Mortgages and children: difficulties and benefits for families with children in mortgage lending

Home/Types of mortgages/Mortgage at 6.5 percent

Amid the coronavirus pandemic, the economic situation in the Russian Federation is worsening. To help citizens and support the construction industry, Vladimir Putin proposed providing preferential mortgages at 6.5% per annum. The issue was raised on April 16 during an online meeting. The government quickly approved the program. Already on April 23, the corresponding document was published. Banks also actively participated in supporting citizens. Some financial organizations began accepting applications even before the approval of the preferential mortgage program at 6.5%. However, not everyone will be able to use the service.

Attention

To understand who can get a presidential mortgage on preferential terms at 6.5% and understand all the nuances, you should read the article to the end.

Who is entitled to a mortgage at 6.5 percent in 2021?

Unlike most preferential mortgage programs, a mortgage at 6.5% is not designed for a specific category of borrowers. The program was created to support the construction industry during the pandemic and help citizens solve their housing problem. However, certain requirements are still established. They stem from the provisions of Government Resolution No. 566 of April 23, 2021.

Attention! If you have any questions, you can chat for free with a lawyer at the bottom of the screen or call Moscow; Saint Petersburg; Free call for all of Russia.

Attention

Only persons with Russian citizenship can take advantage of the mortgage program at 6.5 percent in 2021. The government does not impose additional requirements for citizens to participate in the program. However, banks want to be sure that the borrower will be able to pay off the home loan. Therefore, a number of additional requirements are put forward for a potential client. Such a measure is not prohibited by Decree of the Government of the Russian Federation No. 566 of April 23, 2021.

Banks will agree to cooperate only with persons who meet the following requirements:

• availability of official employment;
• positive credit history;
• salary allows you to pay for the mortgage;
• the citizen has been working in his last job for at least six months, and his total work experience is at least six months.

IMPORTANT
Issuing a home loan is the bank’s right, not its obligation.
Therefore, an organization may refuse to provide funds in the form of a mortgage at 6.5% without explaining the reasons. To minimize the risk of such a situation developing, it is worth checking in advance that you meet the requirements.

Basic payment

The main payment is provided to all buyers of real estate, regardless of how exactly the transaction took place - for a mortgage loan or a regular purchase (clause 3, clause 1, article 220 of the Tax Code of the Russian Federation). This is a tax deduction, it has several features:

• its size is 13% of the transaction amount, while the maximum amount for calculating the payment cannot exceed 2 million rubles. Even if you spent, for example, 2,400,000 rubles on an apartment, the amount of the refund will be calculated according to the cost established by the Tax Code of the Russian Federation (2,000,0000 x 0.13 = 260,000 rubles). Thus, the maximum possible payment amount cannot exceed 260 thousand rubles;
• the right to this tax deduction arises at the time of receipt of the transfer and acceptance certificate of real estate (when an equity participation agreement is drawn up) or a certificate of registration of ownership (when a purchase and sale agreement is drawn up);
• To calculate the amount of payments, both own and borrowed funds are indicated. A one-time payment on a residential mortgage loan is provided under the same conditions. If you took out a mortgage when purchasing a home, from a legal point of view, this money is considered your expenses, which means it is indicated when submitting documents for a refund of the funds spent.

As a rule, the main tax deduction is provided at the end of the year in which the right to it arose. Those. If the property was purchased in 2021, you can receive funds in 2021.

Law introducing mortgages at 6.5%

The main legal act regulating the issue of obtaining a presidential mortgage at 6.5 percent was Government Resolution No. 566 of April 23, 2021. The regulatory legal act was signed by Mikhail Mishustin. The corresponding program was approved on behalf of President Vladimir Putin. With its help, it is planned to reduce the financial burden on citizens who decide to take out a mortgage during the pandemic, as well as ensure an influx of additional funds into the construction industry.

For your information

Due to the pandemic, developers have practically lost their income. Citizens are in no hurry to make large purchases, preferring to save money. This situation has led to the risk of bankruptcy of a large number of organizations. Therefore, there was a need to support the industry. Russia has relevant experience. In 2015-2016, it was state support in the form of preferential mortgages that made it possible to prevent a series of mass bankruptcies.

It is expected that the implementation of the presidential mortgage program will require about 6 billion rubles due to the coronavirus. At the same time, the total amount of loans for which compensation of lost income will be made will be up to 740 billion rubles inclusive. According to estimates, the implementation of the program will ensure the issuance of up to 250 thousand new housing loans.

Expert opinion

Not all experts are so unequivocal. Maria Litinetskaya believes that the project will not bring much benefit. The fact is that Russia is faced with conditions of sharp decline in income and employment. In such a situation, people not only evaluate the cost of the loan, but also take into account the ability to repay it. Not everyone has it.

Additional payments under regional social programs

Additional assistance is provided in the form of social payments when purchasing an apartment. Its size does not have a fixed value and is determined individually for each municipality. You can check with your local government about what payments are due for mortgage lending in your region. Thus, a payment of 50 thousand to those who have a mortgage is provided to young families in the Tver region. To obtain it, you must contact the MFC with an application and mortgage documents.

Conditions for obtaining a mortgage at 6.5 percent in 2021

The conditions for issuing a housing loan under the program follow from paragraph 5 of the rules for compensation of lost income on housing loans, approved by Decree of the Government of the Russian Federation No. 566 of April 23, 2021. Funds are issued at an interest rate of 6.5% for the entire loan period. This is the maximum overpayment amount. Banks have the right to reduce the ratio at their own request.

A down payment will be required. Its size will be at least 20% of the loan cost. Funds are provided only for the purchase of housing in a new building. It will not be possible to obtain a loan to purchase premises on the secondary market. There is a limit on the maximum loan amount. It amounts to:

• 8 million rubles for Moscow and Moscow Region;
• 8 million rubles for St. Petersburg and Leningrad Region;
• 3 million rubles for other regions.

The calculation must be made within 20 years.

Mortgage with state support: nuances and features

What is state support for mortgages? Who is entitled to benefits on housing loans? Let's take a closer look at how to take advantage of a preferential loan.

Mortgage with state support is a program for subsidizing interest rates on loans for the purchase of housing: the state helps certain categories of citizens purchase their own real estate with a mortgage at a reduced interest rate.

Mortgages on preferential terms are also available to Alfa-Bank clients. We issue loans for finished and under construction housing under the state program in the amount of up to 12,000,000 rubles for Moscow and the region, St. Petersburg and the region, 6,000,000 rubles for other regions.

Goals and essence

The federal support program provides for the issuance of mortgage loans at a preferential rate of no more than 6.5%. The program was implemented to increase demand for new real estate and motivate developers. It was developed to make mortgage loans more accessible to socially vulnerable segments of the population.

Features of a mortgage with state support:

• •

  The reduced rate is valid for the entire loan term. Some banks, including Alfa-Bank, offer lower interest rates.

• •

  The minimum down payment for the program is 15%. The maximum loan amount is 12,000,000 rubles for Moscow and St. Petersburg, 6,000,000 for other regions of Russia.

• •

  You can receive state support for a mortgage both for housing under construction and for finished housing, if it is sold by the developer himself. You can purchase housing under a DDU agreement, assignment of rights, purchase and sale from a developer.

• •

  To receive the benefit, Russian citizenship is required.

Lender banks issue mortgages at a preferential rate, and the state, represented by JSC DOM.RF, compensates them for lost income. The amount of compensation is calculated based on the key rate of the Central Bank, to which three percentage points are added.

Who gets a mortgage with state support?

All citizens of the Russian Federation can get a mortgage on more favorable terms.

Types of other mortgage programs with state support

There are several mortgage lending programs with government support. Let's look at each of them in more detail.

Mortgage for a young family

A family is considered young if there is a child (or no children), and one of the spouses is not older than 35 years. If young spouses do not have their own home or live in an apartment whose area does not meet minimum standards, then they can count on improved living conditions.

Under the “Young Family” program, you can receive a subsidy for a down payment in the amount of 30–35% of the value of the property. Funds can also be used to pay off the principal debt on a mortgage loan, or to pay part of a shared construction agreement.

Maternal capital

Family or maternity capital is issued to families into which a child was born (or adopted). Matkapital can be used as a down payment on a mortgage, as well as partially early repayment of an existing mortgage. The maternity capital program is valid until 2026.

The amount of maternity capital for the first child from January 1, 2021 is 483,881 rubles. 83 kop. At the birth or adoption of a second or subsequent child, the amount of maternity capital is 639,431 rubles. 83 kop.

Military mortgage

Among those who are eligible for a mortgage with state support, it is worth highlighting the military. The preferential program provides for the transfer of funds to special registered accounts. A serviceman can use the funds after joining the savings-mortgage system (NIS). The money can be used to purchase an apartment on the secondary or primary market, a house or a plot of land.

At the moment, Alfa-Bank does not participate in the military mortgage program.

Family mortgage at 6%

Families whose second or subsequent children were born after January 1, 2018 can apply for a social mortgage with state support. The 6% rate also applies to parents with a disabled child. There are no age requirements. Preferential conditions apply to mortgages in new buildings and to refinancing existing home loans.

At a preferential rate, you can refinance an existing home loan, even if the conditions on it have previously changed (except for the purpose of the loan).

Rural mortgage

The program applies to the purchase or construction of housing in rural areas. The maximum loan amount for the Leningrad region, Yamal Autonomous Okrug, and the Far East is 5 million rubles. For other regions - 3 million rubles. The loan term is up to 25 years.

Rural mortgages do not cover settlements located in the Moscow region. The bank has the right to raise the rate if the borrower refuses life or health insurance.

At the moment, Alfa-Bank does not participate in the rural mortgage program.

Far Eastern mortgage

The state support program is valid for the construction or purchase of real estate in the Far East. The following can become preferential borrowers:

• •

  spouses under the age of 36;

• •

  a parent under 36 years of age, unmarried, with a child under 19 years of age;

• •

  participants of the Far Eastern Hectare program;

• •

  citizens who moved to the Far Eastern region under programs to increase labor mobility.

The preferential rate under the program is 2%. The maximum amount is 6 million rubles. Duration: up to 20 years. Subsidies include real estate in the primary and secondary markets. You can also get a mortgage to build a house. One of the mandatory conditions for borrowers is registration in the purchased housing.

At the moment, Alfa-Bank does not participate in the rural mortgage program.

Mortgage repayment subsidy for families with many children

Type of government support for families with three or more children. If a child was born between 2021 and 2022, then the family can receive a subsidy in the amount of 450,000 rubles. With this money you can pay off your mortgage debt: pay part of the debt or interest on the loan.

The subsidy is provided to the family once. It does not replace maternity capital, but is issued in addition to it.

Other programs

In some Russian regions there are mortgage programs for public sector employees: teachers and doctors. To receive the benefit, you need to work in the public sector for at least five years and need improved living conditions.

Under the program, the state provides interest-free installments for payment of 60% of the cost of real estate for 10 years or until dismissal from a budget organization.

How to get a mortgage with state support in 2020–2021

First of all, the borrower must be of suitable age, have a confirmed source of income and be employed at the last place of work for at least four months.

The list of documents required to obtain a mortgage with state support is determined by the internal regulations of creditor banks. As a rule, the exact list of papers depends on the type of benefit program. Most often it is as follows:

• •

  a copy of the passports of both spouses;

• •

  marriage certificate and birth certificate of children;

  Read also:  Where to call if the TV antenna does not work in Moscow
• •

  SNILS, INN;

• •

  2-NDFL, salary or savings account statement.

If housing is purchased under the Young Family program, documentation may be required confirming the need to improve living conditions.

Where to apply for a preferential mortgage

The decision to issue a mortgage on preferential terms is made by the creditor bank. The bank assesses the borrower's solvency and sets criteria for granting a loan.

Thus, at Alfa-Bank it is easy to obtain a mortgage for the purchase of finished or under construction housing. All necessary documents can be submitted online, and you can come to the office only to sign the contract. Available mortgage programs with a down payment of 15% at a minimum rate of 5.99% per annum.

Housing requirements

Speaking about the need for a presidential mortgage at 6.5 percent in 2021, the president mentioned providing funds for the purchase of housing in new comfort-class buildings. This definition confused many. The fact is that most documents regulating the provision of state support for the purchase of residential premises use the term “standard housing”.

Subsequently, a message from the Ministry of Finance appeared. It already talked about simple housing in a new building. Directly in the Decree of the Government of the Russian Federation No. 566 of April 23, 2021, the requirements for the premises are not mentioned at all. However, they can be installed by the bank. Typically, companies provide funds for real estate that meets the following requirements:

• has high liquidity;
• has all communications;
• has good access roads;
• located in the region where the bank operates.

Note:
If a company has a wide branch network, you can actually try to purchase real estate in any region of the Russian Federation. However, you need to remember about the existing limits, which differ significantly for the capital, St. Petersburg and the periphery.

Is it possible to refinance an existing mortgage under the program at 6.5 percent?

The issue is not mentioned in Decree of the Government of the Russian Federation No. 566 of April 23, 2021. However, refinancing a mortgage actually contradicts the terms of the preferential program. Refinancing involves obtaining a new loan to replace the old mortgage. In this case, housing that was previously purchased on credit will again be pledged to another bank.

The Presidential Mortgage allows you to get a housing loan at 6.5 percent only for new housing. This feature is fixed to support the construction industry. If the premises have already been purchased by a citizen, it moves from the category of new to the category of secondary. This feature contradicts the conditions for participation in the preferential mortgage lending program at 6.5% per annum. Therefore, it will not be possible to refinance at a reduced rate using the new offer.

Interest deduction

This right is granted only if the apartment is purchased with a mortgage. Its value is 13% of the amount of interest you paid. Wherein:

1. The right to receive a deduction appears only after receiving the right to the main one.
2. The maximum deduction amount is 3 million rubles (i.e. 390 thousand rubles can be returned with interest).
3. Only taxes actually paid for past tax periods are accepted for deduction.
4. Let us look at a specific example of the application of the features of tax deductions.

Citizen Aksenov A.V. at the beginning of 2014, he entered into an equity participation agreement for the purchase of residential premises in a house under construction for the amount of 9,300,000 rubles. At the same time, due to a lack of funds, he took out a mortgage loan for 7.4 million rubles. In August 2021, the buyer was given an apartment acceptance certificate. Thus, the right to deductions will arise only in 2019, and it does not matter that Aksenov has been paying interest on the loan since 2014 (their value by 2021 exceeded 2.5 million rubles).

In 2021, the buyer must file a 3-NDFL return with the local tax office with the following deductions:

• main – 2 million rubles (to be returned 260 thousand rubles),
• interest – 3 million rubles (to be returned 390 thousand rubles).

That is, the maximum amount of payments can be 650 thousand rubles.

If the mortgage agreement was drawn up before January 1, 2014, the maximum interest amount to be reimbursed has no restrictions.

Which banks can get a mortgage at 6.5 percent in 2021?

Attention
From paragraph 6 of the Rules for the reimbursement of income received on loans, approved by Decree of the Government of the Russian Federation No. 566 of April 23, 2020, it follows that a financial organization that has prepared a package of documents, submitted an application and received appropriate approval can take part in the state program. So far there are relatively few such companies.

Preferential mortgages at 6.5% are provided by:

• Sberbank;
• VTB;
• Alfa Bank;
• Promsvyazbank;
• DOM.RF.

Financial institutions accept initial applications online.

Necessary documents for registration

The list of documents required for the borrower to use the service is also not approved in Decree of the Government of the Russian Federation No. 566 of April 23, 2020. Requirements for the list of securities are established by the bank. They ask for:

• completed application;
• identification;
• income certificate;
• a copy of the work book certified by the employer;
• additional identification document (passport, driver's license, SNILS);
• military ID for men under 27 years of age.

Attention
The Bank reserves the right to request additional documents. The housing documents are provided by the developer.

How to send an application and documents?

The citizen will not have to personally interact with the state. Obtaining a preferential mortgage at 6.5 percent is carried out through the bank. Moreover, the procedure is practically no different from the standard one.

However, the pandemic and self-isolation impose certain difficulties. In order not to lose customers, banks provided borrowers with the opportunity to apply online. You can apply through the official website. It will be reviewed remotely. When the answer is known, the borrower will be contacted and further actions explained.

How to get a mortgage at 6.5 percent in 2021?

The registration procedure itself does not differ from the standard mortgage registration. It involves the following actions:

1. Selecting a bank. It is important to pay attention not only to the interest rate, but also to take into account the presence of hidden fees, the requirements of the organization, and the presence of additional payments. You can study the main terms of cooperation on the official website of the organization.
2. Preparation of documentation. You will need to collect papers confirming your income and official employment.
3. Contacting the bank. The initial application is submitted online. Representatives of the financial institution analyze the data and then make a preliminary decision. The borrower is contacted and informed of the verdict. If it is positive, the client will be invited to visit the financial institution to transfer the original documentation or will be asked to send scans of the documents via the Internet. Based on the data obtained, a final decision is made.
4. Appeals to the operator of the state program. DOM.RF is responsible for monitoring compliance with the provisions of Government Decree No. 566 of April 23, 2021. The lender provides the organization with a package of documents. The papers are analyzed and then the decision is communicated. If it is positive, the co-borrower can receive government assistance.
5. Conclusion of a loan agreement. The document sets out all the terms of cooperation. You must read the document carefully before signing it.
6. Registration of collateral. The apartment becomes encumbered for the entire period of cooperation with the financial institution. If the borrower cannot repay the loan, the property may be repossessed and sold.
7. Taking out mortgage insurance. The borrower is obliged to protect the property until the end of cooperation with the bank (Article 31 of Federal Law No. 102 of July 16, 1998). But life and health insurance for a mortgage is carried out on a voluntary basis.

What to do if you are denied a mortgage at 6.5 percent?

The bank is not obliged to provide the client with a mortgage at 6.5 percent. This is the right of a financial institution. However, the reason for the decision was not explained. Typically, a mortgage application is rejected in the following situations:

1. High debt load. To increase your chance of getting a housing loan, you need to pay off your obligations. Early repayment of loans is acceptable. A mortgage will be provided if the total monthly payment does not exceed 50% of the citizen’s income.
2. Bad credit history. Banks strive to cooperate only with reliable borrowers. To strengthen your position in the eyes of the company, you can take out a small loan and repay it without delays. Experts recommend performing this procedure several times.
3. Lack of official work. Companies are interested in clients with stable income. If a person does not work, it is worth confirming the presence of other sources of income and the availability of liquid property. Involving co-borrowers and guarantors will also be beneficial.
4. The citizen has not previously taken out loans. If they are missing, the bank cannot get an idea about the client in advance. Therefore, companies choose to reject the application. To minimize the risk of a negative response, it is necessary to provide additional liquid collateral or attract guarantors.

Restructuring

To undergo a restructuring operation, the bank must provide evidence that the debtor is unable to pay the mortgage due to a difficult financial situation.

Let’s say that after making a monthly payment, the borrower has less than two subsistence minimums left to live on. In this case, the contract is revised with the appointment of a reduced payment or its temporary suspension.

The time period of the agreement is extended or the remaining amount is moved to the final stage of the payment schedule. At the same time, the state partially compensates the borrower’s mortgage costs.

It is worth noting that the credit institution does not lose anything from this, but on the contrary, has some benefit, since the guarantees for the return of funds in such a turn of affairs are one hundred percent.

However, this procedure is only available to borrowers with a single home purchased with a mortgage. The price of the property should not exceed 160% of the regional average, and also in the absence of loan arrears.

Mortgage at 6.5 percent in Alfa Bank

You can apply for a preferential presidential mortgage at 6.5 percent per annum at Alfa Bank from April 20, 2021. Contacting the organization and providing documents is carried out online without a personal visit to the office. A certified copy of the 2nd personal income tax certificate and a copy of the work book are not needed. It is enough to provide a certificate from the Pension Fund or a similar document regarding the salary account created in the Internet bank. Additionally, the company is ready to consider 2 personal income tax with a digital signature and an electronic work book.

What documents are needed for return

Despite the fact that the list of papers to receive a refund of interest looks impressive, the only difficulties are filling out 3-NDFL and obtaining a certificate from the bank and from the place of work. For a person who has already gone through preparations for a mortgage transaction, it will not be difficult to agree on a personal income tax refund. The package of papers for tax authorities includes:

1. Passport.
2. TIN.
3. Bill of sale for real estate.
4. 2-NDFL, 3-NDFL.
5. Certificates from the bank confirming the amounts paid in interest during the year and the balance of the debt at the time of application.
6. Application in the prescribed form indicating enrollment details.

Additionally, documents may be required confirming the fact of payment to the seller of the amount specified in the purchase and sale agreement - receipt, receipt, etc.

When registering a mortgage for shared ownership, a marriage registration certificate is provided to the Federal Tax Service.