Mortgage lending is a tool that allows Russian families to find housing today, without long years of waiting and hoarding. It's all about the favorable conditions: the mortgage takes years to repay, and the rates on it are very low compared to consumer loans. But for such convenience, the bank requires a guarantee from the borrower - a liquid property as collateral. Below, Bankiros.ru explains what a mortgage on an apartment is and what rights it gives to the lender.
What is a mortgage on an apartment?
Mortgage is a document confirming the transfer of real estate as collateral in exchange for borrowed funds. This is a kind of “insurance” for the bank: if the borrower is unable to pay the mortgage, the collateral can be sold - sold in whole or in part, or exchanged. The corresponding right - to dispose of the object of pledge - is the content of the mortgage. For the bank, such a document guarantees that it will not go into the red, even if the borrower gets sick, loses his job or simply disappears from the radar.
Take out a mortgage loan at a low interest rate
And on the part of the borrower, a mortgage is a confirmation of his property rights to the property purchased with a mortgage. When the loan is repaid, the mortgage is returned to the borrower - now he becomes the full owner of the home.
Contents of the mortgage
The security must contain the full name of the borrower, the parameters of the collateral property, and the terms of the agreement.
And:
- Name and location (registration) of the pledgor.
- Date, number, place of conclusion of the mortgage loan agreement.
- Amount, loan interest and loan period.
- Date of loan issuance.
- Description of the collateral property.
- Details of the document establishing the rights to the pledged property.
- Marks of state registration authorities.
- The date the document was issued to the original mortgagee.
Drafting requirements are also regulated by law, but banks have the right to impose additional conditions. At Sberbank, for example, mortgages may vary slightly depending on the loan issuing offices.
A sample and what a mortgage looks like can be seen here.
Procedure for registering a mortgage
You can take out a mortgage at any time until the mortgage is fully repaid. Most often it is drawn up at the conclusion of a mortgage agreement. The lender draws up the document, the borrower only reads the terms and signs it.
The bookmark displays the following information:
- information about the pledgor and the pledgee;
- data of the property and its characteristics;
- conditions for fulfilling obligations;
- information on registration of property rights;
- loan parameters;
- mortgage agreement information.
The issuance of a mortgage is carried out after state registration of the mortgage. It must bear the signatures of the parties and the date. You can issue a mortgage electronically on the Rosreestr website.
Latest news and innovations for 2021
Making and registering mortgages is simplified. The possibility of electronic registration has become available, and Sberbank has completely canceled the issuance of paper mortgages for some mortgage transactions. Let's take a closer look at the latest news.
Registration of an electronic mortgage on the Rosreestr website
Electronic mortgages are valid from July 1, 2018. The borrower fills out the form on the official website of Rosreestr or on the State Services portal. Electronic signatures of the mortgagor and the mortgagee are placed on the mortgage note. The package of documents is provided in electronic form.
An electronic document eliminates the possibility of its loss by the bank. The security is stored electronically in the depository. This is a company that specializes in securities transactions.
Advantages of an electronic mortgage:
- The bank will not lose the electronic mortgage, as it can do with a paper one.
- There is no need to go to the MFC - the bank itself sends an application for registration.
- After registration, the electronic document is automatically transferred for storage to the depository specified by the bank.
- After paying off the mortgage, you do not need to write an application to cancel the paper.
What a mortgage looks like in a bank - sample
Although the contents of the mortgage are regulated by law, the structure and execution of the document differ from bank to bank. The borrower will be provided with a current sample when the mortgage is issued (no need to worry about it in advance). Below we offer an example of a mortgage that contains all the necessary information:
Sample mortgage note from a bank
Mortgage Housing under construction from Alfa-Bank
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Mortgage registration
After the mortgage is issued and signed by the borrower, it is transferred to Rosreestr for registration of property rights. Along with the mortgage, you need to collect a package of papers, which includes:
- Owner's passport;
- Certificate of ownership/extract from the Unified State Register of Real Estate;
- Contract of purchase and sale and insurance of housing;
- For new buildings - an acceptance certificate;
- Report on the assessment of the market value of housing.
You can contact any branch of Rosreestr, regardless of your place of residence. Registration takes from one to five days. In this case, the state duty is paid:
- For individuals - 2,000 rubles;
- For legal entities - 22,000 rubles.
You can pay the state duty at the Rosreestr cash desk, through a bank or terminal. In addition, since the summer of 2021, electronic registration has been operating on the Rosreestr website - rosreestr.ru. To certify documents, electronic signatures of all parties are used - the pledgor, the pledgee and the state registrar. Payment of the fee is also made online.
The nuances of obtaining a military mortgage: how to find out the mortgage number in AHML or a bank
- Obtaining a certificate of participation in the NIS program - it is issued no earlier than 3 years from the date of entry into the program.
- Search and selection of specific real estate.
- Contacting the bank for advice and obtaining a list of required documents.
- Filling out the application form and providing the full package of necessary papers.
- Opening an individual client account for transferring funds accumulated through NIS.
- Signing the purchase and sale agreement.
- Registration of documents in Rosreestr.
- Transfer of real estate as collateral to the bank (drawing out a mortgage).
- Contact your lender. The mortgage note is drawn up in two copies: one of them is kept in Rosreestr, the second in the bank.
- Make a request to Rosreestr. You can view the number in the Unified State Register extract received upon the personal application of the mortgagor.
- Using your personal account. If you don’t know how to find out the AHML mortgage number for a military mortgage, then just go to the agency’s website. There you will see not only the mortgage number, but also the loan agreement, payment schedule, account balance and much more useful information.
How can a mortgage be used by a bank?
A mortgage on a mortgaged property is a guarantor of the return of funds if the borrower fails to fulfill his obligations. It can be used to sell the collateral without the consent of the borrower if he has stopped repaying the debt.
Since a mortgage is a registered security, it serves the bank as additional protection for its financial interests until the mortgage loan is paid in full. Until this point, the lender has the right to dispose of the mortgage at its own discretion, for example:
- Partial resale. In this case, the bank sells part of the collateral to another financial institution. The borrower sends mortgage payments there - to the second mortgagee (usually for a certain time);
- Assignment of rights. Essentially, we are talking about a sale and purchase: the lender sells a mortgage to another bank, and along with it a mortgage loan. The new mortgagee may not change the previous terms of the mortgage, so the client will not feel the difference;
- Exchange. The lender sells the mortgage but receives another in exchange. For the borrower, nothing changes here either: he continues to make monthly payments to his bank or to the new mortgagee (if the details have changed);
- Issue of securities. This is the division of a mortgage into parts that the bank sells to legal entities or individuals. The client continues to pay off the mortgage, but his monthly payments are divided into parts and go to new recipients.
The lender is not required to agree with the borrower on the assignment or transfer of rights, but may notify him of the upcoming sale of the mortgage.
Important! New mortgage owners cannot change the terms of the mortgage unilaterally - any changes must be agreed upon with the borrower and drawn up in writing (in the form of an agreement between the parties). But if the conditions remain the same, the bank may not report the assignment/sale of the collateral at all - it makes no difference to the borrower who the loan is repaid to.
What to do with the mortgage after the mortgage is paid off?
After the mortgage is paid off, the mortgage is canceled - now there is no encumbrance on the property, and the borrower becomes its full owner. This means that the bank can no longer dispose of the housing. The mortgage is returned within one to ten days, the period allowed by law is a calendar month, unless otherwise provided by the mortgage agreement.
What exactly does the borrower need to do to remove the encumbrance from the property:
- Pay off the mortgage in full and obtain a certificate confirming the fulfillment of your obligations to the bank;
- Submit an application for a mortgage and wait for the document to fall into your hands;
- Submit to Rosreestr the mortgage, a certificate from the bank about the repaid mortgage and an application for removal of the encumbrance;
- Receive an extract from the Unified State Register of Property Rights without encumbrance and a canceled mortgage - it is better to keep these papers.
Mortgage in sliders (for families with 2 or more children) from TransCapitalBank
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What to do next after receiving it?
When the borrower has repaid the loan, the bank that issued the funds or the current owner of the mortgage makes a note on it that the loan has been repaid. The borrower must receive a mortgage note and a certificate of full repayment of the loan. Where to take it next? You should contact Rosreestr in order to remove the encumbrance from the property. When contacting Rosreestr, you must provide the following package of documents:
- Application for removal of encumbrance.
- Loan agreement.
- A certificate confirming that the loan has been repaid.
- Mortgage on an apartment.
- Document of ownership.
- Passport.
Read more about how to remove mortgage encumbrances in Rosreestr, MFC and State Services in this article.
The encumbrance implies that the borrower cannot dispose of the apartment without the control of the bank. So he cannot sell the apartment, rent it out, or add new tenants there. After the mortgage encumbrance is removed, the borrower becomes the full owner of the property. The record of the presence of a loan is removed from the database. Thus, the bank's right to the apartment is completely canceled.
Possible problems and frequently asked questions
Still have questions about applying for and using a mortgage? Below Bankiros.ru briefly explains what pitfalls a borrower may encounter.
What to do if the mortgage is lost?
Most often, the fact of loss of a mortgage is revealed when the borrower has fully fulfilled his obligations and the removal of the encumbrance from the property is required. In this case, the creditor is obliged to report the loss of the document and issue a duplicate. The mortgage bank is responsible for maintaining the new mortgage. Before signing, the borrower must carefully check the new document to ensure that it is indeed a duplicate of the lost mortgage and does not contain any new terms. The borrower is not obliged to pay the costs of obtaining a duplicate if such a requirement is not specified in the agreement. You can protect yourself from the possible loss of a mortgage if you issue an electronic version of the document.
Where is the mortgage bond kept?
Until the mortgage is fully repaid, the mortgage will be kept in the bank that issued the mortgage and is its legal owner. In the event of a resale or assignment of rights, the mortgage will remain with the new owner.
The bank does not issue a mortgage after repaying the loan, what should I do?
By law, the bank must return the mortgage to the borrower within a calendar month after full repayment of the loan, unless otherwise specified in the mortgage agreement. Most often, banks return the mortgage within a few days after the mortgage is repaid. If this does not happen, and the bank delays the moment of removing the encumbrance, the borrower can:
- Contact the management of the financial institution in writing.
- Send a complaint to the Bank of Russia.
- Solve the problem in court.
It is better to communicate with the bank regarding the loss of a mortgage in writing - register all your requests and letters, request documents with signatures and seals. Copies of documents must be kept with you in order to prove your case in case of disagreement.
Can changes be made to the mortgage?
The law does not prohibit changes to securities. For example, if the terms of the mortgage have changed or the mortgage has a new owner, appropriate adjustments are made to the document. To do this, the parties draw up a written agreement (on changes to the mortgage) and submit it to Rosreestr for registration.
Is it possible not to take out a mortgage at all?
A mortgage is an optional condition for obtaining a mortgage. However, many banks require you to sign it. This is due to the fact that a mortgage is a long-term loan that not every organization can keep on its balance sheet. And with a mortgage, additional opportunities arise: for example, it can be sold in whole or in part if the bank runs out of money. Also, a mortgage is a guarantee that the lender will not go into the red if the borrower stops paying
Therefore, it is possible to get a mortgage without a mortgage, but in practice this is relatively rare.
