Mortgage holidays: new rules for banks and borrowers

From August 1, 2020, a person who finds himself in a difficult life situation can apply for a mortgage holiday, designed to reduce the financial burden on a person. You lost your job or lost your bonus, a child was born or your health deteriorated - in any of these situations, a mortgage loan becomes a heavy burden. When you need to gain at least a little time to find a new job or improve your financial affairs, mortgage holidays are a good solution. If previously only some banks provided loan deferment, and mostly for marketing purposes, now this service has become mandatory. Read about what mortgage holidays are, to whom they are provided, under what conditions and for how long.

What is a mortgage holiday and how does it work?

A mortgage holiday is a period during which the borrower has the right not to pay all or part of the monthly payment on a home loan. Required condition: the difficult financial situation of the borrower, which he can confirm. However, the total amount of mortgage payments does not decrease. Mortgage holidays are useful for those who are experiencing temporary difficulties: lost their job, lost their health, the composition of their family has changed dramatically, and so on. Mortgage payments can be paused.

For example, a man worked at a factory, received his 50-60 thousand rubles, took out a mortgage for an apartment with a monthly payment of 20 thousand, and then he was laid off. It’s impossible to get another job, there’s nothing to pay off the loan, and I don’t want to get into arrears and ruin my credit history. Mortgage holidays allow you to avoid making monthly payments for up to six months, and during this time find a job or at least a buyer for your mortgaged property (since the housing is pledged to the bank, this is not so easy to do, it usually takes time).

To obtain a deferment on payments, the client must provide the bank with documents that reliably indicate the difficult financial situation of the borrower. That is, begging for a vacation on your word of honor will not work. Until August 1, 2020, the bank made decisions on granting mortgage holidays solely on the basis of its internal documents, and starting from this date - on the basis of Federal Law No. 76-FZ of May 1, 2019.

How do mortgage holidays differ from loan restructuring?

The goal of both services is the same - to help the borrower cope with the loan burden and facilitate payments if financial problems arise. However, the technical implementation is different.

Vacations are given as a temporary reprieve so that the client can cope with a difficult situation and then pay off the mortgage in full. The client needs restructuring to reduce monthly loan payments by increasing the debt repayment period.

In the first case, it is assumed that the client’s financial situation will soon improve (he will find a job, a new source of income, etc.), and in the second case, it is assumed that the borrower’s income has decreased for a long time, and he needs to create other conditions for repaying the loan. Accordingly, the vacation period is limited to 6 months, and the restructuring period can be any - at the discretion of the bank.

Unlike mortgage holidays, which are provided only for borrowers on housing loans, any loan can be restructured - consumer loan, car loan, mortgage, and so on. When restructuring, there are no such strict conditions as in the case of a temporary deferment of payment.

Restructuring can be carried out simultaneously with a mortgage holiday if the bank and the borrower believe that this will help the latter pay off the debt. Read a separate article on this topic on our website: Loan restructuring – what is it + 7 ways to restructure debt

How do mortgage holidays differ from credit holidays?

As the name suggests, mortgage holidays are only available to mortgage borrowers. From August 1, 2020, such a service is regulated by Law No. 76-FZ (Article 4).

Holidays for other types of loans are a service voluntarily provided by banks based on their own internal rules and conditions. Therefore, when you come across the wording mortgage holidays or credit holidays, then we are most likely talking about a mortgage, since the law was developed specifically for mortgage holders who find themselves in a difficult life situation.

Mortgage holidays under the new rules - what has changed?

Several years ago, the authorities became concerned about the problem of overdue debt among Russians. There were situations when a family with children was evicted from their only home and they also demanded money to pay off the top. In order to reduce the number of such situations, on September 4, 2020, Elvira Nabiullina, Chairman of the Bank of Russia, at a press conference in Sochi, announced the need to introduce mortgage holidays at the state level. Then we were talking about situations when a person lost his job.

Already in December 2020, amendments to the law on mortgage lending were proposed that would allow citizens to at least temporarily not pay on a housing loan if there are serious reasons for doing so. And already in February 2020, Vladimir Putin, the President of the Russian Federation, demanded that appropriate changes be made to the legislation. This task was included in the list of instructions (Pr-294, paragraph 5c). The deadline for its implementation was set for July 1, 2020.

Federal Law No. 76-FZ of May 1, 2020, regulating the specifics of using mortgage holidays, came into force on July 31. The main difference from what was before was the mandatory application of preferences if the applicant fulfills certain requirements. That is, now mortgage holidays are not applied at the request of the bank. The borrower may demand rather than request their provision. If he is wrongfully refused, this is a violation of the law.

First results of the introduction of mandatory mortgage holidays. Although the new form of mortgage holiday appeared not so long ago, almost 1% of borrowers have already managed to apply for this form of restructuring in 6 months. Banks note that the number of applications has not increased significantly, it’s just that citizens are now more likely to use mortgage holidays rather than restructuring. More than three-quarters of applicants indicate job loss or a significant decrease in income as the basis for granting vacations.

Link to document:

What does the new mortgage holiday law say?

The main parameters of the law on mortgage holidays are as follows:

• deferred payment is given only to those borrowers who have a single mortgaged home. Or it will be the only one if we are talking about shared construction in a new building. At the same time, the law allows you to have a share in another residential building if it does not exceed the norm for the provision of living space for social rent established in your municipality. Relatively speaking, if the norm for living space in your city is 15 sq.m per person, you have a mortgage on an apartment under construction, and in addition, in common shared ownership with your mother, a two-room apartment with a living area of ​​28 sq.m, then the holidays will be approved for you - if subject to all other conditions, of course;
• You can only get one vacation for each mortgage agreement;
• the maximum loan amount for which a deferment is provided is 15 million rubles;
• Deferred payments are provided for no more than 6 months. It is possible to stop the holidays early, but it is not possible to extend them for a longer period (even if a grace period was initially approved, say, 3 months). You can shift the start date of the mortgage holiday by 2 months from the date of application. For example, you submitted documents on October 1, and the bank will count your deferment from August 1. This is convenient for those who have already fallen behind on their mortgage payments.
• the law applies to all existing mortgage loans, and not just to those taken out from the date of publication of the document;
• While the deferment is in effect, the clause in the agreement regarding the bank’s right to demand early full repayment of the debt does not apply. Also, the bank cannot take the mortgaged apartment as debt.

The peculiarity of the law is that it is binding on lenders: if the borrower has documented the right to receive a mortgage holiday (for a full list of reasons, see below in the relevant chapter), then the bank cannot refuse. Moreover: the borrower himself chooses the form of the holiday - not to pay the entire monthly payment amount for a certain period or to pay a part.

Depending on the format of the mortgage holiday, the changed loan term is calculated. In case of complete refusal of payments, the period is resumed after the end of the deferment. That is, if you borrowed a million for 10 years at 10% per annum, then if you defer for six months, you will have to repay this million within 10.5 years at the same interest rate.

The borrower can withdraw the application for a vacation at any time and pay the entire amount for which the deferment was granted - then the mortgage term will not increase.

Will the holidays ruin your credit history?

No. Information about mortgage holidays must be entered into your credit history. However, this fact does not spoil it.

It’s another matter if you violated the terms of the vacation. For example, they delayed reduced payments or did not make them at all, although they should have. This will harm your credit rating and may prevent you from obtaining favorable loans in the future. Therefore, it is better to adhere to the agreements with the bank and immediately discuss all problems with payments directly with the lender.

Under what conditions does the bank give mortgage holidays?

To receive a deferment of payments on a housing loan, the borrower’s life situation must meet one of the following points:

• the borrower lost his job and registered with the employment service as unemployed;
• the borrower received group I or II disability;
• the borrower has been on temporary disability benefits for more than 2 months. This also includes maternity leave, which is issued for 140 days with the issuance of a certificate of incapacity for work;
• the borrower's income over the last two months has decreased by more than 30% compared to the monthly average over the last 12 months. And the monthly payment began to exceed half of the new average monthly income.

Example:

the borrower Petrov paid the loan 17,000 rubles a month, having an official income of 44,000 rubles. Now his income has decreased to 30,000 rubles (by 32%), and the payment has exceeded 50% of his income. Petrov can count on a mortgage holiday if he provides a 2-NDFL certificate for the current and previous years. This clause and the practice of its application indicate that an individual entrepreneur will not be able to obtain mortgage holidays;

• another child was born or adopted in the borrower’s family (or one of the family members received a disability of group I or II). At the same time, the borrower's income fell by more than 20% compared to the monthly average over the past year. The mortgage payment now amounts to at least 40% of the borrower’s income.

Example:

a daughter was born into the family of the borrower Ivanov. For violating labor discipline, Ivanov was deprived of a monthly bonus for a period of 3 months at work, which is why his income decreased from 55,000 rubles to 43,000 rubles (by 22%) per month. The mortgage payment is 20,000 rubles per month (46% of income). In this situation, Ivanov can apply for a mortgage holiday.

Mortgage holidays at Sberbank: how to get

According to statistics, almost 5 million Russians pay mortgage debts. But not everyone can cope with a heavy debt load.

After all, such loans are issued for many years, during which the family’s financial situation may be shaken. A way out of a difficult situation would be to provide the borrower with a deferment. Here, for example, is how you can get a mortgage holiday from Sberbank. A credit holiday is a provision by Sberbank of a certain period during which the borrower can solve his problems and return to the payment schedule.

We recommend reading: Returning goods, after what time is the store required to return the money?

During this period, loan payments may be reduced or frozen altogether. Related topics:

1. Like in Sberbank;
2. Redemption;
3. Since August 6 there were;

There is no separate law on mortgage holidays regulating the procedure for granting mortgage deferrals in Russia.

Relevant issues are regulated by the norms of the Civil Code of the Russian Federation, as well as Law No. 353-FZ “On consumer credit (loan)”.

It is valid taking into account the changes and additions made with the adoption of Federal Law No. 76 of May 1, 2020. Providing mortgage holidays is the right of Sberbank, and not its obligation. To count on the loyalty of bankers, the borrower must find himself in a difficult life situation. The grounds for obtaining a deferment may be:

1. Onset of group I or II disability. This fact is confirmed by a certificate of disability issued by a medical and social examination institution.
2. Reduction of salary or other income by 30% or more. The proof will be a 2-NDFL certificate.
3. Temporary disability that lasts more than 60 consecutive days. To apply for a mortgage holiday from Sberbank, you must present a sick leave certificate.
4. Dismissal from work. In this case, the supporting document will be a certificate from the employment service.

In addition, the basis is the birth of the client’s children or the emergence of other dependents.

For example, a borrower may adopt a child, or he may have elderly relatives in need of care.

For how long can you apply for a mortgage holiday?

According to the law, the period of deferment of the monthly payment or part thereof on a mortgage loan cannot exceed 6 months. No lower limit has been established. Banks recommend that borrowers take the maximum vacation period, since it is impossible to extend the period, and if 4 or 5 months are not enough to correct the financial situation, no one will provide a further deferment, and it is no longer possible to re-apply.

At the same time, early termination of the mortgage holiday is possible - to do this you need to pay the next payment. You can also pay the entire amount underpaid during the deferment period - in this case, the term of the mortgage loan will not increase.

Which banks are ready to meet halfway?

Legal provisions stipulate that all banks operating under a license and issuing mortgages to the public are required to adhere to the new rules and provide deferred payments at the request of the borrower. An important condition is that the financial situation of the latter must correspond to the factors listed above.

The leaders in issuing mortgages in the Russian Federation are the following banks:

1. Sberbank
2. VTB
3. Gazprombank
4. Rosselkhozbank
5. DeltaCredit (Rosbank)
6. Raiffeisen

We propose to consider, using the example of Sberbank, how a preferential deferment will be issued.

A client who is paying off a mortgage loan can, at any stage, submit an application to a Sberbank branch with a request to reduce or completely stop monthly payments for up to 6 months.

The bank has no right

refuse if:

• there are no delays under the mortgage agreement;
• a package of necessary documents has been provided;
• the mortgage was issued 3 months ago or later.

The presence of consumer loans and violations on them does not affect the approval of mortgage holidays.

Important! For the period of the deferment provided, the credit card will be blocked. During the holidays, a restriction on expense transactions is introduced.

Types of mortgage holidays

The law provides for 2 main options for mortgage holidays:

1. Partial payment (split payments);
2. Full deferment of monthly payments.

Banks can offer two more deferments at their discretion; they are not specified in the law, but they are found in the banking services market:

1. Interest repayment;
2. Increasing the mortgage term.

The borrower decides which one to choose; he must indicate the chosen type in his application to the bank. Let's look at each option in more detail and look at examples.

Partial payment (split payments)

During the mortgage term, the borrower pays only a portion of the regular monthly payments—a portion of the principal payment and a portion of the interest payment. The balance of the payment is distributed over the entire period after the holidays.

Example.

Borrower Petrov was paying off a mortgage loan taken out for 10 years. The monthly payment was 15,000 rubles, of which at the start of the deferment, 8,500 was for the principal debt, and 6,500 for interest. Petrov was granted a mortgage holiday for 6 months at his request, indicated in the application, in the form of a reduction in the monthly payment to 10,000 rubles. As a result, during the deferment, 5,000 * 6 = 30,000 rubles were unpaid. Petrov will have to pay this amount at the end of the initial mortgage term - in monthly payments of 5,000 rubles for 6 months. In reality, the amount of interest may be higher, since they are accrued on the balance of the principal debt, and it decreases more slowly during the mortgage holiday period.

Complete deferment of monthly payments

While the mortgage holiday lasts, the borrower does not make monthly payments. The mortgage term is extended by the deferment period. The bank client pays off the debt accumulated during the mortgage holiday after the end of the standard loan term.

Example:

Since August 2011, the borrower Kuznetsova has been paying off a mortgage loan taken out for 10 years for 8 years. However, due to losing her job in August 2019, she had to apply for a loan holiday. Kuznetsova chose the option of completely deferring her monthly payment of 23,000 rubles for 4 months. Thus, the debt of 23,000 *4 = 92,000 rubles is transferred to an additional period of 4 months, which the bank will assign to Kuznetsova after the end of the planned mortgage period in August 2021. As a result, the borrower's payments will end in December 2021.

The other two methods are most often available in the form of marketing promotions that some banks voluntarily provide to customers. They are not specified in the law, and the borrower has no right to demand their provision.

Advantages and disadvantages of mortgage holidays, advice to borrowers

The main goal of mortgage holidays is to make debt repayment affordable during difficult financial periods. In this case, until the developer puts the house into operation and the client moves into his own home. Thus, he gets the opportunity to simultaneously service the loan and make rent payments for a rented apartment.

But at the same time, this option has a number of disadvantages:

1. By lowering the monthly payment today, the customer will have to pay more on the loan after the grace period ends. An exception is the extension of the loan agreement. In this case, the balance of the debt is divided into equal parts until the end of its validity period.
2. The size of the total overpayment increases. The monthly payment is reduced by reducing the repayment amount of the loan or by completely canceling it. As a result, it turns out that the mortgage debt does not decrease, which means interest is accrued on a large amount for a long time. The same rule applies when increasing the duration of the contract.
3. The bank may not give a mortgage holiday. Not all financial institutions practice the use of such repayment schedules.

Considering the above, it should be noted that it makes sense to apply for a mortgage holiday only when necessary and only in extreme cases. If the borrower has the opportunity to pay the full monthly payment on the loan, then it is better to continue doing so. After all, by reducing the periodic payment now, the client will have to pay more in the future, and it is not yet known whether or not it will be possible to improve his financial condition during the grace period.

How to take a mortgage holiday: step-by-step instructions

To obtain a deferment of mortgage payments, you must complete the following steps.

Step 1. Decide whether to request a mortgage holiday

A temporary deferment of mortgage payments will not be an option for everyone, so you must first calculate whether or not there will be benefits from such a step. Read more about the pros and cons of mortgage holidays in the corresponding chapter below.

You also need to understand whether your situation fits the mortgage holiday conditions described in the chapter “Under what conditions does the bank give mortgage holidays?”

Step 2. Preparing a package of documents

To obtain a deferment on a mortgage loan, you must provide the bank with the following documents:

1. Passport of a citizen of the Russian Federation.
2. Borrower's application. It is also called the “borrower's requirement.” The recommended form of such a requirement is posted on the official websites of banks. For example, at Sberbank here. Both the borrower and all co-borrowers on the loan must sign the document. In the application, you indicate the type of difficult life situation you have, the period for which you would like to receive a mortgage holiday, and the type of deferment on payments.
3. An extract from the Unified State Register of Real Estate (USRN), it will confirm the presence of your only residential premises. This document is issued by Rosreestr, it is paid, it costs from 400 to 1800 rubles, depending on the region.
4. Consent of the mortgagor (if it is not a borrower or a co-borrower - for example, with a mortgage secured by real estate owned by third parties - now such transactions are practically not concluded, but theoretically they are possible).
5. Documents confirming the existence of a difficult life situation.

One or more documents from the following list are provided to the bank:

• certificate of registration with the employment service;
• certificate of disability;
• certificate of incapacity for work;
• certificate 2-NDFL for the current and previous years;
• birth certificate;
• adoption certificate
• act of the guardianship and trusteeship authority on the appointment of a guardian or trustee
• certificate of disability (in case of disability)

Reasons for providing

To obtain approval from the lender for the borrower's mortgage holiday program, reasons must be provided that bank employees consider sufficient to provide relief to the borrower.

Among the main reasons:

• A child is born;
• Serious illness of the borrower himself or a member of his family, which entailed constant care;
• Death of the breadwinner;
• Reduction in the workplace, which did not occur through the fault of the banking client;
• External factors that caused property damage.

Regardless of the reason given to the borrower, he is obliged to confirm his insolvency with the help of certificates. If a child was born, the birth certificate is brought to the lender; If you have a serious illness, you will need a certificate from the hospital where the treatment was carried out. And if the borrower dies, they bring a death certificate. In the latter case, family members collect documents.

Several years ago, banks allowed the possibility of providing credit holidays to people who left the country for a certain period of time. But now this argument is not taken into account. Mortgage holidays are allowed for registration by clients who have taken out a mortgage on primary or secondary residential property.

At the birth of a child

If a child appears in the family, regardless of whether it is the first-born or not, the parents can turn to the lender for help. The bank considers adding to the family an additional financial burden that interferes with loan repayment. Because of this, many banks may offer holidays of up to 36 months.

But there are nuances in obtaining this kind of deferment: the presence of children does not always influence the banking decision. If, after checking the application, it is clear that the borrower’s income exceeds the average, and he, despite all his expenses, can continue to repay the debt, the vacation will be refused. If the client needs a mortgage holiday program, he must provide evidence that the family’s financial situation has worsened after adding to the family.

Look at the same topic: How is an apartment assessed for a mortgage in Sberbank?

Requirements for a borrower wishing to obtain a mortgage holiday

In order for a person to receive a credit holiday, he must meet the following requirements:

1. Have Russian citizenship with registration on the territory of the state;
2. Do not exceed the age limits: from 18 to 70 years;
3. Having an official salary with at least 3 months of experience.

The lender will not allow the borrower to arrange a vacation period if at least three months have not passed since the execution of the loan transaction.

Which banks provide mortgage holidays?

Since the entry into force of Law No. 76-FZ (from August 1, 2019), all banks that issue or previously issued mortgage loans to individuals are required to provide mortgage holidays.

In parallel, some banks organize marketing campaigns with deferred payments, which are essentially also credit holidays. For example, Uralsib Bank provided for a certain period, at the request of the borrower, a deferment of up to 50% of the monthly payment for apartments under construction, regardless of whether this was the only housing the client had or not. VTB provided a paid service for suspending one monthly payment without penalties, which a bona fide borrower could use no more than once every 6 months. When a client purchased an apartment in a new building, Sberbank, in the event of force majeure circumstances, gave the borrower the opportunity to pay 50% of the monthly payment for three months, increase the mortgage term or defer the payment of the principal for a year and pay only interest.

With the advent of legally obligatory mortgage holidays, the number of such marketing campaigns is unlikely to be reduced, since such additional deferments allow the bank to more likely return the funds issued to the client.

Requirements for a borrower wishing to obtain a mortgage holiday

The key requirement is age - at least 18 years at the time of signing the contract, no more than 70 years at the date of debt closure. You also need at least 3 months of experience at your last place of work.

Attention: when applying for a mortgage “rest”, the banking institution takes into account the initial number of dependents (at the time of concluding the mortgage agreement) and the amount of income, comparing with updated data.

If no more than 3 months have passed since the conclusion of the contract, the benefit is not provided.

Pros and cons of mortgage holidays

As with any other banking service, temporary deferment of payments has its advantages and disadvantages for the client.

Advantages

• An opportunity to get a deferment in mortgage payments and get out of a difficult life situation.
• Mandatory provision of mortgage holidays for all banks.
• Ease of obtaining mortgage holidays.
• Maintaining a “clean” credit history.
• Possibility to choose the type of deferred payments.

Flaws

• The mortgage is extended for the duration of the holidays.
• You can borrow only once during the entire term of the current mortgage.
• Interest payments may increase because they are charged on balances that are not paid in whole or in part during the deferment period. It all depends on the chosen vacation option.

Answers to readers' questions

When can a bank refuse to provide a mortgage holiday?

By law, the bank has the right to refuse to defer payments on a mortgage loan only if the borrower does not comply with the requirements of the law on credit holidays. First of all, we are talking about the failure to provide or incorrectly fill out the necessary documents confirming the difficult life situation of the borrower. The credit institution must give the client a reasoned refusal within 10 days from the date of filing the papers. The bank must respond to the borrower in the manner specified in the agreement. And if this method is not specified in the document, then the refusal is sent by registered mail with notification.

Is it possible to take advantage of the mortgage holiday if the mortgage was taken out before the new law came into force?

Yes, the rules on providing mortgage deferment apply to all existing home loans.

Mortgage holidays in a new building – what is it?

Mortgage holidays in a new building are the same as holidays in the secondary market. They are given for a loan for any housing if it is the borrower’s only one or will be the only one after construction.

What are mortgage holidays when buying an apartment from a developer?

Previously, some banks cooperating with developers offered the borrower the opportunity to receive a mortgage holiday as an additional bonus for purchasing an apartment in a specific housing complex. In connection with the adoption of the law on mortgage holidays, such marketing moves are becoming less relevant (the buyer now has the right to defer payment), but they will not completely disappear. The law strictly limits the conditions for obtaining mortgage holidays, and the bank, together with the developer, can provide such a service not only to those categories specified in the regulatory document, but also to any other borrowers.

Is it possible to get a mortgage holiday if the case is in court (the developer has gone bankrupt)?

The bankruptcy of the developer itself is not included in the list of conditions for obtaining a deferment on payments, so credit holidays cannot be taken for this reason. But if you have experienced negative changes in your personal finances that are subject to legal requirements (you were fired from your job, your income decreased, etc.), then the bank will be obliged to provide a mortgage holiday.

And if in my life I have already taken out an apartment on a mortgage before, and under that agreement a loan restructuring has already been carried out, will I be approved for a mortgage holiday when purchasing another apartment on credit? How many times can you take mortgage holidays?

Credit holidays can be provided once at a time during the term of the mortgage agreement. That is, if you have entered into a new contract, taking out a mortgage for another apartment, you again receive the right to a deferred payment. But only if the previous apartment is no longer your property, and you yourself are in a difficult life situation. The presence or absence of loan restructuring under previous agreements does not matter. Moreover, you can get a deferment even on a restructured mortgage loan.

Is there a way to get a mortgage holiday if the property is not the only one?

When purchasing a finished (primary or secondary) property with a mortgage, vacations will not be provided if the person owns another home. But in case of shared-equity construction , the borrower can count on a mortgage holiday if he has a share in another apartment with an area no larger than the social (accounting) norm for his region (Article 50 of the Housing Code of the Russian Federation). For example, if in your region the housing registration norm is 18 square meters per person, and you and your wife have shared construction and two others own a “one-room apartment” with an area of ​​33 square meters, then a mortgage holiday will be provided.

It so happened that my husband now faces imprisonment for a year. He has a mortgage, which he took out before our wedding, so I’m not a co-borrower, but I’m still worried - will I be forced to pay his mortgage payments while he’s in prison and has no income? Can he get a credit holiday if he faces imprisonment?

Theoretically, there are no obstacles to providing mortgage holidays for such people. In practice, difficulties may arise. The bank requires personal presence when submitting an application for a deferment. Deprivation of liberty itself is not included in the list of conditions under which vacations are granted. The reason may be a sharp decrease in income due to dismissal from work. The main difficulty is that a decrease in income can only be proven by providing a certificate from a new place of work. But then it becomes impossible to be personally present at the bank when submitting an application, because the borrower is already working in a colony as a prisoner. At the same time, the bank itself is primarily interested in the return of its funds, so the client can meet halfway and soften the conditions for providing mortgage holidays. If they refuse, they will deduct the loan repayment from the prisoner’s salary. The bank has no right to seize the mortgaged apartment until the borrower is released.

There's an addition to our family. Is it possible to get a mortgage holiday if a child is born?

The birth of a child entitles you to a mortgage holiday only if at the same time the borrower's income has fallen by more than 20% compared to the average monthly figure for the last year. And the mortgage payment exceeded 40% of the borrower’s income. You must provide the bank with the child’s birth certificate and certificates in Form 2-NDFL for the past and current years.

How will mortgage holidays affect your credit history?

Deferment of loan payments is not taken into account in the credit history (CI) as overdue debt and does not affect the cleanliness of the credit history. However, the CI contains a note that the borrower took advantage of mortgage holidays, and subsequently this may become a risk factor when the bank approves your next loan.

Mortgage credit holidays in 2020: conditions during coronavirus

Credit holidays are a deferment in making monthly payments under loan agreements. Since August 2019, a law has been in force that obliges banks to issue holidays on mortgage loans to borrowers who find themselves in a difficult financial situation.

But on April 3, 2020, another project came into force - it provides for the possibility of obtaining mortgage holidays due to coronavirus.

Maximum mortgage amounts for holidays have been established:

• Moscow: up to 4.5 million rubles;
• St. Petersburg, Far East and Moscow region: up to 3 million rubles;
• other regions: up to 2 million rubles.

This is the limit of the loan issued, not the remaining debt, so if you took out a mortgage for a large amount, take advantage of the regular mortgage holidays, which we will discuss below.

Let's look at how to get a mortgage holiday due to coronavirus.

The law applies to individuals:

• people whose monthly income has fallen by more than 30% due to the epidemic compared to last year's level;
• entrepreneurs whose activities have been affected by the coronavirus (according to OKVED codes, the activities of individual entrepreneurs should be considered affected by the pandemic).

The maximum deferment period is six months.

During the holidays, interest is accrued under the agreement, the rate does not change.

The accrued amount must be paid after completion of settlements. The bank has no right to charge additional service fees, fines or otherwise profit from mortgage holidays due to coronavirus.

Below we present instructions and an answer to the question - how to get a deferment if a person meets the described criteria. Required:

• contact the bank verbally by phone or through online banking;
• the bank will review the application within 5 days;
• within 90 days, send confirmation: card extract, personal income tax, notice of dismissal, other documents indicating a drop in income.

  For entrepreneurs: an extract from the Unified State Register of Individual Entrepreneurs with the main OKVED and an extract from the current account.

It is better to find out the list of documents from the bank. For example, if you received your salary on a bank card where you have a mortgage, you will not have to additionally prove a decrease in income.

Sberbank has already prepared a list of documents for various cases.

This procedure for obtaining mortgage holidays due to coronavirus is mandatory in all credit institutions in the country. Here are links to programs in top banks:

• in Sberbank,
• at VTB 24,
• at Rosselkhozbank.

The Central Bank emphasizes that the agreed break in mortgage payments due to COVID-19 does not worsen the credit history and does not deprive the borrower of the right to subsequently receive holidays on general grounds:

If your bank refuses to grant a deferment, you have 2 options:

1. Contact the Central Bank with a complaint and wait for the forced introduction of holidays upon application, if you are sure that you meet the criteria for those affected by the pandemic.
2. Asking for holidays on general terms is according to the law, which since August 2020 allows you to get a preferential deferment on your mortgage for six months. How to do this - read on.