This form of loan, like a mortgage, is becoming increasingly popular today. The prevalence of mortgages over traditional mortgages is easily explained: conditions are better, risks are less - there are many factors. But sometimes even mortgage payments become a burden. They say that there is such a practice as writing off 20 percent on a mortgage. How to get into the number of lucky ones who will pay several times less? Who is given such concessions?
What is a mortgage?
Before proceeding to the description of when the program will be written off 20 percent of the mortgage, you should find out the main characteristics of this form of loan to explain its popularity.
By definition, a mortgage is a long-term loan allocated for the purpose of acquiring real estate. Materially provides this loan a purchased house or apartment. That is, if mortgage payments are not made, the acquired property will be transferred to the bank to cover its losses. In addition to mortgage payments, the borrower will also have to pay bank insurance - any financial institution wants to protect itself from dishonest customers.
According to the rules of mortgage lending, the borrower initially pays a certain amount of money (usually from 10 to 30% of the value of the acquired property) and after that begins to pay the main debt. The rate on such loans is about 10% per annum (everything depends, of course, on the bank). As in most similar cases, the borrower has the right to early repayments. At the same time, having paid several months in advance, he will not pay interest.
What you need to know about a mortgage before you get it?
Before speaking, when writing off 20 percent on a mortgage is still possible, you should dwell on how to get this loan on the most favorable terms.
Start by choosing the right bank. Different financial institutions require different amounts of down payments and set different interest rates on mortgages. Sometimes the rate may change during the loan term: for housing that is still under construction, banks allocate money at high interest rates, trying to protect themselves from possible risks as much as possible. When the property becomes the property of the borrower, the rate may decrease. There is still a “floating” rate - its size depends on the borrower's income: the higher they are, the less interest you have to pay.
Special attention is paid to the types of loan payments. The first option is annuity. The entire loan amount is divided into equal parts, and it consists of interest and principal. An interesting feature of this form of payment is that the borrower first repays the interest on his mortgage and only after that proceeds to the payment of the main debt (gradually, the ratio of interest to debt in the payment will change). If the loan payment is differentiated, then the borrower pays a fixed amount, and interest is accrued only on the remaining amount of the debt, that is, payments will decrease over time.
Is it possible to lower the interest rate?
Before moving on to such a question as writing off 20 percent on a mortgage (VTB-24 or another financial institution), you need to figure out when it is possible to lower the interest rate on a loan.
The first option is the bank's loyalty to a regular customer.If the borrower has repeatedly taken consumer loans in this bank (a good credit history in other financial institutions is unlikely to be such a significant advantage), then its interest rate will be reduced due to the bank's confidence in the solvency of a regular customer. Alternatively, you can not take loans, but open a deposit account. It is better that the money lie on it for a certain amount of time - so the bank will make sure the decency of its client. After that, the deposit can be used as the first payment on a mortgage, and the bank, quite possibly, will offer the client a discount at the interest rate.
A method that requires great financial knowledge is a mortgage loan in a currency unusual for banks. Almost all institutions work with standard euros and dollars, but the practice of interacting with, for example, the Australian dollar is not so common. Here you can win on fluctuations in the exchange rate, but at the same time it is a rather risky way, which, firstly, not every bank will go to, and which, secondly, can bring additional losses if the behavior of a particular currency in the market is incorrectly predicted .
Interest reduction for families with children
Before receiving a deduction of 20 percent on a mortgage from a bank, you can take advantage of various benefits that the state offers. One of them is certain advantages in mortgage lending at the birth of children. Now in the State Duma a bill is being developed, according to which families will be forgiven for mortgage debt after the birth of a child. It is still difficult to say whether this project will receive development - it is scary to imagine the losses that banks may suffer.
Of the existing concessions on the mortgage at the birth of a child, one can note the payment by the state of 5% of the cost of purchased housing (if the family passes the program “Housing for young families”). In addition, no one has canceled maternity capital, which can be used as loan contributions.
In some regions, when a child is born, the authorities repay part of the debt remaining on the loan: 10% of the balance is written off for the first child, 20% for the second, and so on. It is noteworthy that if a fourth baby was born in the family, then the entire amount of the debt is canceled.
Another option is the allocation of financial assistance in the amount of 200 thousand rubles to families in which parents under the age of 35 have more than one minor child.
Benefits from Sberbank
Is it possible to write off 20 percent on a mortgage in Sberbank? To begin with, a financial institution extends the loan repayment period (that is, monthly payments become less) by three years at the birth of the first child and five years after the next. Families with children should pay only 10% of the cost of housing as a down payment, while children without children will have to pay 15% of the amount immediately. In case of early repayment of the loan, the borrower will not pay any compensation and interest - this is another advantage that Sberbank gives to “children” families.
The benefits of having many children
Another option, much more attractive than just writing off 20 percent of the mortgage of the main debt, is the opportunity for large families to get a mortgage in principle without an initial payment, and for a really huge period of 30 years. Moreover, the state will pay three-quarters of each monthly payment.
If this large family is under the program "Young Family", then the state will fully repay the debt on mortgage lending.
Mortgages for the military
It is logical to assume that families with children are not the only category of the population to which mortgage benefits apply.The write-off of 20 percent on the mortgage for war veterans, which will be described below, has a number of differences from the conditions for mortgage lending to military personnel, who have twenty years of service.
The peculiarity of the “military” mortgage is that the property is owned not only by the bank, but also by Rosvoenipoteka. Upon reaching the twenty-year service life, the officer turns to Rosvoenipoteka and there all debts for housing are written off to him. If there is a need to sell mortgage housing, the soldier himself must pay off all the debts on the loan to the bank.
It is worth noting that the period for which a mortgage loan is given is until the borrower reaches the age of forty-five. The loan amount is written in the corresponding agreement, which each employee receives on hand after receiving funds for real estate. In addition, on the website of Rosvoenipoteki, he can get information about the current amount of debt, the amount of monthly payments and details of bank accounts, where he can transfer funds to pay the debt.
Assistance to war veterans
Returning to whether it is foreseen to write off 20 percent of the mortgage for war veterans, we can safely say no, it is not provided. Those who participated in military conflicts in the territory of the Chechen Republic and its adjacent territories from December 1994 to December 1996 or in counter-terrorism operations in the North Caucasus from August 1999 have much greater benefits.
Firstly, if a former soldier is registered as a participant in hostilities until 2005 and needs to improve housing conditions, then he receives real estate in the shortest possible time. Secondly, if a veteran is evicted from an official apartment, he is also provided with new housing for free. Thirdly, the state must cover half of the utility bills.
Another interesting point is the ability to obtain the necessary living space not with real estate, but with money. True, it is calculated that the apartment due to the veteran, the cost of which will be given in money, has an area of only 18 square meters, and the average price for this region is determined per square meter. In addition, the veteran can get a free plot of land, which he can use either to build his own house or to housekeeping - the state will no longer cover the costs.
Sberbank for state employees
Sberbank offers to write off 20 percent of the mortgage under its preferential program “Mortgages for state employees”. To obtain such a loan, it is necessary to work out a certain number of years in the budgetary sphere (for each position held, this period is determined separately), and also fall into the category of people who need to improve their living conditions (live in the same house or apartment with a family of relatives, rent a house, live on the living space in unsatisfactory condition, have less than 14 square meters of living space per person).
Help to the state employee can be carried out either by selling him an apartment in a new house at cost (without extra charges from the developer), or by issuing preferential mortgages or subsidies. Most often, this is the last option, in which the borrower will receive 30-40% of the cost of housing in his bank account, after concluding a mortgage agreement.
For participants of this preferential program, Sberbank offers a loan in Russian rubles with an interest rate of 14.5% per annum. You can get money for up to thirty years by paying an initial contribution of 20 percent or more of the cost of housing. The loan takes the form of an annuity, that is, first the interest on the loan is paid off, and then its main debt.
And not for military personnel
Unfortunately, it is impossible to write off 20 percent of the mortgage for war veterans in Sberbank, you will have to rely either on the state with all the benefits that it provides to former military personnel, or on falling under the social housing program.
One of these options is the issuance of a mortgage loan provided that the state repays some part of the loan. In this case, the initial payment is paid by the borrower himself, and the state simply returns a part of the amount on interest payments to his bank account. If a soldier is a member of the accumulative-mortgage system, he is exempted from paying the first installment of the mortgage. In addition, the state will also cover part of the cost of paying interest on the loan.
Benefits from VTB
Writing off a 20 percent mortgage at VTB is also possible. Moreover, this financial institution provides its borrowers with a first-born baby the opportunity not to pay installments until the baby reaches the age of three. Families in which the second child was born already fall into the “Social mortgage”, in which the state compensates for part of the interest payments on the mortgage loan. It is worth noting that the reduction in the size of payments in these cases does not depend on banks at all: they simply submit to state policy in this area.
So, for example, at the birth of a third child in some regions, half of the remaining debt is covered, and after the birth of a fifth, the entire balance of a mortgage loan is paid. Banks do not mind the use of maternity capital to repay part of the debt.
Bank Results
As you can see, Sberbank offers a valid write-off of 20 percent from banking institutions. The Bank has many social programs for state employees, who usually cannot afford their own housing, both for families with children and for veterans. The remaining banks offer either a temporary deferment of payments, or are subject to state policy, accepting partial payment of interest or principal payments from the state.
Write-off dates
It is difficult to talk about how long it is possible to write off 20 percent of the mortgage, to what date it is necessary to prepare documents that allow applying for such a benefit. The practice of “forgiving” part of the debt is not very common among credit organizations, for the most part it is based on the social policy of the state, which under certain conditions assumes obligations either to partially repay a mortgage loan or to fully repay it.
Tax return
Given that the program for writing off 20 percent of mortgages does not work very well, you should pay attention to other possible benefits from this type of lending. For example, borrowers may claim to return part of the taxes if they provide all the necessary documents on a mortgage loan to the accounting department. After receiving the appropriate permission from the tax inspectorate, the amount of taxes levied on an individual will be 13% less than salaries, and pensioners who decide to take a loan will be able to return the fees they paid for the last three years. With joint ownership of housing, both owners can expect a partial exemption from taxes.
Separately, it is worth noting that in the amount spent on the acquisition of real estate, you can include the cost of building materials, and the cost of repairs, and payments for connecting to communications - any expenses that were in any way additionally associated with the purchase of an apartment. So if legal deduction of 20 percent on a mortgage for some reason is impossible, then no one forbids using at least this tax indulgence.
Conclusion
So, is it possible to write off a 20 percent mortgage? Unlikely.The category of those to whom at least some privileges can be granted includes low-income groups of the population, families with children, and military personnel. Some, like war veterans, can even rely only on state assistance - banks do not give them any concessions in mortgage lending. Regardless of whether the state provided assistance with the purchase of the apartment or not, an individual can count on reducing the tax burden: according to the law, when submitting mortgage documents, up to 13% of salaries that are spent on tax payments can be returned. Saying that writing off 20 percent on a mortgage is fantastic, you can’t. Under certain conditions, the sum of all benefits received may overlap this figure, but, alas, this is not available to everyone.