You've probably heard jokes about mortgages more than once. Well, for example, this one: “Thanks to the mortgage, manager Alexander stopped drinking, smoking and became a vegan.”
Yes, a mortgage loan is not manna from heaven, but a heavy financial burden for many years. Of course, I would like the interest rates to be lower, the list of necessary documents for registration to be shorter, the consideration of the application to be quick, and the payment to be easy/ But for now these are just dreams!
But no matter how we scold the mortgage, no matter how ironic we are about it, today this is perhaps the only real way to legally purchase your own home with a minimal initial investment. And the state is trying in every possible way to improve the situation, constantly developing preferential programs together with credit institutions.
Preferential mortgages will be discussed in this article.
The essence of the program
Mortgage with state support - what does it mean? First of all, you need to decide on the essence of the mortgage program with state support. It is considered to be only subsidizing the interest rate for banks when borrowers obtain a mortgage for housing from a developer or contractor.
In fact, in 2020, mortgages with state support consist of a number of programs:
- Subsidizing mortgage rates from the state
- Mortgage for maternity capital
- Social mortgage
- Military mortgage
- Mortgage for a young family
- Family mortgage 6 percent
- Mortgage at 2 percent for Far Eastern residents.
- Rural mortgage at 3%.
- Subsidy of 450,000 from the state for the birth of a third baby.
The state mortgage support program is a whole set of tools from the state that allows you to obtain a mortgage on conditions that are more favorable than on the market for certain needy and socially significant categories of the population.
Also, a mortgage with state support is a set of measures from the state aimed at helping mortgage borrowers repay their mortgage loan faster through special subsidies, benefits and certificates.
Next, we will look in more detail at mortgage lending with government support and you will learn how to get a mortgage with government support in your specific situation. Mortgage rate subsidies.
When the acute phase of the crisis in Russia began in 2020 and banks sharply raised mortgage rates, construction practically stopped. It became unprofitable to take out a mortgage, which was the main driver of home sales. Then the entire construction industry of the country came under threat.
To save the situation, a program was launched to subsidize the mortgage rate for banks when purchasing housing directly from the developer. The government signed Resolution No. 220 on March 13, 2020, and pulled the banking and construction industries out of the crisis.
State support for mortgages consisted in the fact that it subsidized the bank according to the formula: Central Bank rate + 3.5% points, and for this the bank had to issue a mortgage at a rate of 12% or less.
It was possible to take out a mortgage if the following requirements were met:
- The seller is a legal entity (developer or contractor). It was impossible to take out this loan for an apartment from an individual investor.
- A secondary mortgage with state support is possible, but subject to 1 point in relation to the seller.
- The down payment is too high - 20%.
- A mortgage could only be issued for a period of up to 30 years.
- The mortgage amount is up to 3 million rubles in the regions and up to 8 million in Moscow and the region, St. Petersburg.
Subsidizing the mortgage rate with the help of the state greatly supported developers and pulled the construction industry out of the crisis, but at the beginning of 2020 this program was canceled.
Basic conditions
When applying for a mortgage, the borrower can focus on the following indicators:
- interest rate - from 12% (can be reduced provided that the borrower makes a large down payment);
- collateral - purchased real estate;
- down payment - 20% (may be absent if the client provides additional property as collateral);
- loan term - up to 30 years (the term can be reduced until the borrower reaches the age established by the bank's conditions);
- insurance - purchased housing is necessarily insured against the risks of damage or loss;
- bank commissions - no;
- permissible amount - maximum 3 million rubles. (however, for Moscow and St. Petersburg it is 8 million rubles).
Some banks also require life and health insurance for the borrower. Of course, it is not mandatory, but in case of refusal of such insurance, the bank increases the interest rate (by 0.5-1.5%).
It is also worth considering that the specific terms of the mortgage (in particular, the interest rate) directly depend on the bank the client applies to.
For example, in some of them the amount of the down payment may be changed or the lending rate may be reduced.
The situation with coronavirus and subsidized mortgages at 6.5% in 2020
When the coronavirus epidemic swept Russia in April 2020 and everyone went into quarantine, the Russian government, at the direction of President Putin, announced the launch of a special subsidized mortgage with state support at 6.5 percent. This carbon copy program is similar in terms to the state support mortgage program of 2020. The purpose of this mortgage is to support, first of all, the Russian construction industry and additionally attract about 900 billion rubles into it at a time of falling demand due to quarantine measures and falling household income.
Mortgage conditions with state support at 6.5% in 2020
The general terms of a mortgage at 6.5 percent with state support from Putin are as follows:
- The interest rate is not higher than 6.5%. everything above is compensated by the state to the bank. The borrower pays no more than 6.5 percent. The rate is valid for the entire term. A number of banks give rates even lower. In particular, Sberbank offers mortgages with state support at 6.4 percent.
- The down payment, as under the previous program, is 20% of the property value.
- You can only purchase housing in a new building from a legal entity. There is no assignment.
- The maximum mortgage amount is up to 3 million rubles in the regions and up to 8 million in Moscow, Moscow Region, St. Petersburg and Leningrad Region.
- Only citizens of the Russian Federation can take out a mortgage with state support at 6.5%.
Important point! A mortgage with state support at 6.5 percent covers mortgages issued from April 17 to November 1, 2020.
Banks
Currently, the following banks have joined the issuance of mortgages with state support:
| Bank | Bid | Length of service in last place from, months | Age, years |
| Alfa Bank | 5,99 | 4 | 21-70 |
| Absalut Bank | 6,25 | 5 | 21 — 65 |
| VTB | 6,5 | 3 | 21 — 65 |
| Dom.RF | 6,1 | 3 | 21-65 |
| Promsvyazbank | 6 | 4 | 21-65 |
| Rosbank.Dom | 6,5 | 3 | 21-65 |
| Sberbank | 6,4 | 6 | 21-75 |
| Bank "Saint-Petersburg | 6 | 4 | 18-70 |
| AK Bars Bank | 6,2 | 3 | 18-70 |
| Sovcombank | 6,49 | 3 | 20-85 |
| Metallinvestbank | 5,9 | 4 | 18-70 |
| Raiffeisenbank | 6,19 | 3 | 21-65 |
| Rosselkhozbank | 6,3 | 6 | 21-65 |
| Uralsib | 6.5 | 3 | 18-70 |
| Kuban Credit | 6 | 3 | 18-70 |
| Bank opening | 6,25 | 3 | 18-65 |
| Severgazbank | 6,3 | 3 | 21-65 |
| Transcapitalbank | 6,34 | 3 | 20-75 |
| Gazprombank | 6,5 | 3 | 20-70 |
| ATB | 5,99 | ||
| Renaissance | 6 | ||
| MInB | 6,25 | ||
| Severgazbank | 6,3 |
The remaining banks are waiting for the official publication of the law on May 1, 2020 on mortgages with state support 2020.
The state mortgage does not end there. Let's find out what mortgages with state support are still available in 2020.
Maternal capital
If you have two children, then you are very lucky. Now, this may mean that you have the right to obtain maternity capital (a special certificate), and can also apply for a mortgage with government support under special conditions from banks.
State support for mortgage lending is formed from various instruments. Maternity capital has become a powerful support for families. The overwhelming majority of families spend it on improving their living conditions. It was maternity capital that became the basis of a popular and relevant product - “Mortgage Maternity Capital”.
Matkapital gives you the right to repay the mortgage or pay the down payment. For 2020, the size is 466,617 rubles.
The essence of the program.
Its main feature is that you can use state funds not only to pay off your mortgage, thereby reducing your debt to the bank and reducing your monthly payment, but also as a down payment. Thus, without money, you can get a mortgage simply by presenting a certificate.
The bank will give you a mortgage for the entire cost of the apartment, and you must quickly contact the pension fund and write an application to transfer maternity capital funds to a credit institution. This takes approximately 2 months. Thus, for the first two months you will pay in full the entire cost of the apartment, and then the payment will be significantly reduced due to the repayment of the mortgage with maternity capital.
A mortgage with state support for maternity capital can be obtained from a number of the country's largest banks. Such loans are issued by Sberbank, Rosselkhozbank, Uralsib and a number of others.
Social mortgage
The state mortgage lending program is aimed at solving complex social problems of providing the population with their own housing. Socio mortgage became another instrument of the state.
What it is? Social mortgage is a multifaceted concept, consisting of a number of programs and products whose main goal is to support certain vulnerable categories of the population and socially significant areas of the economy (young families, teachers, doctors, military personnel, scientists, etc.).
A number of key areas can be identified:
- Mortgages from AHML partners for state employees and those in need. It allows you to lower your down payment and mortgage rate.
- State program “Housing for the Russian Family”. It will allow you to reduce the cost per square meter of an apartment and purchase it on preferential terms.
- Participants in the “Young Family” program have the right to state support with the payment of a down payment, and can also apply for benefits in banks and obtain a mortgage for a young family.
- Regional programs to support mortgage borrowers.
How to get a preferential mortgage and find out what a social mortgage is from our previous post.
What does a mortgage with state support mean?
Buying a home is a pressing issue in almost every second Russian family. Gone are the years when several generations huddled in two or three rooms. Today, young people are more independent, and their representatives try to live separately from adults. However, not in all cases these efforts end in the purchase of a new apartment.
Purchasing a home is an important stage that requires not only increased attention, but also significant savings. Where can you get them if your income only allows you to save money for small purchases?
A loan comes to the aid of those who want to acquire their own corner, and not in its traditional sense, but as a mortgage. This is a great option to improve your living conditions today, and pay off in small payments over several years.
Mortgage lending has made it possible for millions of families to become owners of their own apartments. If it were not possible to purchase housing on credit, then many would never understand all the joy from this event.
Progress does not stand still, and today there are various government programs aimed at helping the population obtain housing. Thanks to them, you can significantly reduce the cost of purchasing an apartment, which means you can quickly pay off your debt and become a full-fledged owner of your property.
Many people wonder why the government helps people with such large purchases? If it were unprofitable for the country, no one would take up this matter.
The essence of state support is as follows:
- Strengthening the real estate sector and motivating new developers (and as you know, housing construction for the country is a big plus in the economy);
- The emergence of higher quality construction projects (the state will not enter into contracts with unreliable developers);
- Improving the standard of living of vulnerable segments of the population (disabled people, single-parent or large families, etc.);
- Increased demand for new housing (and this is an incentive for construction companies to work).
Military mortgage
Program: mortgages with state support for military personnel have long become a familiar sales tool for banks and a reliable assistant in solving the housing problem for military personnel. A special military mortgage condition was launched especially for this category.
The mortgage under this program for the military is paid by the state. The serviceman also has a special account; money from the state is regularly credited to it for the purpose of selling it for the purchase of housing. These funds can also be used for a down payment.
You can learn more about how to apply for a military mortgage, under what conditions in which banks, from our special post.
Young family
The Young Family program is available at Sberbank and Rosselkhozbank. This program allows you to reduce the down payment by up to 10%, and you can also get a discount on interest. To become a participant, it is enough that there is a child in the family and one of the parents is under 35 years of age.
“Young Family” exists within the framework of a separate state program. With its help, you can receive a subsidy from the state for a down payment in the amount of 35% of the cost of the apartment. But this program is associated with a large number of bureaucratic issues and requirements.
For more information about a young family, read our post “Mortgage for a young family.”
Mortgage 6 percent
At the end of November 2020, Vladimir Vladimirovich Putin announced a number of initiatives aimed at increasing the birth rate. among others, a preferential mortgage was announced for those who give birth to a second, third and subsequent child in the period from January 1, 2018 to December 31, 2022.
Participation in this program will allow you to receive a rate of 6% on a mortgage for a period of 3-5 years, depending on how many children were born in your family after January 1, 2020.
This mortgage applies to the purchase of an apartment in a new building or refinancing an existing mortgage.
You will learn more about the 6 percent mortgage in our other post.
Requirements
To housing
Real estate purchased under a government-backed mortgage must meet federal occupancy requirements. One person in a family must have at least 18 square meters of living space.
You can take out a mortgage not only to buy an apartment, but also to build a house, or to participate in shared construction.
To the candidate for participation
Participant requirements depend on the specific case being considered. They depend on the basis on which you are applying for government support. But there are mandatory requirements, without which you will not receive support under the Federal Target Program “Housing” :
- Have sufficient income to pay the mortgage.
- Living in conditions that do not comply with federal (Article 51 of the RF Housing Code) and regional standards.
- Optional: have a relative who is terminally ill with an infectious disease and cannot live with them.
- Optional: be in a marriage where at least one of the participants is under 35 years old. This is necessary for those who are going to apply for mortgage benefits while being part of a young family.
- Optional: be in public service.
To receive mortgage support, taking advantage of the fact that you work for a budget-funded enterprise, you must have a certain amount of experience. For example, you need to work for Russian Railways for at least 3 years to take part in their internal mortgage assistance program.
Throughout your participation in the program, you must work for the company that provided the benefits . Otherwise they will be cancelled.
Mortgage restructuring with government help
If you already have a mortgage, then the government can support you here too. We wrote earlier that with the help of the state you can reduce your mortgage by 453,026 rubles using a maternal certificate, but you want to get 1.5 million? Did you know that the state can write off up to 30% of the remaining debt to the bank, but not more than the above amount?
From 2020 to 05/31/2017, there is a special program of assistance to mortgage borrowers from the state - mortgage restructuring with the help of the state under Resolution 373.
As part of this program, mortgage borrowers of certain categories, which we wrote about in a separate post, have the right to write off 20 or 30% of the mortgage. The state compensates the bank for lost income, and the borrower can significantly reduce the payment or completely repay the mortgage.
Foreign currency borrowers, as part of this program, will be able to convert foreign currency mortgages into rubles. And if you just have a high interest rate, then you have the opportunity to reduce it to 12% per annum. You can also get a deferment of payments as part of government support.
Important! In 2020, this program no longer works.
Rural mortgage
Launched in 2020. A loan under this program is provided to those who buy or build housing in rural areas (in a village, village, town or small town). The settlement should not be part of an urban district, its population should not exceed 30 thousand people.
The rate is 0.1-3%, depending on the region and bank. Amount - no more than 5 million rubles. The conditions for providing a preferential mortgage for relocation to a village are specified in the program “Comprehensive Development of Rural Territories”.
Rosselkhozbank has a rate of 2.7%.
