Mortgage with state support implies a reduced interest rate. If the standard conditions in many banks, including VTB 24, for a mortgage can be found with an annual rate of 14%, then under this program interest is paid by the state. Such a loan agreement will be at a rate of 11.9%. It is necessary to fulfill a number of requirements and prepare a number of documents, which will be discussed in this article. So what is VTB 24 mortgage with state support?
Conditions and requirements for borrowers
It is not a secret for anyone that banking activities are associated with certain risks. It is important for banks not only to ensure that the borrower repays the loan on time, but also to leave a positive impression of himself and at the same time attract new customers. Each banking structure defines its own risk culture framework. Thus, VTB 24 protects its interests, putting forward a number of requirements for the borrower. On a mortgage in this bank can expect:
- Citizens with registration of the Russian Federation in any region. If you live in one locality, and wish to arrange a mortgage in another region, this will not be an obstacle for you. Enough to contact any office of the bank for registration of a mortgage.
- Citizens engaged in any kind of activity. Mortgage in VTB 24 is open for both civil servants and ordinary wage workers and business owners.
- It is also not necessary to be a citizen of Russia. Mortgage can issue a foreigner, as well as a person who does not have citizenship.
The basic requirements of VTB 24 are as follows:
- The work experience on the work record should exceed 1 year. And it is necessary to work at the current enterprise for at least 6 months. Sometimes the bank goes to meet and you reduce this period to one month. The bank reserves the right to refuse to loan if the stability of the client’s income raises doubts about it.
- You can apply for a mortgage from the age of 21 to 60 years. At the same time at the time of closing the contract the borrower should be more than 75 years.
- Income must be stable and sufficient for monthly payments. It is necessary to focus on a monthly payment of 40% of monthly income.
To increase the monthly payment you can attract up to 3 guarantors from among relatives. In this case, the spouse is necessarily included in this number.
VTB 24 offers mortgage with state support at an interest rate of 11.9% per annum. This is quite a profitable offer given the fact that the Central Bank of the Russian Federation has established a key rate of 10.5%. In order to rely on such conditions, you will have to choose a new building or ready housing from among the accredited developers of the bank. Their list is available on the VTB 24 website or by contacting the sales office.
Also it is necessary to take into account that preferential terms imply comprehensive insurance. In addition to compulsory property insurance, you will need to issue additional title insurance and life insurance of the borrower, which will be discussed below.
What is state support from VTB 24?
In addition to the reduced interest rate, mortgage under the state program has several advantages. First, the borrower has the right to use the parent’s capital as a partial early repayment or as a down payment. If you have maternity capital available and its amount has not been spent, then when you make a mortgage, additionally provide a certificate from the Pension Fund of the Russian Federation in the state of maternity capital. Thus, you can use this money as a down payment, which will reduce the overpayment of the loan agreement, as well as reduce the amount of your monthly payment.
The same procedure can be done in the event that the maternity capital you have already formed is a mortgage payment campaign. In this case, it can be implemented at a relatively early repayment. It is also necessary to provide a certificate from the Pension Fund of the Russian Federation and write an application for the use of funds as an early repayment at a bank branch.
Secondly, each borrower, acquiring real estate, has the right to a tax deduction. The size of such a deduction can reach up to 650,000 rubles. The state compensates for the cost of acquiring real estate, freeing you from paying income tax in the amount of 13% of your salary.
There are different ways of obtaining these funds, one of which is to write an application to the accounting department at the place of work. From the moment such an application is received, the employer will no longer withhold tax at a rate of 13%, paying you a salary in full. But you should first contact the local tax office for the provision of a package of documents and writing the appropriate application.
We would like to draw your attention to the fact that in order to make a partial early repayment under a loan agreement, you should contact the bank office for processing the relevant application.
Step-by-Step Mortgage Process
To get a mortgage in VTB 24, we recommend that you first read the terms and conditions of the bank and thoroughly study the general terms and conditions of the agreement, which are publicly available on the bank’s website. Then you can follow the following instructions:
- Make an online application for a loan or contact the bank office with the documents.
- Wait for the bank to answer about the possibility of a loan. The answer will come in the form of SMS-notifications. It usually takes up to 4 business days. And the offer itself is relevant to 4 months.
- Choose an apartment from the list of developers located on the bank’s website.
- Contact the bank to complete the transaction.
For mortgage on more favorable terms, you must provide a full list of documents, which include:
- military ID;
- tax certificate for the past year;
- the passport of a citizen of the Russian Federation (its copy) and a foreign passport for foreigners;
- a copy of the work book with a seal from the employer;
- the employment contract in the original and a copy, if there is additional part-time work;
- certificate of Unified State Register for own business owners who are legal entities;
- SNILS or TIN;
- certificate from the accounting with the size of the salary.
Additionally, VTB 24 may request a number of documents, the presence of which is better taken care of in advance:
- Information about the parameters of the loan, if there are valid credit agreements. Or a credit closing certificate, if the Credit Bureau indicates that the loan agreement is valid.
- Certificate of temporary registration, if the borrower does not live at the place of residence, but, for example, in another region.
- Diploma of education.
- Information about the availability of property in the form of real estate or transport.
If it is not possible to prepare such a list of documents, this does not mean that the bank will refuse your mortgage, but the conditions will be much tougher, which will lead to increased overpayment and increased monthly payment. But you can issue a contract with just two documents that would certify your identity, such as the passport and driver’s license.
The bank also requires a statement of accounts opened with third-party banking organizations in order to verify your solvency.
The Bank, in order to fully protect its interests, offers its clients comprehensive insurance. Without this type of insurance, the percentage of the loan agreement will be higher. You should also understand that the term of insurance must correspond to the term of the loan agreement, ie, you will need to deal with the prolongation of insurance contracts on an annual basis. Recall that only a contract for property insurance is required. And the bank does not have the right to impose other types of insurance in accordance with the law on consumer protection.
Offering one service, in this case a mortgage, the bank can not necessarily force you to issue an insurance contract. The insurance contract is voluntary, but after the documents are signed, the rights and obligations of both come into force, and in such cases the possibility to withdraw from the insurance contract should be clarified from the policy or general insurance rules.
Comprehensive insurance includes:
- Property insurance. Mandatory condition under federal law.
- Title insurance. Insurance of property rights in case of loss of rights due to illegal registration of real estate. The contract is for 3 years.
- Life and health insurance of the borrower. Insurance events are the assignment of disability of the first and second groups, as well as cases of death of insured persons.
Without comprehensive insurance, as well as in the case of early termination of insurance contracts, the interest rate on the mortgage is automatically increased.
How to calculate a mortgage loan?
On its website, VTB 24 provides an online calculator with which you can perform an automatic calculation. The maximum amount of the mortgage does not exceed 30 million rubles with an initial contribution of 20%. In this case, the contract can be issued for 30 years. The rate of 11.9% per annum is issued only on condition of comprehensive insurance. There is no moratorium on early repayment, as well as any commission.
The bank offers to calculate the amount either depending on the monthly payment, or on the value of the apartment. For example, take a property worth 3.3 million rubles for a period of 15 years. Having issued a comprehensive insurance and fulfilling the conditions for all necessary documents, the interest rate will be 11.9%. The initial payment will be equal to 660 000 rubles.