Preferential mortgage program in the Far East

Back in September, Russian President Vladimir Putin announced the launch of a mortgage lending program for young families in the Far East at 2% per annum. The program has already started successfully, as noted at Vladimir Putin’s traditional New Year’s press conference.

The issue of preferential mortgages has been raised several times. Residents of Siberia are interested in the prospects for expanding this program to other regions.

The Russian head of state noted at a press conference that state support measures for preferential housing loans to families with children, introduced for residents of the Far East, can be extended to the Trans-Ural regions.

— We will now extend some of the support measures in the field of demography to the Trans-Urals. This concerns support for families with children, especially those in which a third child appears.

As for other support measures, including a two percent mortgage, in principle, all this is possible.

But we need to see how this will go in the Far East, how much the mortgage will cost, how many people will apply, calculate the budget and make further decisions with a clear eye,” said Vladimir Putin.

He also added that support measures were taken in the Far East, since depopulation is occurring fastest in this region. Therefore, the Far Eastern hectare is given not only to residents of the region, but also to those who want to move there.

“However, there are problems with the program; there is a lack of infrastructure somewhere. First we need to establish the Far Eastern hectare, and then move on to other regions. We need to implement plans step by step, ” said the Russian leader.

In turn, residents of the Far East fear that banks will refuse to issue housing loans. However, Putin assured that they would not refuse residents.

- We subsidize this from the budget. This will not cause them any losses. This is a guarantee from the state, ” the president said.

Let us recall that in December, Prime Minister Dmitry Medvedev signed a program of preferential mortgages at 2% for young families in the Far East. The preferential rate will be valid for five years and will apply only to young families.

Borrowers can be spouses no older than 35 years of age purchasing real estate in the Far East, as well as single parents with a child under 18 years of age.

It is worth noting that there are no age restrictions for hectare recipients.

The preferential loan applies to the purchase of an apartment in a new building or the purchase of ready-made housing from a developer in the Far Eastern Federal District.

Who will get a home loan at the lowest rate?

This is not the kind of government support that is given to young families in all regions, and not preferential mortgages for families with children. Here is a complete breakdown of the new program.

This is a new state support program under which you can take out a mortgage at 2%, but only for the purchase of housing in the Far East. The program is officially called “Far Eastern Mortgage”.

There has never been a program with state support for mortgages on such terms before. These are not changes to other types of state support, but a separate new document with its own conditions. The resolution has already entered into force, money has been allocated from the budget.

But in return it will force you to live in it.

Borrowers under a preferential mortgage agreement can only be people no older than 35 years:

1. spouses with or without children. A young family in which each spouse is under 36 years of age can take out a mortgage at 2%. Moreover, they may have one child or no children at all;
2. single parent with a child. Mom or dad must be no more than 35 years old. There can be one child, but must be under 18 years of age. It is important that the parent is not legally married;
3. owner of a Far Eastern hectare. For those who received a free plot in the Far East, there are no age requirements, but if there is a spouse, he must become a co-borrower or guarantor.

Unlike a family mortgage, this program has an age limit, but it is not necessary to have children. If you have children and the spouses are over 35 years old, you can use another type of government support and take out a mortgage at 5%. This will be a different program; they operate in parallel, without replacing or canceling each other.

Mortgages at 2% will not be given for any housing, but only for those properties that are located in any region of the Far Eastern Federal District.

Here are the requirements the property must meet for the family to receive the benefit:

1. apartment from the developer under the DDU or purchase and sale agreement. It can be in a house under construction or already commissioned. The seller is only a legal entity;
2. apartment or house on the secondary market in a rural area. If housing is located in a rural settlement, it can be purchased from an individual;
3. building a house or buying a plot. The objects must be located in the Far East, the purpose of the site is individual housing construction or personal subsidiary plot.

Far Eastern mortgages will be given for a period of up to 20 years. The limit on the amount is up to 6 million rubles. This is not the price of the apartment, but the size of the loan. You can add your own money, take 6 million rubles from the bank and build a house, for example, for 8 million.

A loan with state support will not give the entire amount, but only 80% of the cost of housing. That is, you need to contribute 20%. For example, to buy an apartment for 2.5 million rubles, a family must save 500 thousand.

Under the terms of state support, up to 6 million rubles can be borrowed at 2% per annum. The payment on a loan of 2 million rubles for 20 years will be 10 thousand rubles. Under the family mortgage program, you would have to pay 14 thousand a month.

Savings on interest over the entire period are more than a million rubles. And compared to the regular rate, you will be able to save almost 2 million rubles. The bank will still receive this money: the state will pay it for the borrower.

But the bank can increase the rate in the following cases:

1. when issuing a loan, a pledge has not yet been issued or the right of claim under the DDU has not yet been registered;
2. the borrower or co-borrower has already taken out a mortgage under this program;
3. the borrower did not insure life, health and housing. Or does not comply with the terms of the insurance. In such cases, the rate may increase by 1%;
4. The family does not have permanent registration in this housing. Due to registration, the cost of the loan may rise to the Central Bank rate increased by 4%. In December 2019, this was 10.5% per annum - more expensive than a mortgage without government support.

We analyze complex situations with the purchase and sale of housing, talk about the laws that affect property owners

When a family takes out a loan under this program, they must report their place of registration. In other words, confirm your registration. Both borrowers and co-borrowers must comply with this requirement.

Moreover, you need to register in the purchased apartment or built house. This means that the family does not just buy an apartment in Khabarovsk or Magadan, but moves there to live. Or at least registers there at the place of residence. Having a Moscow residence permit and using government support to invest in real estate in Kamchatka will not work.

But you can register in the Far East and live in Moscow. Freedom of movement and temporary registration have not been canceled. Or you can buy an apartment in Khabarovsk for a child, and the family will stay in a small town where they have a house.

Banks will make requests to Dom-rf: this organization is responsible for the program and distributes the money. So you won’t be able to hide your participation in a Far Eastern mortgage, even if you try to take out a second loan from another bank.

The state subsidizes the interest rate on mortgages taken out from December 1, 2019 to December 31, 2024. The contract must be in rubles.

It is not possible to refinance an old mortgage under this program. But in a family mortgage there is such a condition - and you can reduce the rate even on old loans.

The subsidy from the budget is allocated not to the borrower, but to the bank. The state compensates the lender for the difference between the regular and preferential rates. At the same time, there are many requirements for banks that not everyone will want to comply with.

Issuing a mortgage with state support is the right, not the obligation of the bank. He will check the reliability and solvency of the borrowers, evaluate the credit history, request a certificate of income and documents for the apartment. Although the program is already formally operational, banks still need to prepare for it.

Most likely, applications for Far Eastern mortgages will begin to be accepted in 2020. There are rumors that someone has already received a preferential mortgage almost the next day after the publication of the resolution.

It is not clear how this could happen: in order to receive subsidies, banks must undergo verification, submit applications and wait for the money to be distributed.

A 2% mortgage can help families save a lot of money. For some, this is the only opportunity to buy their own home.

Perhaps someone will decide to move from a neighboring region, or a young family will buy an apartment in Khabarovsk and not leave for Moscow.

In total, they plan to issue 450 billion rubles in loans under this program. If you also want a mortgage at 2%, read how life is in the Far East:

• In Vladivostok
• In Khabarovsk
• In Yuzhno-Sakhalinsk

Primorye became the leader in the number of concluded agreements for the issuance of preferential mortgages at 2%

TASS, January 20. Banks entered into 440 agreements with residents of the Far East to issue preferential mortgages at 2% per annum during the month and a half of the program.

The leaders in the number of applications were Primorye, Khabarovsk Territory and Yakutia, accounting for 75% of concluded contracts, the Agency for Human Capital Development in the Far East and Arctic (ARCHK) said in a statement published on Monday.

Russian President Vladimir Putin announced the introduction of preferential mortgages for residents of the Far East in September 2019 at the Eastern Economic Forum (EEF).

The program allows young families and participants of the Far Eastern Hectare program to receive a loan of no more than 6 million rubles at a rate of 2% per annum for a period of up to 20 years.

The measure is needed in order to attract young people to the Far East, where there is a difficult situation with young and qualified personnel.

“As of January 20, according to ARCHK, 440 loan agreements were concluded for a total amount of 1.55 billion rubles. The average loan amount is 3.53 million rubles.

Three subjects—Primorsky Territory, Khabarovsk Territory, and the Republic of Sakha (Yakutia)—account for about 75% of the concluded agreements,” the report says.

TASS explained to ARCHK that the leader in the number of concluded agreements was Primorye, Khabarovsk Territory was in second place, and Yakutia was in third place. The number of agreements for each region is not specified.

Already, approval has been received for every second of the submitted applications; a fairly large part of the applications is still under consideration by banks,” the head of ARCHK Sergei Khovrat is quoted in the message.

Currently, seven banks accept applications for a mortgage to purchase an apartment, and three banks accept applications for the construction of a house on the issued “Far Eastern hectare”. A total of 14 banks will participate in the program: seven more are finishing up their products and plan to present them by the end of February 2020.

On December 9, 2019, Russian Prime Minister Dmitry Medvedev announced that he had signed a preferential mortgage program for residents of the Far East.

In each region of the Far East there are at least three banks that are ready to accept applications for mortgages at 2%. The program is expected to issue about 147 thousand.

loans totaling up to 450 billion rubles. You can receive such a loan once.

The top 6 regions by the number of concluded agreements under the Far Eastern Mortgage program have been named

Primorsky Territory, Khabarovsk Territory, the Republic of Sakha (Yakutia), the Republic of Buryatia, the Sakhalin Region and the Trans-Baikal Territory are leaders in the number of concluded agreements within the framework of the Far Eastern Mortgage program.

In total, as of January 20, according to the Agency for the Development of Human Capital in the Far East, 440 loan agreements were concluded for a total amount of 1.55 billion rubles. The average loan amount is 3.53 million rubles.

“Far Eastern Mortgage” was launched a month and a half ago, at this stage we can talk about the first results. Three subjects - Primorsky Territory, Khabarovsk Territory, and the Republic of Sakha (Yakutia) - account for about 75% of concluded agreements.

The total number of accepted applications for all 11 regions reaches 4.5 thousand, which indicates the high demand for the loan product.

Currently, 7 banks are accepting applications for mortgages to purchase an apartment. These are banks such as DOM.RF Bank, PJSC Asian-Pacific Bank, PJSC VTB, PJSC SBERBANK, JSC Gazprombank, PJSC Far Eastern Bank, JSCB Almazergienbank.

You can now apply for a loan for individual housing construction in three banks: DOM.RF Bank, PJSC SBERBANK, PJSC Far Eastern Bank.

The total number of banks participating in the program will be 14 banks: seven more banks are finishing the development of their products and plan to offer them to interested citizens starting in February 2020.

“The first results of the Far Eastern Mortgage program indicate a good start: high demand from Far Eastern residents, prompt work of banks in preparing a loan product. Now it is important to increase the pace of lending, involving new banks, to ensure, with the support of regional authorities, an increase in the supply of housing in the Far Eastern Federal District market.

The first recipients of the loan are young families, families with children who, thanks to the new loan product provided with the support of the Government, were able to purchase housing or improve their living conditions. This is what people need, this is support and an additional incentive to live in the region, not to be afraid to start a family,” the acting deputy emphasized.

Minister for Development of the Far East and Arctic Alexander Kozlov.

Far Eastern Mortgage is a preferential lending program for young families in the Far East and recipients of land under the Far Eastern Hectare program for individual housing construction. A mortgage can be obtained for a period of up to 20 years at a rate of 2% per annum, the maximum loan size reaches 6 million rubles.

“Far Eastern mortgage”: what restrictions and risks you need to know about - Vladivostok News on VL.ru

During the first days of the Far Eastern Mortgage, the hotline received more than 2,600 calls with questions about the terms of the program. Preferential mortgages, indeed, allow significant savings, but not for everyone, but only for strictly defined categories of Far Eastern residents. VL.ru understood all the intricacies and pitfalls of the new program.

Let us remind you that Prime Minister Dmitry Medvedev signed a decree on mortgages in the Far East at 2% per annum on Friday, December 7. The program will be valid until December 31, 2024. As part of the program, it is planned to issue loans totaling up to 450 billion rubles (about 147,000 loans).

“Far Eastern mortgage” is really cheaper? The terms of the program are significantly better than the market average: the interest rate is 2% per annum, the minimum down payment is 20% of the property value. The maximum loan term is 20 years, and the minimum is three years. Loan amount – up to 6 million rubles. A mortgage at a preferential interest rate can be issued until 2024. Taking into account the difference in rates, savings could amount to several million rubles. For example, a young family buys housing in a house under construction for 5.5 million rubles. Over 15 years, under the “Far Eastern Mortgage” at 2%, they will overpay five times less than under the regular program with an average market rate of 9% per annum. Loan parameters “Far Eastern mortgage”, rate 2% per annum Average market rate, 9% per annum An initial fee 1.1 million rubles Amount of credit 4.4 million rubles Credit term 15 years (180 months) Monthly payment RUB 28,314 RUB 44,628 Overpayment on loan RUB 696,546 RUB 3,632,460

Who will be given such a loan? The program has two main categories. The first is for married couples, where the age of both spouses is up to 35 years inclusive. In this case, they do not ask how long they have been married, even yesterday from the registry office. Having children is not necessary. The second is single parents, also no older than 35 years old, but always with a child under 18 years old inclusive. Several more conditions must be met: – in all cases, Russian citizenship is mandatory; – within nine months after registration of ownership, you will need to register in a new apartment or house. You will need to maintain your registration for at least five years from the date the loan was issued. Otherwise, the bank may increase the interest rate to the market level; – it will be possible to buy an apartment only in new buildings – either under construction or already completed. That is, you need to purchase housing from construction companies (more precisely, from legal entities, but not from management companies); – you can build a house or buy an apartment only in the regions of the Far Eastern Federal District.

Is it possible to buy an apartment on the secondary market? A “resale” property in an apartment building or a detached private house can only be purchased in rural areas. In this case, the seller can also be a private person. Banks are already compiling lists of rural settlements in Primorye, and they do not include the villages of Pogranichny, Kavalerovo, Olga, but there are the villages of Galenki, Krasny Yar, Pokrovka, Yasnoye, Khorol, Chuguevka.

Can entrepreneurs and seafarers operating under a foreign flag also participate? Regional banks, which have already begun accepting applications for Far Eastern mortgages, note that business owners, individual entrepreneurs and even sailors working under a foreign flag will also be able to take advantage of the loan at 2%. Naturally, taking into account age or the presence of a Far Eastern hectare. But the down payment for such categories will be 35%.

Can I use this program to refinance my existing mortgage? No, the program does not provide for refinancing of previously received housing loans. Moreover, you can use a Far Eastern mortgage only once in your life.

owners  of a Far Eastern hectare receive a mortgage on general terms? Yes, but for owners of a Far Eastern hectare the 35-year limit does not apply. True, the legislator notes that the spouse must be co-borrowers of such a mortgage loan. Program participants will be able to build a house on their land, which must have the type of permitted use “For individual housing construction” and/or “For personal farming” (garden plot). By the way, half of the recipients of the “Far Eastern hectare” have not yet decided on the type of use of the land. In total, 75,127 Russians took advantage of the simplified procedure for obtaining a land plot in the Far Eastern Federal District, of which 85% are Far Eastern residents, 15% are residents of other regions of Russia.

Could the interest rate on Far Eastern mortgages rise? Banks may increase the rate, for example, if the borrower refuses to take out personal insurance. But there are other pitfalls associated with the Far Eastern mortgage mechanism. The bank issues a loan for the purchase of a new building at 2%. Then the bank submits documents to the operator of the DOM.RF program, and he monthly compensates the credit institution for the lost interest (the difference between the market rate and the preferential one). If at some point the operator stops compensating the difference in interest, the bank will be forced to raise the rate for the borrower. The program contains a clause that the 2% rate can be increased unilaterally in several cases. Firstly, if the client has already purchased a new building with a mortgage with government support. It is still unclear who will be able to track this and at what stage. As a result, if you are just such a buyer, then one day it may turn out that your rate has been raised. And it’s good if they don’t ask you to compensate the interest for the entire previous term. Secondly, starting from the 271st day (this is exactly what is written in the program) and until the expiration of five years from the date of issuance of such a loan, the operator of the DOM.RF program must be sure that you live there (or are at least registered at your place of residence). He should have this information at the end of each pay month. How this will be monitored is still unknown.

Can maternity capital be used for a down payment? Regional banks stated that they are ready to work with maternity capital (MSC) as a down payment on a Far Eastern mortgage. According to Primorye banks, MSK covers only 10% of the down payment, which Primorye families usually use for a mortgage. For 2020, the amount of maternity capital will be 466,617 rubles. Since the beginning of 2019, the Pension Fund has allocated 1.4 billion rubles to repay the traditional mortgages of 3,159 Primorye residents. Director of the City Real Estate Center Sergei Kosikov notes that the program allows you to use maternity capital both to pay off a mortgage and as a down payment. You can also receive additional payments for a third child to pay off the mortgage. For their part, a number of commercial banks saw obstacles to the use of maternity capital. From their point of view, it can only be used to repay part of the debt under an already existing loan agreement. Some experts believe that developers will find it difficult to agree to wait for MSK, much less at 2%, and call this scheme unworkable. As a rule, after registering the right to a transaction, the Pension Fund of the Russian Federation transfers capital to the seller or developer within one and a half to two months, and only then the bank transfers the capital into credit. On the other hand, the Pension Fund clearly states that funds are transferred after 10 days. So the question remains open, and the possibility of using maternity capital for a down payment must be clarified with each individual bank.

Is it worth taking out investment housing under the Far Eastern Mortgage program? For investors, preferential mortgages are not an option today, although they are interested in such an opportunity. “We have already decided that it is not profitable for an investor to use such a program,” says Sergei Kosikov. — Firstly, a Far Eastern mortgage, unlike a traditional one, can only be used once in a lifetime. Secondly, you can take out such a loan if the buyer has not previously received a mortgage with government support. And we remember that several years ago these loans were popular among buyers of new buildings. Thirdly, at 2% it is profitable to buy an expensive apartment with the expectation of paying for a fairly long period. If you plan to simply invest money in a new building and sell it after the house is commissioned or pay off your mortgage early, then the difference in the overpayment on a regular loan and on such a special program will be very insignificant.”

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Source: https://www.newsvl.ru/vlad/2019/12/16/186235/

"Far Eastern mortgage" in Kamchatka. Everything you need to know about the program: news agency “Kam 24”

Sberbank in Kamchatka began issuing loans under the Far Eastern Mortgage program at 2%.

The maximum mortgage term will be 20 years, the amount will be up to 6 million rubles, and the down payment amount will be 20%. We tell you what you need to know about a preferential housing loan and how to get a “two percent mortgage” without leaving your home.

Who can get a Far Eastern mortgage?

A housing loan at a preferential rate is available to families where the age of both spouses does not exceed 35 years inclusive, or a single-parent family with one parent not older than 35 years old with a minor child. Many Far Eastern residents expressed concern that the program would be available only to low-income families. It is a myth.

A subsidized mortgage is available to everyone who meets the selection criteria and meets the general requirements for issuing housing loans by the bank. According to the Plenipotentiary Representative of the President of the Russian Federation in the Far East, Yuri Trutnev, when calculating the program, the average monthly income for a family of two working spouses was taken as a basis of at least 55.5 thousand rubles.

48% of young families in the federal district fall under this criterion.

“The launch of such a program is a serious help for young families of the Kamchatka Territory. I am sure that it will be in demand among Sberbank clients in our region and thanks to it, many families will be able to find their own housing,” emphasized Sergey Latyshev, .

What can you get a “2 percent mortgage” for?

You can get a mortgage at a subsidized rate for housing under construction or finished housing in new buildings. The loan can also be used to purchase a private house or land for housing construction. In rural areas, given the small volume of construction, it is possible to purchase housing on the secondary market.

A prerequisite for a “Far Eastern mortgage” is registration in the purchased property. You must register within 9 months after registration of ownership and remain registered for 5 years from the date the loan was issued. Under this condition of registration in the Far East, young families from other regions of Russia can also apply for a mortgage.

The program also provides for the possibility of expanding housing. For example, the down payment could be maternity capital for the birth of a second and subsequent child.

How can I apply?

Clients can choose an apartment, submit documents and get approval at the Sberbank office or online - on the website www.domclick.ru or using the DomClick mobile application. The review process will take no more than 8 working days.

“Sberbank tried to make the product as convenient as possible, making it available to apply for a preferential mortgage online through the DomClick service.” Thus, our clients can apply for a loan without leaving home. At the same time, when submitting an application through DomClick, an online consultant helps clients.

He will tell you what documents need to be uploaded, how to fill them out correctly, and will also help you send the application to the bank.

After the decision is made, you will be accompanied by a group of managers who will answer any questions regarding your application,” said Sergey Latyshev , manager of the Kamchatka branch of Sberbank PJSC.

And if you receive your salary on a Sberbank card, you only need a passport and card number. If you work officially, but are not a salary client of Sberbank, also your SNILS number. If you can confirm your income: 2-NDFL certificate for the last 6 months or a certificate in the bank form. If your situation is different, you can consult your bank.

General license of the Bank of Russia for banking operations No. 1481.

LLC "CNS", Russia, Moscow, 121170, Kutuzovsky prospect, 32 k. 1, OGRN 1157746652150, INN 7736249247

Official websites of the bank: www.sberbank.com (Sberbank Group website), www.sberbank.ru.

Banks assessed the demand for Far Eastern mortgages

Russian banks participating in the state program of preferential mortgages in the Far Eastern Federal District have approved about 1.7 thousand applications for such loans. This was reported on Thursday by DOM.RF, the operator of the program.

The program has been in effect since December 9, 2019, and the list of creditors includes 14 banks. “Credit organizations such as Bank DOM.RF, Sberbank, VTB, Asian-Pacific Bank and Far Eastern Bank have begun accepting applications for Far Eastern Mortgages. The average loan amount is 4 million rubles,” indicate DOM.RF.

The company reminds that under the program, a mortgage loan can be issued until December 31, 2024, the rate is 2% per annum. It is expected that in total, about 147 thousand loans worth up to 450 billion rubles will be issued under the program.

Rules for issuing preferential mortgages for Far Eastern residents have been determined

Young families and recipients of the Far Eastern Hectare will be able to take advantage of the benefit.

DOM.RF Bank reported that as of January 14, it had received about 1.7 thousand applications from potential borrowers for a “Far Eastern Mortgage” at 2%. The total volume of applications amounted to 6.7 billion rubles.

Since the launch of “Mortgage at 2%”, Bank DOM.RF has approved 480 loans worth 1.9 billion rubles. 123 loan agreements worth 438 million rubles have been concluded, and another 956 applications worth 3.6 billion are under consideration.

The largest number of applications came from the Primorsky Territory - 867.

The top five regions in terms of citizens' interest in obtaining a preferential mortgage also include Yakutia (225 applications), Khabarovsk Territory (217), Buryatia (178), and Amur Region (68 applications). The average amount of loans issued is 3.6 million rubles.

Bank DOM.RF clarifies that mortgages at a low rate are provided in an amount of up to 6 million rubles for a period of up to 20 years, the minimum down payment is 20% of the cost of housing.

Sberbank reported on Thursday that since the launch of Far Eastern Mortgage, more than 3 thousand applications worth 9 billion rubles have been accepted . “This is twice as much as the number of applications submitted under the state support program for families with children in the Far Eastern region for the entire 2019,” the release clarifies.

VTB reported earlier, on January 10, that it had approved more than 500 applications for 2 billion rubles as part of state subsidies for the purchase of housing in the Far East.

The top three regions in terms of the volume of approved applications included Primorsky Territory (563 million rubles), Yakutia (480 million) and Khabarovsk Territory (392 million).

The Asian-Pacific Bank noted at the end of last year that it “became one of the first banks that, before the formal approval of the terms of the Far Eastern Mortgage program, began collecting applications and approving clients.” The release dated December 23 spoke of more than 3 thousand requests received from residents of the Far East. It is clarified that the rate under the program in ATB is from 1.75%.

Far Eastern Bank , according to data on its website, began issuing loans under the Far Eastern Mortgage program on January 9 of this year. Primorye Bank and Primsotsbank .

The latter reported on December 27 about 111 applications received for a total amount of 420 million rubles: the first recipients of preferential mortgages were families from Khabarovsk, Ussuriysk and Nakhodka, and 59 clients at that time had already received approval to purchase real estate under the program.

Citizens of the Russian Federation from any region of the country who meet one of three requirements can receive a loan under the terms of the Far Eastern Mortgage: married couples, the age of each spouse does not exceed 35 years inclusive; a single parent no older than 35 years old with a minor child - a citizen of the Russian Federation; participants of the Far Eastern Hectare program.

Under the Far Eastern Mortgage program, you can purchase an apartment in an apartment building under construction in the Far Eastern Federal District, and in rural areas - housing on the secondary market. Construction of an individual residential building in the region is also available.

Large families - program participants will be able to additionally receive a payment from the state in the amount of up to 450 thousand rubles to repay the mortgage loan, subject to the birth of a third or subsequent child after January 1, 2019.

Source: https://www.banki.ru/news/lenta/?id=10915021

Who and how can get a mortgage at 2%

— It is important for us that preferential mortgages are available to the maximum number of people who want to receive them. It should be a simple, effective and accessible mechanism without bureaucratic procedures. This is exactly what we have put into the draft rules for providing a loan product,” emphasized Alexander Kozlov, Minister for the Development of the Far East and Arctic.

According to the Minister of Social Protection of the Population of Buryatia Tatyana Bykova, they will be approved by the end of the year.

— The rules for providing preferential mortgages were developed by the Ministry for the Development of the Far East and the Arctic together with the Agency for the Development of Human Capital in the Far East and the Far East Development Fund.

In any case, we can note the fact that young families under 36 years of age who live in the Far Eastern region and recipients of a Far Eastern hectare can apply for a preferential mortgage, the minister noted.

Who can get a mortgage at 2% per annum

— Young families in which the spouses have Russian citizenship have been in a registered marriage for at least a year, and both husband and wife must be no older than 35 years (inclusive).

An important condition for the provision of a mortgage will be the registration of at least one of the spouses at the place of residence in the territory of the subjects of the Far Eastern Federal District.

Single-parent families with one parent under 35 years of age and a child under 18 years of age will also be able to take advantage of a preferential loan.

— Recipients of land under the Far Eastern Hectare program.

According to the General Director of the Agency for the Development of Human Capital in the Far East, Sergei Khovrat, about half of the recipients of land under the Far Eastern Hectare program are going to build housing.

— According to our expert estimates, more than 5,600 people will use a mortgage to build a house “on a hectare.” “I believe that the introduction of preferential mortgages for hectare recipients is a manifestation of state support in the implementation of the long-term Far Eastern Hectare program,” he explained.

For what period is a mortgage issued?

The mortgage payment period will be up to 20 years with a loan amount of up to 6 million rubles. Mortgage loans will be issued at a preferential rate for five years.

How does the preferential mortgage mechanism work?

Borrowers will be able to purchase apartments on the primary market or build a house themselves with the funds received. Participants in the Far Eastern Hectare program will be able to use the funds received only for the construction of a house.

So far, the only restriction for receiving a loan for participants in the Far Eastern Hectare program is the type of permitted use. Land under the program must be obtained only for the construction of a house.

The recipient of the land plot must select the type of permitted use “For individual housing construction” or “For personal subsidiary farming (homestead land plot)” and send a notification to the authorized body, which must agree on the notification, sign it and send it to Rosreestr for entering the relevant information into registry.

Where to contact

You must contact one of the banks participating in the program. Their list is at the stage of formation and will be published after the adoption of the corresponding resolution of the government of the Russian Federation approving the rules for providing subsidies.

— The mechanism for providing subsidies involves the government compensating the difference in interest rates to private banks through a government-defined organization.

This is one of the important mechanisms of state support that makes it possible to increase the availability of housing finance, aimed at improving the quality of life in the macro-region, motivating young people to live, start families, and develop comprehensively in the Far Eastern land,” said Alexey Chekunkov, General Director of the Far East Development Fund.

It is expected that by December 15, the rules for providing preferential mortgages at 2% per annum will be outlined and approved. And then residents of Buryatia who fall under the category of recipients will be able to improve their living conditions on very favorable terms.

Source: https://www.infpol.ru/205830-kto-i-kak-mozhet-poluchit-ipoteku-pod-2/

Mortgage conditions at 2 percent for Far Eastern residents | Mortgage online

Today we’ll talk about a new project of the Russian Government, which concerns residents of the Far East and those who are ready to move there. The program was created to improve the demographic situation in these areas. Mortgage conditions at 2 percent for Far Eastern residents promise to be very profitable.

It is expected that government support measures will increase the incoming flow of new residents of the Far Eastern Federal District and help increase the birth rate. It was because of the rapid population decline that Putin approved mortgages at 2 percent in September 2019.

How to get a preferential housing loan and under what conditions it will be issued will be discussed in detail in our article.

Legislation on mortgages at 2%

At the moment, in the regions belonging to the Far East, there are several programs to support mortgage borrowers. This is a state subsidized interest rate for families in which the second and subsequent children were born, at 5-6%.

It works throughout Russia and is also available to the Far East. In the regions of the Far Eastern Federal District, mortgages are offered at 0% for the purchase of housing in the Kuril Islands and a hectare of land is provided free of charge for housing construction.

There are separate preferential lending programs adopted at the local level.

Unfortunately, the listed government support measures have not yet produced the desired result, and the demographic situation in the regions remains at the same level. Young people continue to move to other places, the birth rate is declining, and the area remains sparsely populated. It is for this reason that mortgages at 2 percent per annum are being introduced in Primorye and other regions of the Far Eastern Federal District.

Mortgages at 2 percent per annum in the Far East  are currently planned for 5 years; in the future, its validity period may be revised.

According to the creators of the new state support program, mortgages at 2 percent in the Far East should have a positive impact on demographics and the construction market. The bill is currently under development.

It is expected that mortgages at 2 percent will already become available to Russians in 2019; amendments must be adopted before December 15. At the initial stage, it is planned to allocate 15 billion for its implementation.

rubles, which will provide affordable housing to thousands of families.

Mortgage conditions with state support at 2%

The final terms of the mortgage at 2 percent for Far Eastern residents will become known only after the official publication of the document.

However, there are already preliminary data that form the basis of the bill (download the explanatory note to the Draft Resolution of the Government of the Russian Federation “On approval of the Rules for providing subsidies from the federal budget to the autonomous non-profit organization “Agency for the Development of Human Capital in the Far East and the Arctic”). Those who plan to take advantage of the state support program can be guided by them:

1. The interest rate paid directly by the borrower is 2% per annum.
2. The mortgage repayment period is up to 20 years.
3. Possible amount up to 4 million rubles. Some sources say the maximum loan size is 5 million rubles.
4. Contribution with your own funds is from 10%, but the final decision on this point is not yet known. There are disagreements regarding the need to pay for part of the housing with your own money on a mortgage at 2 percent per annum in Russia. There is hope that banks will lend 100% of the cost of housing.
5. Security can be a pledge of real estate or a surety.
6. The loan is repaid monthly in annuity payments (equal throughout the entire repayment period).
7. Insurance of the collateral is required.

Recommended article: Mortgage AHML (Dom.rf) - conditions and requirements

The intended intended use of the loan funds is the construction of private housing.

It is available to those who have become participants in another state program, obtaining a free plot of land in the Far Eastern Federal District (the rules are presented in 119-FZ dated 05/01/2016 (download)).

The expansion of Far Eastern mortgages at 2 percent and for the purchase of an apartment in a new building is being discussed. Unfortunately, it is not possible to buy finished housing with this subsidy.

Where will the 2 percent mortgage operate after its implementation? The list of areas for obtaining a preferential loan includes all subjects territorially belonging to the Far East:

• Amur region;
• The Republic of Buryatia;
• Jewish Autonomous Region;
• Transbaikal region;
• Kamchatka Krai;
• Magadan Region;
• Primorsky Krai;
• The Republic of Sakha (Yakutia);
• Sakhalin region;
• Khabarovsk region;
• Chukotka Autonomous Okrug.

It should be separately noted that a mortgage at 2 percent in Buryatia and the Trans-Baikal Territory will also be valid, because in these regions, since August 2019, you can receive a hectare of land from the state for free.

In which banks will it be possible to get a mortgage in the Far Eastern Federal District at 2 percent? It is not yet known for sure, but in practice, preferential lending programs immediately become available in large financial institutions, especially those owned by the state. It is expected that the first to join in subsidizing mortgages at 2 percent will be Sberbank, Rosselkhozbank, VTB, Gazprombank, DOM.RF and other leading lenders.

Requirements for borrowers and documents

The main recipients of preferential mortgages at 2 percent will be families where at least one spouse is under 35 years of age and people who received a free hectare. Specific criteria for participation in the state program have not yet been announced. They are expected to look like this:

• Russian citizenship;
• age from 18 years;
• availability of a permanent confirmed source of income;
• belonging to the categories of a young family or recipients of a free hectare. Moreover, the married couple must have been married for at least 1 year and live in the Far East. Permitted use of the land plot is individual housing construction.

The conditions presented above for obtaining a preferential mortgage are not final and, most likely, will be finalized.

The package of documents is unlikely to differ from the standard one when obtaining a mortgage. It usually includes:

• passport;
• completed application form;
• certificate of salary (2-NDFL (download form) or according to the bank form);
• documents on official employment;
• for young families, papers about marital status and the presence of children;
• for the purchase of a new building: equity participation agreement and information about the developer;
• for the construction of a residential building: estimate, documents for the allocation of free land, construction permit, agreement with the contractor, etc.

If co-borrowers and guarantors are involved in the mortgage transaction, they will have to collect a similar package of documents. When considering the application, the bank has the right to request any other documents.

It is unknown whether a mortgage will be available for a young family at 2 percent if there are no children yet.

It is possible that they will introduce an additional restriction on the approval of participation in the state program based on the number of minor family members.

It is assumed that a mortgage for a young family at 2 percent in the Far East will become a variation of the currently available conditions for a housing loan at 5-6% (the rules are specified in Resolution 1711 (download)).

Recommended article: Mortgage at 5 percent per annum

The procedure for obtaining a mortgage with state support

You can pre-calculate a mortgage at 2 percent and the terms of future repayment now. Any credit calculation service will do, where you can freely enter the initial parameters. For example, it is convenient to use the mortgage calculator on our website.

To do this, you need to indicate in the mortgage calculator at 2 percent other information known to you: the cost of real estate construction, the size of the down payment with your own funds and the repayment period. The interest rate should be 2% per annum for the entire payment period.

As a result, you will receive an estimate of your mortgage payment and the amount of overpayment. Of course, when applying for a loan, it will change, because the decision is made by the bank based on the submitted papers. The amount of construction will be taken into account according to the estimate or from the share participation agreement if a new building is purchased.

Will a 2 percent mortgage be issued under a special lending scheme? Most likely no. The procedure for obtaining a preferential housing loan will follow the standard procedure. How to get a mortgage at 2 percent:

1. The borrower must register as a recipient of the Far Eastern hectare. If a couple plans to take out a Far Eastern mortgage at 2 percent as a young family to build an apartment, they do not need to do this.
2. Then you should familiarize yourself with the requirements and conditions of banks issuing preferential housing loans and choose the appropriate one among them. Despite government support, it is better to focus on the rules established by a specific lender. If necessary, you will have to attract co-borrowers or guarantors.
3. Collect all the necessary documents and submit your application for consideration by the bank. On average, a decision is made within 3-5 days. If you know the planned intended use of the funds (you have already selected an apartment in a new building or registered free land), attach papers regarding it as well.
4. After the bank’s affirmative response to the borrower, collect a package of documents on the property, if you have not done so earlier. In this case, the mortgage application will be reconsidered.
5. If the lender has no comments at this stage, the loan agreement is signed and funds are issued. Before this, you should transfer the down payment to the developer (if you are purchasing a new building) or to the contractor (in the case of building a private house).
6. Subsequently, the borrower pays the mortgage loan every month as usual, but at 2% per annum. The difference between the lender's base mortgage rate and the real one is paid from budget funds.

You need to understand that participation in the state program does not guarantee a positive response. An application for a mortgage at 2 percent in the Trans-Baikal Territory and other regions of the Far Eastern Federal District will be considered on general terms. If you have insufficient income, bad credit history, or for other reasons, the bank has every right to refuse to issue a home loan.

Important to know: Reasons for refusal of a mortgage: what should borrowers take into account?

Can a mortgage be denied after approval?

Mortgage conditions at 2 percent in the Far East  presuppose the targeted use of loan money. After the construction of the building, you need to report to the bank that the money was spent for the initially stated purposes.

If the loan was issued for the purchase of a new building, the funds are issued only after registration of the equity participation agreement in Rosreestr. A separate clause in it states the bank’s right to claim an apartment (102-FZ On Mortgage, Article 1 (download)).

After the house is handed over, the property is registered in a single electronic database, and the borrower is given an extract from it. This document, marked as a pledge in favor of the bank, should be submitted to the mortgage department of the credit institution.

What to do after accepting an apartment with a mortgage in a new building

If the conditions for obtaining a mortgage at 2 percent involve the construction of a residential building on free land from the state, the target report scheme will be different. Banks have different options for confirming the spending of money:

• transfer to the account of the construction organization;
• receipts for purchased building materials if the building is being erected on its own;
• an extract from the register of rights to the house with a note about the pledge in favor of the bank.

Failure to provide documents on the intended use of money or lack of collateral insurance is a violation of the terms of the mortgage agreement (102-FZ, Article 31 (download)).

The borrower will receive a warning from the lender and penalties.

Pernicious violators may be subject to a demand for early repayment of the loan amount, a trial, and even the sale of collateral by a court decision.

Other government support measures

If you are eligible to receive housing subsidies from the government, they can be used at the same time as the new program. A mortgage at 2 percent in Khabarovsk and other cities of the Far Eastern Federal District does not cancel a person’s right to use another benefit. Allowed to use:

1. Federal and regional maternity capital. In the first case, the family receives a certificate for the birth of a second child, in the second - for subsequent children, but the conditions for participation are determined at the local level. Budget funds can be made as a down payment or used to repay an existing housing loan (256-FZ, Article 7 (download)). Including mortgages at 2 percent in the Primorsky Territory and other regions of the Far East.
2. Housing subsidies for young professionals (doctors, scientists, teachers, etc.) are also used to pay the down payment for an apartment or repay an existing loan.
3. Subsidy of 450 thousand rubles for repaying mortgages for large families (157-FZ (download)). The program is valid for the birth of the third and subsequent children until the end of 2022. If the balance of the debt is less than the amount due under state support, the loan is closed completely.

Mortgage conditions at 2 percent in Vladivostok and other cities of the Far East are unique, because such subsidies have not been approved by the state before.

As a result of the launch of a preferential lending program, Russians will be able to acquire their own housing while paying the bank a minimum amount of interest.

It will help attract new recipients of Far Eastern hectares, stimulate the construction market and help improve the demographic situation in the federal district.