It is no secret that government employees cannot boast of a high level of income, due to which it is sometimes difficult for them to get a loan, not to mention a mortgage loan. To facilitate lending, the state is developing special programs, attracting large and state-owned banks to participate. Based on this principle, mortgages for public sector employees were developed at Sberbank.
Every year the state develops and implements various programs to support socially vulnerable populations
Requirements for public sector employees for mortgages
The following social groups can take advantage of the benefits: doctors, teachers of any level of accreditation, military personnel and employees of the Ministry of Internal Affairs, public service employees. Sberbank offers mortgages to public sector employees in 2020 using benefits to categories of citizens distinguished by the following characteristics:
- The citizen receives wages from the state fund;
- lack of housing or the need to improve living conditions;
- the large family;
- young family;
- military personnel and veterans.
Necessary documents for obtaining a social mortgage
In this case, you will need to collect the relevant certificates and papers confirming your belonging to one of the categories. Benefits for obtaining a housing loan can be expressed in the following ways:
- low interest rate in comparison with those offered for other groups of citizens for this product;
- transfer of the amount to pay the first share of the loan;
- a one-time government payment that can be used to pay off part of the debt.
Rules for providing preferential mortgage loans for public sector employees
Compared to this year, mortgage lending in 2020 will become more accessible due to the fact that all the largest banks in the country are lowering loan rates following the Central Bank, which did this first.
- State employees who live in the same area with relatives and do not have their own apartment property;
- Beneficiaries who rent housing or live in communal apartments, and again do not own personal property;
- Beneficiaries who do not have enough square meters for living (the property is less than 14 square meters per person), or in premises that cannot be called suitable for living in them.
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Mortgage for young families - interest and conditions in 2020
In 2020, Sberbank offers mortgages to public sector employees as part of the following programs: Young family, for the military, social.
You can use the first option if the couple is under 35 years old.
Housing loans supporting young families
For other types of mortgage loans, the bank also reduced rates:
- purchase of housing under construction - from 7.4%;
- purchase of housing from the secondary market - from 8.6%;
- using maternity capital - from 8.9%.
Loan conditions within the Young Family
To keep interest rates lower, it is worth concluding an agreement with short repayment terms (up to 10 years). If one of the spouses participates in the bank’s salary project, the rate will be reduced by 0.5%. It’s a good idea to insure your health to get an additional 1% discount. You can apply for a loan under this loan product without explaining your income level, however, in this case, less favorable conditions will be offered.
If a family has received a certificate for maternal money upon the birth of a baby, these funds can be used to pay off the first part of a housing loan or repay a debt.
The new preferential mortgage program will attract 1 trillion rubles to construction.
President Vladimir Putin ordered the launch of a preferential mortgage program with a rate of 6.5%. To support developers, they will also launch an apartment purchase program worth 50 billion rubles. and subsidizing rates on bank loans
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A preferential mortgage program will be launched in Russia. President Vladimir Putin proposed launching this support measure at a meeting with government members and participants in the construction industry.
“I propose to launch a special preferential mortgage program. To support both our citizens and the construction industry. Give people additional opportunities with the help of the state to improve their living conditions. Within the framework of such a program, it will be possible to take out a mortgage at a rate of 6.5% for the purchase of new comfort-class housing,” Putin said. Up to this level, the rate will be subsidized by the state, the president specified.
The cost of purchasing housing with a mortgage at a subsidized rate in Moscow and St. Petersburg should not exceed 8 million rubles, in other regions - 3 million rubles, Putin added. The reduced rate will be valid for the entire loan term; you can apply for such a mortgage until November 1, 2020.
“I ask the government to ensure the speedy launch of this program,” Putin said. According to him, according to preliminary estimates, the implementation of the program this year will require about 6 billion rubles.
The government previously proposed launching a mortgage subsidy program to support the construction industry during the spread of the new coronavirus. The company offered to subsidize the rate up to 8%, but for all transactions for the purchase of new buildings. In this case, if the program were in effect until the end of 2021, 100 billion rubles would be required. During the meeting with Putin, the president of the PIK group, Sergei Gordeev, also asked to consider the possibility of launching a mortgage subsidy program, but with a more dramatic reduction in the rate - to 4.5%. Gordeev noted that developers are experiencing difficulties due to decreased demand. The drop in demand since the introduction of the self-isolation regime has already amounted to 65%, and in general the drop in April relative to March will be 70%, Gordeev suggested.
How else will the construction industry be supported?
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In addition to subsidizing mortgage rates, Putin also proposed the following measures to support the construction industry:
- Launch programs to subsidize bank loan rates for companies in the construction industry. Companies that keep their employees employed and commit to completing the construction of houses scheduled for commissioning in 2020–2021 will be able to take advantage of the preferential rate. The government must develop the parameters of the program by the end of April. The government plans to allocate 12 billion rubles for lending to the construction industry.
- The Fund for the Protection of the Rights of Shareholders will be recapitalized by 30 billion rubles; this money will be spent on completing the construction of houses for defrauded shareholders.
- Provide a state guarantee from the Ministry of Finance in the amount of 50 billion rubles. Due to this, the corporation will be able to attract loans from commercial banks and directly purchase new comfort-class apartments from developers. She also previously proposed to start buying back unsold apartments from developers;
- Increase advances on government contracts in infrastructure construction from 30 to 50%.
In addition, Putin proposed redistributing part of the costs of the national project “Safe and Quality Roads” and programs for the resettlement of emergency housing. According to him, this is necessary to increase the pace of resettlement of such housing, construction and repair of roads, and to additionally load the construction and related industries with orders. Putin did not disclose exactly how the budgets of these projects could be redistributed; the government must calculate the parameters of such a redistribution within a month.
Who will be affected by the preferential mortgage?
According to Dom.RF estimates, with the announced parameters of the new mortgage program at a rate of 6.5%, 250-300 thousand mortgage loans will be issued during 2020, notes the head of the analytical Mikhail Goldberg. According to RBC's interlocutor, this will create additional demand for housing with a total area of about 15 million square meters. m, and in total about 1 trillion rubles will be attracted to the industry. from banks and citizens.
Among all apartments sold in Moscow in 2020 and the first quarter of 2020, 53.4% of apartments cost 8 million rubles. and less, in St. Petersburg, 90.5% of sold apartments would fall under the criteria of the new preferential program, according to Dom.RF data. In the regions, 70% of apartments sold cost 3 million rubles. and less.
At the same time, the average size of a mortgage loan in March 2020 in Moscow amounted to 4.87 million rubles, in St. Petersburg - 2.86 million rubles, estimates the National Bureau of Credit Histories. The average loan size was slightly higher in February: RUB 4.95 million. — in Moscow, 3.2 million rubles. - in St. Petersburg, according to data from the Equifax credit history bureau.
All banks surveyed by RBC said they were ready for a preferential mortgage program. The press service of Sberbank assured that the bank will participate in the new program when it begins to operate. Deputy President and Chairman of the Board of VTB Anatoly Pechatnikov noted that the bank is ready to participate in the development of the terms of the preferential mortgage program. MKB and Absolut Bank also stated that they are interested in launching a new program.
Statistics from recent years show that a decrease in the average rate by 1 p.p. provides an increase in demand by about 10%, says Mikhail Doronkin, director and head of bank ratings at the NKR agency. But in the current conditions, the demand for mortgages is determined not so much by its cost as by the expectations of borrowers regarding the stability of their income, Doronkin is sure. Due to concerns about job loss, people may postpone the decision to buy an apartment on credit. In addition, banks began to tighten policies regarding mortgages, including increasing down payment requirements, Doronkin says. In conditions where there is a high probability of a sharp increase in unemployment, the level of interest rates on mortgage loans is not key, says Alexander Saraev, managing director for banking ratings at Expert RA. “For sustainable growth in demand for mortgage products, it is necessary to ensure the stability of the population’s income,” Serov concludes. According to him, the 6.5% rate does not look attractive now.
Compared to current average mortgage rates, the proposed rate is more than competitive, argues Tatyana Ushkova, Chairman of the Board of Absolut Bank. According to Dom.RF, the average mortgage rate for new buildings in the top 15 banks was 8.91% in early April. “If we talk about the effectiveness of measures in the context of the construction industry, then it’s enough to remember 2020: without the launch of subsidized rates, construction could have stopped then,” Ushkova is sure. In 2015–2016, Russia had a program to subsidize mortgage rates. It was necessary to launch it after the Central Bank raised the key rate to 17% in December 2014. The mortgage rate under that program was subsidized to 12%, and the price limits were also 3 million and 8 million rubles.
How developers evaluate support measures
Developers also support a mortgage subsidy program. The press service of the PIK group explains that in early April some banks began to raise mortgage rates, and therefore “the demand situation threatened to be worse than during the 2008 crisis.” “But the proposed measures on mortgages can obviously provide very serious support to the industry,” the PIK group is confident. The share of mortgage transactions in PIK in April was 75%; at the end of 2020, this share was 66% of total sales.
The LSR group and the Samolet group note that a significant part of their apartments for sale fit the mentioned subsidy criteria. According to President Alexander Nikolaev, the threshold sizes for the cost of apartments are 3 million and 8 million rubles. fit into the average purchase price for affordable housing in the regions and “to some extent in Moscow.” “Of course, this will help those most affected by this crisis. I think this is good for a start, but I personally do not rule out that after quarantine measures are lifted, these levels may be revised upward, especially for large metropolises,” adds Nikolaev.
Developers also note that, in addition to mortgages, other support measures mentioned above need to be worked out. It is important that a program be launched to subsidize the interest rate on project financing, says Vice President Fedor Sapronov. “The project financing rate depends on demand, on the filling of escrow accounts, and provided there is good demand, we were counting on a rate of 2–3%. By subsidizing the rate, I would like to maintain this level of 3%,” explains Sapronov.
Nikolaev adds that, in addition to subsidizing rates, it is also worth considering measures to defer interest payments on loans. “Now many companies simply have no revenue, nothing to pay from,” Nikolaev emphasizes.
Nikolaev adds that the main desire of developers now, especially in Moscow and the Moscow region, is to return to production, since the speed of construction directly affects the speed of opening escrow accounts. “The main measure of real support is to release people to construction sites,” Nikolaev concludes. According to his estimates, the losses of developers from downtime on salary payments in Moscow alone are measured in tens of billions of rubles. For example, Sergei Gordeev, at a meeting with Putin, said that as a result of the stoppage of construction in Moscow and the Moscow region, 50 thousand people employed at construction sites of the PIK group were sent into self-isolation. Maintaining these workers during downtime costs PIK 800 million rubles. per month.
“The sufficiency of all support measures can only be judged after a radical improvement in the pandemic situation,” the LSR group is confident. “Even with all the readiness of developers, banks and government services to carry out transactions remotely, many clients are in no hurry to make a final purchasing decision. This is understandable - this is the specificity of the residential real estate market,” the group explains.
Social lending program
Social mortgages at Sberbank for public sector employees are offered to achieve any goals:
- Buying an apartment from private individuals (secondary market).
- Housing in a new building or in a house at a certain stage of construction.
- Purchase of a private house, plot.
- Construction of your own house.
Requirements for clients when applying for a housing loan
The maximum repayment period that can be counted on is 30 years. It is permissible to issue a loan in a currency other than the national one. As part of a social project, an employee can receive a certificate for the issuance of a certain amount to repay part of the loan. Typically, its size is 30% of the housing price, according to an expert or market assessment. If there are minor children, the subsidy amount increases to 35%. Based on the specific situation, municipal authorities can increase its size to a maximum of 45%.
Read about how to apply for a housing loan in the article - Stages of applying for a mortgage at Sberbank.
Social mortgage in Sberbank
Mortgages for public sector employees in Sberbank, state support for social mortgages in 2020 are offered under several programs: “Young Family”, “For the Military”, as well as “Social”.
“Young Family” program with state support
Under this program, you can get a housing loan if the age of the husband and wife does not exceed 35 years. The main parameters of the mortgage are calculated based on the price of the property. More details on the page.
Also, since 2020, there has been a program to support families where a second and third child is born (at 6%), more details on the page.
To get a lower interest rate, you must take out a loan for a minimum term (up to 12 years). If one of the family members receives a salary through Sberbank, the rate may be further reduced (by approximately 0.5%). You can reduce the loan rate by 1% by insuring life and health in insurance or other companies accredited by Sberbank PJSC. The bank may not require confirmation of the client’s income, but in this case the lending conditions will be less loyal.
If you have a certificate for receiving maternity capital, these funds can be used to repay the first installment on a mortgage from Sberbank.
As part of a social mortgage from Sberbank, you can take out a loan for any need:
- purchasing housing on the secondary market;
- acquisition of real estate in a new building;
- purchase of a private house or cottage;
- building your own home.
The maximum repayment period for a social mortgage is 30 years. You can apply for a loan in both national and foreign currency. Under this program, you can receive a certificate to pay off some part of the mortgage. As a rule, the amount of funds is about 30% of the cost of housing (according to expert or market assessment). If the family has minor children, the amount of funds can be 35%. If there are any other conditions affecting the amount of the subsidy, the level of funds can reach 45%.
Mortgages for the military from Sberbank
Basic conditions for lending to defenders of the Motherland
Lending for housing purchased by military personnel has certain features. They are expressed in their participation in the NIS program, as well as in the cutoff age - up to 45 years. Therefore, the offer is designed for a maximum repayment period of 20 years.
Read more - Military mortgage in Sberbank
Loan costs for military personnel
He has the right to spend the funds credited to the military’s special account for the down payment. Subsequent receipts to the account will also be redirected to payment of obligations. At the moment the rate has been reduced to 9.5%. If there is a shortage of funds, the military has the right to apply for an additional loan to pay off these obligations.
Lending terms
Loan conditions for military personnel participating in the NIS
Sberbank: mortgages for public sector employees in 2020
Sberbank of Russia is involved in the implementation of all government programs.
This year, the main bank of the Russian Federation is offering young teachers a preferential interest rate - from 9.5%. Part of the amount is returned annually in the form of compensation. To pay the down payment, teachers can take advantage of a subsidy in the amount of 20% of the cost of housing (but not more than 20% of the mortgage). Sberbank offers special loan conditions for military personnel. The purchase of primary or secondary housing is allowed. A mortgage loan is provided to this category of borrowers at a favorable interest rate - from 9.5%. It is not necessary to take out life and health insurance. The maximum loan term is 20 or 30 years (depending on the chosen program). There is an age limit: at the time of termination of the credit relationship, the borrower must be no more than 45 years old.
Advantages of working with Sberbank:
- the most loyal conditions;
- relatively low interest rate;
- no additional loan fees.
Expert opinion
Evgeniy Belyaev
Legal consultant, financial expert
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State employees will also be able to get a mortgage on preferential terms from the Bank of Moscow and Mosoblbank. Here, for these categories of citizens in 2019, it is planned to provide mortgages with reduced interest rates and a reduced down payment, which can be paid with subsidies.
Video: Talking about social mortgages
Mortgage for public sector employees 2020
These include: The amount of subsidies in 2020 must be at least 30 percent of the cost of the purchased property. If there are children in the family, the minimum is 35 percent. The final amount of payment depends on the subject of the Russian Federation, the price per square meter of housing and the number of minor children. If When applying for a social mortgage, the solvency of the borrower is taken into account. The federal target program for improving housing conditions for public sector employees is the allocation of money in the form of a subsidy for the purchase or construction of real estate. You can direct funds: The first opportunity to participate is given to spouses working together in the budget, spouses with three or more children. To provide funds, you must stand on registration with the local government to improve living conditions. After submitting documents for the right to receive a subsidy, if the decision is affirmative, a housing certificate is issued. The calculation of the certificate amount depends on the composition of the family and the cost of housing in a particular region. Targeted programs for obtaining subsidized housing for social workers are differentiated based on professional activities: teachers, researchers, military, medical workers. A mortgage for the purchase of an apartment for young scientists becomes available through the sale of housing certificates. To obtain a certificate of a program participant, the applicant must prepare a written application addressed to the head of the organization.
This will help such citizens improve their living conditions thanks to preferential lending. A mortgage is a form of collateral when a citizen purchases a home and provides other real estate as collateral. When applying for a regular mortgage, the bank requires an initial payment of 10-30%, and the interest rate varies from 12 to 15%.
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Social mortgage for public sector employees: features of provision
Preferential mortgages can also help young scientists under 35 years old to acquire their own housing. At the same time, their professional experience cannot be less than one year, and the area of scientific activity must be included in the list of priority areas. The same demands are put forward to specialists in the military-industrial complex.
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This program operates within the framework of the national program “Housing”. It is aimed at improving living conditions not only for public sector workers, but also for other categories of citizens. However, public sector employees are among those who most often apply for subsidies and preferential loans, since with income in the public sector it is difficult to obtain a mortgage on a general basis in a commercial bank.
