Mortgage with a residence permit: which bank can you apply for, requirements for borrowers

Residence permit in the Russian Federation: basic rights, restrictions, opportunities

Foreign citizens and stateless persons receive residence permits in the Russian Federation. Reasons:

citizenship of Belarus, Kazakhstan;
availability of a temporary residence permit;
official employment in the Russian Federation;
belonging to highly qualified specialists;
participation in resettlement;
native speaker status.

The document gives the right:

live in Russia for a long time;
cross the border without obtaining an entry visa;
enter into employment contracts without obtaining a work permit;
conduct business activities;
obtain Russian citizenship.

The residence permit is valid for a maximum of 5 years, but not longer than:

valid passport;
the contract is valid;
3 years for native speakers.

The residence permit can be extended without restrictions.

Is it possible to get a mortgage with a residence permit?

Banks are not prohibited from issuing loans to foreigners, which means it is possible to get a mortgage with a residence permit. However, many lenders require Russian citizenship. Why?

When considering loan applications, financial institutions evaluate projected income, as well as the likelihood of debt problems. Most Russian banks adhere to the tactics of issuing low-risk loans, avoiding potential litigation outside the Russian Federation. The exception is VTB mortgage with a residence permit.

Many credit institutions, especially those with foreign capital, do not attach importance to citizenship. It is enough for the borrower to confirm his financial solvency.

How does the client guarantee payment of the debt? Availability of permanent income and property. In the case of a mortgage, the bank will have real estate as collateral. Sometimes, getting a mortgage with a residence permit turns out to be easier than a consumer loan.

Mortgage loan for foreign citizens

Paradoxically, banks are more willing to issue housing loans to foreigners than consumer microloans. This fact is explained by the presence of guarantees of return, because the apartment or house in this case acts as collateral. And if the due payments stop coming from the foreigner, the bank simply takes the property for further sale.

The main thing in any type of loan is to confirm your income and justify your personal ability to repay the debt. And for many financial institutions, in this case, it does not matter which state the borrower is a citizen of.

The country's banks that work with foreigners offer them almost the same lending conditions as for Russians.

Mortgage for foreign citizens without a residence permit

In most cases, getting a mortgage without a residence permit is more difficult than with one. Let's look at the reasons.

When applying for a loan, the bank requests documents about employment and income. The main borrower criteria for a financial institution are:

stable work;
regular income;
ability to pay on schedule;
reducing the likelihood of debt problems.

A residence permit provides the right to stay in Russia for up to 5 years and official employment without obtaining a permit. However, this is not the only way to confirm your solvency.

Can a military member have two mortgages at the same time?

According to existing rules, the transaction within the framework of the preferential lending program for military personnel is free of charge. The participation of the spouse of the NIS participant is not expected either at the time of execution of the agreement or during subsequent loan payments.

At the same time, no sanctions or measures are imposed on the other half of the serviceman in case of failure to fulfill obligations by the borrower.

The right of ownership when purchasing residential property with a mortgage arises only from the NIS participant; the spouse of the military personnel has nothing to do with its ownership. The only exceptions are the special conditions of the marriage contract, which provide for special conditions of the marriage union.

This is important to know: How to get official housing for contract military personnel

Due to such features, obtaining a civil mortgage for a military personnel’s family is not one of the problematic issues and, if desired, the family can simultaneously obtain a loan under a preferential program within the framework of a military mortgage and a civilian mortgage. In most cases, such a decision is due to the need for young officers or families to purchase housing after the birth of children and the inability to wait the period of 3 years required by law in order to be able to use savings account funds.

Additional requirements

The debt is secured by the property. However, it is more profitable for banks to receive stable payments under the agreement rather than to engage in litigation with the debtor. Credit institutions may impose additional conditions on mortgages for foreign citizens with a residence permit. For example:

Recommended article: Termination of a purchase and sale agreement with a mortgage

attracting a guarantor/co-borrower;
increasing the amount of the down payment;
reduction of loan term;
interest rate increase;
the financial burden of the borrower, taking into account the payment on the requested loan, should not exceed 30-40% of income;
insurance against the risk of insolvency.

Mortgage process

The process of obtaining a mortgage for Russian citizens and foreigners differs only in more stringent conditions for checking compliance with the conditions, as well as the speed of processing the transaction.

To begin, the client must contact the banking institution to submit an application and find out what documents need to be provided and what are available. After checking the entire package of documents, as well as the borrower’s candidacy, the bank makes an affirmative decision.

Next, you should find a property that will meet the bank’s requirements or choose from the proposed accredited properties. Housing documents are also subject to thorough verification, especially in terms of its cost and the amount required by the borrower to purchase it with a mortgage.

After approval of all terms and conditions, the text of the agreement is drawn up by the bank’s specialists and provided to the client for review and signing.

Along with the mortgage agreement, an insurance agreement for the collateral object is also concluded. Life and health insurance for the borrower is optional, but banks have a positive attitude towards personal insurance and reduce interest rates for such clients.

Money for the purchase of a home with a mortgage is issued by crediting to the client’s personal account, after which a purchase and sale transaction is carried out, and an encumbrance is placed on the purchased property until the end of the debt repayment.

Read about how to remove the encumbrance after paying off your mortgage here.

Required documents

In order to obtain a mortgage, foreigners must provide the following package of documents, which are similar to those required from Russian citizens, but still have some differences:

A copy of the passport, translated into Russian and officially certified;
An invitation to work in Russia or a certificate from the place of work (not necessary for foreigners who have a residence permit);
Visa to enter the territory of the Russian Federation;
Migration card;
Temporary or permanent registration in the territory where the bank operates.

All documents are translated into Russian and submitted in the original with officially certified copies.

The documents must be valid for at least a month before the mortgage is issued; expired documents will not be accepted.

Which bank can I get a mortgage loan from?

Still, which banks are ready to provide a mortgage with a residence permit? Let's get acquainted with the requirements for borrowers from top banks that are ready to issue mortgages for foreigners with a residence permit.

Alfa Bank

age from 21 at the time of filing, to 70 at the end of payment;
total experience from 1 year, in the last place from 4 months;
any registration at the place of residence;
up to 3 co-borrowers without presenting any relationship requirements.

Raiffeisenbank

age from 21 at the time of issue, up to 65 years old to repay in full;
living and working in the Russian Federation;
several options for length of service requirements, depending on the general and last place, in any case, the borrower must work for at least six months;
for entrepreneurs, a report on financial activities for 3 years;
The minimum salary in hand is from 20 thousand rubles. for Moscow and other million-plus cities, 15 thousand rubles. for other regions;
no bad credit history;
There must be no more than one existing mortgage loan when submitting an application;
Spouses, cohabitants, and close relatives can be co-borrowers.

VTB

total experience from 1 year, when changing jobs - from 1 month, not counting the probationary period;
there are no requirements for the place of registration of the applicant;
place of work in the Russian Federation.

UniCredit

the place of registration of the applicant and the property is the territory of the Russian Federation, except Crimea;
place of work in Russia, except for the territory of Crimea;
confirmation of the level of income sufficient to repay the requested loan;
no negative credit history.

Home Credit, Rosbank, Rusfinance Bank, Deltacredit

The Societe Generale group is represented in Russia by financial organizations Rusfinance Bank, Rosbank, Deltacredit. The latter cooperates on mortgage products with Home Credit Bank. The listed lenders have general requirements for borrowers:

minimum age is 20 years, maximum at the time of payment is 64 years;
employment, and the official requirements do not indicate mandatory employment in the Russian Federation;
co-borrowers/guarantors – up to 3 people without any requirements for relationship.

Mortgage conditions for foreigners

The conditions presented are aimed at confirming the availability of funds to repay the loan. In this regard, a number of mandatory requirements are established:

Official employment.
Payment of taxes.
Availability of confirmed work experience.
Possession of funds equal to the down payment.

Banks also always offer to choose the loan currency. To protect yourself as much as possible from changes in financial markets, it is important to choose the currency in which the borrower receives his main income.

Attention! It must be remembered that the loan amount is not subject to unilateral upward revision.

You can choose from:

ruble (₱);
US dollars ($);
euro (€).

You should not be fooled by tempting interest rates on a foreign currency loan, as they are easily offset by inflationary growth and will not allow you to take advantage of the low rate.

Here are examples of the conditions of several banks:

VTB provides loans for a period of 5-20 years at 15%;
Alfa-Bank - for a period of up to 25 years at 13-14.5%;
Rosbank - for a period of 5-20 years at 18%;
Delta Credit – for a period of up to 20 18%;
Home Loan with a term of up to 20 years at 17%.

Documents from the borrower

Basic package of documents for approval of the amount:

application (questionnaire);
passport + translation;
marriage certificate, its translation;
consent to the processing of your data by the bank;
documents confirming the legality of residence and work in the Russian Federation;
confirmation of employment and income (tax returns, salary/pension certificates, copy of the contract with the employer, account statements).

Translations must be notarized. Credit institutions reserve the right to require additional documents. For example, a client may be asked for notarized translations of contracts under which he worked before arriving in Russia.

Documents confirming regular income may not be required when contacting the bank where the salary account is opened.

Read more about the requirements for mortgage documents in another article - Requirements for online mortgage documents

Attitude of creditors

There is no uniform agreement and system for financing migrant housing projects between banks. So it is impossible to single out such a program in the list of proposals. That is, you will not find a special offer for non-residents or persons with another citizenship, you will be credited on a general basis, with a different package of documents and nothing more.

Loan without refusalLoan with arrearsUrgently with your passportCard loans at 0% Installment cardsEarning money from home

A number of financial institution executives are willing to help foreigners buy a home. Most people plan to take out a loan on a long-term basis to stay in Russia.

A number of people have a consistently high income and are law-abiding people. Lenders do not even worry about the fact that clients may leave the country forever, and the property will become the source of long proceedings.

It's all about active competition between domestic and foreign banks, when institutions are forced to look for new sources of attracting assets.

Later in this article:

Requirements for premises on the secondary market

The main characteristics that the finished object must meet:

connected to communications;
if the room is finished, plumbing, doors, and windows are required;
condition - not dilapidated, not in emergency condition, not subject to resettlement;
reinforced concrete foundation, stone or brick;
there are no encumbrances or interests of third parties.

Raiffeisenbank is the most demanding in terms of real estate. In order to lend, the following conditions must additionally be met:

the seller is not a legal entity whose work does not comply with the legislation of the Russian Federation, or a close relative of such;
the premises must have its own kitchen and bathroom;
there are requirements for the number of storeys of a building depending on its age and region.

Recommended article: From 2020, the law will protect bona fide real estate buyers

Documents for the property when purchasing a finished home

Scroll:

title documents - according to which the premises were given to the seller (possible: purchase and sale agreement, share participation in construction, donation, exchange, certificate of inheritance, court decision, etc.);
assessment report;
cadastral/technical passport – check the need for a specific bank;
extract from the Unified State Register/United State Register;
certificate of persons registered in the premises/absence of registered persons;
certificate from your personal account;
if there is a marriage contract, a copy of it;
the notarial consent of the spouse is required for the buyer or seller if the property is sold/bought during marriage, but without the use of a general joint right of ownership and without a marriage contract;
if the seller is an individual, a copy of all pages of the passport;
if the seller is a legal entity, a copy of the constituent documents, as well as a document confirming the right to sign;
the minor seller will need permission from the guardianship authorities and related documents;
if a representative of the party is involved in the transaction, a notarized power of attorney.

Buying a secondary apartment with a mortgage: step-by-step instructions will help you understand the transaction in detail.

Requirements for a facility under construction

The legislation of the Russian Federation regarding mortgages for housing under construction is at the stage of serious changes. Bank requirements are also changing.

The best option for the client is to have the facility accredited by the bank. In this case, you do not have to delve into the intricacies of the law. If you are buying an apartment in a multi-storey building, it is advisable to ask the developer which banks the building is accredited with. There may be a financial institution on the list that suits you.

If the building is not accredited by the bank from which you want to get a loan, you will have to collect a package of documents for approval (licenses, permits, etc.). Check with your lender for current requirements.

Documents for a property under construction

The basic package of documents usually looks like this:

draft agreement on shared participation in construction or assignment of claims;
valuation report;
power of attorney for the signatory of the agreement on behalf of the legal entity.

Buying a new building with a mortgage: instructions with a detailed description of each stage will help borrowers understand all the nuances in advance.

Mortgage for pensioners with a residence permit

According to general rules, all banks have requirements for the applicant’s employment and age. At the same time, they draw attention to the fact that all loan applications are considered on an individual basis.

So is it possible for a pensioner with a residence permit to take out a mortgage? If he confirms his solvency, there is a chance of getting approval. A number of features should be taken into account:

The loan term will be short.
The down payment will be higher than for general requirements.
With age, the risk of insolvency increases; it will be included either in the insurance commission or in the interest on the loan.
There is a high probability of a requirement to attract co-borrowers/guarantors.

Applying for a mortgage requires time and money. As a result, the premises are pledged to the bank. When purchasing real estate as a pensioner, it is advisable to evaluate and compare the benefits of attracting mortgage and consumer loans.

Risks of banks when issuing a loan to a foreigner

A bank’s refusal to provide a loan to a foreign person is quite often associated with the following reasons:

There is no access to a database containing information on citizens of other countries;
The employer may break off relations with the foreign person, or he himself decides to change the employer;
It is very difficult to check the real solvency of a foreigner, since the only income document that the borrower provides is a certificate from the employer.

However, many banks are increasingly accommodating to foreign citizens and issuing loans to them. Moreover, after analyzing the results of cooperation, the data showed that foreigners are more responsible in repaying the loan than citizens of the Russian Federation. Although, first of all, this is probably due to a more stringent check of the borrower before issuing a loan. Especially recently, the number of mortgage loans provided to foreigners has increased. Moreover, almost half of them (about 45%) were issued to citizens of Belarus, 19% to Ukrainians, and about 7% to citizens of Kazakhstan and Uzbekistan. Mortgage loans are provided by banks more readily than, for example, consumer loans or car loans. This is due to the fact that the housing is pledged to the bank throughout the entire loan term. All this time, the bank will have no doubt that the borrower will disappear and the debt will never be repaid. Even if this happens, the creditor will still have the apartment, which he will sell and receive the required amount. But, as a rule, people are afraid to be left on the street, so the mortgage loan is paid regularly.

How to Apply for a Mortgage Online

Banks provide the opportunity to submit an application through the website. The filling procedure is usually clear intuitively. Please indicate/provide:

Personal Information;
contacts;
desired loan amount;
income level;
consent to the processing of personal data;
consent for the bank to receive information from the credit history bureau.

If you have already paid off a loan in Russia, online applications will help you contact several banks in a short time and compare their offers. For those who do not have a credit history in Russia, it is better to apply in person. A mortgage with a residence permit for citizens of foreign countries requires a detailed analysis of the available documents. A bank employee will help you collect and prepare them correctly.

Loan terms

When considering an application for a mortgage loan, banking organizations assess the reliability and solvency of the potential borrower.

Before granting a mortgage, the bank will check that the client meets the following conditions:

Legal residence in Russia;
Proper payment of tax payments and fees;
Solvency (the amount of borrowers' obligations should not exceed 40% of family income);
No other debts;
Good credit history (if the foreigner has previously taken out loans in Russia).

Some banking institutions require that the work experience in Russia exceed 2 years. Banks may set other lending conditions for migrants to minimize their risks.

Currency and interest rates

Russian banks issue all mortgage loans in rubles. It is impossible to take out a mortgage in another currency.

The amount of overpayment is directly related to the bank's credit policy. But financial institutions issue more expensive loans to foreigners. The interest rate increases by 1-1.5% compared to the cost of loans for Russians.

On the mortgage market you can find offers for which the overpayment on the loan is from 9.25% per annum.

Down payment, insurance requirements

Russian banks issue mortgages to citizens of other countries only after making a down payment. For migrants, banks set it at a rate of 15%. But some increase it up to 50-60% of the estimated value.

You can avoid paying the down payment if you provide other liquid assets as collateral. It is important that the loan amount does not exceed 85% of the value of the collateral.

Many lenders require collateral property insurance when issuing a mortgage loan.

Warning! Some banks issue money to foreign borrowers only on the condition that the life and health of the client are insured.

Scheme of purchase and sale transaction and mortgage insurance

Let us highlight the main stages of buying real estate with a mortgage.

Contacting one or more banks to approve the amount

The client submits documents confirming his creditworthiness, as well as preliminary information about the purchased property (primary/secondary housing, estimated cost). The bank reviews the application, informs about the possibility of providing a loan, the approved amount, and the interest rate.

Recommended article: Which bank to take out a mortgage on a land plot (documents, requirements)

Collection of documents for the object

The client (or his realtor, representative) collects documents for the premises, the seller, and documents that are missing for himself (for example, the consent of the spouse). The exact list depends on the bank - the client receives it as a separate list.

At this stage, the parties enter into a preliminary agreement in which they state their intentions. Based on this, the buyer usually transfers the deposit to the seller against receipt.

Approval of the object by the bank

When the documents for the transaction are collected, the buyer gives the package to the bank. If all information is complete and correct, without violating applicable laws, the object receives approval.

Making a deal

The parties meet at the bank to sign a loan agreement. A purchase and sale agreement or share participation in construction/assignment agreement can also be concluded here.

If the transaction requires notarization (for example, shared ownership), the parties, together with the creditor, draw up a draft agreement and send it to the notary. Or the contract is drawn up by a notary and its terms are agreed upon with the bank.

Based on the signed purchase and sale/equity/assignment agreement, the buyer transfers (or transfers) the amount of the down payment minus the deposit. The seller writes a receipt for the money received. This document is usually drawn up by the bank taking into account all the requirements.

How to confirm the down payment on a mortgage - read in another publication.

Registration of a transaction

The buyer carries signed contracts, a receipt (or receipts) for the amount of the first payment, an extract from the Unified State Register from the seller for registration in Rosreestr. You can submit documents through the MFC. The maximum period for issuing documents is 2 weeks. Usually it takes significantly less time. The applicant picks up the contract with a registration mark.

Crediting money to the seller

The buyer provides the bank with a registered agreement. Based on this, the money is transferred to the seller.

Risk insurance

The loan agreement provides for mandatory insurance of the purchased object. A residential mortgage may also include additional insurance.

Read the loan agreement carefully. Insure the specified risks within the agreed period and provide copies of the policies to the bank. There are usually high fines for violating the conditions.

Call several insurers. The cost of the policy may vary significantly. When applying, provide a loan agreement so that the insurance agent accurately indicates all the data.

Mortgage insurance – what is required?

Mortgage repayment methods

When applying for a mortgage loan, you will receive account details into which you need to deposit money for repayment. You can top up in any convenient way:

at the bank's cash desk;
via bank transfer;
Most credit institutions offer a bank card (often free) for replenishing via an ATM.

Ask your bank about existing commissions, free replenishment methods, as well as the timing of crediting funds to your account using different methods.

It is often recommended to deposit money at least 2-3 banking days before the scheduled payment.

Early repayment of mortgage

Russian banks usually do not charge fees for full or partial early repayment. The basic rules are specified in the contract. Please note that in order to write off a payment ahead of schedule, an order/application is required. Each bank sets the filing deadline at its own discretion. It can range from 1 day to a month. In addition, some organizations prohibit early payment of the amount.

Early repayment of a mortgage: is it more profitable to shorten the term or payment?