Repayment of a mortgage by parent capital: conditions and methods
The housing issue for young families in Russia remains extremely acute. Solving it far from its finale. However, currently there are certain options with which you can facilitate housing for a young family. Repayment of the mortgage by the parent capital – this is what will be discussed below. It is clear that over 90% of Russian families in search of their own homes are forced to take a mortgage or just a big loan to buy residential property.
To make it easier to achieve full and undivided ownership of the acquired housing, you can use the funds that make up the parent (or family) capital. But how to transfer available funds to another plane – housing? Do you need any special conditions for this? How large is the set of necessary documents? It is these questions that confront individuals who have chosen to use the maternity capital in the manner indicated above.
Basic repayment terms
Here, in fact, there is nothing difficult. First of all, you should know that housing purchased on credit should be better than the previous one. The key role under Russian law is the increase in living space per person. And residential property should be in the territory of the Russian Federation. However, these points in 99% of all cases are observed automatically. The second point – who, in principle, has the right to dispose of the parent capital in such a way?
Both parents or guardians, whose guardianship is legally registered, have this right. Either the child, for whom the family capital was issued, when he reaches 23 years of age. Many families included in the sphere of mortgage lending are still asking this question: when is it better to use the parent capital? That is, even before the purchase of an apartment on credit or after, when the monthly payments will go. In itself, this can be done at any time. It all depends on how the family is going to put out the mortgage. In general, banks offer three options here.
Option one – payment of the down payment. Almost always, this option is chosen by those who planned to spend the parent capital in advance to improve their living conditions. When taking a mortgage in a bank, the borrower makes the first payment, which, as a rule, is the largest, using the funds received from the capital. At one time with this method of partial repayment of the mortgage there were problems. This use of matkapitala was limited. Many banks created such conditions of the mortgage sector so that the initial payment was paid exclusively in “free cash”.
Some financial institutions have similar principles today. It is believed that the main reason for this policy is doubt about the solvency of customers, who immediately resort to using maternity capital. However, the main major banks of the Russian Federation (Sberbank, Gazprombank) are now agreed that the initial payment is not some special criterion characterizing the financial viability of customers. So they can be trusted.
Making a down payment by capital is reasonable when the capital itself is not very large. But you should know that the first option according to the law of the Russian Federation is possible only 3 years after the birth of the child or receiving custody. And while the maternal capital must be intact. If the family for a part of the money received, for example, has already furnished a new children’s room, then it is no longer possible to pay the initial installment with capital.
The second option – the most common – when you can repay the entire bulk of the loan in its entirety. In this case, the family pays only for interest, quickly acquiring an apartment in their full property. The trouble is that family capital, as a rule, is not enough for such a financial share. Therefore, this issue must be carefully negotiated in the bank. If you can repay a large part of the principal loan, then the bank and the accrued interest can be counted, starting from the remaining, a small amount of debt and opening a new account. In general, this use of money is the most reasonable.
The third option is to pay only the interest of mortgage lending by means of matcapital. But for a young family, this is the most disadvantageous option, meaning on the whole the burning of money received from the state. It is necessary to resort to it only when there is no other way out, and you have to pay interest.
Required documentation package
Suppose, with the option chosen, the issue is resolved. What’s next? How to repay a mortgage maternal capital? You do not need to be a lawyer to understand the need for a set of certain documents. Since in Russia the bureaucracy and chickery continue to occupy strong and honorable places in the socio-economic life, it is recommended to be fully armed in advance. Below is a complete list of the documentation that is required during the payment process:
- The passport of a citizen (citizen) of the Russian Federation or a foreign passport with a confirmed residence permit, plus several full copies of the document.
- Certificate of maternity capital. This document is perpetual. It is issued to one person (mother, father or guardian), but the second parent is also automatically entitled to the capital received. The lost certificate can be replaced with a duplicate in the Pension Fund of the Russian Federation.
- The bank agreement drawn up when taking a mortgage.
- Certificate from the bank where the loan was taken. The certificate must indicate the remaining amount of the debt and the general state of the account.
- Documents confirming the ownership of borrowed housing.
- A completed form where the borrower announces his desire to pay off the mortgage at the expense of the parent capital. This form is issued in the Pension Fund;
- The contract, certified by a notary and stating that the borrower undertakes to issue real estate residential property as an equal family ownership, in which each family member has an equal share.
- It so happens that a loan is issued to someone from a family member. For example, a husband. Then you will need his passport. Plus, the registry office will need to take a marriage certificate. However, it is taken into account that many families live in a civil marriage, therefore it is not strictly here.