State subsidizing of mortgages contributes to the development of the market for new buildings, improving the quality of life of young families, and indirectly stimulates the birth rate of the population. All this is possible in conditions of market stabilization, a stable Central Bank refinancing rate at which the country's main bank lends to market banks. Due to favorable economic conditions, the mortgage rate in banks began to decline and reaches today an average of 10.5%, unlike 13.5% in the recent past.
What is the essence of subsidies?
A subsidy is a free targeted financial assistance, in this case, from the state. The earmarked funds are intended to repay part of the mortgage, including the down payment of a mortgage loan. For other purposes, funds within the framework of this program cannot be spent, only for those stipulated in the program. The subsidiary must pay the rest of the mortgage loan on his own. Only residents of the Russian Federation can participate in the mortgage subsidy program. The program is distributed both at the federal and regional levels. Borrowers are entitled to use maternity capital and a 2018 mortgage subsidy as part of a single mortgage loan. At the regional level, you can take advantage of the conditions of a young family program, for example, for early repayment of a mortgage, which will significantly reduce the overpayment of a loan. You can find out who is entitled to subsidize mortgages in the article.
What are the challenges for the 2018 mortgage subsidy program?
Since January 2018, the state housing subsidy program has been launched, planned until 2022. The essence of this project is that the state pays part of the mortgage when buying a standard apartment in new high-rise buildings of Russia. 600 billion rubles were allocated for the program.
The objectives of the mortgage subsidy program include the following aspects:
- Contribute to an increase in the birth rate in the country and increase economic activity.
- Increase the volume of construction of new housing.
- Reduce the price of finished housing, based on the average parameters of the price of an apartment with an area of 54 square meters and average earnings for the year.
- As a consequence of the above tasks - improving the quality of construction work in the country.
What is the procedure for subsidizing?
To determine the need of the applicant in the provision of preferential terms under the mortgage subsidy program, the following procedure exists.
- To establish how much the applicant needs the subsidy to be provided - does he have other housing that meets all the requirements. The applicant must provide a document proving the status of the “poor”, that is, confirm the monthly income below the subsistence level.
- Ensure the provision of documents to confirm the claim for a valid subsidy.
- Assess the provided documentary information and correlate it with the current conditions of the subsidy.
Banking requirements
2018 state subsidy - support for families with children through the purchase of mortgage housing. A mortgage is a loan and general requirements apply to it, as well as to ordinary mortgage borrowers.
- Age from 21 to 65 years.
- The subsidy is provided for the first time.
- Starting mortgage fee 20% of the price of purchased housing.
- The borrower must be able to independently cover the remaining payments on the mortgage, in the period after the end of the grace period.
- A prerequisite is insurance of acquired mortgage housing.
Who is granted a preferential mortgage at 6%?
The Government of the Russian Federation adopted a resolution on subsidizing mortgages, designed to support families who have a 2nd, 3rd child since 01/01/2018. Moreover, the age of the mother does not matter. The main thing is that the age range fits into the restrictions indicated by banks. Unfortunately, families in which the 2nd and 3rd babies appeared before the start of the program are not entitled to use the preferential terms of state subsidies.
Under the terms of the mortgage subsidy program for large families, the state compensates mortgage payments in excess of 6%. That is, the state undertakes to pay the difference between 6% and the interest rate that the bank sets for a mortgage loan. In addition, the program solves the problems of mortgages already taken: re-lending to another credit institution, reducing the rate on an existing mortgage, restructuring a loan or helping to consume maternity capital for this purpose.
For families whose second child was born within the above mentioned period, the subsidy is valid 3 years after birth, for the third child - 5 years from birth. Unfortunately, the program does not provide preferential mortgage conditions at the birth of the fourth baby and more.
According to the law on subsidizing mortgages for preferential loans, the following groups of people can count:
- Low-income families with young children.
- Young families with young children.
- All military.
- Civil servants and budget workers - medical workers, teachers, researchers.
Mortgage subsidies in 2018 for a second child
Families with children born in the period from 01/01/2018 to 12/31/2022 are eligible for a subsidy in excess of 6% on a mortgage loan. That is, the family pays 6% of the mortgage instead of 10.5-12%. Everything else is paid by the state for 3 years from the date of birth of the second baby. As part of the program for subsidizing mortgages in 2018 for a second child, a mortgage loan can only be taken in a new building, with the condition that the house is already in legal operation.
Apartments under the state subsidy program must comply with the terms of the area. So, the total area of odnushka should not exceed 45 squares, 2-room - 65 squares, 3-room - 85 squares.
3rd child subsidy
The period of subsidizing a mortgage at birth of 3 children is increased by 5 years. If the family is already in the program for the birth of the second baby, the grace period is extended to 8 years. The conditions for buying a mortgage only in new buildings are the same as those described above. After the end of the program, the mortgage is recalculated and paid in accordance with the interest on payments set by the bank.
How much should mortgage housing cost?
Under the program, a purchased apartment in a mortgage should cost no more than the established price limit. For St. Petersburg and Moscow, as well as for their areas, housing should cost a maximum of 8 million rubles. The initial payment of the maximum cost will be 1.6 million rubles. In other regions of the country, purchased housing should not cost more than 3 million rubles. And the down payment of the maximum cost should be 600 thousand rubles. The mortgage subsidy program is not designed to buy elite housing, but only to ensure acceptable housing conditions for families planning the birth of the 2nd and 3rd babies.
Program mortgage refinancing terms
The program applies to families who received a mortgage for a new building before the program. Refinancing will be possible if the 2nd and 3rd babies appear later than 01.01.2018.It is under these conditions that it is possible to subsidize an existing mortgage by re-lending on significantly favorable terms to another credit institution. The interest mortgage rate will be recalculated and the family will continue to pay the mortgage at 6% per annum.
In this case, refinancing is feasible under certain conditions.
- Mortgage is paid at least 6 months before applying for refinancing.
- Disciplined performance of loan obligations - no delinquency.
- The family did not use other refinancing programs.
- At the end of the program, the family will start paying the loan at the usual rate.
For refinancing, it is necessary to apply only to the bank participating in the program and on the list of the Ministry of Finance of the Russian Federation.
Which banks issue mortgage loans at 6%?
The first credit institution under the mortgage subsidy program is AHML. The program includes about 46 banks. Each bank from the list applied for participation in the program and passed the necessary check for compliance with the requirements of the Ministry of Finance, which distributed among all 600 billion subsidized rubles. The first ones on the list are Sberbank and VTB Bank. The entire list of banks participating in the implementation of the mortgage subsidy program is on the website of the Ministry of Finance. If the selected bank is not in the list, it means that it is not entitled to issue a soft loan at 6%.
Sberbank: mortgage subsidies
Sberbank issues mortgage loans subsidized by the state according to the general rules and conditions for issuing mortgages. It is advisable for a mortgage applicant to meet the following criteria:
- Age from 21 to 65 years.
- A monthly confirmed income that can provide about 50% of regular payments.
- Work experience at the current place for six months, and total experience - a year.
- Be a citizen of Russia.
- Have a good credit history.
Customers who have a salary project in Sberbank receive some benefits when applying for a mortgage. An experience is not necessarily needed for an annual, rather six-month period of service on a salary card.
Further, all conditions of the subsidy program are observed. Namely:
- The birth of a second child after the start of the program makes it possible to reduce the mortgage rate to 6% for 3 years.
- The appearance of the third child is 5 years old.
- If the third child appears after the second, then the periods of subsidizing the mortgage are added up and extended - that is, for 8 years.
If the family cannot provide documents proving their solvency, then the loan will be refused. Sberbank cannot provide preferential conditions for any contacting family, even within the framework of the current state program. In such a case, it is recommended to contact another bank participating in the mortgage subsidy program.
Documents for a mortgage on a subsidy in Sberbank
To justify the facts, allowing the applicant to obtain a mortgage loan under the legal conditions for subsidizing mortgages, you should provide the bank with the relevant documents.
- Identity cards of both spouses with citizenship of the Russian Federation (for an unregistered marriage, documents of the second parent are also provided, as indicated in the birth certificate of the declared children).
- Application for a mortgage loan.
- Help 2NDFL and work book.
- If there is a collateral, show ownership of it
- Marriage contract, if any.
- Birth certificates of each of the declared children.
During the working week, Sberbank considers the application and the submitted documents. If the decision turns out to be positive on the issuance of a mortgage loan - it is necessary to present documents clarifying some parameters of the family, at the request of the bank. These include:
- Documents confirming the purpose of the funds (evidence of ownership).
- Bank statement confirming the solvency of the applicant for the initial payment.
Mortgages are granted for a period of up to 30 years, only in Russian rubles. View - annuity, that is, the same monthly payments. A prerequisite is the life insurance contract of the borrower and the purchased apartment for a minimum period of one year, followed by annual renewal of insurance.
After the validity of the state program of subsidizing mortgages, the rate returns to the original condition - the Central Bank refinancing rate plus 2%.
Mortgage apartments are available only in the newly-built housing market and only from a legal entity.
If a family wants to take more than one apartment, and the bank decides that this debt burden is within the strength of this family, then this is absolutely legal, because there are no restrictions on the amount of housing purchased under the mortgage subsidy program.
