Russian families in which from January 1, 2018 by December 31, 2022, if a second or third child appears, they will be able to receive mortgage on preferential terms - at 6% per annum. In this case, the mortgage loan must be issued for the purchase of housing on the primary market. In addition, those parents who already have an existing mortgage taken out after January 1, 2018, at the birth of a 2nd or 3rd child during the program period (until the end of 2022), will be able to refinance the loan balance is at the same 6%. In both cases, interest rates above 6 percent are borne by the state, so the new state program has already received the name “subsidizing mortgages in 2018 for families with children”.
Important addition:
On June 7, 2018, Vladimir Putin, answering during the next “Direct Line” the question of a large family that already has three children born before 2018 (and therefore not subject to this program), subsidizing mortgages at 6% per annum for families in which not only the second or third was born, but also subsequent children- fourth, fifth, etc. It is planned to allocate additional funding in the amount of 9 billion rubles for corresponding purposes.
A new program of preferential housing loans for families with two children and large families was developed on behalf of President V. Putin. Document regulating the operation of the preferential mortgage program - Government Decree No. 1711 dated December 30, 2017, which approved the rules for providing subsidies.
The essence of preferential mortgages for families with two and three children
According to the rules approved by the Resolution, families who purchase housing on the primary market(or have already purchased and are paying off a loan) from the developer under a purchase and sale agreement or under an equity participation agreement. In this case, the main condition is the birth of a second or third child. during the period from January 1, 2018 to December 31, 2022. Thus, families with children born before 2018 are not covered by the new program!
To receive a 6% mortgage subsidy, a loan agreement must be concluded no earlier than January 1, 2018. To receive benefits on a previously taken out housing loan, you need to refinance (that is, enter into a new agreement for the balance of the debt on new terms).
For participants in the state program, the state will subsidize the interest rate in excess of 6 percent per annum. However, mortgage subsidies will not be indefinite - that is, the program’s effect is calculated not for the entire term of the mortgage payment, which can be decades, but only a few years from the date of registration of the subsidy:
- for three years - upon the birth of a second child from 2018;
- for five years - at the birth of the third child.
However, if a family received a subsidy in connection with the birth of a second child, but during the validity of the benefit a third child is born, then the subsidy for the family extended for another 5 years after the expiration of the first subsidy (that is, in total for such families, subsidies will be provided for 8 years), and the date of birth of the third baby is important - no later than December 31, 2022. In addition, if the subsidy provided for the second child has expired, and a third child appears in the family before 2023, then its validity will be renewed for 5 years from the date of his birth.
That is maximum term, for which a subsidy will be provided - 8 years (if a second and third child is born in the family during the program). After the grace period ends, the loan will need to be repaid at an interest rate that is equal to the refinancing rate at the time the loan was received plus 2%. For example, at the beginning of 2018 this value is 9.75%.
Mortgage conditions at 6 percent in 2018
According to the rules developed by the government, as well as information posted on the website of the Agency for Housing Mortgage Lending (website Dom.rf, product "Family mortgage with government support") to be eligible to receive a home loan or refinance an existing one at 6 percent, the following conditions:
- after January 1, 2018 a second or third child was born in the family (the program does not apply to fourth and subsequent children);
- housing must be purchased on the primary market under a purchase and sale agreement from a legal entity (developer) or under an equity participation agreement;
- housing (mortgage) loan (or loan) issued (or refinanced) by Russian credit institutions (banks) or JSC Housing Mortgage Lending Agency in rubles (AHML) no earlier than January 1, 2018, it provides for an annuity (equal shares) repayment schedule;
- minimum and maximum home loan amounts- 500 thousand rubles - 8 million rubles for Moscow, St. Petersburg, Moscow and Leningrad regions, for other regions of Russia - 500 thousand rubles - 3 million rubles, while at least 20% of the cost of housing must be paid as down payment on the loan;
- Necessarily registration of insurance: personal and property;
- when refinancing previously taken out mortgage at a preferential six percent, it is necessary that at least six months have passed from the date of its registration, and there should be no current late payments, delays of more than 30 days, and no restructuring has been carried out;
- deadline loan - from 3 to 30 years, the age of the borrower - from 21 to 65 years (at the time of loan repayment), a package of documents, as when applying for a regular mortgage loan with the only difference that it is necessary to confirm the birth of the second and/or third child (provide a certificate about birth).
Mortgage rate reduction in 2018 - latest news
The head of the Ministry of Construction, Mikhail Men, said that despite the fact that mortgage subsidies are provided only for a period of three or five years, starting in 2018, there is a high probability that after this time the market interest rate on mortgage lending in Russia will itself approach the same 6%, as has been observed in recent years. So, in the long term, families with children will benefit from the new program, despite its limited duration, if they also take advantage of the opportunity to refinance the loan in the future.
According to Rosstat and VTsIOM, many families in Russia express a desire to take out a mortgage if the interest rate is no more than 6 percent. That is, as broadcast live on November 30, 2017, such a rate would be feasible for the majority of Russians who want to purchase an apartment or house with a mortgage loan, while the current market rates are still not suitable for everyone, especially in the context of falling real incomes!
It should be noted that the mechanism for subsidizing mortgage interest rates was already worked out in 2015-2016. At the same time, the role of the borrowers themselves is reduced to a minimum: the preferential rate is issued by the banks themselves, which then receive government support in the form of subsidies. The state program of preferential car loans for Russian families works similarly.
To apply for a mortgage under the state program at 6% or to refinance an existing loan, you will need to contact directly the bank where it was issued or where you plan to apply for a mortgage. VTB Bank announced the start of accepting applications for preferential mortgage loans
In 2018, a special mortgage program “Mortgage 6%” will be developed in Russia. Vladimir Putin announced this at the end of 2017 at a meeting of the coordinating council for the development of a national strategy for state action in the interests of children. Who can get a preferential mortgage, what requirements are imposed on the borrower and how it can be applied for, read in our Questions and Answers section.
Mortgage at 6%. It's real?
Yes, it's real. Decree of the Government of the Russian Federation No. 1711 of December 30, 2017 on the terms of preferential mortgages was published on January 10, 2018.
What conditions?
Preferential mortgages assume that the state subsidizes the interest rate for banks up to 6%. The state will determine the circle of banks that will take part in the program. Next, they must submit a special package of documents to the Ministry of Finance of the Russian Federation and an application for participation in the program within 30 days from the date of publication of the decree.
Banks and AHML will be compensated monthly for part of the income they lost. Financial organizations will sell mortgage products at a rate of 6% per annum, and the Ministry of Finance will compensate banks for lost income. This is the difference between the market rate (currently about 10%) and the preferential rate (6%).
After the subsidy period ends, the rate will be set at the Central Bank refinancing rate on the date of registration of the mortgage + 2%. It may be less according to the bank's decision.
Who can get a mortgage at 6%?
The following can take part in the program:
Families in which a second child is born after 2018;
Families in which a third and subsequent child is born after 2018.
Preferential mortgages are aimed at increasing the birth rate, so only those families who are planning to have a baby in 2018 and later can apply for a subsidy. If a third child is born during the period of validity of the subsidy received for the second child, the subsidy period is extended for another five years after the end of the first subsidy.
Only citizens of the Russian Federation can take advantage of the subsidy. According to the forecast of the Ministry of Finance, more than 500 thousand families can participate in this program.
What should you pay attention to?
The mortgage agreement will indicate a fixed rate. But there is an important nuance: the subsidy period.
Thus, for a family with two children (the second child must be born after January 1, 2018 and before December 31, 2022), the subsidy period will be three years. But for families with three or more children, the reduced rate will be valid for five years.
What is the duration of the program?
The program is valid from January 1, 2018 to December 31, 2022.
How much money is allocated for implementation?
600 billion rubles have been allocated for implementation.
In which building can I rent an apartment at a reduced rate?
A mortgage loan at 6% will be issued only for a new building, as well as for refinancing an existing mortgage loan issued for similar purposes. Preferential mortgages do not apply to secondary housing. It is also important that real estate can only be purchased from a legal entity.
What are the requirements for obtaining a preferential mortgage?
In order to get a mortgage at 6%, the following parameters must be taken into account:
The loan agreement must be concluded in rubles no earlier than 01/01/2018 (for a new loan);
The size of a mortgage loan does not exceed three million rubles for regions of the country and does not exceed eight million for Moscow, St. Petersburg, the Moscow and Leningrad regions.
Down payment from 20% of the cost of housing;
The rate is 6% for the subsidy period. It should not exceed by more than 2% the Central Bank rate on the date the mortgage was issued, after the end of the subsidy period.
Mandatory life insurance of the borrower and the facility after completion of its construction;
Annuity payment. This is an option in which the monthly payment remains constant throughout the entire loan period.
How to apply?
The list of banks that will issue mortgages at 6% has not been determined. So there is no complete and detailed algorithm of actions yet. Experts say that the principle of applying for a subsidy should be as simple as possible: a standard mortgage is issued, a child is born, then a list of documents is provided to the bank to receive a subsidy. Based on the documents, the bank reduces the rate, and the state compensates the bank for lost income.
In 2018, a decree signed by President Putin on subsidizing mortgages for families upon the birth of a second and third child came into force.
This is one of the measures to improve the demographic situation in the country, along with maternity capital and increasing the amount of payments for the birth of children. In this article we will tell you in detail who is given a mortgage at 6%, under what conditions and how to get it.
Who can take out a mortgage at 6% per annum?
The presidential decree clearly states who is entitled to a preferential mortgage at 6% per annum. It is provided to families with children if they meet the following requirements:
- the birth of a second and/or third child strictly from January 1, 2018 to December 31, 2022;
- the age of the borrower is from 21 years (less often - from 18 years), at the time of loan repayment - no more than 65 years (less often - 75 years);
- length of service at the last place of work – at least six months;
- for individual entrepreneurs - conducting business activities for at least the last two years, and it must be break-even.
For those whose child was born before January 1, 2018, state support does not apply.
You can attract up to 4 co-borrowers. For example, this could be the child's mother, father and two other relatives or close friends.
Conditions of the preferential lending program
A mortgage program with state support is an excellent opportunity for young families to acquire their own housing. Its essence is that for a certain time, borrowers will make monthly payments using a reduced interest rate.
If it is 10%, then 4% is subsidized by the state, and you personally only have to pay 6%.
All program conditions:
- Loan term – minimum 3 years and maximum 30 years.
- The minimum down payment is 20% of the apartment price.
- Purchasing housing in a new building - in a finished building or in a house under construction under the DDU; you cannot take out a loan on preferential terms for secondary housing. It is possible to refinance a previously issued loan, that is, recalculate the amount of payments using a 6% rate. However, in this case, the purchased living space must be in a new house.
- Purchasing an apartment from a legal entity. Concluding an assignment agreement with an individual is unacceptable.
- It is mandatory to insure the apartment against damage and loss and yourself against loss of ability to work.
- Registration of the purchased property as collateral to the bank until the debt is fully repaid.
How long will the reduced rate last?
Mortgage subsidies are temporary. The benefit is valid for 3 years for the second child, and another 5 years for the third child. In total, state support can last 8 years. However, mortgages are often taken out for 15, 20 or more years. Therefore, when choosing a bank, you should pay attention to the regular rate that will be applied after the end of the grace period.
Read more about how the terms of state support are summed up. Let’s say a second child was born in 2018, the 6% rate will be in effect until 2021, after which it will be replaced by the usual one. If a third child is born in 2022, it will be possible to apply for the benefit again for the next 5 years.
Another option is that the mortgage was issued in 2018 after the birth of the second baby. If a third child is born in 2020, the grace period is immediately extended for another 5 years. In this case, subsidies will continue continuously for 8 years.
Limitation on the price of purchased housing
According to the terms of the program, the cost of purchased real estate in the regions should not exceed 3 million rubles, and in Moscow and St. Petersburg - 8 million rubles, since housing prices there are much higher. For this money, a family can easily purchase a two- or even three-room apartment. You cannot get a preferential mortgage in foreign currency; you can only take out a ruble one.
Which bank can I get a mortgage at 6%?
Mortgage loans at 6% are offered by about 80 different banks. The basic conditions are the same: the preferential rate is valid for 3 years after the birth of the second child, another 5 years after the birth of the third. The down payment must be at least 20%, but it can be repaid with maternity capital. You can view the full list of banks on the AHML website.
Sberbank
Sberbank provides mortgages to large families for up to 30 years. The minimum amount is RUB 300,000. The borrower's age is from 18 to 75 years. Confirmation of income is required with a 2-NDFL, 3-NDFL certificate, in a bank form or in any form.
The application review period is up to 2 days. The minimum rate that can be applied at the end of the grace period is 7.4%; it is valid when purchasing apartments on the primary market.
Refinancing after the birth of the second and third child is possible with a loan amount of RUB 500,000 or more. The bank will recalculate the amount of payments, applying a rate of 6% for the second and third child for 3 and 5 years, respectively.
After this, a new contract will be drawn up. Sberbank will repay the debt to another bank, after which the apartment must be remortgaged in its favor within 2 months.
VTB 24
VTB 24 is one of the participants in the program to help large families. The bank provides a mortgage on general terms with a rate of 9.3%, but 3.3% is reimbursed to the bank by the state. The minimum amount is 600,000 rubles, the maximum period is 30 years. The borrower's age is from 21 to 75 years. Proof of income is required using a 2-NDFL certificate or a bank form. The application review period is 1 day.
If you already have an existing mortgage, the bank, at your request, will restructure the principal debt payment schedule, preferential terms will be valid for 3 years. When a third child appears, you can renew the contract again; the 6% rate will apply for another 5 years.
Rosselkhozbank
Rosselkhozbank offers preferential mortgages to large families for up to 30 years. The minimum amount is 100,000 rubles. The borrower's age is from 21 to 65 years. Proof of income is required using a 2-NDFL certificate or a bank form. The application review period is up to 1 week.
It is possible to refinance the mortgage after the birth of the second and third child. At the end of the grace period, the regular interest rate will apply, with a minimum of 9.45%.
Required documents
Families with two or more children will need to prepare the following documents to apply:
- completed application form;
- passports of borrowers and co-borrowers;
- a copy of the work book;
- certificate of income for the last six months (for individual entrepreneurs - for 2 years);
- children's birth certificates.
If the bank makes a positive decision, you will also need to provide documents for the apartment being purchased and for the property that is planned to be registered as collateral (optional).
It is also necessary to confirm that there is sufficient amount to pay the down payment. Ideally, this money should be kept on a deposit or on a card of the bank where the loan is issued.
Registration procedure
The instructions for obtaining a mortgage with state support at 6% per annum are standard - as for obtaining any other housing loan. The only difference is that you need to attach the birth certificates of your children; it is on the basis of these documents that preferential conditions will be applied.
The collected package of papers is sent to the bank for verification. The processing time for an application is from 1 day to a week, it depends on the bank. Practice shows that decisions regarding payroll clients are usually made faster.
Since the beginning of 2018, several legislative acts have been adopted aimed at social support for families with two or more children. State policy is aimed at increasing the birth rate and providing targeted assistance to such families. Among the adopted programs, a special place is given to mortgages with state support, which will start in January 2018. It provides the opportunity to purchase housing on conditions favorable to all participants.
The decision on a preferential rate for loans for the purchase of housing for families with children was made due to the prevailing economic conditions in the country.
- There has been a gradual decrease in the key rate of the Central Bank of the Russian Federation over the past 3 years.
- Inflation is low.
- There is a stabilization of the entire economic sector. The established oil prices are comfortable for the Russian economy.
- Mortgage lending is actively used by the population to purchase housing.
- The pace of housing construction is falling due to the fact that most citizens are focused on buying apartments on the secondary market.
These factors prompted the approval of legislative documents aimed at solving the demographic situation in the country and supporting the economy in the field of construction.
Legislation
In 2018, a social program aimed at supporting families with children comes into force. The document, which was published on January 10, 2018, talks about the rules for providing mortgage lending to married couples with 2 or more children, and about measures to compensate for lost income on mortgages by credit and banking organizations.
The Resolution defines the basic requirements that the borrowers themselves must satisfy, as well as the conditions under which funds are provided for the purchase of housing.
Preferential mortgage
The mechanism of the preferential mortgage is reminiscent of the previously adopted home purchase lending program with state support. The new program has been developed for a limited period: from 01/01/2018 to 31/12/2022. The Government allocates 600 billion rubles for its implementation. The circle of creditors is predetermined. The banks indicated in the list submitted their plans to participate in the preferential project within 30 days.
The essence of a family mortgage is that funds will be transferred to credit institutions from the state budget to compensate for the income they have lost. The calculation is made based on the difference between the current average mortgage rate and 6%.
The list of creditors can be found in Order of the Ministry of Finance No. 88 dated 02/19/2018. It also presents the amounts within which banks can expect to receive compensation. The top positions in this list are occupied by the following banking organizations:
| Name of the bank | Image | Maximum amount of funds for a family mortgage (million rubles) |
|---|---|---|
 | 171205 |
|
 | 106726 |
|
 | 46586 |
|
 | 22840 |
|
 | 22006 |
Who is eligible for preferential mortgages?
Married couples with 2 or more children are eligible to participate in the new mortgage program. There are restrictions on the duration of participation:
- For married couples with 2 children. It is necessary that the date of birth of the second child falls within the period from January 1, 2018 to December 31, 2022. The period for which state support for mortgage lending is issued will be only 3 years.
- For families with 3 or more children. The birth date of the 3rd or subsequent children must fall within the specified period. In this case, the term of the preferential mortgage will be 5 years.
A couple in which twins were born after January 1, 2018, falls into the category of participants in state mortgage subsidies.
Important! If the 2nd child was born later than January 1, 2018 and the family received a mortgage at a rate of 6%, then if a 3rd child appears in the same family before the end of 2022, the period of preferential lending will be extended for another 5 years. Such a family will take advantage of a family mortgage at 6% per annum for 8 years.
When obtaining a family mortgage, it is necessary to comply with the basic requirements that apply to borrowers:
- compulsory Russian citizenship;
- age not younger than 21 years and not older than 65 years at the time of loan repayment;
- availability of work, and the work experience in the last place must be at least 6 months. For individual entrepreneurs, the requirement for mandatory receipt of profit within the last 2 years must be met.
Reference! The second spouse must act as a co-borrower. It is possible to additionally attract 2 more guarantors.
The adopted law does not have retroactive effect. If the 2nd or 3rd children were born before the beginning of 2018, then such a family cannot qualify for preferential funds. The same applies to a mortgage taken out for an apartment on the secondary market.
Video - How to get a mortgage at 6%
Conditions for granting a preferential loan
There are 2 options for a family mortgage:
- A new mortgage agreement is drawn up.
- The old is being restructured.
For newly received loans for the purchase of housing, the following conditions must be met:
- The period for providing the amount of borrowed funds for the purchase of housing is limited to certain limits. A mortgage cannot be taken out for more than 30 years. There is also a minimum term limit. It cannot be less than 3 years old.
- A down payment for the purchase of a home is required to be made in an amount of at least 20%. It is allowed to use maternity capital funds for these purposes, which did not change in 2018 and remained equal to 453,026 rubles.
- A limit has been set on the amount of credit funds. The state provides support only for the purchase of a standard apartment. It will not be possible to purchase luxury real estate using a family mortgage. There are differences in loan amounts for some regions.
- The purchased apartment must be located only in a new building. The purchase of housing on the secondary market is not considered in the adopted state program. With this requirement, the Government is helping to develop the construction sector of the Russian economy.
- A mortgage on the purchased apartment must be taken out. The deposit lasts until the full price for housing is paid.
- Insurance required.
In Moscow and St. Petersburg, mortgage amounts must be in the range from 500 thousand rubles to 8 million rubles.
For all other regions of Russia, the mortgage size ranges from 500 thousand rubles to 3 million rubles.
- A new building can be at any stage of construction: from laying the pit to finishing the interior.
- The developer must have mandatory accreditation with the Mortgage Lending Agency.
- It is required to conclude a share participation agreement in accordance with Federal Law No. 214.
Insurance includes:
- obtaining a real estate policy against damage and loss of property;
- insurance for the borrower against accidents and illnesses.
Important! Under the family mortgage program, you can purchase not only an apartment in a new building, but also a residential building with a plot of land or premises in a townhouse.
If the mortgage was obtained earlier, then to participate in the preferential program for obtaining a family mortgage, certain conditions must be met:
- At least 6 months must have passed since the loan was received.
- The subsidy is allocated only for real estate purchased in a new building.
- The size of the previously taken loan did not exceed 80% of the cost of housing.
- No restructuring was carried out on the loan taken out.
- The borrower must not have any debts. Overdue payments cannot exceed 30 days.
How to get a preferential mortgage
Obtaining a family mortgage occurs in several stages:
- application form;
- borrower's passport;
- work book and its copy;
- 2-NDFL (for an individual) or tax return (for an individual entrepreneur);
- individual entrepreneur registration document (only for entrepreneurs);
- marriage document;
- certificates for children;
- document confirming the borrower's insurance.
As additional documents, the bank may require a military ID, driver's license or SNILS.
The following documentation must be provided for real estate:
- document on estimated value;
- insurance policy;
- DDU agreement.
The final stage of registration of a mortgage is the conclusion of a mortgage agreement and registration of an apartment or the rights of claim of the shareholder as collateral.
Important! After the grace period ends, the mortgage payment will be calculated at an interest rate that is determined 2 points higher than the one established as the key rate by the Central Bank of the Russian Federation at the time of issuing the loan. For example, if the refinancing rate is 7.5%, then the loan will be reissued after the end of the grace period at 9.5% per annum.
Additional activities to support families with children
Since 01/01/2018, the Government has developed additional measures to support fertility (Federal Law No. 432 of 12/28/2017):
- The deadline for providing maternity capital has been extended until 12/31/2021.
- A new right to use maternal capital funds is being introduced. It is allowed to make monthly contributions to the mother’s card until the child is 1.5 years old. It applies only to those children born after January 1, 2018. Income should not exceed 1.5 subsistence minimum for each family member. You can receive benefits only for 1 year.
- Maternity capital can be used for preschool education immediately after the certificate is issued. There is no need to wait until the child turns 3 years old.
Married couples who meet certain conditions can get a mortgage with an interest rate of 6%, the main of which is the timing of the birth of the 2nd or 3rd child. Within the framework of the mortgage program, you can only purchase standard housing in a new building. Its cost is subject to restrictions established by the Government. A preferential mortgage will significantly save the family budget. Banking organizations will not lose money either. Lost income will be compensated from government funds.
