The high demand for mortgage loans in 2017 was caused by a sharp decline in property prices in 2016. At the moment, mortgage interest rates are quite attractive and fluctuate around 7-10%, but there was a period when citizens bought apartments at 14% and even 16% per annum.
It turns out a little unfair, agree? The temporary difference in loans is only about a year, and the difference in percentage sometimes reaches 6-7 points. What to do for those who have already taken a mortgage at a high interest rate? There is a way out in 2019 - mortgage refinancing.
Mortgage refinancing is a translation mortgage loan to another bank in order to lower the interest rate. At the moment, almost all major banking organizations offer their customers various refinancing programs. At the same time, in the conditions of huge competition, banking products in the field of mortgage lending are constantly changing, luring borrowers with ever lower interest rates.
Before deciding to transfer your mortgage loan to another bank, think carefully about the pros and cons, considering the following features of this procedure:
- Submission of an application with a new package of documents. You will again have to go through all the stages of applying with all the consequences: collecting and submitting documents, filling out a questionnaire, agonizingly waiting for the bank's decision;
- Keep in mind that not every borrower will benefit from mortgage refinancing. For example, the current mortgage agreement may provide for a large commission for transferring to another credit institution;
- Be prepared for the fact that your current bank may prevent the transfer of collateral on a mortgage apartment to a new lender;
- A lower percentage does not always mean savings. Often, in terms of rubles, taking into account the full cost of a mortgage loan, approximately the same amount is obtained;
- Get ready for additional costs(re-assessment of real estate, the cost of state registration of a new contract, payment of insurance in a company accredited by a new bank, etc.)
But don't be afraid, right choice a new bank, taking into account all the conditions, refinancing the current mortgage can be very profitable. Many borrowers, moving to another bank, received after refinancing not only minus a few points of the interest rate, but also a significantly lower overpayment on a mortgage loan.
When is refinancing really beneficial?
When will refinancing be really beneficial? Let's look at a few possible options:
- Difficult financial situation in the family. Let's say you took out a mortgage for 15 years with a monthly annuity payment of 30,000 rubles, but it so happened that your income fell sharply, and paying such an amount seems like an unbearable burden to you. In this situation, two options are possible: recalculation of the mortgage for a longer period or refinancing in another bank at a better interest rate. In both cases, your monthly payment will decrease. The manager of the credit institution will make the necessary calculations and help you make the right choice.
- The interest rate on a mortgage must be at least 1% lower than the current one. In this case, even taking into account all the costs, a mortgage in a new bank will most likely be an order of magnitude more profitable.
- No need for life insurance or reinsurance with another company for a new bank. Insurance will entail spending additional money, and this will significantly reduce the benefits of transferring the mortgage to another bank, and the benefits of the refinancing procedure will be doubtful.
- No more than half of the loan term has passed since the registration of the current mortgage. The whole secret lies in the annuity payments. With this form of payment, throughout the entire term of the mortgage, the monthly payment is the same, but in the first temporary part of the loan, most of the amount is interest, and the rest of the time, on the contrary, the principal amount of the debt. It turns out that by the end of mortgage payments, you have already paid almost all the interest, only the principal amount remains. Agree, it makes no sense to refinance something in this situation.
- In the current loan agreement there are no commissions for the full early repayment mortgages and fees for switching to another bank under the refinancing program. Read the current mortgage agreement carefully or contact your bank for clarification. If the above commissions are absent, then in most cases the transition to another banking organization will be beneficial for the client.
- Refinancing will be beneficial for those who have 2 or more mortgage loans (yes, this happens). In such a situation, the borrower has the opportunity to combine two loans into one. Such a combination will entail not only ease of payment, but also financial benefits.
- Correctly chosen bank and refinancing program. Do not be lazy and take enough time to analyze the conditions for on-lending in various banking organizations. Your benefit directly depends on this.
Pay special attention to the following points:
- interest rate;
- The full cost of the loan;
- Opportunities to stay with your insurance;
- The presence of additional commissions;
- The need for a new assessment of collateral real estate.
Make a decision only after you are sure that you will not spend more than you save.
Expert opinion
Alexander Nikolaevich Grigoriev
Mortgage expert with 10 years of experience. He is the Head of the Mortgage Department in big bank, on account of more than 500 successfully approved mortgage loans.
Remember that any refinancing program, no matter how attractive, requires careful analysis to determine whether "pitfalls" . Approach the choice responsibly and then, re-registering a mortgage in another bank will bring you really good benefits.
What difficulties can arise in refinancing?
Refinancing a mortgage is profitable, but time-consuming. In 2019, the borrower needs to make a lot of efforts to make everything successful. And there can be plenty of difficulties in transferring a mortgage from one bank to another. These can range from unexpected costs for appraisals, life insurance, commissions, to more serious mortgage-related issues.
So, for example, when refinancing a mortgage, the current mortgagee (i.e., the bank in which you have a mortgage) may refuse to transfer the bond to you. In this case, you should ask this credit institution to give you a reasoned written refusal and appeal it.
Another problem may be the amount approved new bank. It may happen that the approved amount is less than the amount you owe on your current mortgage. Here, experts advise either to attract co-borrowers to increase income, or to try your chances of refinancing in other credit organizations.
Do not forget about the procedure for re-issuing a loan. When switching to another bank, you will again have to go through all the stages, from submitting an application to registering a new agreement with Rosreestr.
Conditions for successful refinancing
The key to successful mortgage refinancing is compliance with all the conditions that the new lender bank sets for you, as a future borrower. Based on the general banking practice, can be identified following conditions , which cannot be bypassed in 2019:
- Approval of the application by the bank, i.e. if the banking organization to which you submitted the application refused to reissue the mortgage, then refinance the mortgage in a specific banking organization you can no longer.
- The loan amount approved by the new lender must be equal to or higher than your principal amount. You can request a certificate of the balance of debt on the current mortgage from your bank.
- Obtaining approval to transfer the invoice to the newly selected bank. This means that all three parties involved in the refinancing must give their consent to the transaction.
- Properly formatted documents. Be sure to ensure that all the necessary documents for a mortgage are properly completed. Otherwise, even the most elementary mistake in a word or number can play a trick on you. The deal will be broken.
- Competent choice of a new bank and program.
Refinancing a mortgage loan will be successful and profitable if:
- The interest rate on the new mortgage will be at least 1% lower;
- The amount of the principal debt exceeds 1 million rubles;
- At the time of the decision to refinance, you have more than 10 years left to pay the mortgage.
Refinancing in 7 steps
The process of refinancing as a whole is very similar to the process of obtaining a mortgage itself, with the exception of a couple of points. In general, the following can be distinguished 7 stages mortgage transfer from one bank to another:
1. Collection of documents and application. If you have already chosen a suitable bank for on-lending and the appropriate program, then it's time to start collecting documents. The list of documents is similar to the list when applying for a mortgage with minor additions.
Most lenders will ask you to:
- the passport;
- income statement. (2-NDFL or bank reference);
- a certified photocopy of your employment record or a copy of your employment contract;
- in the presence of temporary registration - a certificate in the appropriate form;
- certificate of the balance of debt on the current mortgage;
- complete information about the mortgage to be refinanced (interest, term, conclusion date, monthly payment, etc.).
After the documents are collected, you can go to the bank to fill out a questionnaire and submit an application.
2. Waiting for the bank's decision. Usually the bank considers applications for refinancing within 2-3 business days. But this is not at all necessary. The answer can come and within half an hour it all depends on the portrait of the borrower and the position of the bank. Although if you received a refusal and you received it too quickly, then you should think about it, since usually in such cases a negative decision is caused by errors in the documents or some inaccuracies.
3. Positive decision. So, a positive decision of the bank has been received. We go to the credit institution where the current mortgage loan is issued and notify your lender that you intend to pay off the mortgage ahead of schedule. We take a certificate of the balance of the debt and details where the balance of the debt will be transferred.
4. Real estate appraisal. If a real estate appraisal is required in a new bank, then we call an appraiser who will make an appropriate conclusion and transfer it to the bank.
5. Signing the contract. Next, we go to a new bank to sign the contract. Let's not forget about insurance. Recall that you must first find out if your current Insurance Company at the new bank. If not, you will have to take out new insurance with a new company. Otherwise, you risk getting a plus of 1 to 1.5% on your interest rate.
6. Pay off old debt. Within a couple of days after signing the contract, the new lender, using the details provided by you, transfers an amount equal to the balance of the debt to the bank where the mortgage was previously issued.
After the full receipt of funds, you go to given bank, take a certificate of repayment of the loan, as well as a mortgage. Please note that the mortgage must necessarily contain a mark on its transfer to a new pledgor.
7. Final stage – registration of a new contract and the fact of a change of pledger in Rosreestr.
As we can see, the procedure for refinancing a previously granted loan is in many ways similar to the procedure for obtaining a mortgage and is not so complicated in itself, if you first understand everything.
TOP-17 banks for profitable mortgage on-lending in 2019
We present you the best offers of banks that have one of the most favorable interest mortgage refinancing for 2019.
| Bank | Min. bid, % | Amount, rub. | Term, months | Age, years |
|---|---|---|---|---|
| Transcapitalbank | 8.7 | from 300,000 to 9,500,000 | from 12 to 300 | from 21 to 75 |
| Tinkoff Bank | 9.7 | from 500,000 to 100,000,000 | from 12 to 300 | from 18 to 64 |
| Svyazbank | 9.75 | from 400,000 to 30,000,000 | from 36 to 360 | from 21 to 65 |
| Opening | 9.8 | from 500,000 to 30,000,000 | from 60 to 360 | from 18 to 65 |
| Alfa Bank | 9.99 | from 1,000,000 to 50,000,000 | from 36 to 360 | from 21 to 70 |
| Raiffeisenbank | 9.99 | from 500,000 to 26,000,000 | from 12 to 360 | from 21 to 65 |
| VTB | 10.1 | up to 30,000,000 | up to 360 | from 21 |
| Bank "Revival | 10.1 | from 300,000 to 30,000,000 | from 36 to 360 | from 21 to 65 |
| UniCredit Bank | 10.45 | from 250,000 to 30,000,000 | from 12 to 300 | from 21 to 65 |
| Zenith | 10.45 | from 300,000 to 25,000,000 | from 12 to 360 | from 22 to 65 |
| DOM.RF | 10.5 | from 500,000 to 30,000,000 | from 36 to 360 | from 21 to 65 |
| Gazprombank | 10.5 | from 500,000 to 45,000,000 | from 42 to 360 | from 20 to 65 |
| Rosselkhozbank | 10.5 | from 100,000 to 20,000,000 | from 12 to 360 | from 21 to 65 |
| AK Bars | 10.8 | from 500000 | from 12 to 300 | from 18 to 70 |
| Sberbank | 10.9 | from 300,000 to 7,000,000 | from 12 to 360 | from 21 to 75 |
| Uralsib | 10.9 | from 300,000 to 50,000,000 | from 36 to 360 | from 18 to 70 |
| DeltaCredit | 11.5 | from 300,000 to 120,000,000 | from 12 to 300 | from 20 to 65 |
More detailed information about 5 popular banks is presented in the table below.
| Bank's name | Requirements for the borrower | Conditions and Features |
|---|---|---|
| Sberbank | 1. Age of the future borrower: not less than 21 years old and not older than 75 years old. 2. The borrower must have worked at the last place of work for more than six months. Total continuous experience for the previous 5 years - at least 12 months. 3. Registration in the subject of the Russian Federation where the bank branches are located. | * Percentage: from 10.9%. * You do not need the consent of the first bank to transfer the mortgage. * Mortgage size: from 1 to 7 million rubles. * Period: up to 30 years. * Combining mortgages and consumer loans is possible. * There are no commissions. |
| "VTB 24" | 1. Age limits from 21 years old until reaching retirement age. 2. Standard requirements for the work experience of the borrower. 3. Registration data is not required | * Percentage: from 10.1%. * Privileges for payroll clients. * Mortgage size: up to 30 million rubles. * Period: up to 30 years. *Additional bonuses from the bank that can be exchanged for gifts. * There are no commissions. |
| Gazprombank | 1. Age range from 20 to 65 years. 2. 6 months continuous experience at the last place of employment. 3. At least 12 months. continuous service for the previous 5 years. 4. Citizenship of the Russian Federation. | * Interest: from 10.5% (subject to personal insurance). * 0.25% discount for refinancing from 2 million. For Moscow, St. Petersburg and the Leningrad region. - from 5 million * Mortgage size: from 500 thousand to 45 million rubles. *Period: up to 30 years. * There are no commissions. |
| "Tinkoff" | The application can be left on the website. For the initial application, only passport data, contact mobile number and e-mail are required. Next, bank employees will contact you and request all the necessary information. | * Percentage: from 9.7% * Period: up to 25 years. * There are no commissions. *Possibility of combining a mortgage with another loan or the possibility of obtaining an additional loan amount, for example, for repairs. |
| "FC Opening" | 1. Age: 18 to 65 years old. 2. At least 3 months of experience at the last place of employment. At least 12 months total experience for 5 years. 3. Citizenship of the Russian Federation. | * Percentage: from 9.8% * Mortgage size: up to 100 million rubles * Period: 5 to 30 years. * Commissions for issuing a loan at the bank's rates. * There are no early redemption fees. * When paying a one-time commission, the interest rate is reduced by several points. |
It is impossible to say with 100% certainty that mortgage refinancing is a deal that benefits everyone. In each case, a careful calculation of the expected costs and benefits obtained is necessary. Before transferring a mortgage to a new bank, thoroughly study the program you have chosen and all the conditions. Sometimes, you have to pay a high price for low interest. But in capable hands it's pretty effective tool which can save you a lot of money.
Tinkoff Bank offers attractive service conditions for legal entities and IP. Entrepreneurs who have used the bank service must know how to replenish the current account Tinkoff Bank. We will talk about this in the article.
DomClick: A few clicks to get your mortgage approved
Buying an apartment with a mortgage is not an easy task. This operation can be carried out independently, or with the involvement of realtors or mortgage brokers. True, you will have to pay for the services of the latter. But there is an option to save money, and perform some procedures without even leaving your home. Today, DomClick helps to do this.
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July 10, 2017
Welcome! I can assume that you have a problem with paying off a loan or mortgage. And while you have not fallen into a "financial hole", we offer two effective tools to resolve this issue. Restructuring and refinancing of the loan. Two processes that provide different opportunities and pursue the same goal: reducing the financial burden on the borrower. This article will help you understand the intricacies of popular banking programs and help to avoid credit bondage". We will also tell you in detail what constitutes a mortgage restructuring with the help of the state in 2019.
Mortgage loan restructuring is a change in the loan agreement in order to improve conditions for the borrower. As a rule, the bank reduces the amount monthly payments and extend the loan term. In addition, credit holidays are provided, which average six months.
During the holidays, you can pay only the "body" of the loan, without interest to the bank or not make payments at all. The bank may even write off interest and penalties for late payments. Each case is considered individually and in most cases you can significantly improve your loan conditions.
If you have serious arguments, such as dismissal from work, reduction wages, illness, long-term care for a child, the best solution is to go to the nearest bank branch, explain your situation and ask for a debt restructuring.
It is advisable to resolve issues with a loan in advance, before the debt arises. The bank is always more willing to make concessions to customers with a good credit history. Even if late payments have already appeared, do not hide from the creditor. Make an appointment. Let us know about your desire to cooperate and ask for assistance in resolving your issue.
Mortgage restructuring in 2019 showed that it is more profitable for the bank to find a way out acceptable to both parties than to bring the case to court. So the more positive your reputation as a borrower, the more likely you are to resolve the problem quickly and without too much hassle. In addition, in the case of a good credit history, you can spend it both in your own and in a third-party bank.
Refinancing or restructuring?
Now you know what restructuring is. Let's find out its differences from refinancing. Refinancing is refinancing in another bank, for more favorable conditions. Typically, banks use refinancing mortgages and car loans. If you have a loan agreement with a rate of 17%, and another bank has a program with 11.4%, and this is the real rate under the mortgage program with state support, then why not reissue this agreement?
A refinancing loan is profitable, even if the amount of the current loan exceeds 1%. So draw your own conclusions.
After a positive decision of the bank, a new loan is issued, which repays the previous one. And you pay less.
The restructuring program is applicable only in the bank where the loan has already been issued. Refinancing, both in the same bank and in any other.
It's hard to say which is better. Depends on the specific situation. If you find a good refinancing program, with a significant difference in the annual interest rate, then the benefits are obvious. It is important that the selected new bank approves your application. And for this, credit history is important.
Restructuring is a real way out of a difficult situation for a person who is faced with financial problems. Changes in the exchange rate, bankruptcies of enterprises, layoffs at work, reduction in wages - all these troubles are very relevant, unfortunately, for most borrowers. Especially in recent years.
Loan debts began to grow like a "snowball". Bank customers picketed branches, demanding to change the terms of credit. Considering that the easing of mortgage conditions is the only reasonable way out in a crisis, the banks went forward. Mortgage restructuring is a necessary reality. Moreover, there are no more mortgages with state support.
To date, it has become possible to restructure a mortgage, even with current debts and, as a result, spoiled credit history. In addition, the state came to the aid of people in a difficult life situation.
Restructuring with the help of the state
On April 20, 2015, a new decree on the restructuring of mortgages with the help of the state came into force. Changes were made, due to which the amount of state assistance for the borrower was increased three times. 4.5 billion rubles have been allocated. In general, the mortgage borrower support program has been successfully applied in Russia since the beginning of 2009.
As a result of the work, overdue debt on foreign currency loans has halved, and a steady downward trend is also observed on ruble loans. Assistance was provided to 9.5 thousand borrowers out of 14 thousand who applied, and at least 22 thousand are planned. You may be among them, but you need to remember that the duration of the program is limited.
Mortgage restructuring in 2019 , is possible mainly only for foreign currency borrowers. Although the ruble mortgage is also formally subject to restructuring, banks do not give permission for it and block the transfer of documents to AHML and to the interdepartmental commission.
If you belong to any category of federal beneficiaries, then you can safely apply for assistance from the state in mortgage restructuring. Involved in this program government agency— Agency for the Restructuring of Mortgage Loans (ARIZhK).
How it works
In the case of a positive consideration of the application, your debt can be reduced by a decent amount. To be precise, the write-off of the principal debt can occur at once or disperse into many payments. As a result, the reduction of mortgage debt will be 20%, but not more than 600 thousand rubles. If you have two children, then you can get a write-off of 30% up to 1,500,000 rubles. Credit holidays can be up to 1.5 years. The annual rate can be reduced to 12%. Foreign currency is converted into rubles at the exchange rate of the Central Bank or lower. All costs associated with the restructuring of the mortgage, the state takes over.
The family of our readers from Novosibirsk has already received 438,000 rubles from the state in repayment of the main debt. This is 20% of his balance. The review took only 2 weeks. Mortgage in Sberbank. Everything is real!
Considering the conditions of restructuring, all banks are happy to offer assistance under this program and independently submit an application to ARIZHK. Of course after you collect Required documents and fill out an application for restructuring your mortgage debt. By the way, almost 97% of the lending market take part in the program to help borrowers. Therefore, there is a high probability that your bank is also accredited by ARIZhK and the restructuring of your mortgage will be approved. The main thing is that you and the object of lending meet the requirements of the state.
Terms and Conditions
- Parents or guardians of minor children, combat veterans, disabled people and parents of children with disabilities can participate in the program.
- There is also an income requirement. He, after paying off the mortgage, should not exceed two living wages for each of the family members.
- In 2017, in addition to traditional beneficiaries, families with adult children studying full-time in educational institutions were added to the state restructuring program.
- There are also requirements for the object of collateral. Housing must be the only one for the family and purchased at least 12 months before the restructuring. It is allowed for one of the family members to have property in another property, but not more than 50% of it.
- If the borrower is not the large family, then there are restrictions on the footage and the cost of an apartment or house. The area of a one-room apartment is not more than 45 sq. m., two-room apartment no more than 65 sq.m., three-room apartment no more than 85 sq.m. m.
- The cost of the apartment should not exceed the average market value by more than 60%.
If you meet all the specified restructuring conditions, collect a package of documents.
Documentation
You will need the following documents: passport of the Russian Federation, loan agreement, payment repayment scheme, extract from the USRR for the collateral value, certificate - extract from the USRR on the generalized rights of an individual, certificate of income for the last 3 months.
If you have lost your job, then prepare the original work book with a seal of dismissal and a certificate from the employment center indicating the amount of benefits.
If necessary, the bank may request additional documents. An application for restructuring is filled out at the branch of the bank where the mortgage was issued. Consideration of the application will take 10 days.
We analyzed a more detailed list of documents for restructuring a mortgage with state support in the last article "".
Step-by-step instruction
So, if you decide to reduce your debt and get a restructured loan, I suggest you the following algorithm of actions.
- The first thing you need to do is contact the bank and find out which branch you can contact for advice on this program.
- At the consultation, clarify all the additional documents that are needed specifically in your case.
- We order in the district multifunctional center (MFC) an extract from the USRR on collateral real estate. In the same place, we order an extract from the USRR on generalized rights. The second certificate stating that you and family members do not have other housing. Shares in other real estate objects are allowed, but not more than 50% in total. Production time 7 days.
- We fill out an application for restructuring a mortgage debt. You can fill it out at the bank branch. We provide a full package of documents to the manager.
- We are waiting for the decision of AHML up to 30 days (actually 10 working days).
- You will be notified of the result by a call. Then they will invite the bank to restructure your loan and sign new loan documentation.
- Within a month, a mortgage will come from the archive to the bank. Next, you will need to go to justice with a full package of documents on the mortgage and register the changes in the mortgage.
An important point. Recalculation of the loan will be made from the date of submission of the application for restructuring. It may come as a pleasant surprise for you that this month you will have to pay the amount on the mortgage much less than the schedule. In our example, a family from Novosibirsk had a mortgage payment of 24148, after restructuring it was 19478, and in the current month it was only 660 rubles. Use ours to find out what your mortgage payment will be after your application is approved.
We would like to note that in some cases the bank may refuse. The reason for this may be inaccurate information in the application or incorrectly executed documents. Do not despair. You should find out the reason for the refusal from the bank manager and apply again.
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The law of the Russian Federation on 6 percent, more precisely, Resolution No. 1711, was signed by Prime Minister Dmitry Medvedev on December 30, 2017.
Those families in which, starting from January 1, 2018, a second or third child was born, will be able to receive six percent on a mortgage. The difference between 6% and the rate offered by banks will cover the state budget.
The mortgage bill also provides for the refinancing of previously issued mortgage loans to those families that fall under the program - that is, in which the second or third child is born between 2018 and 2022 inclusive.
Loans at a reduced interest will provide credit organizations and AHML in cooperation with the state.
Conditions for refinancing with state support
Loan subsidization will be carried out up to the level of 6% when applying for a housing loan by families in which the second or third child was born in the period from the beginning of 2018 to the end of 2022. At the same time, you can use the program for a limited period - for example, at the birth of a second child, the state will compensate for the difference in the interest rate for 3 years, and at the birth of a third baby - 5 years. Accordingly, if the mortgage loan is issued for a longer period, then the borrowers will pay the remaining years at a rate that is calculated as key rate The Central Bank at the time of issuing the loan plus 2%. For example, at the time of writing, January 10, 2018, the Central Bank rate is 7.75%. This means that home loan lending new program carried out at 9.75%. It is at this rate that the family will pay the loan from the moment the participation in the program ends.
Mortgage refinancing at 6% occurs according to similar rules - families who have taken out a housing loan, and then, during 2018 - 2022, have acquired a second or third baby, can participate in the program. Their interest rate will also be reduced for a period of 3 to 5 years.
An interesting point: if a second child was born in the family on January 1, 2018 and she exercised the right to subsidize a home loan for a period of 3 years, then after the end of the three-year period, if a third child is born in the family before January 31, 2022, she can resume participation in program for another 5 years. In total, in accordance with the Decree on Refinancing a Mortgage Loan, the program can be used under certain conditions for up to 8 years.
If, for example, the second baby was born in 2018, and the third in 2020, then the family will be able to participate in the program until 2025, since from the moment the third child is born, the subsidy is provided for a period of 5 years.
Subsidizing and refinancing with state support is subject to a number of conditions:
Mortgages at 6% in 2018 will be provided to those families in which a second or third child was born.
The rate discount is given only to those families who purchase housing in new buildings, including those at the construction stage.
The cost of the loan does not exceed 3 million for the regions and 8 million for Moscow, St. Petersburg and their regions.
The borrower must pay at least 20% of the cost of the purchased housing from own funds.
The borrower is required to participate in the life and health insurance and residential insurance program.
D. Medvedev's decree did not amend the Federal Law on Mortgage N 102, adopted in 1998. It acts as an addition to it, valid for a limited period of time.
If there is a second child
The new law on refinancing and subsidizing says that the second child must be born after January 1, 2018. If a second baby is already growing in the family on this date, then such a family does not fall under the program - more precisely, it will only fall if it gives birth to a third baby no later than the end of December 2022. If the family already has three children, then the program does not apply to them.
For a family with 2 children, subject to the birth of the second during the years of the program, the state compensates the difference between the bank's rate and the promised 6%. This will reduce the amount of monthly payments for the next three years and reduce the final overpayment.
If in a family that applied for a housing loan at a time when it had only 1 child, a second baby is born during the program, then for 2 children it will be allowed to take part in refinancing the loan at the same 6%. Terms - also 3 years. If the family has only 1 year left to repay the loan, then it will be able to use the benefit only during this period.
Families that, being parents of 1 child, will give birth to twins or triplets will benefit the most from the program. If in a family with one child, starting from January 1, 2018, twins or triplets are born, then lowering the rate to 6% by law is possible for a maximum of 8 years - 3 years for the second and 5 years for the third child, since 5 years of discounts begin to operate from after the end of the 3 year grace period.
Subsidizing and refinancing mortgages at 6% for a second child also applies to those childless parents who have had twins or triplets since January 1, 2018.
Who can get
The legislation does not provide for any additional requirements, except for those relating to the birth of children.
Requirements for borrowers are standard, they are indicated on the website of each particular bank. Usually this is the presence of permanent employment, a stable salary, the appropriate age of the borrower. In any case, your candidacy must first be approved by the bank, and then you can already count on participation in the program. Those for whom no bank approves a mortgage will not be able to take advantage of preferential terms, even if they give birth to a second or third child within the specified period.
To reduce the interest rate on a previously issued loan for the purchase of housing, you must contact your bank and provide a birth certificate for the second or third baby.
Mortgage lending at 6% per annum from the president is expected to increase the birth rate. However, the program has already caused dissatisfaction with those families who, by January 1, 2018, managed to become the parents of a second or third baby. Especially if they also currently have an outstanding mortgage loan.
An important addition: the program applies only to mortgages issued in the primary market starting from January 1, 2018.
How to apply for refinancing at 6%
Federal law makes it as easy as possible for borrowers to participate in the program. They simply submit an application and, in the event that the bank approves the candidate and the property, they receive a mortgage immediately at a reduced percentage. Further, the bank or AHML themselves apply to the state with an application to cover the difference in interest rates.
To refinance up to 6%, you need to contact the bank. The latter will reconsider the size of monthly payments, provided that the mortgage was issued for the purchase of housing in a new building (in the primary market). From the documents you will only need a birth certificate of the child (2nd or 3rd).
The algorithm of the borrower's actions is simple: registration preferential mortgage nothing different from the usual. The only difference will be the reduced interest rate. And the birth certificates of children will be added to the package of documents.
The answer to the question of how to refinance a mortgage if you have become the parents of a second or third child can be given at the bank. The procedure, most likely, will be to write an application and provide a supporting document.
On average, mortgages in 2018 will be provided at 9-11% per annum. So reducing the rate to 6% will allow the family to save a lot.
How to reduce the interest if the mortgage has already been taken?
As we wrote above, all issues are resolved through your bank. There is no need to contact social security, the MFC or somewhere else to confirm the benefits. Banks resolve this issue directly with the Ministry of Finance of the Russian Federation.
The procedure for refinancing a loan at the initiative of the president is much simpler than simply refinancing a previously received loan as such. The borrower does not have to confirm the amount of income, look for third-party banks with a better interest rate, re-register a mortgage and collect a package of documents. You will only need a passport, an application and a birth certificate as a document confirming the right to a benefit.
In any case, a mortgage at 6 percent is the most profitable option not only today, but also in the coming years. As economists say, the banks themselves will not come to such an indicator soon. And for families who could not decide on the birth of a second or third baby, a mortgage of 6 percent can be an additional incentive.
The new law on lowering the interest rate has already entered into force - the decree is valid from December 30, 2017. Accordingly, you can go to the bank with an application for refinancing a previously taken mortgage (but only one that was issued no earlier than January 1, 2018) from the moment you have the birth certificate of the second or third baby in your hands.
Clause 5. Subsidies are provided for loans (loans), the loan agreement (loan agreement) for which was concluded starting from January 1, 2018, from the date the loan (loan) was granted to citizens Russian Federation specified in paragraph 9 of these Rules"
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The mortgage lending market is subject to change from year to year. Banking offers are also influenced by the key rate of the Central Bank, which has been declining over the past few years. Accordingly, mortgage interest rates are becoming more and more attractive. Therefore, many banks provide a program to refinance mortgage loans. In this article, we will tell you how to use such a program, consider banking offers and mortgage refinancing options with the help of AHML.
What is a mortgage
To determine which mortgage refinancing program is best for you, you first need to understand the principles of a mortgage agreement. A mortgage is a targeted loan. The bank finances the purchase and sale transaction, as a result of which the borrower receives the property in ownership, but at the same time the obligation to repay the loan funds.
The purchased apartment becomes the subject of collateral. This means that until the debt is repaid, the borrower does not have the right to perform registration actions, that is, to sell or alienate property. Under the terms of some contracts, it is also not possible to rent the object.
Debt repayment is regulated by the repayment schedule. At the same time, the borrower can at any stage return the entire loan or part of it with interest savings. The schedule can be either annuity - with equal monthly payments, or differentiated - with an equal part of the principal debt.
The borrower has the right to choose the mortgage currency on his own, provided that the bank has such an offer. The client is obliged to insure the property against the risks of total destruction. The average mortgage interest rate currently ranges from 9 to 14% per annum. Relationships are regulated on the basis of:
- federal mortgage law;
- federal law on consumer lending;
- Civil Code;
- mortgage loan agreements;
- pledge agreement.
For failure to fulfill obligations to the bank, the company may legally demand the subject of collateral in order to sell and repay the debt. Also, a banking organization has the right to impose an established fine in case of violations of the conditions.
Refinancing is refinancing a mortgage. The ability to draw up an agreement in another bank, which will independently repay the debt, but the client will have to fulfill the conditions under the agreement with the new creditor. Refinancing options:
- Reducing the interest rate. Every year, the interest gradually decreased, therefore, customers who signed contracts in 2012–2013 have more high stakes than current banking offers. Therefore, in order to save overpayment, it makes sense to make such a request.
- Reduced monthly payment. Such conditions are achieved by increasing the loan term. It will not work to reduce the monthly payment if the current contract is already designed for the maximum duration.
- Currency change. Due to the weakening of the ruble and its instability, borrowers who had foreign currency mortgages found themselves in difficult conditions. Therefore, many banking organizations could meet halfway and convert the loan into rubles.
It should be borne in mind that refinancing is not an obligation, but a right of the bank. Here, banking companies operate on the same principle as when applying for a standard mortgage. If the organization considers that the debt will not be returned, then refinancing will be refused.
An alternative to refinancing is loan restructuring. This is a change in the terms of the contract based on the application of the client. Restructuring is carried out within one bank, i.e. if the agreement is executed at Sberbank, then the borrower has the right to ask Sberbank to revise the conditions by requesting restructuring. Banking companies have the right to make any decisions at their discretion.
The final option for borrowers is to use state program with the support of AHML, an agency for housing mortgage lending. We will talk about this program in more detail below.
Refinancing in banks
To begin with, let's consider what the leading banking companies offer at the moment. It is important to pay attention to the proposed interest rate, it should be lower by at least one whole percent. Otherwise, possible insurance contracts and re-registration costs can reduce all benefits to zero.
This bank may offer to refinance the mortgage at a rate of 9.5%. The amount of financing can be in the range from 1 to 7 million rubles, but the amount of the refinanced loan must be less than 80% of the value of the collateral. The duration of the contract can be up to 30 years.
VTB offers a rate of 9.7%. The loan term is up to 30 years. Minimum amount starts from 400,000 rubles, and the maximum depends on the city. 30 million for regions:
- Moscow and Moscow region;
- St. Petersburg and Leningrad region.
- Vladivostok;
- Yekaterinburg;
- Sochi;
- Kazan;
- Novosibirsk;
- Krasnoyarsk;
- Rostov-on-Don;
- Tyumen.
For other regions maximum amount funding does not exceed 10 million rubles.
In this bank you can get money at 9.35%. Possible term Mortgages are limited to 5 to 30 years. The loan amount starts from 500,000 rubles. At the same time, for St. Petersburg, Moscow and the corresponding regions, the maximum is 30 million rubles. For other regions - 15 million rubles. A banking company can allocate no more than 90% of the collateral.
This is an organization whose activities are aimed at helping socially vulnerable people who have mortgage loans. Initially, the company had its own mortgage conditions. That is, the client can refinance the contract directly to AHML. After 2015, the organization limited its activities by entering into partnerships with key banking companies in Russia. The AHML program can be used by:
- families with minor children;
- war veterans;
- disabled persons of any category;
- parents raising children with disabilities.
There are various options for refinancing with the support of AHML:
- reduction of the interest rate to 12%. The difference is compensated from the state treasury;
- deferred payments up to 18 months. The client may receive "holidays" and not pay the debt on time;
- 600,000 rubles at the expense of the state. Cash transferred to the account loan agreement in favor of repaying the principal debt.
Refinancing is provided if the client's financial situation has worsened. This requires documentary evidence. Such documents may be:
- work book with a record of dismissal;
- account statement for the last 3 months, where wages are received;
- certificates of deterioration in health, which interfere with the normal working regime;
- any other information at the discretion of the applicant.
Banks are more likely to approve renegotiations if actual revenues have fallen by at least 30% from what they were at the time of the deal.
Each bank has the right to independently put forward requirements. Companies are interested in paying customers. But it is possible to distinguish general list conditions:
- citizenship;
- there is a bank representative office at the place of registration;
- age from 21 to 65 years;
- total income exceeds the estimated monthly payment by 60%;
- employment for at least six months at the current place;
- the current loan is valid for at least a year;
- at the moment, all overdue debts are repaid;
- credit history has no negative factors.
Clients for banking companies are a source of profit. Therefore, do not think that refinancing is impossible. Financial institutions may benefit from such conditions. After all, the organization receives a new loyal client, in whose opinion the bank helped him.
Plus, since early repayment is made even less profitable loan, the banking company still remains in profit. Since the contract is closed taking into account interest for the current billing period albeit at a higher percentage. And it is assumed that the client will pay the money for a long time, which will create income for the bank.
It is better to clarify a specific set of documents before registering with a banking organization. TO general principles can be attributed:
- passport of all participants in the loan agreement;
- mortgage application;
- ownership documents;
- a certificate from the creditor with the amount of debt;
- a certificate from a real estate appraiser;
- a second identity document;
- income statements.
It is worth noting that you will have to evaluate real estate at your own expense. But before doing this, we recommend that you first complete an application in order to receive a preliminary decision.
- You need to find an interesting offer and make an application through the site or branch. It is necessary to pay attention to whether the bank is a member of the AHML program, and also to consider current rates.
- Wait for the approval of the bank, and then provide a complete set of all required documents. The bank gives up to a month to collect data.
- Notify the current lender about refinancing and get a certificate with the debt and terms for depositing money. It should also be clarified about the need to draw up an application for closing the contract or other measures that will need to be performed based on the conditions.
- Conclude a deal on a loan agreement.
- Arrange all necessary insurance. Only property insurance is obligatory. But there are options that allow you to lower the interest rate. It may also make sense to translate your salary project to the current bank, which will allow you to get a favorable offer.