Reduced Interest Rate on Mortgage at Sberbank Upon Birth of 2 Children

How is a Sberbank mortgage written off at the birth of a child in 2020?

A separate category of benefits includes reducing the mortgage to 6% upon the birth of a child. If the second child was born from January 1, 2018 to December 31, 2022, the borrower has the right to reduce the mortgage to 6% per annum for 3 years. In the event of the birth of a third child during the period of validity of the preferential rate, it is extended for another 5 years.

The state provides for this possibility. At the birth of the first and second baby, the subsidy period will be 3 years. If twins are added to a family that already has one child, the period is extended to 5 years.

Family mortgage with state support at 4.5%

Each bank has its own mortgage terms. Somewhere you can take out a mortgage using two documents without proof of income, and the final rate will depend on the loan term, the solvency of the borrower, the availability of personal insurance, and also on the loan amount. Not a single bank discloses complete information about the algorithm for determining the interest rate for a specific borrower.

Which banks have favorable interest rates?

Below we have collected the most favorable interest rates on family mortgages in different banks in Moscow.

On average, the percentage is set at 4.9%. The rate on a family mortgage will not exceed 6% for the entire loan term. This is subject to personal insurance; without a policy, the rate may increase by 1-2%. As a rule, it is more profitable and safer to insure.

Mortgage conditions for families with children

The specific list of conditions is determined by the bank itself, but the general points are as follows:

• down payment – ​​20%, can be paid with maternity capital or your own funds;
• the maximum loan amount (housing may be more expensive) in Moscow, Moscow Region, St. Petersburg and Leningrad Region is 12 million rubles, for the regions the threshold is lower - 6 million;
• maximum term is 30 years.

The apartment purchase agreement (DDU, assignment or DCT) must be concluded after January 1, 2020, however, this rule does not apply to refinancing. The bank may adjust this period.

Read in detail:

Mortgage with state support in 2020: Interest rates of different banks; Requirements for the borrower; Real estate requirements; and other nuances.

Requirements for the borrower

Family mortgage borrowers must meet a number of criteria:

• a second or subsequent child was born in the family between January 1, 2020 and December 31, 2022;
• if this is a married couple, then the marriage may or may not be registered;
• a mortgage is also available to a single parent if all children are registered with him;
• Children must have Russian citizenship, the borrower must have Russian citizenship, as the bank requests;
• The term is determined by the bank, as a rule, the minimum is 20 years, the maximum (at the maturity date) is 75 years.

Additionally, the bank may impose requirements for minimum income or registration in the Russian Federation.

Family mortgage: what kind of housing can you buy?

Family mortgages are issued only for new homes. You can buy a finished or under construction apartment from a developer or owner-legal entity. The secondary market under this program is available only in the Far Eastern Federal District and only in rural areas.

You can significantly reduce the rate on a family mortgage if you buy an apartment from a bank partner. For example, Sberbank in this case will reduce the interest rate for the first two years to 1.2%.

How to take out a family mortgage - procedure

Step-by-step scheme for a family mortgage:

1. Applying for a mortgage begins with submitting an application online or in person at a bank office. You can submit applications to several banks at once to ultimately take advantage of the best offer. Bank approval is valid for up to 90 days.
2. After receiving approval for a mortgage loan, you need to collect the missing documents and organize the main transaction - the purchase and sale of real estate.
   If an apartment is purchased from a bank partner, as a rule, this process is automated. The day of the transaction is set.
3. On the day of the transaction, the borrower personally comes to the bank to sign the purchase and sale agreement and the loan agreement.
4. Documents are submitted to the MFC for registration .
   in some banks this can be done remotely through a manager.
5. After registration, the bank receives information that the right is registered in the name of the borrower, and the encumbrance is in favor of the bank, and transfers the payment amount to the seller.

After all formalities have been resolved, you can begin repaying the mortgage as scheduled.

Required documents for a loan

The borrower will need:

• application according to the bank form;
• your passport and that of your co-borrower;
• marriage certificate, if registered;
• certificates for children;
• income documents: on the right is 2-NDFL, according to the bank form or account statement;
• documents for real estate: extract from the Unified State Register, registration certificate;
• if maternity capital is used: certificate of account balance.

The bank may ask for additional documents if necessary.

Additional expenses

As a rule, the issuance of a mortgage itself is not subject to a commission, but registration will require additional costs:

• personal insurance - approximately 1% of the loan amount, and without it the rate will increase by just 1-2%;
• insurance of the collateral - the mortgaged apartment itself - is mandatory by law;
• state duty for registering the buyer’s rights – 2000 rubles;
• state fees for processing documents in the Unified State Register of Real Estate and at a notary, if necessary;
• ordering an appraiser’s report – from 5,000 rubles;
• secure payments – from 3,000 rubles depending on the type of payment.

Writing off a mortgage at the birth of a child in Sberbank

Using maternity capital for the birth of a second child to pay contributions or interest will require providing the Pension Fund with a copy of the bank agreement indicating the amount of payments. To receive assistance in improving living conditions, you will have to contact the territorial authorities, be recognized as in need of state support and stand in line for a certificate.

The procedure depends on the chosen loan program, the availability and type of government support. After reviewing the information provided by the inspection officer, announcing a positive decision and signing the agreement, a certificate from the state will be required to pay part of the debt through repayment with money from the budget.

Refinancing after the birth of the second and third child at 6 percent in 2019

The maximum period for which the rate can be reduced is 8 years - by 3 years at the birth of a second child during the above period and by five years at the birth of a 3rd child. That is, those who have a second and third child during the program period can count on the maximum benefit period.

We recommend reading: Benefits for young families in Yanao 2019

It is difficult not to get confused in all the changes and additions that the government is making to the Resolution on preferential mortgages at 6% from 2017. Surely, those published on March 28, 2020 are not the last. But at the moment this particular version of the Resolution is in effect. Let us briefly list its main provisions, and then summarize the fundamental differences with previous editions.

Mortgage and the possibility of writing off at the birth of a child

• Adult, capable citizens with natural or officially adopted children;
• Participants in combat operations with a veteran's certificate;
• Individuals with disabilities;
• Families with dependent children with disabilities.

The Government of the Russian Federation has entered into several significant agreements with Sberbank. Thanks to them, young families with children have the opportunity to pay off their home mortgage in a simplified manner and also bear less financial burden.

Mortgage benefits from Sberbank for young families in 2020

1. Preferential conditions for spouses if one of them is under 35 years old (other conditions of the “Mortgages for Young Families” must be met).
2. Possibility to pay off debt with the help of co-borrowers.
3. No commission fees.
4. The opportunity to get a “Momentum” credit card with a limit of 150,000 rubles or a “Classic” credit card - up to 200,000 rubles.

We recommend reading: Benefits for retired Chernobyl victims in Moscow

Sberbank provides young families with a deferment on mortgage payments for a period of 1 to 5 years, depending on the number of children. During this period, the spouses do not make monthly mortgage payments. However, they are required to repay interest on time.

Additional benefits from Sberbank

Sberbank provides its clients with the opportunity to take advantage of additional benefits and programs that can help reduce the final cost of a mortgage loan. Let's take a closer look at them.

“Young Family” program from Sberbank for finished housing

This Sberbank product involves providing young families with special lending conditions, namely reduced interest rates. As part of this promotion, the borrower can purchase ready-made real estate worth over 300 thousand rubles for a period of up to 30 years with an interest rate of 9.1%

Young families typically include families in which one of the spouses is under 35 years of age and is on a waiting list for normalization of living conditions.

Mortgage restructuring during maternity leave

The period of maternity leave is associated with additional material expenses for any family. Therefore, Sberbank accepts applications from existing borrowers to restructure current mortgage debt.

This program, in agreement with the lender, may include:

• provision of credit holidays or deferment of Sberbank mortgages upon the birth of a child;
• increasing the loan term with reducing the monthly payment amount.

In most cases, restructuring a mortgage at Sberbank means paying only interest for the period allowed by the bank. After this period, the client enters the normal schedule and continues repayment as usual.

How to get a mortgage at Sberbank for secondary housing

Let's briefly consider the terms of a secondary housing mortgage. Sberbank, along with standard loans, offers several rather interesting programs. Terms and conditions for basic home loans can be found on the bank's website. And we will talk about the conditions that are most interesting to potential borrowers.

How a mortgage is issued at Sberbank for secondary housing largely depends on the conditions of the specific program. For example, for holders of a maternal or military certificate, the procedure will have its own nuances. Let's consider the process in the general case.

We calculate on our own

To determine your own financial capabilities for obtaining a mortgage from Sberbank upon the birth of 2 children, a financial calculator is available on the bank’s website.

You can use it in four steps:

• in the drop-down menu, select the type of lending - Mortgage with state support for families with children;
• by moving the pointer or manually entering the cost of the loaned object;
• similarly make the down payment amount;
• indicate the loan term.

On the screen on the right you receive information about the loan amount, required income and monthly payment. If the applicant’s information is satisfactory, he can also submit an online application for a Sberbank mortgage for families with 2 children.

Important: the calculation results using the calculator are approximate. Conditions for registration and requirements for the borrower’s solvency are clarified at the bank’s office.

How to get a mortgage at Sberbank for secondary housing

• the minimum age of the client is 21 years, and the maximum is 75 years by the end of the mortgage payment period;
• mortgages are issued only to citizens of the Russian Federation with permanent or temporary registration;
• monthly income must cover all loan servicing costs;
• work experience - 6 months at the current place of work and 1 year - over the last 5 years.

1. The interest rate is 6% during the grace period (3 years after the birth of the second child) and extends to 5 years if the third is born. Thereafter, annual interest payments will be 9.5%.
2. The owner's initial contribution is 20% of the property value.
3. You can only buy an apartment from a developer that has received accreditation from Sberbank.
4. The volume of credit funds is 3-8 million rubles, depending on the region.
5. The purchased property, life and health of the borrower are subject to compulsory insurance.

Reviews

Examples of reviews from citizens who wrote off their Sberbank mortgage:

• Irina, Ulyanovsk: “After the wedding, my husband and I rented an apartment; we didn’t have our own home. At the same time, we got on the waiting list to improve our living conditions and took out a preferential mortgage from Sberbank. After 2 years, the first child was born, the authorities applied to write off part of the loan. Everything was successfully written off (cost 18 sq. m.). Now we are expecting our second child, after the birth we plan to write off another 18 sq.m. All fund transfer operations were carried out in accordance with the designated deadlines, there were no negative aspects.”
• Vladimir, Novosibirsk: “My wife and I did not qualify for the program for young families, since we were already older than the designated age. However, during the period of the birth of the child and maternity leave, they applied for debt restructuring. The application was rejected with the wording that our income did not meet the subsistence level restrictions (by the way, the amount of family income exceeded the double minimum by 1 thousand rubles). No arguments that the loan burden is extremely unbearable with one working spouse helped. We didn't receive any help."

Write-off of a mortgage at Sberbank upon the birth of a child is possible for participants in the program for young families in need of improved housing conditions, as well as for borrowers with an existing social mortgage in a number of Russian regions and for owners of governor’s maternity capital at the birth of a third and subsequent child. In all other cases, clients can take advantage of maternal capital, a family mortgage at 6% per annum and a program to assist borrowers in difficult financial situations.

If you have any questions, we are waiting for you for a free consultation with a lawyer. Sign up through an online consultant on our website.

Writing off mortgage debt from Sberbank after the birth of a child is possible subject to certain conditions. A commercial organization cannot provide free housing to families with children. To help those in need increase their living space and stimulate citizens, budget support programs have been developed. The largest socially responsible financial institution in Russia takes every possible part in them, developing credit products with preferential offers. The work is carried out with the support of the government of the Russian Federation with the aim of helping young parents.

Mortgage upon birth of a child

Changing the terms of a mortgage upon the birth of a second child is only possible if the loan is issued not under a general program, but under one of the state ones. Otherwise, the client can undergo the refinancing procedure, i.e. get a new loan from another institution and use it to pay off the debt. It is better to apply for a new mortgage under the Maternity Capital or Young Family project, which provide the best conditions and are carried out on the basis of the law.

Repayment of the mortgage at the birth of children can be done through government payments intended for the mother to support the baby. As is known, this subsidy only has a clearly defined list of purposes for which it can be spent. Improve living conditions, incl. and for the baby it is one of them. Therefore, money can be used for the following purposes:

We recommend reading: Benefits for the Third Child in 2020 in Moscow

Features of compensation for mortgage loans by the state and banks

The mortgage upon the birth of the first child will not be repaid immediately with budget funds. Mortgage payments from the state reimburse the price of 18 m2 of living space. The subsidy for a mortgage at the birth of a child is calculated based on the cost of 1 m2 of residential real estate. Government assistance in writing off principal debt varies by region.

Regions of the state help young families with the birth of children and large families whenever possible. At the regional level, additional benefits are established for families with many children, and compensation is provided for mortgage loans. Adoptive parents have the right to receive a subsidy to pay off their mortgage. Mortgage benefits for the birth of a child are the same as for adoption.

Mortgage for the 2nd and 3rd child at 6% in 2020 - conditions for obtaining

If a mortgage was obtained earlier, at a standard interest rate for young families, and a second (third) child is born, then you can submit birth certificates to Sberbank. The bank will refinance the existing mortgage at 6% per year.

According to the terms of subsidies for the 2nd and 3rd children, preferential lending (and refinancing of existing ones) is limited to 3 and 5 years. Subsequent payments will be calculated according to the bank's general lending terms . It is possible that the program will be extended in the future.

Children's mortgage at 6% from Sberbank in 2020

• Tax return;
• Certificate of state registration of individual entrepreneurs. For a lawyer - a lawyer's certificate. For a notary - an order of appointment to a position (scan or photo of the original or a notarized copy);
• License if available (scan/photo of original or notarized copy).

1. Passport (copy of all pages)
2. Work record book (a copy certified by the employer with the note “currently working”)
3. Certificate 2-NDFL (for the last 6 months) with accruals for the last full month
4. Marriage certificate (copy)
5. Application form for a loan secured by purchased housing
6. Plus original birth certificates for all children.

Mortgage 6 percent at the birth of 2 and 3 children

From January 1, 2020, families in which a second or third child is born can count on state subsidies for mortgage interest rates in excess of 6% per annum. The benefit applies only to those who want to purchase housing on the primary market or refinance a previously taken out mortgage loan, but also only to new buildings.

For a second child, parents can count on a subsidized rate in excess of 6 percent per annum for 3 years after the birth of the child. For the third child, assistance will be provided for 5 years from the date of registration of the mortgage or loan refinancing.

Programs from Sberbank

Sberbank offers four options for solving problems with payments:

1. Providing a deferment on a mortgage upon the birth of a child or a credit holiday for up to 24 months.
2. Write-off of up to 10% of the remaining debt. In this case, the subsidy for an apartment is limited to 600 thousand.
3. Reduced monthly payments for 1.5 years.
4. Debt restructuring.

The bank independently determines the option of assistance to the borrower, considering each specific case personally.

Refinancing an existing mortgage

Mortgage refinancing is an opportunity to reduce the interest rate on a loan, significantly reducing overpayments. The procedure boils down to refinancing a loan from another bank at a more favorable interest rate.

The refinancing service is also available at Sberbank:

Repayment of part of the mortgage within the framework of an existing project

The right to receive government subsidies is granted to all citizens of the country if they meet basic requirements.

The birth of the first child, second and third children - we refinance the mortgage

If this bank for some reason refuses to refinance, you can contact another credit institution that has this service. This bank will cover the debt under the previous agreement and enter into a new agreement with the client on more favorable terms. In this case, the new creditor will have the collateral and rights to it.

For example, some banks reinvest only those loans that were issued in January 2020. DOM.RF refinances loans issued before the launch of the refinancing program at 6 percent. In addition, in DOM.RF you can refinance your mortgage even after paying part of it with maternity capital.

Mortgage calculator for finished housing from Sberbank

• Go to the main page of the company’s website (link is given here);
• Hover your cursor over the “Take a loan” section
• In the list, find the “For housing” tab and click on the link “Purchase of finished housing”;
• Read the program description and fill in the blanks on the calculator.

Important: you can buy real estate only in economy class, for the regions the cost is limited to 6 million rubles, for Moscow, Moscow Region, St. Petersburg and the Leningrad Region - 12 million rubles. A down payment of 20% and personal comprehensive insurance are required.

The sequence of obtaining a mortgage and how much it costs

Sberbank mortgages for families with two children are issued in the following sequence:

• get acquainted with the bank’s requirements and the list of documents, and preliminarily calculate their own solvency. If necessary, contact the office for advice;
• collect a package of documents and submit an application;
• await the decision of the credit committee, and if the application is approved, they select a property;
• The purchase and sale transaction is concluded and registered, after which the funds are transferred to the seller.

It is safe for the borrower to electronically register the purchase and sale transaction, which is offered by Sberbank.

Most related services when applying for a mortgage with Sberbank with 2 children are free. But, nevertheless, there are costs. What you will have to pay one-time:

• when purchasing finished housing, an apartment appraisal service;
• for registration of a transaction - the state duty established by law. If a client registers a purchase and sale through the Sberbank service, this is also a paid service;
• notary expenses are also associated with the purchase of real estate;
• intermediary services - real estate companies, mortgage brokers. You can save money on this article if you choose an apartment using DomClick and arrange a mortgage yourself;
• payment for the rental of a safe deposit box, if a letter of credit form of payment is provided.

Recommended article: Family mortgage from Sberbank in 2020

There will also be systematic (annual) expenses for a mortgage loan:

• collateral insurance and personal insurance. The amount of the insurance premium for a property is set as a percentage of its value. Life and health insurance of the borrower - in a fixed amount. Costs can be significant, but taking out insurance contributes to a percentage reduction on a Sberbank mortgage with 2 children;
• If you purchase housing under construction, bank specialists conduct an annual inspection of the collateral, for which you will have to pay a commission.