Many banks today have changed their policies regarding lending to older people.
Now it has become much more realistic for the latter to get a mortgage loan for a secondary home, an apartment in a new building or the construction of their own country house.
On average, rates on such loans range from 11 to 16%, and the term is 10-20 years, provided that the borrower has collected all the necessary documents and meets the bank’s requirements.
Mortgage conditions for pensioners usually imply a short loan period and compulsory life and health insurance. The process of obtaining a loan follows a standard procedure: filling out an application, collecting documents and checking them, making a decision and issuing a loan.
Conditions for obtaining a mortgage loan for pensioners
The mortgage must be repaid before the borrower reaches a certain age, the level of which banks determine independently.
The loan term approved by the bank is usually no more than 10–15 years.
Russian citizenship and registration in the region where housing is purchased.
Availability of a permanent income - pensions, taking into account government additional payments and wages for working pensioners. A disability or survivor's pension may also be taken into account as income.
Sergey Cheprasov, product manager of the retail lending portfolio development team at MTS Bank, said that pension status itself is not a problem for approving a loan application; when deciding to issue a loan, the bank also takes into account the amount of income and a good credit history.
“At MTS Bank, at the time of repayment of the mortgage loan, the borrower must be no more than 65 years old. For certain categories of clients, the age limit can be increased to 75 years.”
The expert noted that attracting co-borrowers and guarantors, having additional income (deposits, securities) and property that can be the subject of collateral, as well as life and health insurance with a wide range of insured events can increase the chances of obtaining a mortgage loan for older clients.
| Bank | Mortgage rate | Upper age limit | Conditions |
| Sberbank | from 8.5% | 75 years at full maturity | Duration: 1–30 years. Min. amount - 300,000 rubles, but not more than 85% of the value of the purchased property. Down payment - 15–25%. Life insurance or an increase in the mortgage rate by 1%. The spouse is always a co-borrower. |
| Gazprombank | from 8.9% | 75 years at full maturity | Duration: 1–30 years. Min. amount - 100,000 rubles, but not less than 15% of the value of the property. |
| Sovcombank | from 9.89% | 85 years at full maturity | Duration: 3–30 years. Amount from 300,000 rubles. Down payment - from 20% of the value of the purchased property. The borrower's life insurance is required. |
| Rosselkhozbank | from 8.05% depending on the type of property and the amount of the down payment | up to 75 years at the time of full repayment if there is a co-borrower whose age should not exceed 65 years at the time of repayment | Duration: up to 30 years. Amount from 100,000 to 60,000,000 rubles. Down payment - from 15% of the value of the purchased property. Life insurance or an increase in the mortgage rate by 1%. At least 1/2 of the loan term must pass before the borrower turns 65 years old. |
| Alfa Bank | from 8.79% | up to 70 years at the time of full repayment | Duration: 3–30 years. Amount from 600,000 rubles. Down payment - from 20% of the value of the purchased property. Registration in the region is not required. |
| Bank "Revival | from 7.45% | up to 70 years at the time of full repayment | Duration: 3–30 years. Amount from 300,000 rubles. Down payment - from 15% of the value of the purchased property. |
| Post Bank (preferential loan for pensioners in cash for any purpose) | from 7.9% | up to 75 years at the time of full repayment | Duration: 3–5 years. Amount - up to 3,000,000 rubles. Non-targeted loan - no need to report on the purchase of real estate. Compulsory life and health insurance. |
How to take advantage of the benefit if you have additional income
It says that benefits paid to a private individual from budgets of all levels are not subject to income tax. Accordingly, not only pensions, but also unemployment benefits, other required payments (compensations for harm to health, etc.) are not taken into account when it comes to obtaining a tax deduction.
WE RECOMMEND: Loan terms for pensioners at Uralsib Bank
At the same time, no additional requirements for types of income are set. The buyer of an apartment can not only have a salary, but also rent out a garage, sell products from a household plot, and work under GPC contracts. The main requirement is to pay income tax on these amounts.
What factors increase a pensioner’s chances of getting a mortgage?
First you need to submit a standard package of documents:
- passport or other identity document;
- pensioner's ID;
- document confirming income.
As a last resort, the pensioner must submit a certificate of the amount of pension from the social security authorities and a certificate from the place of work. An income certificate is not needed if he takes out a loan from the same bank where he receives his pension and/or salary.
Co-borrower for a pensioner
If a pensioner’s income is small, and the average Russian pension of 15.5 thousand rubles is clearly not enough, then he can invite someone close to him (spouse, children) or acquaintances with a sufficient level of income as a co-borrower. There may be several co-borrowers.
Bank requirements for candidates
The standard requirements of banking organizations are as follows:
- citizenship to the Russian Federation;
- temporary/permanent registration in Russia;
- source of livelihood. The income must be enough to pay the mortgage loan each month. At the same time, the client must have money left over for necessary expenses. If a bank employee determines that the client’s income is only enough for monthly payments, the Russian will receive a refusal.
Just like other clients, older people will need to prepare the following documents to apply for a mortgage:
- Russian passport with registration (preferably at the place of residence, because registration at the place of residence will not suit any financial company);
- certificate of family composition;
- certificate with information about monthly income;
- papers relating to additional collateral;
- papers relating to real estate purchased with a mortgage;
- documents of co-borrowers (if involved).
A Russian who:
owns real estate that can be used as collateral for a mortgage loan;- able to attract a couple of young co-borrowers with a stable income;
- has a good income; may bring papers confirming this;
- has excellent CI;
- issues a loan for a small amount or for a short period.
Banking organizations are more willing to provide mortgage loans to married couples . This is due to the fact that the income of 2 people will always be higher than that of one, even if there are children in the family. Older people usually do not have dependents under 18 years of age. Consequently, married couples are able to repay the loan monthly using part of their own income.
Advantages of a loan for seniors
- low interest rates;
- long lending period;
- various programs;
- stock.
Minuses
- the need to pay for the work of the appraiser;
- the need to pay a fee for creating and maintaining an account;
- huge overpayments in case of delays.
Pensioners, like everyone else, take out a mortgage to improve their living conditions. A mortgage can be provided for the purchase of an apartment, a cottage under construction, or a country house.
Important! Important! To obtain a loan, you must meet certain conditions set by the bank (age, registration, salary).
Are mortgages given to non-working pensioners?
Yes, theoretically this is possible, there are 2 options:
- the pensioner has a high pension, which allows him to “delay” the mortgage payment;
- a pensioner can invite co-borrowers, whose income will be taken into account when calculating the loan and increase the chances of approval of a larger amount.
Anna Milovanova, an expert at the Mortgage Live project, warns that when completing a transaction, an older client will most often be asked for a certificate from a psychoneurological dispensary to confirm his legal capacity. Problems with insurance may also arise; the insurance company often obliges the client to undergo a certain medical examination, which includes a fairly large list of doctors and tests.
The insurer’s right to require a pre-insurance medical examination and/or provision of medical information is also confirmed by Daria Zueva, Ph.D. Sc., Deputy Director of Corporate Sales, Absolut Insurance LLC. However, at the moment, life insurance for a mortgage borrower is not included in the list of mandatory types of insurance for mortgage lending, and the borrower may not enter into such an agreement, the expert notes.
Procedure for applying to the tax office. Mandatory documents
All deductions are of a declarative nature. Inspectors do not monitor transactions. No one will call the buyer and invite him for a deduction. To register you need:
- Purchase residential real estate, register the transaction in the Unified State Register of Real Estate. The latter is a prerequisite. The tax authorities will not accept those who only have DDU;
- Request from the accountant a certificate for the previous year, drawn up in accordance with all the rules;
- Submit your calculations to the Federal Tax Service in advance. Only the required section is filled in;
- Submit an application with attachments to the Federal Tax Service inspector for verification (in person, through a representative by proxy, by registered mail with an inventory). The answer is within 3 months. Only after this can you expect the money to be credited to your current account.
WE RECOMMEND: Mortgage for pensioners: conditions and procedure for registration
Additionally, the Federal Tax Service inspector will request the following documents:
- the applicant's general passport;
- application - it is better to obtain a sample in advance from the Federal Tax Service or download it from the official website;
- pension certificate or certificate from the Pension Fund of the Russian Federation confirming the assignment of a pension;
- marriage certificate;
- extract from the Unified State Register of Real Estate.
If money was borrowed from a bank, you will need:
- contract;
- certificate of actual payment indicating the principal and interest;
- receipts, payment orders;
- payment schedule.
Important! If an apartment is purchased without finishing, the corresponding entry must be in the contract. If it is available, you can add to the cost of housing the costs of laying communications, pouring screed, installing door blocks, etc.
Is it possible for a pensioner to get a mortgage for a home without taking out insurance?
Banks ask for two types of insurance:
1. Insurance of the collateral property against destruction, damage, loss.
Mandatory insurance of real estate pledged to the bank is prescribed in Art. 31 of the Federal Law “On Mortgage” 102-FZ of July 16, 1998. This insurance will have to be taken out in any case.
2. Life and health insurance of the borrower.
This insurance is taken out voluntarily; the bank has no right to demand it. At the same time, for those who do not want to insure life, banks usually tighten the terms of the mortgage, for example, increase the interest rate. Representatives of the insurance industry confirm the need for strict screening measures for an elderly borrower and may require a medical examination or issue an increased insurance coefficient to the pensioner.
