Many young families are interested in the question: can they count on an interest-free mortgage in 2019? Today we will tell you whether such a measure of government support actually exists or is it a myth.

Federal Target Program "Young Family"

As you know, back in 2007 the issue of organizing mortgage lending with interest subsidies was raised. It was planned that for a young family that participates in the social mortgage program, at the birth of the first child, 25% of the total loan amount would be written off, at the birth of the second - 50%, and at the birth of the third, the entire amount of the loan funds.

However, this initiative did not find approval among deputies and a new program was proposed: “Affordable housing for young families,” which has been in effect since 2011 to the present day with minor changes. Its goal is to provide needy families with cash grants that will help them purchase housing.

The payment amount will be from 30 to 35% of the cost of housing, depending on the region of residence of the family and the presence of children. You can receive financial assistance on a first-come, first-served basis, which is compiled by the city administration of the district or city of your residence. Please note that to do this you must be recognized as in need of improved living conditions!

Most often, this can be achieved if the family does not have their own home, if each family member has less than 18 square meters, or if the apartment/house is in disrepair and is subject to demolition.

Promotion from Sberbank

If you apply for a mortgage from Sberbank of Russia, then you are also offered the most favorable conditions: a low rate of 10.2% per year, a small down payment of 15% and a long loan repayment period, details can be found in this article.

It has its own promotion called “Young Family”, which can be used by families where at least one of the spouses has not yet turned 35 years old. The requirements for the borrower will be standard:

• solvency, i.e. having a permanent income,
• official employment,
• the possibility of confirming wages and work experience with relevant documents,
• no credit burden,
• Russian citizenship and registration,
• neutral or positive credit history, overdue payments, even previously closed ones, are not allowed.

We emphasize that this action has nothing to do with the state subsidy program. Sberbank offers a reduced rate for any borrowers, regardless of whether they are on the waiting list, whether they received a subsidy, or whether they were recognized as needy or not.

You get a loan on a general basis, but at a reduced interest rate and a reduced down payment amount - from 15%. Upon the birth of a child, the borrower has the opportunity to apply for a short deferment in the payment of the principal debt in order to temporarily reduce the size of the monthly payment.

Alternative measures of government assistance to borrowers

In addition, some regions have their own support measures, thanks to which you can receive a significant payment or a reduction in the current interest of no more than 5-10% per annum. There are also similar programs for some categories of citizens, in particular:

• Russian Railways employees pay mortgages at 2-3% per annum,
• military personnel who are members of the NIS and who have taken out a special Military Mortgage make their monthly contributions at the expense of the state,
• categories such as scientists, public sector or municipal employees will be able to count on the “Social Mortgage”, where interest rates and the size of the PV are reduced,
• families who welcomed a second or third baby after January 1, 2018 have the right to apply for a “Family Mortgage” at an interest rate of 6% per annum. This percentage will be valid temporarily - 3 or 5 years from the beginning of the contract, the period of benefit depends on what kind of child was born. All details can be found in.

If there are 2 or more children in the family, then you can also count on maternity capital, which is described. Also in some regions, for example, in the Krasnodar Territory, there is

The term “interest-free mortgage” itself can be considered relative. Any mortgage loan involves interest. Otherwise, it would be unprofitable for the bank. An interest-free loan can only be for the borrower. For the credit institution, interest still remains, but the state is responsible for repaying it. Benefit recipients (large families, state employees, etc.) can receive such a loan.

Interest-free mortgage: what is it, its types

A mortgage loan is a large financial burden for the borrower. Not everyone can afford large monthly payments and a down payment. To help citizens purchase housing, the state regularly conducts support programs for privileged categories of the population: pensioners, young and large families, and public sector workers.

An interest-free mortgage for a large family may differ from the program for state employees. For this reason, it is necessary to clarify the terms of lending with the administration authorities.

Before you take out an interest-free mortgage, you need to find out what programs are offered. Some of them may operate at the regional level. Preferential lending can have several varieties:

• Subsidy. This is a lump sum payment that is used as a down payment. The state allocates an amount ranging from 30 to 50% of the cost of housing. This money is transferred to the bank account. Interest is considered repaid, and the borrower returns the principal.
• Decrease in interest rate. Not all categories of the population can get a loan without interest. For example, interest-free mortgages for public sector employees are currently developed only for military personnel under a special system. There are separate programs for teachers at a reduced percentage.
• Preferential prices for real estate. This option does not apply to an interest-free mortgage at all, but it is a benefit option. Housing in new buildings is sold at a price significantly lower than market prices.

Various benefit programs have been developed to support young families, professionals, etc. These may change over time, so those wishing to participate in these programs should check their terms and conditions.

Only banks with a share of government support engage in this type of lending. Some financial institutions themselves develop programs and reduce the interest rate to attract customers.

Who gets an interest-free mortgage?

Government programs that include benefits are designed to help those who cannot purchase housing on their own, but are in dire need of it. There are many concepts - social mortgage, preferential mortgage, but they all mean the same thing: government assistance in purchasing real estate.

The following categories of people can receive a preferential mortgage loan:

• Large families. The program for large families has many nuances. Starting from the cost of housing and ending with the concept of “large families” in each individual region of the country. In most regions, a family is considered large if it has 3 or more minor children (including adopted ones). A large family, if it does not have its own home (or each family member has less than 14 m2), can contact the administration, provide the necessary documents and get in line to receive a subsidy.
• Young families. An interest-free mortgage for a young family was developed several years ago. A family is considered young if one of the spouses is not yet 35 years old. Assistance is provided in the form of mortgage programs with a reduced interest rate or in the form of a subsidy for interest repayments. But program participants must provide documents confirming that they do not own housing.
• Young professionals. Interest-free mortgages for young professionals have their own characteristics. Separate programs were developed for teachers, military personnel and Russian Railways employees. Military mortgages operate on a savings system, according to which a serviceman can purchase home ownership without interest. Teachers are offered a reduced mortgage rate if they commit to working in the education sector for at least 5 years. Russian Railways employees can get a mortgage on favorable terms: the state will compensate 7.5% of the monthly contribution every month.

Some banks offer separate preferential programs for healthcare workers and pensioners.

Algorithm for obtaining a preferential mortgage

Not everyone knows how to get an interest-free mortgage. The algorithm for applying for it differs from applying for a regular mortgage loan. Since part of the amount is contributed by the state, all documents are checked with special care. First of all, the future borrower must document that he belongs to the preferential category of citizens who are granted a mortgage without interest.

To become a participant in the benefit program, you must complete the following steps:

• Contact your local authority for information. Many programs operate at the regional level. You can clarify the list of documents and conditions for receiving benefits in the administration department that deals with this issue.
• Collect the necessary documents. When applying for a social mortgage, the list of documents is longer. First, papers proving membership in a preferential category of the population must be taken to the administration. Most often, they require documents confirming identity, extracts from the house register, certificate of ownership, marriage certificate, etc.
• Receive a certificate of participation. After submitting documents and checking them, the potential borrower is issued a program participant certificate. It specifies what kind of help he can count on and under what conditions.
• Contact a bank with a share of government support. With the received certificate, the borrower goes to the bank, writes an application for a loan and submits a standard package of documents. (passport, certificate 2-NDFL, etc.).
• Choose accommodation. After the bank has approved a loan for a certain amount, the borrower selects housing. This can be done in advance. An approved application is valid for 2 months.
• Make a deal. At the last stage, an agreement is concluded between the bank and the client, the seller and the buyer, and then the registration of a certificate of ownership begins.

Financial institutions try to oversee such transactions. If you have any questions, you can contact the credit manager who is involved in processing the transaction.

Banks where you can get an interest-free mortgage

You can get a mortgage loan on preferential terms from credit institutions that have a state share. Usually these are large banks, the list of which is limited. The loan terms are approximately the same, so the borrower can choose any organization to sign the contract.

Interest-free mortgage loans are issued by:

• Sberbank. Interest-free mortgages from Sberbank are provided to young and large families. Loan conditions are individual, they need to be clarified at the bank branch. Borrowers can use maternity capital to repay the loan. For young families who do not participate in the state program, Sberbank offers a reduced interest rate and a smaller down payment.
• VTB 24. This credit institution also has a share of government support. The bank offers mortgages at 11.4% per annum for up to 30 years. You can use certificates to repay interest, maternity capital (at any time for repayment and 3 years after receipt - for the first payment).
• Revival. A preferential mortgage at Vozrozhdenie Bank implies 11.4% per annum and the ability to use the subsidy to pay off interest. The minimum down payment is 20% of the value of the purchased property.
• DeltaCredit. The bank has been participating in the state support program since 2015. You can purchase housing on the primary and secondary markets with a mortgage at a reduced rate. For beneficiaries, the financial institution offers a loan at 11.5% per annum (under normal conditions it is 12%).

There is a separate type of interest-free mortgage - a loan from Sharia. This type of lending is at the development stage. Muslims, according to religion, are not allowed to borrow money at interest. In order for them to have the opportunity to buy a home, the idea of ​​an “Islamic bank” is being developed, where interest-free loans will be issued for the purchase of housing at an inflated cost to cover these interests.

For many Russians, owning real estate is a luxury item and an unaffordable dream. Buying your own apartment is not so easy, given the extremely high current market prices. The solution is to obtain a mortgage that can solve the housing problem.

But sometimes, due to high interest rates, people give up on this idea. An interest-free mortgage would make everything much easier if it existed and was actively used by banks.

An interest-free type of housing lending exists in practice and is successfully used in the Russian market. This is one of the types of government subsidies that are adopted at the legislative level. Such support makes the purchase of housing properties much more accessible to interested audiences.

Mortgage without interest primarily aimed at young families who need to expand their living space or do not have their own square meters at all. Renting a home is not particularly beneficial for the budget of a young family, and therefore you have to look for an alternative. And a reasonable solution lies precisely in one of the state social programs.

Interest-free housing loans for young families

Social government programs for subsidizing mortgages are designed to provide targeted assistance to young families in obtaining housing capital. Credit concessions operate on the basis of individual banks where loan agreements are drawn up. Gazprombank and Sberbank are among the few financial institutions that work with this social program.

An interest-free mortgage for a young family in 2019 offers a free option for assistance in accordance with the prescribed conditions. Such financial support is designed even for those families who do not yet have children. However, in families of two people, the acceptable rate of government subsidy is only 30%.

If the family has a minor child, then the amount of support is calculated based on out of 35%. At the birth of the third baby you can rely on 40% state support. In certain administrations of regional centers, you can request additional financial support for the purchase of real estate for a young family within 5-10%.

The funds allocated by the state can be purposefully used to pay the down payment on the mortgage and the remaining interest. Due to this, it turns out that the mortgage resets its lending rate, which is paid from funds allocated by the state. Additionally, when paying for a mortgage, you can use Maternity Capital, as well as other social programs that are provided for by law.

Conditions for opening a mortgage for young families

To better understand the issue of how to get an interest-free mortgage for a young family, you should study the conditions of such a state social program. Without compliance with such requirements, the use of public funds will be impossible.

So, young families without children have the right to purchase real estate on mortgage terms with a living area not exceeding 42 m2. If a young couple has children, then the calculation formula becomes as follows - each family member can count on 18 m2.

In this case, you will need to collect the main package of documents to submit them to the bank to open the appropriate mortgage lending program:

• Marriage certificate.
• Passports of each relative.
• A certificate that confirms the participation of a married couple in the relevant social program of the state.

You can receive a certificate of participation in the state program based on an application to local authorities. The couple gets in line. The final decision will be made within 30 calendar days.

Mortgage without interest according to Sharia law

According to the laws of the Islamic religion, believers do not have the right to participate in banking programs where there is interest. That is, both loans and deposits are not available to them. That’s why all over the world there is such a thing as “Islamic banks,” which have their own terms of service and work with clients.

A mortgage without interest on an apartment under the terms of Shariah will be a long-term option for installments of the designated amount of residential real estate at an inflated market value at the same bank interest. With this approach to lending, a Muslim can afford to purchase an apartment without conflict with his religion.

However, the legislation only deals with this issue on the basis of global practice. According to general estimates, the total volume of financial flows among “Islamic banks” is up to 2 trillion. Dollars

Interest-free mortgage from Russian Railways

Young professionals, as well as pensioners who were or are in the structure of the Russian Railways company, have special benefits when registering and purchasing real estate. Support is provided exclusively to company employees, and not to every interested citizen of Russia. Don't confuse this!

Russian Railways OJSC cooperates with VTB24 Bank, and therefore in the branches of this financial institution it is possible to draw up a mortgage agreement with special subsidies. The benefit is that the employer himself will directly compensate for 7.5% of the monthly overpayment of payments. This is the standard rate for all employees of Russian Railways.

If the application is filled out by a young specialist under 30 years old or employees with many children, then in such cases the company’s benefit will cover 8.5% of loan payments. Then, when choosing certain bank mortgage programs, the loan will be either interest-free or with a minimum monthly overpayment.

Outcome

The question of how to get a mortgage without interest has been asked by many Russians. And it is obvious that this is a completely achievable goal, taking into account the many social programs that are provided today. Not only the state, but also a number of major companies offer profitable subsidies for mortgage agreements in order to make the purchase of real estate more affordable.

In 2018, about 312 thousand loans were issued for the purchase of housing under the DDU. The amount of loans is about 650 billion rubles. Impressive? Yes, in recent years the number of apartments

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The question of how to get a mortgage without interest has been asked by many Russians. And it is obvious that this is a completely achievable goal, taking into account the new social programs.

Purchasing your own home is the main problem of every Russian family. But saving for an apartment or house, taking into account rising prices and inflation, is almost impossible, and mortgage lending is too heavy a financial burden. That is why the state, supporting certain categories of citizens, creates and successfully applies various programs under the general name "interest-free mortgage"

Is it possible to get an interest-free mortgage?

All banking organizations are aimed at making a profit, therefore zero mortgage a completely unacceptable concept for them.

But since interest-free lending is provided by the state, it looks like this:

1. The borrower receives a large sum of money from the bank at zero interest and without a required down payment.
2. The bank receives its profit from public funds, which are paid to the bank when applying for mortgages to citizens from the preferential category.

Thus, all lending participants get what they want.

To get an interest-free mortgage Potential borrowers will need:

• contact your local municipality or administration;
• clarify the availability of existing programs and requirements for participation in them;
• collect the required package of documents;
• write an application to your partner bank.

Who is entitled to an interest-free mortgage?

First of all interest-free mortgage It is necessary for those Russians who cannot purchase housing on their own due to their difficult financial situation:

• young and large families;
• single mothers raising children without the support of a second parent;
• young specialists and public sector workers who receive low wages due to the specifics of their profession and lack of necessary experience.

Young family

At the legislative level, a young family is considered to be a couple under the age of 35 who are officially married. It does not matter whether they have children or not. Families with or without children can apply for an interest-free loan, but calculations for the number of required square meters per family will be carried out differently.

At the federal and regional levels, many programs have been developed to provide housing to young couples. From budget funds, families are allocated from 30 to 50% of the total cost of the mortgage. These funds can be used to pay for:

• down payment;
• mortgage interest.

After this, the married couple only needs to repay the loan amount, without overpayment or additional fees.

Single mother

There are no separate federal programs designed specifically for single parents in Russia. Single mothers of the appropriate age can receive a preferential loan under programs for young families as part of a social mortgage. In addition, certain regions support single mothers and provide them with special cash certificates that can be used to repay loans or purchase their own housing at a reduced price.

The large family

Large families with three or more children are entitled to various benefits and privileges from the federal and regional authorities (receiving a free plot of land, participation in housing programs for young families, etc.). Comfortable and comfortable housing for families with many children is an urgent need.

But obtaining a mortgage loan for such families is possible under certain conditions:

• availability of monthly income to repay the principal debt on the mortgage;
• official status of a large family;
• the need to improve the existing living space or the complete lack of real estate ownership;
• placing on a waiting list for housing as those in need.

For young professionals

Young specialists are yesterday’s graduates of higher educational institutions who studied at the expense of budget funds. Doctors, teachers, educators, scientists and nurses and other specialties are in demand in rural areas and remote regions of the country.

To attract young professionals, regional authorities are developing special social programs to help them purchase housing in the shortest possible time. Applicants may receive cash to help pay their mortgage down payment and/or interest.

State employees

Public sector employees have low monthly income, which does not allow them to take advantage of standard bank loan programs. Therefore, a special mortgage has been developed and is available for public sector employees.

To obtain it, a number of conditions must be met:

• employment in a state or municipal organization;
• At least 3 years of work experience in the public sector;
• availability of income sufficient to repay the “body” of the loan;
• official status of someone in need of improved housing conditions.

Russian Railways employees

Unlike the above categories of citizens, employees of JSC Russian Railways receive preferential loans, which are financed not from public funds, but from the company’s budget.

Railway workers can count on the following preferential conditions when taking out a mortgage for their home:

• no down payment;
• low interest on the loan (from 2 to 4.5% per annum, the difference between the standard bank rate is covered by Russian Railways OJSC);
• additional subsidies at the expense of the company for the birth of a child during the mortgage period for an apartment.

How to obtain a state subsidy certificate

The algorithm of actions for receiving a government subsidy, which can be used to pay off a mortgage, is as follows:

1. Contacting local authorities. Administration representatives provide everyone with lists of required documents.
2. Providing a package of papers for consideration for registration as those in need. The administration's decision will be ready within 1 month. The applicant will receive an official letter with a document confirming participation in the program or a reasoned refusal.
3. Waiting in line may take a long time (depending on the number of participants). When the time comes for a particular participant, he is notified by mail or by telephone and invited to the administration, where he is presented with a certificate of state subsidy.
4. Contacting the selected banking institution to obtain a mortgage.

Which bank should I contact?

The most trusted banks that have an impeccable business and financial reputation and have earned the trust of Russians become partners in state housing programs for preferential categories of citizens.

These include:

• Sberbank of the Russian Federation;
• VTB 24;
• Gazprombank;
• Bank of Moscow;
• Svyazbank;
• Raiffeisenbank.

Mortgage in these banks it is provided on the following conditions:

• down payment from 10 to 20% of the total cost of the loan;
• the mortgage rate does not exceed 11% per annum;
• The loan duration is up to 30 years;
• possibility of early repayment.

AHML and partner banks should be considered as a priority as a creditor because It is this structure that is responsible for the implementation of social mortgages and supporting the population in the housing issue.

Requirements for the borrower

Interest-free mortgages are provided to different categories of citizens on different conditions, so the list of requirements for the borrower may change.

But there are general ones that apply to all preferential lending programs:

• the age of the borrower is up to 65-80 years;
• having the status of someone in need of improved housing conditions;
• confirmation of a special situation that allows you to participate in preferential lending (large family, budget employee, railway worker, etc.);
• work experience in the last place for at least 1 year;
• availability of the required level of income, confirmed by official documents (2NDFL certificate, bank account statement, etc.).

List of documents

The most time-consuming part of lending is collecting the necessary papers and certificates.

The list of documents includes:

• original and copies of all pages of the borrower’s and co-borrowers’ passports;
• marriage or divorce certificate;
• documents confirming the presence of children;
• information about the composition of the family;
• documents confirming the special status of the borrower (single mother, large family, low-income, etc.);
• an extract from the Unified State Register of Real Estate about the absence of real estate ownership;
• documents confirming the level of family income sufficient to repay the loan;
• a copy of the work book.

How to get an interest-free mortgage

It is necessary to consider a standard lending scheme:

1. Contacting the bank. A potential borrower fills out an initial application form and provides a minimum set of documents (passport, second identity document and income certificate).
2. Consideration of the applicant's candidacy by the bank's security service and making a decision on the loan.
3. If the bank approves the application, the borrower will need to provide an expanded package of documents, as well as a certificate of government subsidies.
4. Find suitable housing and provide the bank with a preliminary purchase and sale agreement.
5. After checking the legal purity of the presented property, a transaction date will be set.
6. After signing the purchase and sale agreement, the necessary funds will be transferred to the seller, and the borrower will receive an apartment or house. The property will be pledged to the bank until the loan is fully repaid.

Mortgage without interest according to Sharia law

According to the laws of the Islamic religion, believers do not have the right to participate in banking programs where there is interest. That is, both loans and deposits are not available to them. That’s why all over the world there is such a thing as “Islamic banks,” which have their own terms of service and work with clients.

A mortgage without interest on an apartment under the terms of Shariah will be a long-term option for installments of the designated amount of residential real estate at an inflated market value at the same bank interest. With this approach to lending, a Muslim can afford to purchase an apartment without conflict with his religion.

However, the legislation only deals with this issue on the basis of global practice. According to general estimates, the total volume of financial flows among “Islamic banks” is up to 2 trillion. dollars

Conclusion

Lending is a real opportunity to purchase housing. It may be advisable to contact the municipality and find out what preferential programs and loans are available in your locality and region. If the applicant falls under one of the preferential categories, he has every chance of becoming the owner of his own square meters in the near future.

Also valid since 2018. Be sure to look at the conditions of this program. Perhaps you are the one who can get a mortgage at a favorable interest rate.