How can I use maternity capital at VTB 24?
After receiving the right to use maternity capital, clients must decide how exactly they want to use the funds allocated to them.
Not only VTB 24, but also all other banks working with this program allow such methods of combining maternity capital funds with a mortgage, which the Pension Fund can approve as such that correspond to a legitimate purpose:
- Payment of the current mortgage amount and interest on it. This option is perfect for those clients who have taken out a mortgage to purchase a home before the birth of a child. They get the right to close their mortgage obligations ahead of schedule and thus lose less of their own funds.
- Combining maternity capital funds with a mortgage being issued for the first time and using them as a down payment, so as not to attract your own funds at the initial stage of paying off the mortgage.
- Combining maternity capital funds with a mortgage being issued for the first time, using them together with one’s own savings so that the bank can consider a larger amount for issuance, and accordingly clients can count on purchasing more expensive real estate.
Features of using maternity capital for mortgages at VTB 24
Maternity capital is provided to families where the second and next child is born. In essence, this is government support that inspires an increase in the birth rate.
The amount of money (in 2020 its size is just over 450,000 rubles) cannot be cashed out and is stored in the personal account of one of the parents. The legislation of the Russian Federation provides for several options and purposes for using capital: to improve living conditions, to pay for education and training, and as an opportunity to increase the pension savings of one of the parents.
VTB 24 Bank focuses on improving housing conditions and allows for the possibility of using government support in the following cases:
- repayment of a previously received loan (including both the principal amount and interest received);
- raising the housing loan rate by the amount of assistance offered by the state;
- transformation of maternity capital into the first payment of a mortgage loan (down payment).
The bank regulates the process of direct purchase of housing. Loan funds may be invested in:
- secondary market real estate;
- real estate being reconstructed;
- real estate under construction.
At the same time, the client-borrower retains the right to independently search and select housing, as well as use information and options from the bank’s personal real estate databases (including housing provided by partners).
As an alternative option, we offer for consideration a “Showcase of Pledged Property” - a conditional list of property pledged by the bank and put up for sale at market value. The option is tempting with its preferential terms, as well as guaranteed purity and transparency of the legal side.
The mortgage closing process ends with the transfer of capital into a loan payment.
The transfer is carried out by the pension fund within 3 months.
Lending programs from VTB 24 for maternity capital
VTB 24 Bank offers an analogue of the state program using maternity capital - “Mortgage + Maternity Capital”, thanks to which a family can refuse the down payment, pay off the balance of the mortgage significantly earlier, or achieve an increase in its amount upon registration.
“Mortgage + Maternity Capital” combines two mortgage offers - the purchase of housing in new buildings and on the secondary real estate market, which differ significantly only in the type of mortgage product that is offered to the borrower for purchase.
Read more about how to use maternity capital with a mortgage to buy an apartment in this article.
Also, the New Buildings program allows for a complete waiver of insurance without affecting interest rates or other conditions.
Options for using maternity capital in a VTB 24 mortgage
By visiting a VTB 24 bank branch, the future client will be introduced to various programs, including “Mortgage + mat. capital".
Thanks to this program you can:
- repay a previously taken loan;
- increase the total mortgage amount to buy an apartment with a larger area or better comfort;
- make an advance payment for an apartment or house purchased with a mortgage.
Here it is necessary to fulfill the condition: the bank will accept the certificate as the first payment only when the child is 3 years old .
You can get a home mortgage under this program in Russian currency and at a fairly low rate of 1-2 percent .
Bank conditions
The conditions of VTB 24 Bank can be divided into two areas of the mortgage program - “New Construction” and “Secondary Market”.
1. Housing in new buildings:
- Interest rates are set from 10.4% to 14.95% per annum with the right to choose whether to fix interest or revise its amount annually;
- The loan term can be up to 50 years, provided that the age of the borrowers allows them to pay off the mortgage for such a long time;
- You can take a minimum of 500,000 rubles;
- The amount of the down payment must be at least 10%, which in most cases is covered from maternity capital;
- There is an opportunity to repay the mortgage early, both at the expense of maternity capital and with your own investments, without any commissions or additional payments;
- When issuing a mortgage, no commission is charged (only for opening a personal account, if required).
Video on the topic:
2. Housing on the secondary real estate market:
- Interest rates are calculated taking into account the cost of housing at levels from 10.4% to 10.95% per annum, the client chooses a fixed or floating rate;
- The loan term ranges from 5 to 50 years;
- You can apply for a minimum mortgage in the amount of 500,000 rubles;
- The down payment must be at least 20% of the cost of housing, however, when taking out insurance, its amount can be reduced to 10%, one of the repayment options is the use of maternity capital;
- No additional payments or commissions.
Property options
A mortgage in VTB 24 using maternity capital can be issued for all types of real estate, which include:
New buildings - the program is perfect for families who have a certain home before purchasing in order to wait until the purchased property is put into operation. The bank offers mortgages for several accredited properties whose developers cooperate with the bank.
Such a transaction will go through much faster due to this, as well as the fact that the mandatory insurance condition can be canceled, since the developer insures the liability and risks of loss;
Housing on the secondary real estate market is a program that is designed specifically for families with children. It involves the purchase of housing with a mortgage with the transfer of ownership from the previous owner.
The assessment procedure is mandatory, since it is thanks to it that one can find out whether the living conditions correspond to those stated and whether the seller is not overcharging the price.
Interest rates
Interest rates do not differ significantly depending on the type of real estate purchased with a mortgage.
Their size is set at levels from 10.4% to 14.95% per annum, and the specific amount is calculated based on family income and the cost of the property that is planned to be purchased.
Fixed interest rates are set in the mortgage agreement for the entire lending period, and floating interest rates are revised by the bank depending on the amount of annual refinancing by the Central Bank.
Calculate your mortgage using a calculator
In order to decide on a mortgage, a young family with children needs to weigh their debt repayment capabilities.
We wrote about how to get a mortgage for a young family at VTB 24 in this article.
To calculate the amount of monthly payments, you can use the mortgage calculator that we offer you.
You just need to fill in all the appropriate columns, then click the “calculate” button and you will receive a detailed payment schedule indicating the amount of monthly loan repayments, as well as overpayments on the mortgage.
For clients who are planning to repay their current mortgage loan using maternity capital funds, they can calculate the remaining debt. With a non-fixed interest rate, the calculation is carried out only for a known period of time.
Calculate loan terms using a calculator
On the company's website, borrowers have the opportunity to find out approximate conditions for applying for the program using a mortgage calculator. When calculating, the user can note the use of maternal capital. Basic loan data includes:
- The cost of real estate, its area.
- The borrower has a salary card or works in the public sector.
- The amount of the first loan payment.
- Amount of maternity benefit in rubles.
- The client's monthly income after taxes.
The calculation is preliminary, the exact terms of the mortgage for maternity capital in VTB 24 will become known upon concluding the contract after consideration of the application. The calculation can be made based on income or property value. After calculation, the calculator displays the possible loan amount, annual interest and monthly payment amount.
Applying for a mortgage at VTB 24
After the family receives the right to use maternity capital after the birth of the second child, and receives a certificate for these funds, they can contact the bank to apply for a mortgage to purchase real estate.
An application to VTB 24 can be submitted by the borrower in person or via the Internet by sending an online application form. All necessary documents concerning the identity of the borrower are also attached. The bank reviews the client's candidacy for solvency, and after making an affirmative decision, a mortgage product is selected.
Documents for real estate that the family plans to purchase with a mortgage are reviewed by the bank, and real estate in the secondary development market must undergo an assessment procedure.
After all stages of approval, the final terms are discussed and specified in the mortgage agreement, the text of which is prepared by specialists and signed by the borrower personally.
Funds can be issued after transferring maternity capital funds as a down payment to a bank account. After the sale and purchase transaction is completed, an encumbrance is placed on the property until the mortgage loan is fully repaid.
Read about how to remove the encumbrance after paying off your mortgage here.
Mortgage against capital in VTB – conditions
After receiving pre-approval, you need to collect documents and contact the mortgage center. Do not forget that since 2020, a preferential Mortgage program with state support has been operating in Russia. At VTB it is provided at 5% per annum. If you combine the preferential interest rate with maternity capital, you get a significant discount!
Attention! VTB allows the use of MK funds as a down payment, but not more than 15% of the total loan amount. In this case, you will have to contribute your own savings (at least 10%).
Important to know: Stages of buying an apartment on the secondary market with a mortgage with maternity capital
Maternity capital as a down payment on a mortgage
Required documents
In order to apply for a mortgage using maternity capital as a down payment or to pay off the mortgage, you must provide VTB 24 Bank with the following package of documents, which should be studied and collected in advance:
- Original and copy of the certificate for the use of maternity capital;
- A certificate about the amount of funds in the family capital account and the possibility of using them, issued by the Pension Fund;
- Certificate of income of the established form for the last 6 months;
- Documents on the income of close relatives living in the same territory before purchasing real estate with a mortgage;
- A copy of all pages of the client's passport.
The above documents relate to the identity of the borrower and are submitted immediately, and after approval of the client’s candidacy for a mortgage loan, it is necessary to provide the bank with documents on the purchased property.
Also, when checking solvency, the bank has the right to request statements from accounts in other banks.
Documents for obtaining a mortgage with maternity capital at VTB
To complete the contract you will need the following list of documents:
- Passports of the applicant and guarantors.
- Certificate of income of an individual.
- A copy of the work book.
- Certificate of family composition.
- Maternity capital certificate.
In addition, the bank may require additional documentation depending on the specific case. It is also necessary to make a request to the BKI, however, there are programs that allow you to get a mortgage with only 2 documents, but the interest rate in this case will be the highest. Before you start collecting the necessary documents, it would be advisable to consult with a company specialist.
Another important feature is that when approval of the application is received, the applicant needs to visit the Pension Fund and transfer Maternity Capital under banking control. Next, VTB itself will contribute this amount to the principal debt or use it as an advance payment.
Repaying a mortgage loan with maternity capital
In order to repay a previously issued mortgage loan, a family that has received the right to use maternity capital must apply to the Pension Fund to obtain a certificate.
To do this, you do not need to wait until the child turns 3 years .
The certificate will be ready within a maximum of 10 days , but the Pension Fund can transfer funds to the bank account from a month to three.
After this, the mortgage amount is reduced in proportion to the size of the maternity capital or is canceled altogether.
Maternity capital as a down payment
To use maternity capital as a down payment on a mortgage loan, you must also obtain a certificate from the Pension Fund, but it must be submitted to the bank along with the entire package of documents initially.
Useful video:
Mortgage conditions for maternity capital at VTB
At VTB you can get a mortgage using maternity capital as a down payment. They can also repay part of the debt on a previously obtained mortgage early.
If checkmate the capital is used as a down payment; it should be no more than 15% of the cost of the purchased property. In this case, you must pay at least 5% of the cost of the apartment from your own funds.
Also read: Mortgage for maternity capital in Sberbank: rates, calculation of payment on a calculator and repayment terms
Customer Reviews
Sofia, 27 years old : “After the birth of our second son, my husband and I started thinking about buying our own apartment. Before my maternity leave, I received a salary from VTB 24, so I didn’t think twice about contacting the bank. We chose housing in a new building, and now we are waiting for the finishing work to be completed, while we live with my parents.”
Alexey, 40 years old : “My wife and I got a mortgage from VTB 24 bank after our wedding 15 years ago. We repaid the loan regularly every month, but it was a little difficult. After the birth of our second child, we learned about the right to maternity capital, the amount of funds of which was able to completely cover our debt. The registration took 2 months, but now we are free from loans in our apartment!”
