Mortgage from the AHML agency in 2020

Bank DOM.RF, formerly called the Agency for Housing Mortgage Lending, or AHML, was created by our state many years ago, almost with the advent of the mortgage itself. But the agency has gained particular popularity right now, when it has become more difficult to take out a mortgage, and more difficult to pay off an existing loan. How can the agency help borrowers in 2020? We'll tell you in our article.

Initially, the agency worked only with borrowers who had difficulty paying off their mortgage. But in the last two years, when the Russian currency fell in value and bank rates rose, the agency was instructed to work with those who are just applying for a mortgage.

What is AHML and how is it useful?

This is an agency for issuing mortgages to all citizens of the population. It acts as an intermediary between borrowers and the state, but in fact, the state itself gives you money. Today, the structure is engaged in issuing mortgages to the entire population, as well as purchasing debts from banks for previously taken out mortgages. A large share of the agency's clients are those who once took out a foreign currency mortgage. After the dollar greatly increased in value, it became simply impossible for ordinary citizens to pay off such loans. The cost of a mortgage has more than doubled. It was precisely to “save” such borrowers that the state, through the organization it created, devoted all its efforts.

Most often, the agency buys out a loan at the request of a borrower who cannot repay it. But, there are times when a bank independently sells mortgage loans, for its own reasons and considerations. In this case, nothing changes for the borrower, his debt is transferred in full to another organization, he continues to pay monthly payments in the same amount, just to a different account.

The benefits of this organization are obvious; it helps borrowers not to go completely bankrupt or to take out a mortgage on convenient terms with government support.

Features of a mortgage loan from the state

First of all, such a mortgage is distinguished by a small down payment of 15% of the cost of housing. While banks require you to make a down payment of 20 to 50%.

If you look from the other side, a small down payment is not such an advantage. After all, the smaller the amount you deposit initially, the more you will owe. And interest accrues on the debt annually. In addition, we know from mortgage practice that the lower the down payment, the higher the interest rate, as a rule. So in any case, try to make as much of a down payment as possible, even if only 15% is possible.

But where there are advantages, there is always a downside. It will not be possible to take out a mortgage through AHML for any housing you want. Since the state is interested in new construction, especially at the expense of the citizens themselves, the loan is issued primarily for housing under construction and new, primary housing. In addition, you can only choose an economy class apartment, no luxury apartments.

The next feature is the low interest rate. The lowest interest rate offered by the agency is 5% per annum. However, this rate will be offered only to residents of the Far Eastern Federal District in whose family a second or subsequent child was born after January 1, 2020. The average rate is 10.3–10.5%. Although, it is worth noting that even the highest mortgage agency rates are still 1-1.5% lower than the highest bank rates (except for military mortgages). And in the case of the mortgage amount, this is a fairly significant difference.

The next feature of state housing lending is the strict requirements for the borrower. If many banks are ready to “turn a blind eye” to a small or unstable income, lack of salary certificates or citizenship, for the sake of profit and luring clients, then the agency has no end to clients. The agency’s task is to ensure that all borrowers repay their mortgage in full and on time. Therefore, if there are any doubts about the reliability and solvency of the borrower, then the mortgage will simply not be approved for him.

The remaining “features” of AHML, called advantages, are not very different from the mortgage conditions of many banks:

• loan term up to 30 years;
• no penalties or prohibitions on early repayment;
• no hidden fees.

All conditions are the same as those of most banks that are interested in clients.

One of the advantages is also “reliable protection of the interests of the borrower.” Interestingly, we expect the state to protect these interests by default, not as an advantage.

State mortgages and insurance did not escape, although with some clarifications. If your first mortgage payment is 30% of the cost of housing or higher, then you only need insurance for the apartment you are purchasing, against damage or loss. And if your down payment is less than 30%, you will have to take out insurance, and immediately for all eventualities, which includes the life and health of the borrower.

Like most banks, AHML accepts maternity capital as payment for a mortgage. True, banks most often allow you to use it only as a down payment. Here you can use maternity capital to pay payments and even for early repayment of the mortgage. By the way, in 2020 maternity capital totals 453,026 rubles.

What is AHML?

Often, to obtain a mortgage, a person turns to various private organizations and is not aware of the lending agency. In a regular bank, the state owns only part of the deposits, while in AHML, 100% of the shares are owned by the state.

With this program, the state is trying to simplify the procedure for obtaining a mortgage for low-income families.

The agency most often engages in two types of activities:

1. Issues mortgages without intermediaries represented by a bank;
2. Buys mortgages from the bank.

To learn about all the nuances and pitfalls, we have prepared an article about a mortgage on an apartment.

At the same time, even if you initially took out a loan from a bank, it may turn out that AHML took over your loan - and now you are paying off the debt to the agency. It is important to note that the contract does not change along with this.

There are several AHML standards in accordance with which you receive a loan:

• The basic one - considered by the agency's council - must contain the basic provisions for lending: the currency in which the apartment is purchased, data about the person, data about the loan;
• Technological – this item is considered by the management of AHML;
• Toolkit - signed by the manager.

Such standards were created to improve the safety of citizens of the Russian Federation, to provide money to everyone, and also to advertise AHML among the population.

The standards spell out the rules of interaction between participants in transactions.

Various AHML loan programs

At the moment, there are several different mortgage programs for borrowers:

• “New Building” program - funds are allocated for the purchase of housing in new high-rise buildings. Offers discounts for people using social or housing programs;
• The “Low-Rise Housing” program - assistance in acquiring a plot of land with the subsequent construction of a house on it or the purchase of a finished house or apartment;
• Conventional mortgage - used for the purchase of housing in both new buildings and secondary real estate;

Types of programs

• The Military Mortgage program is intended for military personnel using the savings system. If an apartment is purchased from those that AHML took for debts, the rate will be 6.19%;
• The “Collateral Housing” program allows you to save your money by simply buying an apartment that someone could not pay off on a loan;
• “Variable rate” program - there is some variation in the payment amount, in accordance with the central bank rate;
• The Maternity Capital program provides favorable conditions for mothers or spouses who have the right to use these funds. You can pay extra money from maternity capital and buy a more suitable home for you.

Differences from the bank

What is the difference between a bank and AHML?

AHML is a joint-stock company that uses the state budget, and the bank is a custom development.

AHML has rules that apply to all departments, unlike a bank, where interest rates can vary depending on location.

Also, the agency wants to increase the opportunity to purchase housing for different people, including low-income people. Banks issue loans only to customers who are known to be solvent.

Conditions for issuing a loan from the agency

There are a number of features for a person taking out a mortgage:

• Age from 18 to 65 years;
• Citizenship of the Russian Federation;
• The purchased housing becomes collateral;
• Availability of registration in the Russian Federation;
• Availability of official work for the last six months, and a total work experience of at least two years;
• Stable salary;
• If a family buys an apartment, one of the spouses becomes a co-borrower;
• The maximum number of people taking out a mortgage is four. It is important to note that they may not be related.

The maximum mortgage loan amount is 600 thousand rubles.

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Programs

Like most banks, there are several different mortgage programs, including a mortgage for new buildings, for the construction of a cottage, a loan for an already built primary or secondary apartment, a military mortgage and several additional mortgage products.

"New building"

This program involves obtaining a mortgage for an apartment in a newly built or in a house under construction, but only a modest, economy class one. The interest rate varies from 10.5% to 11.75%, depending on the size of the down payment and the loan term. The down payment can be from 15 to 90%, and the loan term can be from 3 to 30 years. Accordingly, the shorter the loan term and the larger the down payment, the lower the interest rate.

"For finished housing"

Under this program, an apartment or apartments are purchased on the secondary market. Money is issued for a period of 3 to 30 years, and the rate ranges from 10.5% to 11.75%. The final annual payment depends on the size of the starting payment, which can be from 15 to 20%, from 20 to 50% and from 50%. Monetary limits are also set: for residents of Moscow, Moscow Region, St. Petersburg and the Leningrad Region, the minimum amount is 500,000 rubles, and the maximum is 30,000,000 rubles. For other regions, the highest level is lower - 15 million rubles.

How to reduce the interest rate under two programs?

For the two above mortgage programs, interest rates can be reduced if certain conditions are met. Thus, families with three or more minor children receive a discount in the form of 0.25% interest rate. A similar deduction is provided for the purchase of housing within the framework of the state program “Housing for the Russian Family” or with the location of living space in the Far Eastern Federal District or the Baikal region.

A large discount of 2% is also offered when using a housing loan to purchase residential premises, which are owned by a single development institution in the housing sector and its subsidiaries.

Payroll clients of JSC Bank DOM.RF will also receive a guaranteed minus of 0.2 percentage points.

The most pleasant and remarkable thing here is that some discounts and bonuses can be cumulative if you are eligible for them on several points at once. As a result, the mortgage interest rate can turn out to be absolutely fabulously low.

"Family Mortgage"

Preferential mortgages are allocated as a separate program for providing housing loans. It implies state support for families in which a second or subsequent child was born from January 1, 2020 to December 31, 2022. A loan is issued at a discount for the purchase of primary and secondary housing or for refinancing.

The rate will be 5% for residents of the Far Eastern Federal District and for the birth of a child from January 1, 2020, and in other cases the annual rate will be set at 6%. The loan term varies from 3 to 30 years, and the down payment will be at least 20% of the estimated value of the purchased living space.

"On-lending"

DOM.RF offers to help with the repayment of an already taken loan as part of mortgage refinancing, which is issued for a period of 3 to 30 years. The rate starts from 10.5% if the amount of debt does not exceed 50% of the value of the mortgaged property, and the maximum annual rate is 11.75% when the debt is 80–85% of the price of the purchased apartment. There are also monetary limits: a minimum of 500,000 rubles. and a maximum of 30 million for residents of the capital, St. Petersburg and their regions, for other clients – 15 million.

To facilitate loan repayment, AHML may review the composition of borrowers and mortgagors.

“Mortgage refinancing for Urban Group properties”

Separately, on-lending is provided for borrowers included in the Urban Group register of residential premises claims. It is also possible to reduce the annual rate to 10.5% if no more than 50% of the cost of the apartment or house remains to be paid. The maximum percentage is 11.75%. The new agreement is concluded for a period of 3–30 years.

"Secured by an apartment"

Those who take out a mortgage while owning another living space can qualify for a rate of 11%. You just need to leave your existing property as collateral. New residential premises can be purchased on the primary or secondary market, but the total amount is limited to 60% of the estimated value of the mortgaged apartment or 15–30 million rubles.

It is important to timely confirm the intended use of the funds provided, otherwise the rate will increase by 4%. There will also be a surcharge for the borrower’s refusal to sign a personal insurance contract - the “fine” will be an addition to the final annual 0.7%. The mortgage loan taken out must be repaid within 3–30 years.

Military mortgage

Most military personnel join the NIS, a savings and mortgage system created specifically for military personnel. While the military is registered with this program, their funds accumulate and can be used as a down payment when taking out a mortgage.

True, for military personnel there are limits on mortgages; the amount can not exceed 2,509,211 rubles. The interest rate on a military mortgage is 10.3% per annum. It is interesting that all payments on the loan are made by the state - the borrower can calmly repay the debt as before. It is not prohibited to use maternity capital for early repayment or increasing the limit. Matkapital can also be used to pay the entry fee, the minimum amount of which is 20% of the cost of the purchased housing. A mortgage is issued for a period of 3 years.

But there is a very significant bonus - you can choose an apartment from the AHML balance. There are apartments in houses built by the state, issued by the state specifically for the needs of citizens, or confiscated from those who cannot pay off their mortgage.

"Preferential regional programs"

Together with the constituent entities of the Russian Federation, the bank is reducing the mortgage rate to 7.5% as part of regional programs. Special categories of citizens can become participants in the program, which are determined by local authorities depending on the needs of a particular locality. Thus, most often preferential annual benefits are offered to large, young and single-parent families, as well as to employees of the public sector.

14 partner regions participate in the program, including the Vladimir, Omsk, Novgorod regions, Primorsky Territory, the Republic of Mordovia, the Yamalo-Nenets Autonomous Okrug and some other constituent entities of the Russian Federation.

What mortgage programs are available?

Due to the fact that the federal organization is faced with the task of maximizing the interests of mortgage borrowers, the following AHML mortgage programs have been developed:

• "Standard Mortgage Loan". The borrower is offered the choice of purchasing a new apartment, house or housing on the secondary market.
• "Variable rate". The loan rate may vary depending on the refinancing rate of the Central Bank of the Russian Federation.
• “Maternity capital” - using the appropriate certificate.
• “Military Mortgage” is affordable ready-made housing for military personnel, with the possibility of receiving an amount of up to 2 million rubles, regardless of the citizen’s income.
• Construction companies of state and social housing projects take part in the “New Construction” program.
• “Low-rise housing” – a loan is issued for the construction of low-rise buildings.
• “Collateral housing” is the purchase of real estate that is on the balance sheet of AHML.

For young families with minor children (2 or more), additional loan discounts are provided. The list of mortgage lending from AHML banks can be viewed on the official website of the state organization. The conditions and requirements of each program are also described in detail.

Registration and package of documents

The following can apply for a mortgage with state support from AHML:

• exclusively a citizen of Russia;
• who is over 21 years of age;
• will not be 65 years old at the time of full repayment of the loan;
• monthly payment amounts should not exceed 45% of the borrower’s monthly income;
• There can be no more than 4 borrowers; in this case, the amounts of their income are summed up and the average salary is displayed. Then the monthly payment should not exceed 45% of the average income per person.

The list of documents for obtaining a mortgage is standard, since banks mainly focus on the agency in terms of document requirements:

• passport with permanent residence permit;
• TIN;
• SNILS;
• income certificate 2NDFL or a special certificate in the agency form;
• You may also need a copy of your work record, certified by the employer.

Important! Some programs support the “Easy Mortgage” option, under which there is no need to provide income documents to the bank.

In 2020, a special government decree was issued providing assistance to mortgage debtors, primarily those who took out a foreign currency mortgage and now cannot pay it off due to a sharp change in the ruble exchange rate to the currency. ATZHK continues to provide assistance to such borrowers in 2020. The support is as follows: the agency refinances the mortgage loan, that is, it buys it from the bank and the borrower will owe the agency. The loan currency will be changed to rubles, and at a rate favorable to the borrower. The mortgage interest rate will be reduced so as not to exceed 11.5% per annum for foreign currency loans, and for ruble loans - to be at the level of the current interest rate at the time of restructuring. The accrued penalty for late payment will also be written off, and loans in dollars and euros will be reimbursed in the amount of 30% of the debt, but not more than 1.5 million rubles.

Advantages and disadvantages of Federal Agency programs

The main advantage of AHML is its competitive, low interest rate on the loan. As well as the presence of several programs that meet the needs of many segments of the population.

One of the disadvantages is the lengthy consideration of clients’ applications for a mortgage loan, which can even take months. Therefore, a low loan rate acts as a compensating factor for the long wait for a response to an application.

But here it should be noted that AHML works as an intermediary between the lender and the potential borrower. Only in controversial and conflict situations can a state structure resolve the issue. And if necessary, you can always count on advice from AHML or ARHML.

Reviews

So far, few have been able to obtain a mortgage through a mortgage lending agency, although the organization has been operating for a long time. Either the requirements for borrowers are too strict, or citizens trust commercial banks more. However, those who managed to obtain a mortgage were satisfied with the conditions and low rates.

But the mortgage debtors whom the agency tried to help are mostly unhappy. Especially the deadline for re-registration and redemption of their loan from the bank. The fact is that while the procedure is going on, borrowers do not pay their fees, during which time they accumulate even more significant debt, as a result they remain in debt to both the bank and become indebted to the agency.