Mortgages in modern Russia are not so rare. Citizens willingly conclude mortgage agreements to acquire their own housing. Such expenses ultimately turn out to be very large. And so some are wondering how to get money back for a mortgage. Do citizens of the Russian Federation have such a right? If so, what will have to be done?
About payments
Is it possible to return money for a mortgage? There is no single answer to this question. The thing is that after the conclusion of a mortgage agreement a person is faced with several payments.
Namely with such:
- main mortgage payment;
- interest payment under a loan agreement;
- payment of insurance.
Is there any chance of a refund of the payments listed? What does the law say about this?
Chances of success
Is it possible to return part of the funds under a mortgage agreement? In Russia, the possibility of receiving money in the form of a deduction is provided. This refund is issued in respect of principal payments and interest.
What about insurance? Is it somehow compensated to citizens?
To answer whether it is possible to return money for mortgage insurance, a specific mortgage agreement will help. The thing is that under certain conditions part of the money will be reimbursed. But most often this practice does not take place. For more accurate information on deductions for mortgage insurance, it is recommended to contact insurance companies and banks.
Deduction amount
When thinking about how to return money for a mortgage, you have to consider that only part of the payments is subject to reimbursement. Under no circumstances will it be possible to get the full amount of the loan back.
By law, the tax deduction is 13%. That is how much money can be returned under a mortgage agreement and interest on a loan paid. At the same time, a restriction applies to returns - up to 390,000 rubles are allowed to be returned as much as possible. And 260,000 rubles were laid on property deductions. Similar rules apply in Russia in 2017.
If we talk about insurance, then everything is much more complicated. Typically, insurance companies pay only 40-70% of the amount paid by the citizen. Specific interest is indicated in the insurance contract. Therefore, this issue is resolved individually.
Who is eligible?
How to return money for mortgage interest? In the same way as under the main loan agreement. It is not difficult to do this. The main thing is to consider that not every citizen has the right to a tax deduction.
To submit a request for a refund of funds paid on a mortgage, you must meet the following criteria:
- adulthood and legal capacity;
- the presence of income taxed by personal income tax 13%;
- regular income;
- citizenship of the Russian Federation.
Accordingly, if a person does not have income taxed by personal income tax of 13%, but at the same time he pays a mortgage, you should not count on a tax type deduction. Only part of the insurance will be able to be returned, if this is provided for by the contract.
Step by step deduction
Next, we will talk in more detail about all the nuances of the studied procedures. How to return money for a mortgage? Let's start with the tax deduction. It is most often found in practice.
So, to make a tax type deduction for a mortgage agreement, you will need:
- Make at least one loan repayment payment. The right to a refund appears immediately after the first financial transaction.
- Prepare a list of documents. It depends on whether the money is returned - for the main loan or for interest.
- Write a request to the registration authority for a deduction.Prepared papers are attached to it without fail along with their copies.
- Wait for a decision on the issue under study. After approximately 1.5-2 months, the applicant will receive a letter from the registration authority stating whether the money will be returned.
At this stage, it remains only to wait for the funds to be received by the taxpayer. If the deduction is refused, then the notification must indicate the reason for such a decision.
Where to make deductions?
Now it’s clear how you can return the money for interest paid on a mortgage or a basic loan agreement. Citizens often have questions about where to send a request.
Tax deductions are provided by the tax authorities. You can ask for help either in the regional authority of the Federal Tax Service or in the MFC. The procedure will not change.
If you plan to reimburse insurance funds, then usually citizens are invited to go with a request to the insurance company branch. Less often, to specific banks and even to Russian Post. As a rule, the body making the return is indicated in the insurance contract.
Documents for a mortgage deduction
Is it possible to return money for a mortgage? Yes! Especially when it comes to tax deduction. How to act in this case, we have already figured out. But the list of documents for implementing the idea is still a mystery.
But it is fixable! Typically, the following documents are required of citizens:
- mortgage agreement;
- certificate of ownership (optional);
- passport (or other identification card);
- certificate of registration;
- application for a deduction with bank details;
- debt repayment schedule;
- income statements;
- tax return;
- TIN (if available);
- payment receipts showing the payment of a loan and interest on it.
All these papers will help you get a tax type deduction for a mortgage. If you need a refund of insurance, you will have to prepare a different set of documents.
Documents when returning insurance
Returning money for Sberbank mortgage insurance (or another bank) is also not so difficult. Usually this operation is available after the final repayment of the loan, but there are exceptions. As already noted, the features of the reimbursement of mortgage insurance are prescribed in the relevant agreement.
What documents do insurance companies require to provide services? Among them, the following list of papers is usually found:
- applicant's passport;
- mortgage agreement;
- schedule with payments by agreement;
- bank statement on full repayment of the loan;
- insurance policy (can be replaced by a statement);
- certificate of ownership of housing (extract from the USRN);
- bank account details;
- checks indicating the payment of credit and insurance (preferably).
It is recommended to make copies of the listed documents in advance. The waiting period for a response regarding a refund is usually 30 days.
If refused
Will Sberbank return money for an insurance mortgage? Yes, if the insurance company works with this financial institution, and the mortgage agreement provides for refunds on insurance payments. But it happens that a service is denied.
What to do? You must ask the insurance company in writing for clarification. The organization must indicate the reasons for the refusal. If there is no good reason for refusing, you can repeat the request or go to court. In real life, insurance companies usually prefer not to argue with customers and reimburse part of the insurance.
If the tax deduction is denied, you will have to study the letter received from the Federal Tax Service. It sets out the reason for the refusal of a refund. 30 days are allotted to correct the situation. For example, if a citizen brought an incomplete set of documents, he will not have to re-submit a request for deduction. Within a month, he can contact the Federal Tax Service to correct his mistakes.
Recency
It’s clear how to return the money for the mortgage. When does a person receive the right to repay money on a loan?
If it is a tax deduction, the right to a refund arises from the moment the first payment is made. In this case, money can be claimed only in the year following the period in which the payment of money was made. The prescription is 3 years. Only funds for this period can be claimed. With all this, a tax deduction application can be submitted infinitely many times. Everything is limited only by the established limits on returns.
When applying for insurance returns, the terms of treatment are governed by the existing contract. The statute of limitations in this case is also 36 months.
findings
Now it’s clear how to return the money for insurance on a mortgage and on a basic loan agreement. These operations are very laborious, they are time consuming. But with the right actions in just a few months it will be possible to translate the idea into reality.
The proposed instructions will help return the money for a mortgage. The main thing is to carefully study the current loan agreement. It is possible that a citizen can demand only a tax deduction and nothing more.
Important: when making tax type returns, the amount of personal income tax paid in a given period is taken into account. You cannot return more money than was transferred to the Federal Tax Service in a particular year.
Perhaps now we know all the main points of a refund for a mortgage. In reality, everything is not as difficult as it might seem at first glance. Tax deductions are required by law. But insurance is not always reimbursed. A similar practice in real life is not very common, but it still takes place. The key points are contained in the loan agreement - in it, citizens can find answers to almost all of their questions regarding the reimbursement of mortgage expenses.