Military mortgage: how to buy an apartment, conditions, changes

Military personnel are given the opportunity to purchase their own housing through mortgage lending. And military mortgages may undergo some changes in 2020. The article discusses all possible innovations.

Description of military mortgage

Military mortgage is a government program that began to be implemented in practice in 2005 and has become the main mechanism for citizens undergoing military service to purchase their own housing.

Its economic, legal and social foundations are regulated by a law adopted in August 2004, which has federal significance and is called “On the savings and mortgage system of housing for military personnel.”

The bottom line is that first, a military man applying for the purchase of residential property on special terms becomes involved in the so-called savings-mortgage system (common abbreviation - NIS). He enters into this program automatically if he has concluded his first contract since the beginning of 2005. In other cases, a citizen must declare his desire to join the NIS.

Every year, the state transfers savings contributions from the federal budget to the individual account of a military serviceman, forming capital intended for housing.

After a three-year period of service, a military man can exercise the right to acquire real estate. The accumulated funds are used as a mandatory down payment.

Next, monthly payments are transferred to the bank by the federal state government institution (FGKU) Rosvoenipoteka, established under the Russian Ministry of Defense.

Funds allocated from the federal budget have a strictly designated purpose, that is, during the period of service they can be used exclusively to provide the serviceman with his own housing.

If a military man ceases to be a member of the NIS, that is, leaves service at his own request or for other reasons, then he continues to make regular payments from his own budget.

Moreover, if the reasons for dismissal are not valid, then the serviceman also undertakes to return all money previously spent. This leads to huge debts.

For your information! If during the period of his service a serviceman has not exercised his legal right to purchase housing, then upon dismissal for good reasons (they will be discussed below), he can receive the accumulated funds and spend them at his discretion on any needs other than housing.

Current situation

The conditions for providing a mortgage for this current year 2019 are as follows:

1. The funds transferred to the borrower's savings account by the state are used after 3 years of service to form the entry fee. And to pay for the remaining part of the price of the purchased residential property, the lending bank provides a mortgage, which is repaid by state-directed contributions within the NIS (while the client participates in the system, that is, continues to serve).
2. The final total amount of the mortgage loan at the moment is a maximum of 2 million and 570 thousand Russian rubles.
3. The down payment amount is at least 15%.
4. The interest rate is 9.2% per annum. Moreover, this indicator remains the same even if the payer leaves NIS and makes regular payments independently at the expense of his own finances.
5. Mortgage payment terms range from a minimum of thirty-six months (that is, three years) to a maximum of twenty years. But the permissible length of the period depends on the age of the borrower: he can repay the mortgage on NIS terms up to a maximum of his 45 years (inclusive). This means that if the applicant is 35 years old at the time of applying for a housing loan, then he will be able to obtain a mortgage for a maximum of ten years.
6. A potential client of a financial organization may not have to confirm his solvency, because if he is a military serviceman and a member of the NIS, then the state will regularly make payments for him.

For your information! These conditions are principles that apply to all Russian financial organizations implementing military mortgage lending programs. That is, the bank cannot independently revise the rules, since they are established by the legislation in force in the country.

Early repayment

If the appropriate opportunity arises, a serviceman has the right to repay the mortgage issued to him ahead of schedule, for example, from his own savings or with the help of maternity capital issued at the birth of a second or subsequent child. But the borrower must notify, firstly, the Federal State Institution “Rosvoenipoteka” of such intentions, and secondly, the lending bank (not all financial organizations allow the closure of the contract ahead of schedule).

If, after early repayment, there are savings left in the military account, he can receive them and use them at his own discretion for any purpose, subject to the following conditions:

• length of service exceeds 20 years;
• 10 years of service and dismissal for reasons such as injuries or illnesses acquired in the service, forced staff reductions, or difficult family circumstances (for example, the need for constant care for a seriously ill relative).

In such situations, you must first notify the bank that issued the housing loan about unscheduled or increased payments. Write an application for early repayment and receive a new payment schedule. Next, contact Rosvoenipoteka and file an appeal there. Please attach a loan statement, certificates of additional payments and an updated schedule to your application.

Also, the possibility of early repayment of an issued military mortgage appears if the savings contributions exceed the monthly payments transferred to the bank. In this case, there are funds left in the account that can be used to make additional unscheduled payments.

To make an early unscheduled payment, you must first find out the size of the balance, then contact the institution “Rosvoenipoteka” with treatment according to the standard.

Within thirty days, the Federal State Budgetary Institution makes a decision, after which the payer contacts the bank with an application for early repayment and a request for a new schedule.

Misuse of funds

If during the entire period of service a citizen has not decided to take advantage of the legal right and acquire personal housing with state support, then he can still receive the accumulated funds and spend them on any other needs, for example, on purchasing a personal car or opening a deposit.

If a serviceman goes into the reserve, he can count on receiving the savings generated within the NIS only if his service is at least twenty years.

If you have served for at least 10 years, you can receive such funds only in case of dismissal for good reasons: due to deteriorating health (injury received during service or acquired illness), changed family circumstances (for example, forced constant care for a disabled relative) or due to a reduction in military personnel.

Coming Changes

The latest news says that some adjustments will be made to the savings-mortgage system. They will affect the list of NIS participants, as well as the amounts allocated from the state. budget funds.

Participants

Starting from 2020, the list of participants in the existing savings mortgage system in Russia will expand. At the moment, only representatives of the officer corps can become them. Starting next year, the list will include sergeants, sailors, foremen and ordinary soldiers.

But such military personnel must come to service after the end (December thirty-first) of the current year 2019, that is, from the first of January of the coming 2020.

At the same time, their total duration of contract service after the end of 2019 must be at least 3 years to exercise the right to secure real estate under a mortgage (the period of service before the specified date will also be taken into account).

Until the changes in legislation came into force, only officers, midshipmen and warrant officers with a total duration of contract service of three years (starting from two thousand and five) or those who began contract service had the opportunity to participate in the program. as well as re-serving sailors, sergeants, petty officers and soldiers.

Good to know! The adjustments are due to changes that were made to the eighth and ninth articles of federal law number 117, adopted in 2004.

With the onset of 2020, the military mortgage program, implemented with government support, will become the only form of providing housing to newly admitted military personnel.

This means that when a serviceman becomes a participant in the NIS, he cannot be classified as needing living space under other government programs.

Such measures will exclude repeated excess housing provision (an employee must have only one immovable residential property purchased with budget funds).

The legislation also provides for voluntary participation in the NIS.

Starting from 2020, a person who has entered the service from the reserve will not be able to be forcibly included in the category of participants in the savings mortgage system without his knowledge.

The only basis for entry will be and will be enshrined in law only by a written, official and, most importantly, voluntary application with a request to be included in the register of military personnel in need of housing.

Amount of savings contributions

The Ministry of Finance introduced a draft law on the federal budget for future years, including 2020, to the State Duma. In accordance with the planned changes, the amount of one savings contribution will be 288 thousand 410 rubles. In the current year 2019, such a contribution is a little more than 280 thousand. That is, the increase will ultimately be more than 8.4 thousand (in percentage terms, this is 3%). A simple calculation allows you to find out that after increasing the contribution, one monthly amount of mandatory payment will be equal to 24 thousand and 34 rubles.

For your information! The increase in the contribution, as well as other measures of state financial support, is explained by indexation aimed at combating annual inflation. In 2020, the inflation rate is expected to be 3.8%.

total amount

It’s clear how much they give as part of a military mortgage now. But there is no information yet about the size of the amounts for 2020, although there are two options for the development of events. The positive is this: due to annual inflation and rising real estate prices, it is planned to increase the allocated amounts.

The negative option is also being considered by experts. According to this scenario, due to a lack of funds in the federal budget, the total amount of military mortgages may, on the contrary, decrease. And this is explained not only by forced savings, but also by the lack of a tendency for housing prices to rise: prices are still stable, and in some sectors they are even declining.

Helpful information! The current Prime Minister of the country, Dmitry Medvedev, instructed Finance Minister Siluanov to include in the development of the budget for 2020-2022 the introduction of additional money to support mortgages designed for the military. This gives us hope that the amounts will still be increased. Although additional funds are necessary in any case, due to the expansion of the list of participants in the system.

Bid

At the moment, the rate under the terms of a military mortgage is 9.2 percent per year. It is not reported anywhere what this figure will be in 2020. But mortgage interest charges are determined taking into account the key rate set by the Central Bank, so if it decreases, then the rates on housing loans are likely to decrease.

Helpful information! On September 6, 2019, the Central Bank of the Russian Federation decided to lower the key rate to 7%. For 2019, this figure before the changes was 7.25%. That is, there is a possibility of a decrease in interest rates on mortgage loans.

Purchasing apartments in buildings under construction

If a serviceman purchases an apartment related to an unfinished building, an escrow account is opened in his name: funds from it will be transferred to the developer only when the construction company fulfills its obligations and delivers the property. This will eliminate unpleasant situations associated with delays in delivery of housing.

Read also: Permission for a child to travel abroad: a new law if divorced

Now you know how the principles of military mortgages will change from 2020. Military personnel are expected to undergo changes that they needed to familiarize themselves with.

Related publications:

Source: https://v-2020.org/voennaya-ipoteka-v-2020-godu

Mortgage 2020: how rates and housing prices will change

• Banks Today Live
• Articles marked with this sign are always relevant . We are monitoring this
• And comments to this article are answered by a qualified lawyer , as well as the author of the article himself .

Last year was a record year for banks; a mortgage loan was issued to virtually every 100th resident of Russia. The current year has brought changes both to the construction market and to the lending sector. We asked experts about how these changes will affect mortgage lending next year.

Mortgage is already considered a kind of locomotive of the banking system. These are loans that are issued against collateral and for a long term at rates higher than deposit rates. That is, for banks this is a good opportunity to “play for the long haul”, receiving an almost guaranteed income for 20-30 years from each borrower.

The Central Bank supports this idea, supporting the development of mortgage lending in Russia. The results are already in: 2018 was a record year for this segment.

Mortgage lending showed impressive results in 2018:

Number of loans issued 1,476,376 units Amount of loans issued 3 trillion rubles Total debt of borrowers 6.4 trillion rubles Overdue mortgage debt 64.7 billion rubles (about 1%) Weighted average loan term 195 months (16 years and 3 months) Weighted average interest rate 9.56% per annum

That is, over the course of a year, banks were able to issue so many mortgage loans that they practically doubled the total amount of debt of borrowers. Another remarkable figure is the rate; for the first time in all years it has fallen below 10% per annum.

There were several reasons why the banking sector showed such unprecedented growth in mortgages last year.

Firstly, these are stable housing prices . Developers, knowing that from July 1, 2019, will have to switch to project financing, they increased their supply. And even the increased demand did not contribute to the rise in prices - they rose by 4%, approximately the same as inflation.

Secondly, it is a low interest rate . Here, among other things, there is a merit of the Bank of Russia, which until the fall actively reduced the key rate.

Thirdly, the launch of preferential lending programs for families with children played a role. But a much larger volume of lending under the programs occurred in 2019.

The current year, 2019, began with gloomy forecasts regarding mortgages: the Central Bank began raising the key rate in September 2018, and the process in the opposite direction was launched only in the fall.

But industry representatives were even more skeptical due to the entry into force of a new procedure for financing shared construction on July 1, 2019.

Let us remind you that now during shared construction, developers are required to open a special escrow account in which the shareholders’ money is frozen until construction is completed.

Companies have to finance construction costs through loans.

It can already be argued that most of the negative forecasts turned out to be not very accurate:

• The Bank of Russia began to reduce the key rate in June 2019, now it is 6.5% - which corresponds to the “pre-crisis” figures;
• the transition to escrow accounts was not abrupt - all houses that are at least 30% complete and in which at least 10% of the apartments have been sold can be completed according to the old rules;
• in 2019, the preferential mortgage program was expanded - an interest rate of 6% is now guaranteed for the entire loan term for any family that is eligible for such a loan.

By the way, banks compete for such clients - at the moment the lowest rate is offered by Promsvyazbank, which is 4.5% per annum. Sberbank, VTB and many others offer from 5 to 6% per annum.

But rates have also fallen for “regular” customers. Thus, according to data for September, the weighted average rate fell to 9.68% per annum - this is almost the level of 2018.

Considering that the Central Bank has reduced the key rate to 6.5% per annum and intends to make some further reductions, 2019 may well catch up with last year in terms of the volume of loans issued.

What will happen to mortgages in 2020 - official forecast

Mortgage lending is included in the national project “Housing and the Urban Environment” - this is one of the key elements of the project, along with plans to increase the supply of housing and provide them to as many families as possible.

The main goals within the framework of national projects were the level of interest rates and the number of loans issued:

• the rate will have to be 8.7% per annum in 2020 – with a further reduction to 7.9% by 2024;
• the number of loans issued should be 1.57 million in 2020, and 2.26 million by 2024.

Among other things, the authorities intend to reorient a significant part of mortgage lending towards primary housing (the figure for such loans is even included in a separate plan).

United Russia is confident that this will allow housing construction to develop. Anton Moroz , who is responsible for public control over this national project within the party, says , among other things, it is necessary to develop individual construction:

Today, a serious bias in mortgages goes to the secondary market. For the development of housing construction, as well as for the development of mortgage lending, it is necessary to reorient these funds to the primary market or to the market of individual housing construction.

This requires the introduction of new mortgage systems for individual housing construction, for citizens participating in the processes of development, purchase or construction of individual housing.

At the same time, there are already precedents, such as the Far Eastern Federal District, where the president for certain groups of the population has already forcibly lowered the mortgage loan rate to 2%.

At the same time, he emphasized that this measure will not be extended to other regions of the country, so in the Far East such a measure will have a significant impact.

And for certain groups of the population, the cost of a mortgage, taking into account the reduction in the key rate, will become completely minimal, which will allow even those citizens who currently do not have the opportunity to pay a mortgage loan at the weighted average rate to take advantage of this rate.

Anton Moroz, Vice-President of NOSTROY, member of the Working Group of the Supreme Council of the UNITED RUSSIA Party “Sustainable Development”, responsible for organizing public control over the implementation of the national project “Housing and Urban Environment”

As for the mortgage interest rate, for 2019, according to the national project passport, it should be 8.9% per annum . The year is already ending, but the figures in the Central Bank's statistics are far from this - the rate is still 9.68% per annum, and in the first half of the year it reached 10.5%.

Obviously, the plan for the current year will not be fulfilled, but what can we expect from 2020? Anton Moroz believes that a further reduction in the key rate will help the market:

What could serve as an objective indicator of a mortgage rate reduction for 2020? It's over, the key rate is being lowered. This is what is happening now.

In this regard, naturally, the marginality of household deposits decreases, and at the same time, the cost of mortgage lending for citizens of the country decreases.

Therefore, we predict taking into account the fact that at the end of 2019, and most likely in 2020, the key rate of the Central Bank is inclined to decrease slightly, which will reduce the cost of a mortgage loan.

Anton Moroz, Vice-President of NOSTROY, member of the Working Group of the Supreme Council of the UNITED RUSSIA Party “Sustainable Development”, responsible for organizing public control over the implementation of the national project “Housing and Urban Environment”

A mortgage loan is a long-term instrument for a bank, but this carries serious risks. Neither the bank nor the borrower himself can be sure that in the next 15-20-30 years he will have a job with income that will allow him to repay the loan.

Analysts have repeatedly warned about a “new mortgage bubble” that is already inflating in Russia. The figure of one and a half million loans per year means that banks are reducing their requirements for borrowers as much as possible - otherwise there will simply be no one to take them.

But, according to Moroz, the market has already narrowed enough to reject potential borrowers with low incomes:

On the territory of Russia, despite the fact that the mortgage loan rate will most likely be reduced, I do not predict a serious change in the need or availability of a mortgage loan due to the fact that the mortgage lending market has already narrowed enough anyway and a minimal reduction in the rate will not allow citizens with with a salary lower than or equal to 50 thousand rubles, participate in the sale of these products. Therefore, most likely the market will remain at the same level, although it is even possible that a certain number of mortgage loans received in the primary housing market will decrease.

Anton Moroz, Vice-President of NOSTROY, member of the Working Group of the Supreme Council of the UNITED RUSSIA Party “Sustainable Development”, responsible for organizing public control over the implementation of the national project “Housing and Urban Environment”

By the way, United Russia also understands that the plans for 2019 can no longer be realized. Anton Moroz says that the construction complex should provide 88 million square meters of housing this year, and in order for there to be someone to buy this housing, the mortgage rate should decrease.

Unofficial forecasts

mortgage lending in the country is currently , as reported by the Central Bank:

You can see how mortgage lending began to grow in July 2019, when banks positively assessed the first signal – a reduction in the key rate. In addition, there is an understanding that most housing in new buildings is still sold according to the old rules (and, accordingly, at the old prices).

The main role in further changes in rates will be played by the policy of the Central Bank, experts are sure. Thus, Elena Balashova, an expert in the field of real estate and information technology, says that the next wave of rate cuts will most likely lead to an increase in the number of applications for mortgage refinancing:

Changes in mortgage lending rates are inextricably linked with the key rate of the Central Bank. Over the 10 months of 2019, the rate changed four times, from 7.5 to 6.5%, which led to a decrease in mortgage product rates by 1-1.5%. If the Central Bank reduces the key rate in December 2019 (as predicted), then we should expect a decrease in interest rates on mortgage products.

After the rapid growth of the mortgage market in 2017-2018, the current year, unfortunately, has become a year of unfulfilled hopes for most banks; even market leaders did not fulfill their business plans in the 1st half of 2019.

This was influenced by both the introduction of escrow accounts (due to which the cost of real estate in the second half of the year increased to 10%) and a decrease in the purchasing power of the population, as well as an increase in the key rate in 2018, and, as a result, an increase in rates by banks.

Read also: Benefit for caring for a disabled child in 2020: for working and non-working parents

The introduction of additional benefits, in the form of subsidies for large families and military personnel, will, of course, help support demand, but will not increase mortgage portfolios, since the average bill for such transactions is not large.

The headliner in the redistribution of mortgage portfolios in 2020 may again be “Refinancing”, as individuals who took out loans at 10-11% per annum will want to refinance them. And in this race, those who will “retain” their clients in a timely manner by offering them a reduction in rates in their own bank will win, and will attract clients from other banks.

Elena Balashova, Director, Real Estate Analytics and Information Technologies, SRG Group of Companies

Indeed, refinancing accounts for a fairly large share of all loans issued. These loans do not change the statistics on the total amount of debt - the debt is simply transferred from one bank to another.

By the way, most banks do not issue refinancing for loans issued by them ; they are offered only to clients of other banks. “Our” clients are usually offered special programs to reduce rates (but without concluding a new mortgage agreement).

As for the possible increase in the number of overdue loans, such risks remain quite serious. Thus, in Russia, real incomes of the population have not grown for several years in a row, while the volume of loans issued has sharply increased. As a result, borrowers are forced to devote an increasing portion of their income to servicing debts.

The risks for mortgage loans are, of course, lower than for consumer loans due to the collateral of real estate, but massive defaults by borrowers will definitely not help banks. Experts see a threat if the state continues to fail to act. Leading QBF analyst Oleg Bogdanov says that the continued decline in real incomes of the population puts the entire credit market at risk:

I think that in 2020, negative trends in lending processes in Russia will increase: an increase in overdue payments and non-payments for various types of loans.

Of course, mortgage lending still stands apart, since the Russian population values ​​​​real estate and tries to pay despite financial difficulties, therefore non-payments on mortgages are low.

However, if the government fails to stabilize the situation with the real disposable income of the population, then the entire credit market, including mortgages, will be under attack.

Even reducing the key rate to 6% will not save the situation, since the Bank of Russia intends to further lower its level. Lending volumes will inevitably fall both for the reason stated above and due to the complication of the process of issuing loans: let me remind you that the tightening of the Bank of Russia recently came into force.

1. Oleg Bogdanov, leading analyst at QBF
2. However, the position of the Bank of Russia is still unchanged, and it corresponds to the goals in national projects - mortgage lending should continue to grow.
3. Time will tell whether fears about a “mortgage bubble” will be justified, but experts do not make such gloomy forecasts for the coming year .

Should you take out a mortgage now?

The average interest rate on mortgage loans, as mentioned above, dropped to 9.68% per annum in October. This is not a record - last year the rates were even lower, but some banks can offer very interesting offers.

After the Central Bank lowered the key rate from 7 to 6.5%, banks quickly revised their lending offers, reducing interest rates on loans (and at the same time on deposits).

For example, VTB now offers a base mortgage rate of 8.6% per annum, and a refinancing rate of 9% per annum. This rate is available only when taking out comprehensive insurance (real estate, rights to it, life and health of the borrower). Without insurance, the rate will be 1% higher.

Other banks are not far behind - base rates range from 8.2% per annum (this is Rosselkhozbank). But all additional conditions remain, such as a down payment of 20%, insurance, etc.

The target rate level is 8% per annum, this target was voiced by the President of Russia. Approximately the same follows from the national project until 2024 (where the rate will be 7.9%).

That is, if the borrower can find a rate of about 8% per annum, then such a loan is worth taking out - the rate will not be lower if it does not fall under the preferential program.

Under the program, the conditions are even more interesting: the lowest rate is only 4.5% per annum - it is offered by Promsvyazbank and Bank Vozrozhdenie. Other banks have set the rate a little higher, but their premium for lack of insurance will be less.

Since federal subsidies to banks to compensate for the difference in interest rates are calculated based on the key rate of the Bank of Russia, the rate is unlikely to be even lower - and such borrowers should apply for a loan now .

As for housing prices, it is gradually becoming more expensive as developers complete old projects and start new ones, according to new rules. According to experts, the “stock” of houses already started will last for 2-3 years, this will be a kind of transition period.

To summarize, we can draw the following conclusion:

• for those who fall under a family mortgage, you can take out a loan now; it’s unlikely to get cheaper than 4.5% per annum;
• those who are considering a conventional mortgage should focus on the figure of 8% per annum. This rate can be obtained, for example, for joint projects of banks and developers;
• housing prices will rise directly – albeit not very quickly, but they certainly have no reason to decline.

Source: https://bankstoday.net/last-articles/chto-budet-s-ipotekoj-v-2020-godu-ofitsialnye-prognozy-i-mneniya-ekspertov

Savings and mortgage system in 2020

Also, when calculating the schedules until 2011, a floating lending rate for military personnel was used. The mortgage interest rate was linked to the refinancing rate and its forecast indicators.

The floating rate was formed from the total indicator of the size of the estimated refinancing rate as of December 1 and the mortgagee’s margin.

The discrepancy between the forecast values ​​of savings contributions included in credit schedules and the contributions actually allocated from the federal budget, the prospect of reducing the lending interest rate, complex calculated interest and differentiated payments lead to the formation of debt among NIS participants that was not provided for when issuing the loan. In the monthly payment schedules, such debt is attributed to the last years of lending. The resulting balance of debt outstanding through government financing, in accordance with the terms of the loan agreement, is subject to repayment with the NIS participant’s own funds.

According to loan agreements drawn up in 2009, the situation with “debt tails” on military mortgages is the most deplorable. To repay the mortgage received in the amount of 2.2 million rubles in 2009, about 2.0 million rubles were allocated from the budget, according to the situation for 2019.

, however, the entire amount is written off to pay off mortgage interest, pay off accrued interest, and pay off interest on accrued interest. According to such schedules, the “body” of the loan is either just beginning to be repaid, or the planned repayment is expected in 2020 (approx.

– the edition contains schedules of NIS participants drawn up in 2009).

NIS participants who took out a loan starting in 2018 should not face this situation in the future, since the algorithm for calculating schedules has been changed, payments have become annuity with a fixed monthly amount and interest rate for the entire loan period.

But what should those who were one of the first to apply for a “preferential” mortgage do, believing in the propaganda that was carried out among military personnel for many years? Why should a military serviceman pay for the miscalculations of the state, namely AHML? Housing Mortgage Lending Agency (now DOM.

RF), 100% of whose shares belong to the Government of the Russian Federation, is the developer of the “military mortgage” program. The algorithm for calculating the schedule for military mortgages, based on “forecasts” with compound interest, was developed by AHML.

In fact, a serviceman who took out a loan in 2009 and has already served his right to retire has a debt on a military mortgage equal to the original loan amount - 2.2 million rubles.

Under the terms of the loan agreement, the serviceman is obliged to pay at his own expense all mortgage debts incurred due to discrepancies in the forecast values ​​of savings contributions and interest rates. Military personnel are offered to refinance their obligations and change lenders.

But refinancing will only help if you have a small debt. Refinancing will not help those who took out loans in 2009; their schedules will be recalculated for 10-15 years and loan repayment will start from scratch, since the principal debt on the mortgage has not changed since the date of lending.

It will also not be possible to recognize the transaction as enslaving, since in accordance with paragraph 3 of Art. 179 of the Civil Code of the Russian Federation, in order to declare a transaction invalid, several conditions must be met simultaneously:

• the transaction was concluded on extremely unfavorable terms;
• the person was forced to make a transaction due to a combination of difficult circumstances;
• the other side knew about the first two circumstances and took advantage of it.

Judicial practice on recognizing a military mortgage agreement as enslaving already exists and is not in favor of military personnel.

“Social guarantees for military personnel are a significant factor in attracting personnel to the Armed Forces of the Russian Federation, as well as to federal executive authorities and state bodies that provide for military service. A decrease in the level of these guarantees may have a negative impact on the moral and psychological state of military personnel and the quality of their performance of their duties.”

This quote from the Resolution of the Federation Council, voiced in 2018, gave hope that the situation with the indexation of the funded contribution and the financing of the NIS would change for the better, but the realities remain realities.

Military personnel who took out loans at the beginning of the system’s operation are left alone with debts, and underfunding of the program through budgetary allocations leads to a lack of investment income for all NIS participants, which is one of the components of the formation of savings for housing.

Source: https://spb.voenpereezd.ru/novosti/byudzhet-dlya-uchastnikov-nis-v-2020-godu-ozhidanie-i-real-nost/

Military mortgage in 2019-2020: how to buy an apartment, conditions, changes

One of the privileged groups of the population in Russia are
military personnel.
Such concern of the state is understandable, because a person defends his homeland and risks his life every day.
Designated persons have the right to receive preferences related to the purchase of housing.

The country has a special mortgage
system (NIS), designed to solve the housing problem of this category of
public sector employees.
As part of the savings mechanism, each military personnel annually receives a money transfer to a personal account.
The funds are spent for a specific purpose - purchasing housing.

So, how does buying an apartment
with a military mortgage (MI) happen in 2019?

What conditions are imposed for military personnel?

buy an apartment with a military mortgage within the framework of legally established rules. The lending procedure in the army has been honed in practice over the thirteen years of its existence.

The initial procedure for providing a loan for the purchase of living space was introduced in 2006.

The first thing a defender of the fatherland must do is register in the NIS system, that is, become its participant.

After this, funds will be regularly transferred to the citizen’s personal account.

In three years, the amount will be sufficient to make a down payment on housing. If the apartment is selected from real estate located outside of Moscow, then the full cost can be covered over 15 years of service.

Read also: Maternity twins: payments, calculate, maternity leave

VI is practically no different from conventional lending for the purchase of housing.

The down payment required is 20% of the cost of the apartment. Next, the person contributes funds to repay the principal portion of the loan debt and interest on the use of borrowed funds.

The main difference between the general civilian form of lending and a loan under the program for the military is that in the latter case the role of the borrower is the Ministry of Defense of the Russian Federation, acting on behalf of the state.

Contributions are also transferred by the department. Thus, three parties appear in the mortgage agreement: the military personnel, the credit organization and the Federal State Institution Rosvoenipoteka.

Download a sample military mortgage agreement. [30.00 KB]

Escrow accounts - what is it in simple words: in shared construction, news.

Is it possible to repay a loan early: military mortgage upon dismissal?

Savings are transferred to the citizen’s individual account until it is sent to reserve.

The maximum amount is 2.2 million rubles.

A person has the right to pay off his mortgage early. To do this, you will need to use your own funds or money included in the certificate under the state program “Maternity Capital”.

• If amounts are paid contrary to the payment schedule approved by the bank, then the Federal State Institution “Rosvoenipoteka” should know about this.
• If there are funds in a personal account and dismissal from service, a citizen has the right to use savings at his own discretion.
• To do this, the following conditions must be met:

• dismissal upon reaching 10 years of service or more with dismissal due to
  illness that prevents further service, layoff, or for a number of
  family reasons;
• dismissal upon reaching 20 years of service or more.

When submitting
an application to a credit institution, a military man must fill out a standard form
and stipulate the following conditions:

• the amount of the minimum contribution that will be made independently as
  a supplement to the amount transferred at the expense of the state;
• timing of receipt of funds into the account;
• details according to which the transfer will be carried out;
• place and time of receipt of the payment schedule approved by the FCO.

updated
loan repayment schedule and a certificate of payment
to Rosvoenipoteka.
These steps are necessary to pay off your mortgage early.

There is also a second option for early withdrawal of obligations. If regular contributions to the bank are smaller compared to receipts from the military department, then a surplus is formed in the account.

They can also be used to repay the loan. This procedure is carried out using three methods:

• by letter (postal item);
• by electronic message;
• through a personal visit to Rosvoenipoteka.

The algorithm for
performing actions will look like this:

1. Viewing the balance of funds on your personal account.
2. Formation of an application in the prescribed form and sending it to the Federal State Public Institution.
3. Receive a response (waiting period - 30 days).
4. Resolving the issue with the bank, obtaining a new repayment schedule for the VI.

Will the amount deducted under
the military
mortgage change in 2020 (indexation of savings)?

Last year, the annual contribution from the state was 268.5 thousand rubles. For a month, a serviceman received a little more than 22 thousand rubles.

In 2019, the amount was indexed by 4.3% and amounted to about 280 thousand rubles (for 12 months). For next year, the budget also includes an amount to increase contributions (3.8%).

Accordingly, annual revenues will increase by 10.6 thousand rubles.

In addition to indexation, it is worth noting the possibility of refinancing the annual payment on previously issued mortgage loans. The procedure is carried out in accordance with the reduction in interest rates for using loans from financial institutions.

If you look at current statistics, the military - participants in the funded mortgage lending system have good purchasing power.

During the operation of the NIS, the number of transactions in the regions executed within the framework of the project amounts to tens of thousands, for example, in the Moscow Region - about 35 thousand, and in the Krasnodar Territory more than 17,000.

This is, in particular, due to the attractive interest rate. Initially, the percentage was set at 11.75 points, but today it does not exceed 9.5 points.

The new refinancing system
allows you to make payments in a fixed amount.
This greatly simplifies the situation for those beneficiaries who wish to end
their professional activities after ten years of service.

Conclusion

Thus, military mortgages in 2019-2020 are issued within the framework of the NIS. The citizen receives monthly deductions to his personal account, which can be used for the down payment on the loan and to repay the loan.

If you have a balance, you can use the money at your discretion.

How does a military mortgage work?

Source: https://pravasemei.ru/zhile/voennaya-ipoteka/

Military mortgage 2020. How NIS will change in the new year

In the new year 2020, we expect further improvement in the conditions of military mortgages and the resolution of a number of problematic issues.

Legislative changes

Military mortgage and escrow accounts

It was planned that in the summer of this year, military mortgages would begin to work with escrow accounts, like all mortgages in general. However, this did not happen; the developed changes to the Rules for the provision of CLP were never adopted.

The reasons are not fully understood. In general, there are no obstacles to “making friends” with a military mortgage and escrow accounts that are safe for shareholders. Apparently, some technical or organizational difficulties arose.

We note that NIS has at least one or two more years to switch to project financing. Currently, about 75% of new buildings in the country are built according to the old rules, which are suitable for NIS participants.

We believe that the situation is not critical.

Family mortgage at a reduced rate for military personnel in 2020

In the past year, the subsidized rate for families with children who bought a new building was extended for the entire loan term. At the time of writing, NIS participants have access to loans at a rate of 4.9% and, accordingly, refinancing of an existing mortgage at the same rate.

In practice, everything turned out to be not so rosy.

Military personnel, as well as civilian borrowers, are denied a preferential rate of 4.9% due to the fact that their current loan agreement specifies the purchase of housing as the purpose of lending in accordance with a preliminary share participation agreement or a preliminary purchase and sale agreement (which is which means you can find out in our article). Despite numerous appeals to the Government, the Ministry of Finance and the Ministry of Labor, the issue has not yet been resolved.

The issue of extending family mortgages to secondary housing also remains open.

From January 1, NIS will become mandatory for all categories of military personnel

Sergeants and petty officers, soldiers and sailors who enter military service after December 31, 2019 and whose total duration of military service under contract is after December 31, 2019.

will be three years, including the duration of military service under the contract until the specified date, will be included in the register of participants in the military mortgage without fail without expressing a desire or writing a report.

Let us remind you that there will now be nineteen categories of NIS participants.

Providing housing as part of a military personnel’s family and under the NIS at the same time

In 2019, important amendments were adopted to Article 15 of the Federal Law “On the Status of Military Personnel.” The amendments are intended to remove discrepancies in the issues of providing housing for military families and military dynasties.

However, in practice, something went wrong and new difficulties arose due to officials not understanding the essence of the adopted changes.

We hope that in 2020 there will be a rethinking of innovations and unpleasant situations for military personnel will not arise.

We recommend reading, especially for employees of housing departments, our article on this subject.

Clarification of the procedure for implementing the NIS

At the beginning of next year, amendments are expected to be adopted, according to which the mortgage debt of a deceased NIS participant will be repaid at a time and in full, and not only family members of the serviceman, but also parents will receive the right to payment.

Also at the beginning of the year, clarification of the procedure for implementing the NIS in the Armed Forces is expected. It is planned to change and complicate the report form for the inherited and last remaining voluntary category of NIS participants, as well as to ensure the possibility of simultaneous payment of savings and additional funds to those discharged early from military service on preferential terms.

Unsolved problems

Accrual of investment income lately included in the NIS register

Until 2019, FGKU Rosvoenipoteka calculated lost investment income for NIS participants who were lately included in the register. However, everything changed after an audit of the use of budget funds conducted by the Federal Treasury. Now, even in court, collecting the required funds has become extremely problematic.

We plan to pay special attention to this problem in the new year.

Impossibility of refinancing a mortgage at a preferential rate

As of the end of 2019, NIS participants applying for a family mortgage face the following problems:

• “incorrect” from the point of view of subsidizing rules the formulation of the purpose of the loan (for refinancing);
• additional costs associated with assessment, insurance and the need to pay interest on the loan at your own expense - up to 40 thousand rubles;
• the impossibility of reducing the military mortgage rate for families raising a disabled child.

Our editors will probably devote the beginning of next year to this very issue.

Division of loan obligations and property rights after divorce

Judicial practice regarding the division of real estate acquired by an NIS participant during marriage has finally been established - the property is divided. At the same time, the issue of reciprocal division of loan obligations and CLP remains not fully resolved. In this matter, as they say, “who knows what?”

Our lawyers have fully explored the possible options and are ready to help you.

Deceived investors

The problem of defrauded shareholders among NIS participants, of whom there are still several hundred, remains unresolved.

At the same time, 2019 was marked by a significant step forward in this direction: a number of military personnel recognized as affected participants in shared construction will be provided with new apartments in the Moscow region. By the spring of 2020, it is planned to carry out about 10 such transactions.

Terms of military mortgage in 2020

 

The amount of the annual savings contribution is 288,410 rubles.

The expected income from trust management of savings at the end of the year is 5.5% (our forecast).

Taking into account the fact that the Central Bank of the Russian Federation does not exclude a further reduction in the key rate and also taking into account the provisions of the Decree of the President of the Russian Federation dated 05/07/2018 No. 204 “On national goals and strategic objectives of the development of the Russian Federation for the period until 2024”, we expect that already in In the new year 2020, we will be able to see military mortgage rates of about 8% per annum.

In 2019, military mortgages turned 15 years old

When the bill on the savings-mortgage housing system for military personnel was introduced in 2004, a target was set - the opportunity to purchase standard housing with an area of ​​54 square meters by the age of 20 years of service (after 15 years of participation in the NIS).

It is worth noting that the goal was not achieved only in Moscow, St. Petersburg and Vladivostok. In other regions, a military member who is a member of the NIS with 15 years of “experience” can purchase housing from 60 to 135 square meters. meters.

Source: https://mlds.ru/articles/voennaya_ipoteka/voennaya-ipoteka-2020/