Basic conditions for obtaining a mortgage loan in 2021

General points and trends for 2021

A mortgage to improve housing conditions involves citizens purchasing an apartment or other real estate with the help of loan funds from a banking organization issued for a certain period. For the entire lending period, the purchased or other object of suitable value is pledged to the bank - these are the main conditions for obtaining a mortgage to ensure the fulfillment of obligations by the borrower.

In 2021, most credit institutions revised their credit policies and lowered the rate on housing loans to make the purchase of housing affordable for citizens. Basic loan rates have been reduced for both the purchase of housing under construction and finished housing.

A number of banks do not make any difference between the properties being purchased; the conditions for providing a mortgage loan are the same for both newly built and ready-made apartments in multi-apartment buildings. However, other credit organizations, on the contrary, reduce interest rates specifically for the purchase of housing under construction or newly built housing from accredited seller companies.

This is due to the fact that the speed of purchasing an apartment with a mortgage from a developer is much higher than on the secondary market, because the borrower already has a specific loan object and does not need to engage in a lengthy search for an object, as on the secondary market.

In 2021, the state support program for mortgage transactions, carried out jointly with leading credit institutions and providing favorable mortgage conditions, ended, but already in 2021 a family mortgage was launched at 6%.

However, leading banks, already without government support, can guarantee mortgage lending conditions and an interest rate comparable to that which existed with government support and even lower, since the flow of mortgage clients has increased and the number of transactions guarantees a stable income for credit institutions.

The development of innovation is also reflected in concluding mortgage transactions, for example, Sberbank offers a 0.5% discount when registering a transaction electronically. A mortgage loan on more favorable terms can be obtained for both primary and secondary housing.

This procedure will take 2-3 days and will help save time on registering the transaction in Rossreestr, and will also be beneficial to non-resident borrowers, as it will make the process of taking out a mortgage remote.

To apply for a mortgage via electronic registration after approval, you must contact the bank’s partner (developer or real estate agency) or Sberbank itself.

Financial experts agree that the cancellation of the state mortgage support program has already been digested by the market. Banks have adapted to new conditions and are offering preferential terms for purchasing an apartment in a new building in 2021.

The lowest rate will be a preferential mortgage at 6%, which is given for new buildings.

List by level of loyalty to a small down payment

Most often, mortgages are approved in the organizations ZAO Surgutneftegazbank and PJSC AKB Metallinvestbank. They are ready to issue mortgage loans without a down payment according to information from the official website as of May 2021. The maximum terms are 30 years.

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

Rates are offered from 12.95%. There are partnership programs for new buildings, which allows you to get a loan on the most favorable terms. Products with a small down payment are also available in Sberbank of Russia, VTB 24, as well as Gazprombank and Vozrozhdenie.

Almost all organizations on the list are actively accrediting new projects for new buildings, although government agencies take their time, but take into account any programs.

Requirements for borrowers in 2021

Not every person who wants to take out a loan for housing under construction or finished housing can take advantage of bank loan offers. There are a number of conditions that some credit organizations put forward:

1. Citizenship. As before, to issue a mortgage loan you need to have Russian citizenship in almost the vast majority of banks. There have been certain reliefs for citizens of Ukraine and Kazakhstan, as well as other republics of the former USSR. Mortgages for foreigners in 2021 on general terms are possible at VTB 24, Bank of Moscow, Transcapitalbank. Raiffeisenbank provides loans at an interest rate of 1.5 - 2% higher than the standard offer.
2. Registration. Must be on the territory of the Russian Federation. A number of banks accept applications with temporary registration or without it at all, like VTB 24 for example.
3. Borrower's age. A citizen who decides to take out a loan must be at least 21 years old and not older than 70 years old - the period of greatest efficiency and solvency. Some banks allow the start of lending from the age of majority - 18 years old - until the citizen reaches his 75th birthday.

The age of the borrower for social programs differs from generally accepted programs and is associated either with the activities carried out by the borrower (military mortgage) or with their compliance with essential criteria (mortgages for young families).

1. Work experience. The standard work experience that credit institutions require from borrowers is at least six months at the last (current) place of work and at least 1 year in total. The rationale for this requirement is the presence of permanent employment and stable income for the borrower, as a guarantee of repayment of loan funds.

Work experience and employment can be confirmed by a certificate from the place of work, provision of an employment contract and a certified extract from the work record book. As mentioned above, a number of banks allow the provision of mortgages without confirmation of employment and income, however, in this case, the loan rate and the size of the down payment automatically increase, and the loan term decreases, but it is better to indicate the length of service in the application form in accordance with the requirements of the credit institution.

The good news is that there are banks that offer better conditions for this criterion. Thus, the Eurasian Bank offers a loan with an experience of only 1 month, DeltaCredit 2 months, and a fairly decent number also offers loans with an experience requirement of only 3-4 months. Use our Mortgage Selection service to choose the bank option you need.

1. Salary level for mortgage. The total income received by a citizen at his main and additional place of work, from securities, deposits and monthly dividends, pensions and business profits, must ensure not only the mortgage payment, but also the life and existence of the borrower and his family members.

The generally accepted rule that exists when calculating a mortgage is that, after deducting expenses, the mortgage payment should be no more than 60% of the funds a citizen receives monthly. This requirement of the bank should not only ensure a comfortable life for the borrower in the presence of loan obligations, but also guarantee the repayment of the debt to the bank itself.

We discussed in more detail what salary is needed for a mortgage in our previous article. Read it and you will learn how to get a mortgage even with a low official salary, gray income or, without it at all.

1. Attracting co-borrowers and guarantors. If a citizen’s own income is not enough to approve a loan, or if a property is purchased as joint property, for example, spouses, co-borrowers and mortgage guarantors may be involved.

In this case, the bank will consider not only the income, experience, and credit history of the borrower himself, but also the persons involved. In some ways, this is a plus, since it increases the chance of loan approval for individuals

Factors influencing the interest rate

The annual loan interest rate indicated in bank mortgage offers is actually basic. The final percentage in the loan documents may be changed upward.

The maximum mortgage percentage, as well as the minimum, depends on the following factors:

1. Loan terms. A number of banks reduce the interest rate for the first few years of the mortgage, after which they increase the rate by 0.5-3%. There are also special offers from banks, for example, until 2012, Sberbank had a program - a loan for 8 years at 8%, following the conditions of which it was possible to purchase housing with annual interest an order of magnitude lower (minus 3-4% per year). In some banks, the loan rate directly depends on the loan term - for 10 years the rate is set at one percent, for 15 years - the rate increases by 0.1-2%, for 20-30 years - the same increase occurs. Therefore, you should carefully read the preliminary agreement and all terms of the loan before submitting your application so that increased payments and large overpayments do not come as a surprise.
2. First payment. Some credit institutions reduce the rate when making a down payment in excess of 30 or 50% (on average by 0.5-1%). A number of banks again have a gradation. The maximum rate is set when making a contribution equal to the minimum, from 20-30% - the first reduction, from 50% - the next reduction in the rate. Considering that the cost of purchased housing, on average, is at least 1.5 million rubles, and the mortgage can be issued for a long period, even such small bonuses can be very pleasant.
3. Special programs. In addition to preferential lending programs for a certain period at a certain percentage, a number of banks cooperate directly with developers, who in turn can help reduce the loan rate for the first 1-3 years. Sberbank offers a 0.5 percent reduction in loan interest when completing a transaction electronically. Preferential interest rates on mortgages can also be established under lending programs for young families, families using maternity capital to buy housing, and participants in funded military mortgages.
4. Salary project. Borrowers whose wages are credited to an account or card opened at the bank where they want to get a mortgage have the right to get a mortgage at a rate reduced by 0.3-1.5% depending on the bank. However, not all credit institutions provide such a bonus, so you should check about this percentage improvement in advance. Participants in a salary project in a number of banks, for example in Sberbank, have the right to submit a package of documents to obtain a loan of a reduced size - without confirming income and employment. This rule also applies to co-borrowers and loan guarantors.
5. Fee for rate reduction. A number of credit institutions, for example Rosevrobank, are introducing the practice of reducing the interest rate by paying a one-time fee for every 0.5%. For example, with a loan of 5 million rubles for 15 years, a 0.5% reduction will cost from 50-75 thousand rubles for each “step”. Typically, an acceptable reduction is 1.5-2 percent. When taking out a loan for a long term, it is quite possible that such a payment will be justified, since with the same loan of 5 million, 0.5% will amount to an annual overpayment of 25,000 rubles. That is, roughly speaking, it will “pay off” in 2-3 years.
6. Use of electronic registration. At Sberbank you can get a 0.5% discount if you conduct a transaction through electronic registration, and not according to the standard scheme.

You can learn more about how to reduce your mortgage interest from our previous post.

Sum

When calculating the amount that is acceptable for mortgage approval, the bank will examine the documents provided by the borrower and a number of other circumstances:

• Information confirming income: data on wages in the form established by the bank or 2 personal income tax, civil and other contracts, confirming the stable nature of earnings. Income can be confirmed both officially and part-time, unofficially.

It is necessary to confirm your existing income, since based on the information received, the credit institution decides how much to issue a loan. The terms of the mortgage are such that the loan amount should not exceed 40-60% of the borrower’s total family income.

• Age of the potential borrower (the terms of a preferential mortgage may reduce the maximum permissible age, for example, the terms of a mortgage for young families set a limit - from 21 to 35 years - the age of the participant in the transaction);
• The level of expenses for each family member, including for loan obligations of other banks;
• Whether or not the citizen has provided the entire package of documents - in the absence of official information about income, a loan can be granted based on two documents, in which the amounts received on the loan are different than with regular lending;
• Availability of co-borrowers and/or guarantors;
• The cost of the purchased apartment;
• Availability of life insurance or the loaned object.

The crisis sharply increased the cost of credit and payments made, prompting many banks to refuse to provide loans in foreign currency, as the number of non-repayments increased. Most banks issue mortgages exclusively in the national currency - rubles.

It is no coincidence that the minimum and maximum amounts are set by banks; they guarantee a stable income from interest and automatically “weed out” unreliable categories of borrowers.

Most banks issue loans for the purchase of housing in an amount of at least 100 thousand rubles and no more than 15-60 million, depending on the bank, the location of the property or its type - secondary or primary.

You can find out what the mortgage amount depends on from our previous article.

Conditions for issuing a mortgage

The general condition for a mortgage, which is available in almost every program, is the presence of Russian citizenship with permanent registration in the city where the loan was received and the housing was purchased. But at a higher percentage, you can get money to buy housing for citizens of the CIS countries or in another region. This right is enshrined in law.

Man or woman is a secondary role. This factor depends only on programs where maternity capital is involved. A higher education diploma is not requested, but this point will be clarified when filling out the application form. At a demanding level, credit institutions do not stipulate requirements for a diploma in their programs. But the level of reliability will be increased, since it will be easier for a specialist to find official employment.

Approximately 60% of disapprovals concern citizens who indicate individual entrepreneurship as their only source of income. The maximum chance of approval can be obtained if you have a stable job in large organizations and government agencies.

Age

All banks issue mortgages to citizens who have reached full working age. The optimal age for applying for housing money is 21-23 years old. Pensioners are rarely granted loans due to the increased risks of accidents and delays due to lack of funds.

Look at the same topic: All about apartment insurance with a mortgage in Sberbank in %%current_year%%

The upper limit of lending in the Russian Federation is calculated at the end of mandatory payments: by the age of 65-79. Sberbank clients are guided by the age of 75 years. This means that at the age of 55 you can take out a mortgage for 20 years, but subject to life and health insurance.

In the case of a military mortgage, different rules for calculating credit conditions apply. The period for pension accruals for military personnel by law begins at 45 years of age. Until the benefit of state security, mortgage payments can occur. Sberbank, VTB and other large lenders have special programs for the military.

Age data is not the main determining factor when checking an application and making a decision. Bank employees check the following indicators: stable earnings, available property for collateral, availability of guarantors and co-borrowers.

Seniority

The condition that applies in the process of obtaining a loan is work experience over the last 5 years. An applicant who satisfies the lender's requirements must work in one enterprise for at least 6 months per year.

The total work experience over five years must be at least one year. Persons receiving wages through a bank may not have to prove they have a job, since they have more benefits and a lower rate.

Income level

The first condition that helps the bank determine the interest rate, the loan amount and distribute the payment schedule is the client’s income. Having official income may not be enough to fulfill your obligations.

The law sets the amount of mortgage payments: they should not exceed the total income by 50%. Your money should be enough to meet your personal needs.

The confidence of the financial institution is increased by documenting the availability of sources of income. These can be: assets, securities, bank deposits, rental funds.

When considering applications from citizens with a questionnaire and documentation, the following documents are taken into account:

• Income of the husband and family, since spouses are automatic co-borrowers;
• Earnings of other relatives involved as guarantors or co-borrowers;
• Other income. The funds received are officially confirmed by the lease agreement.

In the process of applying for a loan, credit institutions evaluate, in addition to the level of income, former loan payments. If there were problems in the payment of loans in the form of delays and delays, the bank will refuse to provide money.

If the mortgage, for which there were minor delays, has already been repaid, the client can prove to the lender that the late payments arose for reasoned reasons. These include: serious illness, family circumstances and technical problems with the bank.

Marriage relationships and the presence of a co-borrower

There is a greater chance of trust in married couples. A wealthy family is one where both spouses work, raise a child, and regularly pay off existing loan debts.

Families raising more than one minor can use maternity capital. After the birth of the second child, the family is entitled to a certificate with a large amount for certain purposes. Government assistance funds are used as a down payment to pay off existing debt.

Having a wife or husband is an advantage when applying for a loan. If one of the spouses who submitted the application is on maternity leave, or has more than one dependent registered or living together, employees of the credit institution may refuse to issue a loan.

Having co-borrowers increases the likelihood of receiving approval from the bank. Co-borrowers represent a person who has the same obligations to repay the loan as a co-borrower.

When calculating the maximum loan amount, the bank takes into account the income of both citizens. The borrowers in 70% of cases are husbands, wives or other relatives.

Credit term

The terms for obtaining a housing loan are chosen by the applicant and agreed upon separately. During this period, loan payments are made in full.

The following indicators influence the calculation of deadlines:

• Borrower's income;
• The amount of the loan issued;
• Age data.

The maximum term offered by Sberbank is 30 years. Some credit institutions carry out transfers of funds up to 50 years. The minimum period for which a mortgage is issued is 10 years. Less common are programs that allow you to purchase housing in five years. This applies to programs with commercial premises.

If an amount is required for a shorter period than the lender offers, a consumer loan is issued.

An initial fee

The amount of own savings required to be paid for a mortgage apartment differs according to the requirements of the bank.

One lending institution may offer different mortgage programs that offer different down payment amounts.

Average down payment requirements range from 15% to 30%. Sberbank requires an amount of 15%. If the applicant uses the “Young Family” program, he needs to pay a payment of 10%. Families raising children pay not 35%, but 30%. If there is collateral, a down payment may not be required.

Minimum and maximum period

When calculating the conditions under which a mortgage is given and the length of the period for which the bank can issue a loan, organizations usually take into account their costs of servicing loan agreements. Minimum terms may be unfavorable due to the lack of interest income.

The solvency and age of the borrower are also taken into account. The first point determines how acceptable it is for citizens and families to make a monthly payment; the second determines whether a mortgage will be granted during the working period of a citizen’s life, which will provide him with a stable income, and the bank with a respectable borrower.

The average loan term currently ranges from 1 to 30 years, depending on the credit institution.

For more details, see our post “Until how many years can you get a mortgage for an apartment?”

What to look for when choosing a bank?

When you move on to choosing a specific bank from which you want to get a mortgage loan, pay attention to the following points:

• Interest rate . If you want to overpay as little as possible on your loan, then look for a bank that offers the minimum rate.
• Loan terms . This factor depends, first of all, on your financial capabilities. So, if you want the monthly payment to be minimal, then you need to look for an offer with a maximum loan duration. But keep in mind that in this case the amount of overpayment will be significantly higher.
• Possibility of repaying debt before the due date. This opportunity is available in all banks. However, some financial organizations impose certain penalties for repaying the debt earlier than the deadline specified in the agreement. So, if you are planning the possibility of early repayment, then you need to choose a lender who will not charge an additional fee for this.

An initial fee

Under what conditions can I get mortgage approval? Confirming your solvency and willingness to bear loan obligations. The borrower can do this by making an initial accumulated contribution.

Such a contribution will be a plus for both parties. The bank receives a minimum guarantee of repayment of the loaned funds, and the borrower reduces the term, amount and interest rate of the loan.

The size of the down payment also differs depending on the type of loan:

• When purchasing an apartment in a new building or from accredited developers, as well as purchasing housing on the secondary real estate market, the average down payment, depending on the bank, is 10-20% of the cost of housing;
• When buying a residential building, the borrower must be prepared to contribute from 15 to 25% of its cost;
• When applying for a simplified version of a mortgage using two documents (without proof of income and employment), citizens must ensure the availability of their own funds in the amount of 40-50% of the value of the property.

In rare cases, banks allow no down payment at all. However, this may affect the interest rate (increasing) and the maximum loan term - it may be reduced. We recommend that you learn in more detail what a down payment on a mortgage is and how to get around it in our previous post.

Sequence of actions during registration

The process of obtaining a mortgage for residential real estate is carried out in stages:

• preliminary approval of the application by the bank;
• collection and submission of documents to the office, obtaining final approval for the loan;
• choosing a mortgage or lending object;
• providing the bank with the seller’s documents for the purchased housing and agreeing on the collateral;
• conclusion of a preliminary purchase and sale agreement (its content is regulated) and payment of the down payment;
• obtaining a bank loan and final settlement with the seller.

To save time, banks offer to obtain preliminary consent online. To do this, the future borrower registers on the institution’s website, fills out an application form and sends the online document for approval. Within 2-3 business days, the bank manager contacts the applicant and informs him about the result of the preliminary review of the application. If the decision is positive, they suggest moving on to the second step - collecting and submitting documents.

Recommended article: When is the best time to take out a mortgage in 2021

Mortgage transaction fees and expenses

Before submitting a loan application, the borrower should study all current loan offers, since a number of banks have mortgage conditions that require additional various commissions and payments when obtaining a mortgage:

• For transferring funds from the borrower's account to the bank account;
• For opening a letter of credit account;
• Taking out a mortgage insurance policy.

The borrower's refusal of insurance may increase the loan rate by 0.5-1% per year, which will be a significant amount. Some banks offer to issue an insurance policy directly in their branch, however, it is worth studying the offers of other insurance companies, as their rates may be lower. You can find out where mortgage insurance is cheaper directly on our website.

Interest rates for finished and under construction housing

Next, we have prepared for you two tables for finished and under construction housing. Let's compare conditions in banks in 2021.

Ready housing

New buildings

Documents for mortgage

The standard package of documents for a mortgage loan is not that large; the borrower usually provides:

• Passport;
• Completed mortgage application form;
• A certificate from your place of employment confirming the level of income received;
• A copy of the employment record or certificate of length of service;

All other documents depend on credit institutions and the conditions of special programs. We discussed them in more detail in the post “What documents are needed for a mortgage.”

How to get a mortgage

The standard procedure for mortgage transactions is as follows:

• The borrower chooses a loan offer and bank that is convenient for him;
• Housing is selected: secondary or from an accredited list of developers;
• An application is submitted to the bank to consider the possibility of a loan;
• Upon approval of the transaction, a list of documents on the loaned object is provided;
• Transactions are registered in Rosreestr, insurance is taken out and the banks make the final payment of loan funds for the purchase of housing.

You can find out more about how to buy an apartment with a mortgage right now.

Mortgage repayment

Planned repayment of the mortgage loan occurs monthly in annuity (equal) or differentiated payments (with a gradual decrease in the amount). The overpayment for the second type of payment is significantly less, but not all banks approve of this option.

Early repayment of the mortgage is possible either partially or completely. There should be no fines, restrictions and commissions - this is illegal. Delay in making monthly payments of more than 3-6 months can result in court proceedings, imposition of fines, removal of the property from the borrower’s property and sale of the apartment at auction.

If you need legal support, then sign up for a free consultation with our lawyer in a special form. We will quickly help you resolve all controversial issues with the bank.

State support programs

Since 2021, the state no longer provides a reduction in the loan rate, however, there are other preferential conditions for obtaining a mortgage:

• Using maternity capital accrued by the Pension Fund at the birth of the second child;
• Military mortgage – for persons participating in the funded military system;
• Mortgage for a young family - for couples or single parents, provided they are on the list for improvement of housing conditions;
• Social mortgage - for persons engaged in certain activities (doctors, teachers, etc.) or living in certain conditions (the Far North zone);
• Mortgage restructuring – writing off up to 30% of bank debt for certain categories of citizens.

Mortgages with state support in 2021 were reviewed by us earlier. Be sure to read this article to find out what government benefits you may qualify for.

Calculation and where to get it

You can calculate your mortgage yourself directly on our website. Use our mortgage calculator. It will allow you to find out the monthly payment for annuity and differentiated payment, what income is needed for the required amount, how much you will overpay, how the schedule and overpayment will change in case of early repayment and early repayment of the mortgage with maternal capital.

The calculator is very functional and will allow you to quickly calculate the desired option. From this post you can take the percentages, and then plug them into the calculator and compare which conditions in different banks are more suitable.

Also, the “Online Application for a Mortgage Loan” service operates directly on our website. With its help, you can send a mortgage application to all banks at once and quickly receive a decision with a partner discount at a rate of 1%.

We are waiting for your questions and suggestions in the comments. We would be grateful for rating the post and liking it on social networks.

Uralsib Bank allows mortgages without a co-borrower-spouse

Many banks require a spouse to be a co-borrower by default. To exclude a spouse from participation in the mortgage, a prenuptial agreement is required. This is true when the spouse has a bad credit history.

Recommended article: Payments to defrauded shareholders will not be subject to personal income tax

Uralsib Bank will only need the notarized consent of the spouse to conclude a loan agreement. In this case, if desired, both spouses can become parties to the purchase and sale agreement (owners).

Which banks also allow notarized consent are in another article - How to take out a mortgage without the participation of a spouse.

Current mortgage rates for today. Rates including discounts (life insurance, young family, salary earner, PV>20%, electronic registration, etc.)

Recommended article: What will the mortgage be like in 2021

Maria Yurievna Sokhan

Mortgage expert, General Director of the legal agency "Irene", administrator of the portal onipoteka.ru

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Read our other news collections to keep up to date with the latest changes in the real estate and mortgage market. I recommend:

How to check if there is a restriction or arrest on real estate in 1 minute?

Previous collections of mortgage news for today:

Mortgage news: family mortgage for construction, refinancing and maternity capital, Unified State Register of Real Estate for public services, amnesty for self-builders

Mortgage news: reduction in state support rates, new refinancing programs, online personal income tax deductions and garage amnesty

Mortgage and real estate news for today April 2, 2021 (VTB extends the promotion, Uralsib Bank reduces the rate, They want to issue family mortgages for residential buildings, Banks increase mortgage rates)

Mortgage and real estate news for March 26, 2021 (selection) (Rosreestr warned about a new type of fraud)

News from the real estate and mortgage market for March 19, 2021 (Banks are reducing the initial loan and rates, Garage amnesty and Banks are more often refusing mortgage borrowers)

A selection of mortgage news for today – February 16, 2021 (Banks are changing their attitude towards remodeled apartments and other news)

A selection of news on mortgages and real estate for February 1, 2021 (Preferential mortgages after July 1, 2021 will not be available to everyone and other news)

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Maria Yurievna Sokhan

Publication dateMay 11, 2021May 11, 2021