There are situations when it is difficult for a client to convince the bank of his solvency due to unofficial earnings or other conditions, then he can hardly count on getting a mortgage.
VTB 24 Bank has developed a formality waiver program in the form of providing a variety of documents to make the issuance of a mortgage more accessible and as fast as possible. We will talk about the conditions and features of such an offer today.
Who is entitled to a mortgage under two documents?
Despite the more expensive conditions, clients willingly agree to such a transaction and consider it profitable.
VTB 24 offers this type of mortgage lending to many clients who cannot count on a standard mortgage due to the bank not being convinced of their solvency.
A mortgage based on two documents is most often issued by clients who do not want or are unable to provide a certificate of income.
This may be due to a lack of time or a low level of official income, when in fact the borrower's income may allow him to successfully repay the debt.
This registration procedure is very advantageous in terms of time frame and availability, however, among the disadvantages are more stringent conditions in the form of an increased down payment and interest rates.
Conditions for providing a mortgage at VTB 24
Any lending option includes conditions such as the mortgage amount itself, interest rates and the term of the loan.
To obtain a mortgage using two documents, the size of the down payment is very important, since it is significantly higher than under other programs, since it provides a guarantee of payments.
The conditions of VTB 24 Bank under the “Victory over formalities” program include:
- Interest rates from 11.9% per annum;
- Down payment amount from 40%;
- Loan term up to 20 years;
- Currency of mortgage issuance - both national and foreign;
- Possibility of attracting guarantors and co-borrowers;
- Possibility of early repayment;
- No additional payments or commissions.
Required documents
If the client has the opportunity to somehow indirectly confirm his solvency, then this will also not be superfluous.
The simplified procedure for obtaining a mortgage at VTB 24 provides for a shortened package of documents, which necessarily includes the borrower’s passport, and also, if available:
- International passport;
- Insurance certificate of compulsory pension insurance (SNILS)
- Copy of pension certificate;
- Copy of military ID for men under 27 years of age;
- Copy of driver's license;
- TIN;
- It is possible to provide a certificate of availability of additional property.
Also, although a certificate of income is not required, VTB 24 Bank may request documentary evidence of work experience from the current place of work.
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Conditions
Loan rates are 10.7%. But the rate may change, for example, for those who receive salaries on a VTB card, it can be 9.7%. Loan terms from 1 year to 20 years.
Loan amounts start from 600 thousand rubles. The maximum loan size is 30 million rubles. But it is available only to residents of Moscow, the Moscow region and St. Petersburg. In other regions, you can get no more than 15 million rubles under this program.
Other conditions:
- the amount of the down payment must be no less than 30% of the cost of purchased housing in a new building, no less than 40% of the cost of real estate on the secondary market, and no less than 50% when purchasing apartments;
- Maternity capital cannot be used in this program;
- the total monthly income must be at least 38 thousand rubles.
In addition, the borrower’s total work experience must be more than 1 year.
Requirements for the borrower
The only thing that distinguishes this type of program in terms of conditions is that there is no need to provide a certificate of registration.
Since the procedure for obtaining a mortgage at VTB 24 using two documents does not require confirmation of solvency, the requirements for the borrower in this part are more flexible.
You can get acquainted with the mortgage according to two documents in Sberbank of Russia in this article.
Otherwise, the requirements are similar to those established for other programs, they include:
- Age from 21 to 65 at the time of full repayment of the debt;
- Having at least a year of work experience, and six months at the current place of work;
- No outstanding debt;
- Good credit history.
Features of the mortgage “Victory over formalities”
A mortgage is a type of loan issued by a bank for the purchase of housing. A mortgage is more profitable than a consumer loan, as it has lower interest rates and favorable conditions. But VTB does not issue mortgage loans to all clients. Reasons for refusal may include:
- Insufficient wages of the borrower.
- Lack of collateral.
- Client unreliability.
- Availability of current debt obligations.
There can be many reasons, but most often people are refused due to a lack of documents confirming their solvency. With the “Victory over formalities” program from VTB, difficulties in this regard will not arise, because a person is required to provide only the following documents:
- Passport with Russian citizenship.
- SNILS.
- For men aged 21 to 27 years - military ID.
Just two basic documents and a mortgage is already in a person’s pocket. VTB issues a mortgage loan without formalities, since people who apply to this bank are most often already its paid clients and have a good status. But this does not mean that a complete stranger cannot apply for a mortgage at VTB.
If the client really wants to get borrowed funds to purchase a home, then he must try to prove to the bank his solvency.
VTB 24 programs
Using two documents at VTB 24, you can get a mortgage under a program called “Victory over formalities.”
It consists of a simplified procedure for verifying a client’s candidacy by submitting a minimum package of documents.
Under this program, you can purchase both an apartment in a new building and finished housing on the secondary real estate market. The type of housing purchased differs only in the interest rates on mortgages at VTB 24.
Secondary housing must meet living conditions and liquidity; it includes: apartments, houses, townhouses, apartments, the ownership of which is transferred as a result of a purchase and sale transaction.
Procedure for obtaining a mortgage
Getting a mortgage under the “Victory over formalities” program from VTB is no more difficult than any other type of loan. The scheme will be built as follows:
- Come to the VTB branch with your passport and SNILS and write an application (you can submit an application online on the website).
- Submit the documents and wait for the preliminary decision.
- Having received a positive answer, start looking for an apartment. The bank's decision is valid for 4 months and it is during this period that a person must find housing and collect all the papers.
- Collect a complete package of documents for the purchased housing and bring it to the bank.
- Discuss the terms of the mortgage and sign the agreement (at the same time, issue an insurance agreement for the collateral and personal insurance if desired).
- Make a down payment on your mortgage.
- Wait for the transfer from VTB in favor of the buyer and pledge the apartment to the bank.
After the mortgage is paid in full, the apartment will fully belong to the former borrower, and until then the bank has the right to take it back if the terms of the mortgage are not met. No borrower wants to lose an apartment or other housing, and therefore, in the process of drawing up a mortgage agreement, you should carefully read all the clauses of the agreement and do not forget to comply with them.
Interest rates
Interest rates depend on the amount of the down payment - the larger the amount the client can afford to pay, the fewer questions arise about his solvency.
However, the standard interest rates at VTB 24 Bank under the mortgage program for two documents are:
| Type of housing | Mortgage interest rates |
| Apartment in a new building | from 11.9%* |
| Ready housing | from 12.25%* |
*Interest rates should be considered if you have comprehensive insurance that includes personal, facility, and title insurance for three years. In the absence of comprehensive insurance, the mortgage interest rate increases by 1%.
For issuing a mortgage in foreign currency, the interest rate is set at 10% per annum.
You can find the latest news about foreign currency mortgages here.
In addition to fixed interest rates, the amount of which is specified in the mortgage agreement for the entire loan period, there is the option to choose floating interest.
Their advantage is especially appreciated for clients who expect to repay their debt ahead of schedule. Such interest is established for a period of one year .
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Mortgage insurance
Taking out insurance is one of the most reluctant points of a loan agreement. However, as we have already indicated, you can refuse it, but you will have to pay for such a decision with your own ruble.
So what does insurance include, and is it really necessary?
What does insurance include:
- Personal policy - it is a guarantee that the insurance company through which the insurance was issued, in the event of the occurrence of certain conditions specified in the insurance contract, will make a payment for you. In the event of the death of the primary borrower, the insurance will fully cover all mortgage costs, and the relatives of the deceased will not be charged for the remainder of the mortgage.
- A collateral property policy is a mandatory condition provided by law - any housing purchased with a mortgage loan must be insured. This will allow compensation for damage in the event of a fire, earthquake or any other natural disaster. In this case, the insurance company will also compensate for all damage incurred.
- Title policy - this type of insurance allows you to protect the rights of a co-owner to this property, even if third parties try to claim any rights to this area, they will not succeed.
Many banks, including VTB, work with certain insurance companies, but the borrower can refuse to take out insurance with the bank and enter into an agreement with any other company.
The main thing is that the insurance policy covers all possible risks and gives the bank guarantees for payments in the event of an insured event.
When choosing an insurance company, it is better to turn to those companies that are accredited by the bank. Their list is available on the official VTB website.
However, you can insure yourself with another company. To do this, after issuing an insurance policy, you must submit it to the bank, the latter will check the selected company.
If it meets all the necessary characteristics, the bank accepts this insurance policy. But be prepared for the fact that this procedure may take time, and the company may not be accredited by the bank.
When purchasing insurance externally, you will have to purchase at least two policies . The first is insurance against damage and loss, the second policy is your choice, this can be a title policy or protection of property rights.
All this is necessary, since while the loan is being repaid, the property is pledged to the bank. Bank insurance is a reliable guarantee.
An initial fee
So, in order to obtain a mortgage using two documents in foreign currency, you need to deposit at least 50% of the cost of the property.
The specific amount of the down payment depends on the individual situation of the client, but its size ranges from 40% of the cost of the purchased home when applying for a mortgage using two documents in VTB 24.
Under some conditions, this amount can be higher and reach 50-60%.
Interest rates and the loan term depend on the amount of the down payment, since for the bank it is a guarantee of repayment of the mortgage, except for the collateral, since the client’s solvency is not confirmed by any documents.
In combination with other programs, it is possible to refuse to pay the down payment.
This position is subjective, since it is actually paid by the state, or it is secured through additional collateral. In the first option, it is possible to combine using maternity capital funds or subsidies from the state. The second option provides for the borrower to have additional property, which he is ready to transfer to VTB 24 Bank as collateral instead of a down payment. In this case, interest rates will be much higher.
Pros and cons of a mortgage based on 2 documents from VTB
Clients note a lot of advantages of the program:
fast approval;- minimum documents;
- the loan received can be used to refinance other loans from VTB or third-party banks;
The convenience of this type of mortgage loan is appreciated by businessmen and individual entrepreneurs who do not need to collect a huge amount of documents.
The disadvantages include the following:
- an impressive down payment amount of 30%, and for some types of housing even 50%;
- approval does not always come at the time indicated on the website; in fact, you have to wait longer.
In addition, users include the inability to use maternity capital as a disadvantage of the program.
Calculate your mortgage using a calculator
Since the main advantage of a mortgage based on two documents is the speed of its execution and the absence of the need to provide a certificate of income, VTB 24 Bank specialists may not pay such close attention to the client’s solvency.
After issuing a mortgage to him, it may be difficult to repay it, as a result of which there is a risk of losing the collateral.
To prevent this from happening, you should weigh your options in advance and, even before applying for a mortgage, calculate the amount you will have to pay each month.
To do this, it is recommended to use a mortgage calculator, the principle of which is that the client enters all the data known to him on the terms of the mortgage and receives a detailed schedule of payments and overpayments. You need to know the down payment amount you can afford, the interest rate and the mortgage loan amount.
For a mortgage with an adjustable interest rate, calculations are made only for the period for which the interest rate is known.
Below you can familiarize yourself with the mortgage calculator for a mortgage from VTB 24 Bank, namely the program for defeating formalities. It is also worth using it if you want to pay off your mortgage early to calculate the remaining balance owed.
Mortgage calculator
On the official VTB website in the “Mortgage” section, subsection “Victory over formalities” you can find a loan calculator. You need to check the box next to the item “I am ready to provide only two documents” and move the cursors by amount, term and down payment to see the calculations:
- Total mortgage amount.
- Monthly payment and minimum income.
- Interest rate.
Using this data, a person will be able to determine how convenient and realistic a mortgage loan will be for him under the “Victory over formalities” program.
How to get a mortgage at VTB 24?
The procedure itself for a simplified registration of a mortgage using two documents differs from the standard one only in the speed of making an affirmative decision on the client’s application.
First, you need to submit a completed application with a copy of your passport and other documents to the bank branch.
The application form for a mortgage loan from VTB 24 Bank can be found in the attached file.
VTB 24 Bank specialists make a decision regarding the client’s candidacy as a borrower within 24 hours. The client is notified of this by telephone or email; under favorable conditions, a response is possible within a few hours.
Further, the speed of registration depends on the choice of real estate for purchase with a mortgage. Based on its value, the mortgage amount is calculated.
An apartment or house must be assessed by a professional appraiser, who issues an opinion on the living conditions and the compliance of the seller’s price with the market value of the property. This procedure is carried out at the expense of the borrower.
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After approval of the collateral object and opening of a bank account, a mortgage agreement is prepared and signed, which specifies all the conditions, as well as the possibility of early repayment of the mortgage.
Money for the purchase and sale transaction is transferred to the client’s account within 24 hours after making the down payment.
Along with the mortgage, an insurance contract is also concluded, which must take into account the risks of loss of real estate. Personal insurance can have a positive impact on interest rates.
List of documents
According to official information, to submit an application you will need to fill out a form, attach a copy of your passport and SNILS. This can be done remotely.
It is worth considering that at the stage of concluding the contract, bank employees will need additional information. Men are expected to have military ID. As the transaction progresses, documents for the apartment will be required, including an appraisal and a preliminary purchase and sale agreement. After making the down payment, a supporting document will be required. In addition, in case of doubt, bank employees may require some confirmation regarding income.
Reviews
Valeria, 28 years old : “For work, I often fly on business trips, so I don’t have time for almost anything. And so, when I decided to buy my own apartment and move out from my parents, for which I thought about a mortgage, I needed to look for some quick and hassle-free option. A mortgage with two documents from VTB 24 bank was perfect, since I simply cannot run around to organizations and collect various certificates. Many people say that this is not profitable and so on, but I was looking for time savings and found it for myself in this program. Indeed, the response from the bank arrived literally within 24 hours. And I liked the registration procedure itself. And now it’s absolutely not a hassle to pay repayments - the necessary amounts are simply withdrawn from my account automatically.”
Alexander, 36 years old : “My business partners and I decided to purchase additional space for our offices. The choice fell on an ordinary apartment, which we then plan to remodel a little. Since everything had to be done quickly, and the bulk of the money was involved in the business, the mortgage program for two documents at VTB 24 Bank could not be better suited. The quick checkout was the only reason we took advantage of this offer.”
