

Oksana, on what basis are you going to live there? When repaying an MK loan, parents are required to allocate shares to their children, but there is not a word in the law about mothers. Therefore, if your husband purchased housing before marriage, and you are not listed as the owner in any documents, then you have no right to live there

2020-01-22 19:42

Julia

My husband and I are divorced and have 2 children. My husband, being divorced, took out a mortgage. We again decided to legalize the relationship, can I partially pay off the mortgage with maternity capital, being already married, and can my spouse reduce the interest rate on the mortgage and take advantage of the preferential rate for families with two children for the remaining term. Thank you

View answer

Hide answer

Answered by Elena Sharomova, expert on credit and financial products

Julia, we have already written several times that you can use maternity capital only as the main borrower or co-borrower. If you are included in the contract participants, you will be able to take advantage of the benefits and MK

2019-12-02 05:16

Tatiana

Hello, I have an existing loan, once it was overdue for two days, won’t they refuse us a mortgage if my husband takes it on himself and I go as a co-borrower?

View answer

Hide answer

Answered by Elena Sharomova, expert on credit and financial products

Tatyana, I can’t answer you for the bank. Everyone has different internal policies, some won’t even pay attention to a month’s delay, others will refuse due to non-payment within 1 day. In Sberbank, for example, they are very strict with this

View all questions and answers ⇒

01/03/2017 Information about the authors | Category: Mortgage | Maternal capital

What to use maternity capital for - to pay interest or principal

This depends on the terms of the loan agreement. The procedure can be established at the discretion of the bank or in agreement with the borrower. More often, the principal debt is paid with interest on the current date, and a new debt repayment schedule is formed. Reducing the loan term may be more beneficial for the borrower in terms of reducing overpayments.

If the debtor does not plan to pay off the mortgage ahead of schedule, it will be more convenient for him to pay interest and then repay only the debt. The amount of the monthly payment will decrease, this will reduce the financial burden on the family budget.

Why they may refuse and what to do in this case

The possibility of using allocated funds to repay a mortgage is provided for at the legislative level, so they can only refuse if the requirements for the transaction are not met.

In accordance with Article 8 of Federal Law No. 256, the reasons for refusal may be:

If the borrower has lost the right to government support: deprivation of parental rights, cancellation of adoption;
Not a complete package of documents has been presented;
Errors and inaccurate information were found in the certificates, the application was not drawn up in the correct form;
Failure of the lender to meet the requirements.

According to the requirements of Federal Law No. 37 of March 18, 2019, the application will be refused if the purchased housing does not actually improve the family’s living conditions, for example, it is recognized as unsafe and subject to reconstruction.

Having received a negative decision, the debtor will be able to correct the errors and resubmit it or go to court.

Allocation of shares to children after repayment of the mortgage with maternal capital

According to Art. 10 Federal Law No. 256, the mortgage can be repaid only if the debtor agrees to allocate shares in the purchased housing to both spouses and children.

The allocation of shares is made within 6 months after repayment of the loan and removal of the encumbrance from the collateral. Therefore, at the time of execution of documents for redemption, the owner of the certificate provides an order for the distribution of shares. It must be certified by a notary.

The procedure is as follows:

Collect a package of documents for the notary: Marriage certificates, birth certificates, certificates, real estate documents, USRN extract, mortgage agreement.
Visit a notary office with your passport. If the housing is registered in the name of both spouses, it is necessary that both owners be present or a power of attorney for the transaction must be issued.
Pay the fee.
The document is prepared in a notary's office, checked by the client, and certified by a notary.
Next, the documents must be registered with Rosreestr.

You can also distribute shares by drawing up a deed of gift.

What share each family member should receive is not established by law. In practice, this value is determined based on what percentage of the total mortgage debt is repaid with the allocated money.

If a third or subsequent child is subsequently born into the family, he will also have to be allocated a share in the acquired property. In this case, the shares are redistributed.

If the mortgage was taken out before marriage

If the mortgage was taken out by the husband before marriage, then maternity capital can be used to repay the loan while already married. In this case, both children of a spouse can be from the first husband - it doesn’t matter. It is only necessary that the marriage be officially registered.

An important point is that in this case, maternity capital can be used to pay off the mortgage if the spouse, who is the owner of the living space, notarizes the obligation to provide the children with their share in the apartment. After the encumbrances on the immovable property are removed, he will have to fulfill the obligations. In case of violation, administrative or criminal liability will occur.

We invite you to familiarize yourself with: Note on registration of the lease agreement

As for the wife, she is not mentioned in any way in the law. This means that the husband is obliged to allocate part of the housing only to the children, and not to his ex-wife. That is, maternity capital, fully used to pay the mortgage, cannot be a valid basis for recognizing the spouse as the owner of part of the apartment.