Why is it more profitable to buy an apartment during a crisis? Where can I get the missing money for housing? What should you beware of when applying for a mortgage at VTB24?
History is a merciless science. It contains the experience of many generations, sifting through the pipe dreams of humanity. He showed that huge fortunes were created in times of crisis. The difficult economic situation creates favorable opportunities for enrichment not only for business tycoons. Ordinary citizens also benefit greatly.
When the ruble collapses, the population becomes poorer. Although wages are not falling, this money can no longer buy the former variety of goods. Luxury items and especially expensive goods, which include new housing, are removed from the list of upcoming acquisitions. Demand for housing is slipping to low levels.
Sellers are lowering prices as competition in the real estate market increases. Everyone wants to sell stale goods. Bankers raise interest rates, because the population does not have enough money. If you buy an item at a reduced price, but give the difference to the lender, what is the benefit?
Maternity capital - what is it?
A social assistance program called “maternity capital” was introduced in the Russian Federation on January 1, 2007. From this date, families with a second, third or subsequent child were eligible to receive financial support from the state. This applies not only to parents, but also to adoptive parents.
But from 01.01.20 maternity capital will be issued at the birth of the first child, and at the birth of the second and subsequent ones, its amount will be increased by 150 thousand rubles.
Those who have not previously used this program can apply for benefits. If a family received maternity capital for the birth of a second child, when the third child is born, it can no longer be issued.
It should be noted that in order to receive payments, the child must be a citizen of Russia.
In 2021, the amount of maternity capital is indexed and amounts to 466,617 rubles. It is issued in the form of a personal certificate in the branches of the Pension Fund of the Russian Federation.
Legislative framework for mortgages involving maternal capital
The issuance of any benefit is regulated by regulations. With regard to the use and receipt of maternity capital, a number of orders of the Ministry of Labor and Social Protection of the Russian Federation, as well as Government resolutions, were adopted. However, the key regulatory act in this matter is the Federal Law of December 29, 2006 No. 256-FZ “On additional measures of state support for families with children.”
According to Federal Law No. 256, the following obligations are imposed on the Pension Fund of the Russian Federation:
- accepting documents from applicants for capital;
- control of their reliability;
- working with citizens when requesting capital funds;
- allocation of federal budget funds.
VTB 24 Bank, like any other lender, is obliged to take into account the legislative framework when applying for a mortgage using maternal capital. Internal banking regulations when carrying out such an operation must be developed taking into account the regulations of the Russian Federation.
If the Pension Fund refuses
The notice will indicate the reason for the refusal. The most common are typographical errors, as well as an incomplete set of documents. Resubmit your application taking into account the indicated inaccuracies.
The reason may be legal in nature. For example, a house is recognized as unsafe and does not meet the requirements for premises to participate in the maternity capital program. If you think you can prove your case, appeal the refusal in court.
General questions regarding mortgages and maternity capital in another article: Mortgages and maternity capital
Banking requirements for borrowers
The requirements for applicants for a mortgage using maternal capital are no different from those that apply to all other applicants. The future borrower must meet the following parameters:
- Age ranges from 21 to 60 years for women and 65 years for men. The maximum age limit is indicated at the end of the loan agreement.
- Availability of permanent income, confirmed by relevant certificates.
- Work experience at the last place of work is at least 4 months, total - from one year.
- Permanent registration in Russia.
As for the usual requirement of Russian citizenship, this financial institution does not apply. You can get a housing loan even if you do not have citizenship in the Russian Federation. In addition, in order to receive a loan from VTB 24 for maternity capital, permanent registration in the region of circulation is not necessary.
Customer Reviews
Sofia, 27 years old : “After the birth of our second son, my husband and I started thinking about buying our own apartment. Before my maternity leave, I received a salary from VTB 24, so I didn’t think twice about contacting the bank. We chose housing in a new building, and now we are waiting for the finishing work to be completed, while we live with my parents.”
Alexey, 40 years old : “My wife and I got a mortgage from VTB 24 bank after our wedding 15 years ago. We repaid the loan regularly every month, but it was a little difficult. After the birth of our second child, we learned about the right to maternity capital, the amount of funds of which was able to completely cover our debt. The registration took 2 months, but now we are free from loans in our apartment!”
The process of obtaining a mortgage for capital in VTB 24
Most often, applicants are interested in how to get a mortgage using maternity capital from VTB 24, because having a certificate requires applying not only to the bank, but also to the Pension Fund. The first step will be to obtain the certificate itself from the Pension Fund and an extract from your account to provide to the bank.
The subsequent process looks like this:
- Collection of documentation for the lender.
- Selecting a program and applying for a loan. The available proposals can be divided into two areas: the purchase of finished housing and an apartment in a new building. A mortgage for the construction of a house with maternal capital is not issued at VTB 24, since the organization does not have such a program.
- Selection of real estate after receiving a positive decision. The bank allows up to 60 days for this.
- Collection and submission of documents on the apartment for consideration of the selected object by the bank.
- Signing a loan agreement.
This is a standard procedure for applying for a home loan. Then follows the repayment of the mortgage at VTB 24 with maternity capital. To do this, you need to contact the Pension Fund with an application to transfer funds under the certificate to your bank account. The application is considered within 30 days. After an affirmative response from the Pension Fund, the same period will be required to complete the transaction.
If the loan is closed completely using matkapital, then you need to contact the bank again for a certificate of mortgage repayment, pick up the mortgage and remove the encumbrance from Rosreestr. After this, the apartment owner has 6 months to register a share for the children. This is a mandatory condition for attracting maternal capital when applying for a mortgage.
If the loan is partially repaid, you only need to obtain a new payment schedule from the bank, according to which you will continue to pay the debt. At VTB 24, with partial early repayment, the monthly payment amount is reduced, but the borrowing term remains the same.
Application methods
At the moment, an online application for a mortgage against maternity capital cannot be submitted to VTB 24, although there is a link to filling out the application on the lender’s official website.
The most popular way is still to contact a bank office. With a package of documents, the applicant turns to the credit manager, with the help of whom he fills out the application form. After that, he waits for 3-4 days. During this period, the applicant’s solvency and the accuracy of the information provided are checked.
Through the State Services portal
Of course, you won’t be able to apply for a mortgage at VTB 24 using the State Services portal, but you can use it to apply for a maternity capital certificate. This will save the client from spending a long time in queues.
Required Documentation
The following package of documents must be provided to the bank:
- National passport.
- Original and copy of the certificate for maternal capital.
- Certificate from the Pension Fund about the capital balance.
- Papers confirming the borrower's earnings and employment. VTB 24 accepts both the 2-NDFL certificate and its analogue, issued in the bank’s form.
After issuing the loan and registering ownership of the apartment, you need to collect a set of documentation for the Pension Fund. Documents for repaying a mortgage with maternity capital:
- National passport.
- Capital certificate.
- A loan agreement that specifies the account details of the transfer borrower.
- Certificate from the bank about the existence and amount of debt.
- Contract of sale of an apartment.
- A notarial obligation, according to which the borrower is obliged to allocate shares to all family members (spouse and children) after full repayment of the loan.
- Application for claim of capital funds.
Algorithm for early mortgage repayment
You can pay off your debt using the following instructions:
- Study the terms of early repayment, they are specified in the mortgage agreement.
- Receiving a certificate of the balance of the mortgage debt along with interest.
- Clarification of the timing of depositing funds for early repayment.
- Notification of the Pension Fund branch at the place of residence of intentions to use funds for specific purposes.
- Receiving a list of documents to be submitted to the bank and the Pension Fund. The full list can be obtained from State Services.
- Drawing up an application for what mother capital will use. The form can be downloaded from the State Services or taken directly to the Pension Fund.
- Sending the application and package of documents to the Pension Fund for consideration, waiting for a response. The review usually takes about 30 days, sometimes up to 3 months.
After the decision is made by the Pension Fund of the Russian Federation, the citizen is notified of this within 5 working days. If a negative decision is made, the reasons for the refusal must be indicated. Reasons for refusal may be:
- Loss of rights to this measure of state support, for example, as a result of deprivation of parental rights or cancellation of adoption.
- Not providing all required documents.
- Providing false information, an incorrectly written application, or detecting other errors.
- Failure to comply with the requirements of the lender or the property being purchased. In particular, if during the inspection it is determined that the purchased housing does not improve the family’s living conditions or does not at all comply with existing standards.
Important! If a citizen does not agree with the decision made, he can correct errors in the provided documentation or seek protection of his rights in court.
After receiving approval from the Pension Fund of Russia, you need to contact the bank and write a statement of intent to use materiel for early repayment of the mortgage. The application is approved and funds are transferred to the specified account within 10 days.
How to use capital
You can spend the funds specified in the certificate only for a limited list of purposes. These include:
- Improving living conditions.
- Getting a child's education.
- Formation of a funded pension for the child’s mother.
- Social adaptation of disabled children.
Living conditions can also be improved by attracting credit funds. In this case, both the purchase of a new building on credit and a mortgage on secondary housing with maternal capital are allowed. The legislation provides for the use of the benefit even after the certificate program is completed.
Matkapital as a starting payment for a mortgage
VTB 24 makes it possible not only to repay a loan with a certificate, but also to use maternity capital as a down payment. The minimum starting payment at this financial institution varies from 10 to 20%, depending on the chosen program.
To transfer the contribution benefit, all the same actions are applied as for repaying an existing debt. Only they need to be implemented not after signing the contract, but at the time of submitting the application.
Bank conditions
The conditions of VTB 24 Bank can be divided into two areas of the mortgage program - “New Construction” and “Secondary Market”.
1.
Housing in new buildings:
- Interest rates are set from 10.4% to 14.95% per annum with the right to choose whether to fix interest or revise its amount annually;
- The loan term can be up to 50 years, provided that the age of the borrowers allows them to pay off the mortgage for such a long time;
- You can take a minimum of 500,000 rubles;
- The amount of the down payment must be at least 10%, which in most cases is covered from maternity capital;
- There is an opportunity to repay the mortgage early, both at the expense of maternity capital and with your own investments, without any commissions or additional payments;
- When issuing a mortgage, no commission is charged (only for opening a personal account, if required).
Related video :
2. Housing on the secondary real estate market :
- Interest rates are calculated taking into account the cost of housing at levels from 10.4% to 10.95% per annum, the client chooses a fixed or floating rate;
- The loan term ranges from 5 to 50 years;
- You can apply for a minimum mortgage in the amount of 500,000 rubles;
- The down payment must be at least 20% of the cost of housing, however, when taking out insurance, its amount can be reduced to 10%, one of the repayment options is the use of maternity capital;
- No additional payments or commissions.
Property options
A mortgage in VTB 24 using maternity capital can be issued for all types of real estate, which include:
New buildings - the program is perfect for families who have a certain home before purchasing in order to wait until the purchased property is put into operation. The bank offers mortgages for several accredited properties whose developers cooperate with the bank.
Such a transaction will go through much faster due to this, as well as the fact that the mandatory insurance condition can be canceled, since the developer insures the liability and risks of loss;
Housing on the secondary real estate market is a program that is designed specifically for families with children. It involves the purchase of housing with a mortgage with the transfer of ownership from the previous owner.
The assessment procedure is mandatory, since it is thanks to it that one can find out whether the living conditions correspond to those stated and whether the seller is not overcharging the price.
Interest rates
Interest rates do not differ significantly depending on the type of real estate purchased with a mortgage.
Their size is set at levels from 10.4% to 14.95% per annum, and the specific amount is calculated based on family income and the cost of the property that is planned to be purchased.
Fixed interest rates are set in the mortgage agreement for the entire lending period, and floating interest rates are revised by the bank depending on the amount of annual refinancing by the Central Bank.
Interest calculator
On the bank's official website there is a convenient calculator that allows you to calculate the amount of the monthly payment based on the indicated cost of the apartment and the expected borrowing period. The interest rate for the entered conditions is also indicated there.
For borrowers receiving wages on a VTB card, a discount of 0.3% is applied to the base rate. For doctors, teachers and government employees, the discount is 0.5%. The minimum interest rate on a mortgage at VTB 24 starts at 8.4% per annum.
