Do you think we should expect this or not?
The maternity certificate has become the most effective way to ease the mortgage burden for families with children. Such effective assistance from the state has been coming since 2007 and for 2018 the amount of maternity capital is 453,026 rubles.
This amount, according to the law, can be spent on improving housing conditions (including a mortgage), on the child’s education, the social adaptation of a disabled child and on the mother’s pension. The purpose of this article is to discuss the issue of using maternity capital for a down payment on a mortgage.
You can spend maternity capital on a down payment on a mortgage, even if the child is under 3 years old
On May 23, 2015, President of the Russian Federation V.V. Putin signed Federal Law No. 131-FZ “On Amendments to Articles 7 and 10 of the Federal Law “On Additional Measures of State Support for Families with Children””, which from the moment of its signing it is allowed to spend maternity capital on a down payment on a mortgage . Let us remind you that previously it was allowed to use capital for a down payment only when the child turned 3 years old. This information is also available on the website of the Russian Pension Fund.
Before going to the bank and starting the mortgage procedure, spouses should remember a few important points:
- First you need to have a certificate in hand, and only then apply for a mortgage;
- Meet the basic requirements regarding the amount of income sufficient to service the mortgage. At the same time, even when using maternity capital, it is not forbidden to attract co-borrowers.
- It is prohibited to use maternity capital when purchasing real estate on land whose status is not individual housing construction.
How much mortgage loan should a family expect, taking into account the right to use maternal capital? The bank calculates a possible loan, taking into account the joint income of the spouses (as well as co-borrowers, if necessary), and then adding the amount of maternity capital to this amount. In addition, when paying with capital in the first installment, its amount is reduced by the amount of maternity capital.
Example: a family, based on income, has the opportunity to get a mortgage loan in the amount of 2 million rubles, in addition, 30% will be the down payment, i.e. 600 thousand rubles. Thus, the bank will be able to give a loan in the amount of 2 million + 453 thousand = 2.453 million rubles, and the client needs to make 600 – 453 = 147 thousand as a down payment. rubles It turns out that maternity capital increases the possible loan amount, and at the same time it pays the down payment.
What kind of apartment can I buy? There are no restrictions at the legislative level. You can purchase an apartment both on the secondary market and in a new building. In the latter case, the bank may require a share participation agreement.
How it works in practice
- You need to choose a bank that issues a mortgage using maternity capital. He should be provided with a set of necessary certificates, such as: identification documents; income certificates; maternity capital certificate; documents on family composition. In the case where the mortgage is issued to the husband - a marriage certificate.
- After reviewing all the certificates and calculating the possible loan amount, the bank issues the client a confirmation letter, which is valid for 6 months. At the same time as going to the bank, you can immediately contact the Pension Fund with an application to transfer maternity capital towards a future mortgage.
- After the Pension Fund confirms its consent to the use of maternity capital in the form of another application, the client goes to the bank with it again.
- After completing the purchase and sale transaction, the client again goes to the Pension Fund, this time with an application for the transfer of maternity capital funds, now providing a full list of documents, such as: loan and mortgage agreements, a certificate of ownership, a written certified obligation to allocate within 6 months from the moment the encumbrance on the housing is removed, all family members, including children, have a share in it.
It is worth noting the following point.
In order to be able to use maternity capital, the bank will require the client to provide documents on the ownership of the purchased property, i.e. those documents that are in hand after purchase and sale transactions. And at the same time, in order to complete the transaction, the client needs a bank mortgage loan.
Is it a vicious circle? Banks use the following technique for this - they issue the client 2 loans at once, one of them is standard, for most of the apartment being purchased, and the second is for the initial loan. Therefore, until the pension fund transfers maternity capital funds to the bank’s current account (usually within 3 months), you will have to pay off the second loan from your own resources. At what rates and conditions is a second short-term loan issued against future repayment with maternal capital - all this must be clarified directly with the bank itself. You should also remember that the Pension Fund of the Russian Federation may refuse to transfer funds to a bank account. These cases are rare, and are more often associated with the inattention of the applicant or inaccuracy of certificates.
Therefore, you should calculate your strength in advance as soon as the bank approves the loan, because assistance from maternity capital may “take longer” over time.
As you can see, you will have to run around a lot and collect a lot of paperwork, but your own housing and assistance in the amount of 453 thousand rubles are worth it. With changes in legislation, we can hope that many more families will take advantage of government assistance in the form of maternity capital, including to pay off the down payment on a mortgage.
Which banks accept maternity capital for down payment?
In fact, banks don’t care whether you use maternity capital or not. After all, the state pays for it. The only catch may be that the time frame increases greatly when a certificate is used. Therefore, not all banks are ready to cooperate with such clients to obtain mortgage loans. Here is a list of some banks where you can use maternity capital to pay the down payment on a mortgage:
- Sberbank;
- VTB 24;
- UniCredit Bank;
- VTB Bank of Moscow;
- DeltaCredit;
- and several smaller banks.
One of the most pressing issues for many Russians is housing. The cost of real estate in cities is quite high. If you take into account the average salary of our fellow citizens, you can save for decades to buy your own square meters.
One of the best options for purchasing a home is a mortgage. But to get a loan, the borrower must make a down payment. Where can I get them? A young family can use maternity capital as a down payment. Below we will tell you how to do this.
Maternity capital: is it possible to pay an advance payment on a mortgage?
Each bank sets its own requirements for the borrower. But one rule applies in all institutions. In order to buy an apartment on credit, you need to make a mortgage payment of at least 15-20% of the cost of housing. If your own savings are not enough, then this is not a reason to abandon your plans.
To support young families financially, officials approved a number of social benefits. In particular, maternity capital. It can be used as a down payment.
But, there are some problems that a young family may face:
- To use this social benefit as a down payment on a mortgage, at least three years must have passed from the birth of the child. The capital can be used at any time to pay off an existing mortgage loan.
- Not every seller agrees to a deal with maternity capital. After all, he will have to wait until the state transfers the down payment to the account.
Mortgage for maternity capital: all the nuances of the transaction
Have you carefully weighed the pros and cons and are 100% confident that you will be able to pay off your mortgage on time and without delays? In this case, you can start applying for a loan.
First of all, you need to study the lending conditions of various banks and choose the most advantageous offer. The next stage is the provision of documents necessary to make a decision on a possible loan.
This list includes:
- passport:
- maternity capital certificate;
- income certificate;
- a document from the Pension Fund confirming that maternity capital has already been paid into the account.
Once the application is approved, the mortgage transaction is concluded. It should be noted that the process of obtaining a secured loan is quite complex. It will take up to 10-14 days to complete it.
Review of proposals in 2016
The undoubted leader in mortgage lending is Sberbank of Russia. More than half of the housing loans issued are issued through this financial institution.
A mortgage with maternity capital can be issued under the following conditions:
The minimum loan amount is 300 thousand rubles, and the maximum is 80% of the cost of the purchased housing.
The loan term is 30 years. The minimum advance payment is 20%. It can be paid for using maternity capital funds.
The interest rate depends on the deposit made and the loan term. It is 12.5-13.5% per annum. If the borrower does not have a Sberbank salary card, then the rate increases by 0.5%, and if he refuses personal insurance - by 1%.
Borrowers who meet the following requirements can take advantage of this program:
- age from 21 to 75 years;
- total work experience of 12 months, and at the last place of work - 6 months;
- has Russian citizenship;
- stable source of income.
If the mortgage payment is over 50%, then the client may not provide documents on financial status and employment.
The mortgage program from Sberbank of Russia has significant advantages:
- Minimum interest rate;
- No hidden fees;
- Individual consideration of the application;
- Transparent lending conditions;
- Preferential conditions for young families.
The only drawback is the long decision-making process (up to five days).
Bank of Moscow proposal
In this financial institution you can also get a mortgage with maternity capital. The advance payment is 20%. In this case, the borrower must pay at least 5% from his own savings, and 15% from his mother’s savings.
Interest rate – from 11.65% per annum. If the client wants to receive a decision on the application as soon as possible and cannot provide documents regarding his financial status, then the Bank of Moscow offers a unique offer - the absence of formalities.
The financial institution is ready to consider the application in one day based on only two documents. But for such loyalty, the bank increases the interest rate by 0.5%.
As we can see, there is still a chance to get a mortgage, even without money for a down payment. Don't miss it and become the owner of your own square meters.
The birth of a second child in 2016 will bring the family more than 450 thousand rubles as maternity capital. One of the options for its implementation is a housing loan. With a mortgage, maternity capital as a down payment can cover up to 100% of the first payment to the bank.
Federal and regional assistance to families with two children
Maternity capital makes it possible to create a solid foundation for the future of the family: buy an apartment in the city or build your own country house. All this is called improving living conditions. And it is for these needs that a family can use MSC funds (maternal or family capital) - and take out a mortgage. Parents will never see the “children’s” half a million in cash: the amount is transferred to the creditor’s account without the slightest participation of the family.
There is no longer any need to wait until your child’s third birthday to use the maternity capital issued for him or her as a down payment on a mortgage. In May 2015, the law was amended to allow parents of two children to exercise their right to state support immediately.
The state certificate for maternal capital is issued only once. The main thing is that the child was born after 2007 and was not the parents’ first. But the family has the right to receive a monetary reward a second time - for the birth of a third and subsequent children. This idea is being implemented not at the federal level, but at the regional level, but not in all regions. The amount of regional family capital varies from region to region and ranges from 30 to 200 thousand rubles. These funds are not issued in cash anywhere, but the certificate can also be used to cover an existing or new mortgage debt.
Which banks should you contact for a loan?
There is no law that obliges banks to accept family capital as payment for debt. A number of banking organizations: Alfa Bank, Nordea Bank and others - work with MSC, but accept it only as payment of the principal debt. It is impossible to open a new loan for housing and repay 10-20% of the down payment in such banks. But other credit organizations not only allow this, but also offer preferential conditions to young parents:
Sberbank
Sberbank has developed the “Mortgage + Maternity Capital” program especially for couples with two or more children. It operates within the framework of loan programs for the purchase of finished or under construction housing. Parents can cover up to 100% of the down payment using MSK funds or use them to pay only part of the fee.
Delta Bank
The proposal from Delta Bank is aimed at reducing the size of the down payment for those who pay it using maternity capital. The bank offers a reduction in the first payment by 10%, despite the fact that the standard contribution starts from 20%. The offer applies to any type of real estate from a share in an apartment to a country house.
Bank of Moscow
But it will be possible to pay the down payment with maternity capital for a mortgage at the Bank of Moscow under different conditions. The contribution amount is not reduced here: it is still 20%. And it will be possible to pay no more than 15% using maternity capital. The couple allocates the remaining 5% from their own savings.
AHML partners
The Home Mortgage Lending Agency also reduced the down payment on mortgages for families with children. The minimum limit is now 10% of the total loan amount, and the loan term can be extended to 30 years. Banks cooperating with AHML are required to offer mortgages based on these conditions.
The family can get acquainted with all the offers of banks that accept maternity capital as a down payment and choose the best option for themselves.
From the Pension Fund of Russia to the bank: how to use the certificate?
To use a certificate for maternal capital, you must first obtain it. This document is issued by the local Pension Fund of Russia provided that the child was born between the beginning of 2007 and the end of 2018. The certificate can be obtained only once, but regardless of the period that has passed since the date of birth of the baby. The state undertakes to issue a certificate at least five years later at the first request of parents.
After receiving the certificate within 3 years, the family will need to decide what to use financial assistance for: the mother’s pension, the child’s future education, or a mortgage. If the couple has already chosen one thing and changed their mind, the previous application can be canceled. The remainder can still be used to pay off the mortgage debt.
Before applying to the bank for a mortgage, the couple will have to visit the Pension Fund again and take a statement about the current state (balance) of the capital. Then, choose a banking organization that offers the most comfortable mortgage conditions. And only after this, taking into account the requirements of a particular bank, the family can collect a package of documents. The latter standardly includes:
- The maternity capital certificate itself. It is worth attaching to it a certificate of the balance of funds taken from the Pension Fund. It is better to prepare copies of these documents in advance;
- Certificate of family income in the form of personal income tax-2. It is “white” income that influences the bank’s decision whether the couple will be approved for a loan. After all, with a mortgage, maternity capital as a down payment will not help at all if the financial condition of the family does not allow servicing the debt;
- Tax returns for other sources of income;
- Parents' passports.
If the bank gives the go-ahead to apply for a mortgage, the family enters into a loan agreement with the organization, draws up a purchase and sale agreement for the apartment they like and documents their rights to it. With the documents received during the purchase of a home, passports and a certificate for maternal capital, the family again goes to the Pension Fund. There, parents will need to fill out an application for the transfer of MSC funds in favor of a credit institution.
Subtleties: what should a couple take into account when preparing documents?
It is not recommended for the family to delay the application to the Pension Fund, since the procedure for transferring maternal capital to the bank is far from immediate. After approval of the parents’ application, the Pension Fund undertakes to transfer funds within two months.
The bank will accept maternity capital only if each family member receives a share in the purchased apartment. The young couple will have to sign and notarize the corresponding obligation, which will need to be fulfilled within six months after the “children’s” funds are taken into account as a mortgage contribution.
If the amount of the down payment is less than the capital amount, the balance will not be burned. Funds not used to pay off the debt will be returned to the Pension Fund account. The family will be able to use them in the future. If the opposite situation occurs, and maternity capital is not enough to pay the full contribution, the family can supplement it with their savings. Conditions must be negotiated with the bank individually.
When a family becomes eligible for government support at the birth of a second child, the most difficult question for them is which bank can get a mortgage on favorable terms? Let's consider the rating of banks offering maternity capital as a down payment on a mortgage.
Considering the statistics of past years, the most popular area for using government assistance is “Improving housing conditions.” The state strictly regulates the conditions for the use of maternity capital. According to federal law, permission to use funds partially or in full can be considered by the Pension Fund 3 years after the birth of a child in the family. There is an exception to this rule: funds from mat capital can be used until the child’s third birthday as part of obligations associated with housing loans.
Considering the fact that the full amount of state support in the amount of 453,026 rubles in 2018 is not enough to purchase your own home, it remains to consider mortgage lending options. When applying for a home loan, banks make a mandatory requirement - payment of a down payment. Typically, this is 20% of the total loan amount. When drawing up a contract for the purchase of real estate for an amount not exceeding 2,265,000 rubles, the full amount of family capital is fully sufficient to pay the down payment.
Requirements for the borrower when applying for a mortgage
To use maternity capital as a down payment on a mortgage in 2018, the borrower must meet the standard requirements set by banks:
- Having a good credit history;
- Regular income (the monthly mortgage payment should not exceed 40-50% of your income);
- Duration of continuous work (6 months, in some banks – 3 years).
Banks working with maternity capital
Of the many credit institutions in the Russian Federation, only a few banks can be named that offer mortgage loan programs as part of the use of family capital. Let's consider financial institutions with the most profitable mortgage programs for mat capital in 2018:
- Sberbank of Russia;
- DeltaCredit Bank;
- UniCredit Bank;
- VTB 24;
- Russian Capital Bank.
The criteria for banks with maternity capital differ in the size of the down payment, the type of housing purchased, the interest rate, and the loan term.
Mortgage plus maternity capital in Sberbank
Sberbank offers to apply for a loan for residential real estate, using mat capital funds to pay the down payment. Potential borrowers can use one of the following programs:
- Purchase of finished housing;
- Purchase of housing under construction.
Loan for the purchase of finished housing
The program operates as part of a promotion for young families with a base interest rate of 8.7% per annum. Subject to electronic registration of property rights, the annual interest on the loan is reduced by 0.1%. These interest rates are relevant if you receive your salary on a Sberbank card, or if the property you have chosen was built with bank loan funds.
If the above requirements are not met, surcharges are provided:
- +0.5% if you are not a participant in the Sberbank salary project;
- +1% if you have not taken advantage of the life and health insurance program, according to the bank’s requirements.
Participants in the Young Family program can count on a 0.5% discount on the annual interest rate. A prerequisite is that one of the spouses must not be older than 35 years. Single parents under 35 years old can also take advantage of this discount.
The maximum loan term is 30 years. A down payment of 15% can be paid from maternity capital funds. You can submit your application online on the Domklik portal. When purchasing an apartment on DomClick.ru, you can save by receiving a 0.3% discount.
Sberbank offers a mortgage loan for the purchase of an apartment in a new building using maternity capital. The terms of the loan provide for a reduced interest rate - from 7.4% per annum. The interest rate on general terms is 11.5%. To lower it to 7.4% you need to:
- Purchase real estate from certain developers (the loan rate decreases from 1.5-2% depending on the loan term);
- Complete electronic transaction registration (-0.1%);
- Use life and health insurance services at Sberbank Insurance (-1%);
- Document your income (-0.4%);
- Receive your salary on a Sberbank card (-0.5%).
The discount from developers is valid only for a loan term of up to 12 years.
The terms of the “Purchase of housing under construction” campaign provide for the possibility of issuing a loan in two equal installments. The first part is issued after registration of the share participation agreement, the second - before signing the transfer deed.
The loan is issued for a period of up to 30 years. The maximum amount is 85% of the value of real estate purchased on credit or another object registered as collateral. The down payment (15%) can be paid with maternity capital.
Mortgage for maternity capital at DeltaCredit Bank
By purchasing real estate with a mortgage with the help of DeltaCredit Bank, you can count on the possibility of using mat capital as a down payment or early repayment of the obligation. The size of the down payment ranges from 10-40% of the total amount and depends directly on the type of property you choose. If the amount of maternity capital is not enough to repay the first installment, the borrower must contribute additional funds.
A potential borrower can choose real estate in both the primary and secondary markets. The choice of housing type is quite wide. It could be:
- Apartment – down payment 15%;
- Share in the apartment – 10%;
- Room – from 10%;
- Country house – 40%.
DeltaCredit Bank does not advertise the interest rate on a mortgage, arguing that this factor in the loan agreement is considered on an individual basis. In this direction, a special program “Set your rate” was developed, the principle of which is to reduce the loan rate when you deposit an amount equal to a certain percentage of the total loan amount.
Thus, the mortgage rate on the loan is reduced by 0.5% when paying an amount equal to 1% of the total cost of the loan, by 1% when paying 2.5%, by 1.5% when paying 4.5%. Using the loan calculator on the bank’s official website, you can find out the base rate – 10.75%.
The frequency of mortgage repayment at DeltaCredit Bank is once every 14 days. This allows you to make 2 additional payments each year, which helps reduce the loan term.
Mortgage for maternity capital at UniCredit Bank
You can take out a mortgage from UniCredit Bank for a period of 1-30 years by paying a down payment of 20-50% depending on the type of residential property:
- 20% - when purchasing an apartment or apartment;
- 50% - when purchasing a residential or garden house, townhouse or cottage.
In this case, the amount of the down payment may be reduced by the amount of maternity capital. One of the main conditions of the bank when issuing a loan is the purchase of an apartment in residential buildings under construction or a plot of land with a residential building located on it from a certain list of objects.
The maximum loan size is 9,000,000 rubles. The interest rate is fixed, when making a down payment in the amount of 20% - 10.9%, in the amount of 50% - 12.25%.
The obligatory requirement of the lender is the location of the employer and the registration address of the participant in the transaction within the Russian Federation, with the exception of the Republic of Crimea and Sevastopol.
Maternity capital as a down payment on a mortgage at VTB24
VTB24 offers 3 options for using maternity capital:
- As a down payment on a mortgage;
- To repay the loan;
- Increasing the loan amount.
The interest rate on a mortgage loan at VTB24 depends on the loan term and the size of the down payment. The minimum rate is 11.9%, the maximum is 14.45%. The conditions for participation in the Mortgage + Maternity Capital program determine the minimum loan amount of 600,000 rubles. The down payment cannot be less than 10% of the cost of the apartment. The maximum loan term is 30 years.
VTB24 presents 2 loan products operating within the framework of the “Mortgage + Maternity Capital” program:
- New building;
- Secondary housing.
Mortgage for maternity capital at Russian Capital Bank
Young families who own maternity capital can take advantage of mortgage lending programs from Russian Capital Bank. The certificate can be used to reduce your down payment and increase the amount of your mortgage. The “Maternity Capital” option is compatible with the following mortgage programs:
- Purchase of finished housing;
- Purchase of housing under construction.
The interest rate on loans is variable and can be indexed depending on the value of the consumer price index for goods in the Russian Federation.
Purchase of finished housing
The program is aimed at purchasing an apartment in a residential building or townhouse on the primary or secondary market, including in a block-building building, on preferential terms. The interest rate varies from 9–11.1% per annum, depending on the amount of the down payment. The minimum down payment is 20%. The loan is issued for a period of 3–30 years for an amount of up to 20 million rubles.
Purchase of housing under construction
You can purchase housing under construction under the mortgage program of Russian Capital Bank only in properties accredited by AHML. Borrowers can purchase real estate in objects under construction by concluding an agreement for participation in shared construction.
- Annual interest on the loan – 9%;
- The minimum loan term is 3 years, the maximum is 30 years;
- Loan amount up to 20,000,000 rubles.
Conclusions: which bank to get a mortgage from?
Having compared the conditions for issuing mortgage loans from competing banks, we can confidently say that the program of Sberbank of Russia is the most profitable. This is confirmed by the lowest loan rate - 7.4% per annum and the fact that the amount of maternity capital is quite enough to be used as a down payment (15%) when purchasing real estate worth up to 3 million rubles.
How to get a mortgage with maternity capital?
What documents need to be submitted to the Pension Fund when applying for a mortgage for maternity capital?
To apply for a mortgage using maternity capital, you need to prepare 2 packages of documents: for the bank and for the pension fund.
Documents for the Pension Fund:
- Identity card of the certificate holder;
- Application of the established form for the transfer of money to the bank;
- Original family capital certificate;
- When drawing up a mortgage agreement for a spouse, you must present his passport and marriage registration certificate;
- A copy of the mortgage loan agreement;
- Notarized obligation on shared registration of ownership (no later than 6 months from the date of loan repayment);
- Technical documentation for the property, confirming its compliance with housing conditions.
Documents requested by the bank to obtain a mortgage loan for maternity capital
There is a standard package of documents required by banks to use maternity capital as a down payment on a home loan. This list may be supplemented due to the individual requirements of the credit institution.
- Photocopy and original of the capital certificate;
- Certificate on the amount of capital balance issued by the Russian Pension Fund;
- Certificate 2 personal income tax for 6 months;
- SNILS;
- Copies of the most recently submitted tax returns;
- Real estate purchase and sale agreement;
- Applicant's passport;
- A copy of documents establishing the right to the purchased housing;
- A copy of the cadastral passport.
How to get maternity capital?
Before contacting the bank with an application for a mortgage loan using maternity capital, you must obtain the appropriate certificate. It is issued by the Pension Fund of the Russian Federation upon provision of a mandatory package of documents:
- Birth certificate of the second child;
- Mother's passport;
- Application for obtaining a standard certificate;
- SNILS;
- Form 9.
The application is reviewed within one month, followed by the issuance of a certificate.
Requirements for the property
Maternity capital can be used to purchase residential real estate in strict accordance with the following conditions:
- The property must be located within the Russian Federation;
- Availability of necessary communications connections;
- Recognition of residential real estate as suitable for habitation;
- It is registered as shared ownership of the entire family, including children.
If the above conditions are not met, the Pension Fund may refuse to use mat capital funds.
The procedure for obtaining a mortgage loan using maternity capital as a down payment
Completing a transaction requires simultaneous interaction with two organizations: a bank and a pension fund. The first thing you should start with is submitting the necessary documents to the Pension Fund to obtain a certificate. As soon as the application is reviewed and you receive the relevant document, you can begin monitoring mortgage programs in various banks operating under state support.
The next stage is collecting the necessary package of documents to draw up a mortgage loan agreement. The agreement must stipulate the conditions for the use of maternity capital. Next, we contact the Pension Fund with an application to transfer money to the appropriate credit institution, submitting a complete list of documents for this purpose.
After the Pension Fund transfers the money to the bank, the transaction can be considered completed. All that remains is to pay the loan installments regularly. After full payment of the obligation, you can begin registering housing in Rosreestr as the shared ownership of each family member.
Important points
When applying to a pension fund with an application to transfer maternity capital funds to a credit institution, it is necessary to take into account the specifics of the service. The fact is that the accrual amounts are formed once every six months. For example, if you plan to take out a mortgage loan in the winter, submit an application to the Pension Fund in advance, in the summer.
To provide additional guarantees for the bank, the issuance of a mortgage loan involving mat capital is accompanied by mandatory insurance. You should also remember that the purchased property will be under the bank's encumbrance until the obligation is fully paid. Accordingly, subsequent transactions of sale or purchase are excluded.
