What is the savings-mortgage system for military personnel?

Rosvoenipoteka: how to register a personal account on the official website

For military personnel, the issue of housing always remains relevant. A military mortgage comes to the rescue, allowing you to have your own home, eliminating the need to rent a dormitory.
To have the right to purchase an apartment, you must register on Rosvoenipoteka, the official website, and draw up a report for the allocation of funds. The response period is regulated by regulatory documents.

How to register on the official website of the Federal State Institution Rosvoenipoteka, enter your Personal Account

The registration procedure is simple and will not take much time. Necessary:

• Go to the “Personal Account” tab, which is located on the right on the main page of the official website, click “Registration”.
• In the window that opens, enter all the requested data and click the active “Register” button.
• Once everything is entered, the registration process will take a few seconds.
• The system will request confirmation by sending a link to the user's mailbox. If the person registering does not have an email address, you must create one. After registration, the options are available to the user on the official website of Rosvoenipoteka.
• Pay attention to the password, it must be unique and contain the required number of characters.

After completing all stages, registration is completed.

How to start using the NIS Member's Personal Account

The government is considering a bill introducing a number of changes to the conditions of the NIS program. According to these amendments, military personnel will be included in the register of participants on a mandatory basis, they will be able to exercise the right to purchase housing only after 10 years of service, and the period of pensionable service will increase from 20 to 25 years. For now, these reforms are only at the discussion stage. In December 2018, a unified standard for providing military mortgages for financial organizations was already adopted, which significantly simplifies the process of obtaining a housing loan (targeted housing loan).

HOW TO BUY HOUSING WITH A MILITARY MORTGAGE FOR NIS PARTICIPANTS

You can receive a certificate giving the right to take out a targeted housing loan three years after joining the program. During this time, an amount accumulates in the beneficiary’s account, which he can use as a down payment to purchase an apartment. It is better to look for housing in advance, since it should appeal not only to the future owner. You will have to take into account the requirements for the purchased object from the insurance company, the Ministry of Defense of the Russian Federation and the bank that issues a military mortgage to the NIS participant.

If a suitable apartment has been selected, the next step is to collect a package of necessary documents and submit an application for consideration to the bank. The lender opens an account to which funds from the personal savings account will be transferred as a down payment. Then, a targeted housing loan agreement is concluded between Rosvoenipoteka, the bank and the applicant.

The last step is to execute the transaction. In this case, it will consist of two stages. The first is the signing of an agreement with the bank for the NIS participant to receive a military mortgage. The second is the execution of a DCP (real estate purchase and sale agreement), if housing is purchased on the secondary market, or a DDU (equity participation agreement), if the selected apartment is located in a new building.

Military mortgage

One of the most common ways for military personnel to purchase their own apartment is through a military mortgage. A mortgage is a targeted loan that is issued against the security of the purchased property. In this case, the main feature of lending is that the down payment for the military is made not by the borrower himself, but by Rosvoenipoteka. Funds are transferred from a special account in the amount accumulated over the years of military service. There are no distinctive features in mortgage lending, but I would like to pay attention to the following subtleties:

1. You need to know that the maximum permissible age of a military person on the date of the last payment should not exceed 45 years, so in most cases the loan term may not be 30 years;
2. Any loan with any bank must be agreed upon with the RVI; it is she who makes the main verdict: transfer funds to the bank or real estate seller;
3. It is not possible to cooperate with all banks, but only with those that have special accreditation to carry out these operations. The list of such banks is not long. But it includes leaders in mortgage lending who work not only in military, but also in general mortgages. These are Sberbank, VTB 24, Gazprombank, etc. These are the leaders of mortgage lending in Russia.

But we remind you that an apartment can be purchased without a mortgage loan. If, for example, a military man serves for 10 years, then during this period he has accumulated enough funds to purchase an apartment using special funds. In this case, he does not go to the bank, but directly to the RVI. The main package of documents is submitted there, and she transfers the funds to the seller of the property.

WHICH BANK TO CHOOSE

Some banks create special conditions for NIS participants under the military mortgage program. For example, an application can be considered using only two documents - an NIS participant certificate and a passport. There are lenders who offer an increased limit when purchasing a home selected by the bank itself. Some banks give borrowers taking out a military mortgage the opportunity to increase the loan term. Although, in general, the conditions for providing a housing loan for military personnel from various lenders are very similar. Interest rates are more favorable compared to mortgages for civilians. The processing time for an application usually lasts from one to ten working days.

Not all Russian banks work with the NIS program. The official military mortgage website has a list of eligible lenders. Here are the main financial institutions that provide loans for military personnel.

What is the Accumulative Mortgage Housing Support System for Military Personnel (NIS) in 2020

The Russian government has developed a program to provide citizens serving under contract with their own housing on preferential terms. It allows a soldier to take out a loan to purchase real estate using public funds. In this article we will understand what the savings-mortgage system for the military is, who can take part in the program and under what conditions they can get housing.

NIS for military personnel, definition of the concept

The savings and mortgage system (SMS) for housing provision for military personnel was founded in 2005. It allows young citizens serving in the RF Armed Forces to buy housing. The NIS participant has the right to choose living space at his own discretion: parameters and location of the property.

To ensure the functioning of the NIS, the “Federal Administration of the Savings and Mortgage System of Housing for Military Personnel” (FGKU “Rosvoenipoteka”) was developed. The main tasks performed by Rosvoenipoteka:

• registration and issuance of documentation;
• informing the population on the official website;
• maintaining a register of participants;
• accounting of money in individual accounts.

How NIS works

The essence of the savings mortgage program for military personnel is as follows:

1. The federal budget allocates funds and sends them to the serviceman’s personal account.
2. 3 years after registration in the program, a military man can use the savings and use them to pay the first installment on a housing loan.
3. Subsequent payments to the bank are made from the budget of the Russian Ministry of Defense.

Savings are generated by monthly transfer of subsidies to the participant’s personal account. The amount of such charges is established by the Government of the Russian Federation and is subject to annual indexation. The annual savings contribution for a military mortgage in 2020 is about 260,000 rubles. To calculate the amount of monthly transfers, you need to divide the annual contribution by 12.

Funds credited to the serviceman’s personal account can be used to purchase housing, both in the primary and secondary real estate markets.

Financing under the NIS may be terminated. This may happen in the following situations:

• after the dismissal of a military man from the RF Armed Forces;
• death of a program participant;
• declaring a serviceman missing in action in court;

In the event of the death of a serviceman, his family members can take away the deceased’s savings. They can also continue to repay their military mortgage using NIS funds.

Important: this program does not provide for the possibility of purchasing a plot of land for subsequent housing construction.

Savings calculation

The calculation of savings for military mortgages is carried out according to the amounts of funds allocated from the budget approved by the government.

The table shows the dynamics of changes in military mortgage savings by year.

How to find out the savings on a military mortgage in order to assess your financial ability to purchase living space?

To assess the possibility of purchasing an apartment with a mortgage loan, you can independently calculate your savings.

To do this, you need to know exactly the month and year of joining the NIS.

Important! For officers who received their first rank after January 2005, entry into the Rosvoenipoteka register is automatic. For ordinary personnel, it is necessary to comply with the following conditions: signing a second contract and submitting a report to the command of the unit.

Let's look at an example.

If a service member enlisted in the armed forces in September 2013, military mortgage accruals by year will be:

2013 222,000 rubles per year/12 months*5 months=92,500 rubles

2014 233,100 rubles

2015 245880 rubles

2016 245880 rubles

The amount accumulated in the individual account is 817,360 rubles.

Important! According to Federal Law No. 117, you can invest NIS amounts in investment funds. Funds are tested for reliability.

For example, in 2014, the percentage of growth in funds from investments in investments ranged from 7 to 9%. Consequently, the annual amount of savings will increase by the amount of these percentages.

This investment method allows you to hedge against rising inflation. Now, you know how to calculate savings on a military mortgage.

How to become a member of NIS

The circle of people who can take part in the program is indicated in No. 117 - Federal Law. According to this regulatory act, graduates of military educational institutions are included in the program automatically after being awarded the first officer rank. Lists of such students are prepared at universities. Other military personnel will need to submit a corresponding report addressed to their immediate commander.

After this, the serviceman is entered into the appropriate register and given a certificate of NIS participant. After which Rosvoenipoteka assigns the participant a unique identification number and opens a personal savings account to which government funds are transferred once a month.

Procedure for opening a personal account for a military personnel

Each participant in the savings mortgage program has the right to receive budget funds from the state allocated for the purchase of residential real estate. The amount of savings is recorded in a personal account and is called a “Savings contribution”. Every serviceman has the right to know how much money has been transferred to him for the entire period of his participation in the NIS. For this purpose, all register participants have a personal savings account, which is a form of analytical accounting. The assigned number does not contain a random set of numbers; certain information is encrypted in each register.

A personal account includes information about all incoming and outgoing transactions, the amount of debt and collateral obligations, and its opening occurs without the participation of a military personnel. The basis is his report for inclusion in the registry, or this process occurs automatically when a military man enters the default mortgage program. The registration number must be entered into the soldier’s personal file.

When and how to use

You can use the funded part of the NIS funds 3 years after the serviceman is included in the program. You can spend your savings:

• For the down payment on a military mortgage;
• To pay monthly payments on a home loan;
• For repairs and finishing of an apartment purchased on the primary market.

The maximum amount of savings under NIS is limited. In 2020, no more than 2.4 million rubles can be used to pay for a military mortgage at the expense of the state. If a citizen lacks these funds, he can make up for the shortage with personal savings.

A military person gains the opportunity to use savings for other needs after 20 years of service. Also, this right arises upon dismissal if the total duration of service is at least 10 years, on the following grounds:

• for health;
• upon reaching the maximum age for military service;
• dismissal due to general education;
• for family reasons.

Information: if a NIS participant buys an apartment not at the place of service, then he retains the right to receive official living space.

How much money is given for a military mortgage loan per month?

The annual state contribution for military mortgages in 2020 is 260,241 rubles. or 21,678 rub. per month. In 2020, this amount was RUB 20,490. The federal law on the federal budget provides for a monthly contribution (payment) for a military mortgage in 2018 at the rate of 22,372 rubles. or 268,465.6 rubles. in year. Initially, with the introduction of the NIS, the amount of annual contributions was much lower.

Let's look at the example of the volume of savings of a military member participating in the NIS as of 12/01/17, if he joined the system in January 2010.

Table of the amount of savings of an NIS participant on a military mortgage.

In addition, the amount of savings of each military personnel is subject to increase due to investment income.

According to official data from Rosvoenipoteka, the return on investing funds of NIS participants averages about 8-9%. The numbers are quite logical, given that 90% of all amounts are invested in bank deposits, and only 10% are invested in higher-yielding securities. This was done to avoid losses from investing at the end of the year. Stocks and bonds do not guarantee returns and carry many risks. For example, 2009 turned out to be unprofitable from an investment point of view due to risky transactions.

If we take an average return of 9%, then the approximate amount (size) of income from investing savings before using a military mortgage from our example would be:

So, from the point of view of purchasing housing, the amount turned out to be quite a decent amount of 2.5 million rubles.

Pros and cons of NIS

The preferential housing program for military personnel is gaining increasing popularity. The savings-mortgage system has its positive and negative aspects:

Accrual conditions

The size of the state subsidy for the military does not depend on rank, length of service, salary, or region. The amount is the same for all participants in the military mortgage.

If the contract is terminated before 10 years of service, the state stops payments. If a serviceman managed to use the mortgage funds and left service, he is obliged to reimburse everything with personal funds.

Changing the rules for creating savings

• Until 2020, personal savings were transferred to the account monthly. The total annual amount provided for by the federal budget was divided into 12 equal parts. A decision was made to make a one-time transfer of savings at the beginning of the year. The date for crediting funds was determined to be the period until March 20 of the current year.
• Since 2020, the amount of savings has been constantly changing, due to inflation. In 2020, the one-time benefit for military mortgages amounted to RUB 268,465.6. In 2020, the amount increased and is equal to 280,009.7 rubles.
• The bonus of innovations is the interest that goes to the military’s personal account from the income on the deposit. The greater the amount of savings, the better the financial situation of the account owner.
• The savings limit for military mortgages increases annually. You can count on this amount when purchasing a home. In 2020, the state assumed the obligation to pay mortgage payments in the amount of up to 2.2 million rubles. In 2020, the limit increased to 2.4 million rubles. This condition does not limit the serviceman’s choice of housing. But if its value exceeds the established limit for a military mortgage, the citizen will have to pay off the difference from his personal income.

Look at the same topic: List of accredited insurance companies for mortgages in VTB 24