Mortgage loan for foreigners

Is it possible to get a loan with a residence permit in the Russian Federation?

ATTENTION : A mandatory requirement of almost all Russian banks when applying for a mortgage is the presence of Russian citizenship. In addition, the borrower must have registration (temporary or permanent) in the region where the loan was issued.

Can non-Russian citizens get a housing loan if they have a residence permit in our country? Foreign citizens and stateless persons have the opportunity to take out a mortgage if they have obtained a residence permit. Such a document is issued to those who subsequently intend to obtain Russian citizenship. This means that the foreigner has serious intentions regarding the issue of living in Russia, which means he can be considered a reliable client.

A residence permit allows you to take out loans from banks , since this document is issued for a period of 3 to 5 years, and upon expiration it can be extended. A residence permit allows foreigners to work officially, pay taxes, register individual entrepreneurs, receive education, etc.

And if you have a job and a salary, you can take out a mortgage loan. As a rule, having a residence permit, a foreigner cannot be unemployed and have no source of income, since this is contrary to the Russian law on migration.

Without a residence permit, no bank will be able to approve a housing loan, since the absence of this document may mean :

• short stay in Russia;
• illegal presence in the country;
• expired temporary residence permit;
• lack of required work experience in the Russian Federation.

Among the large number of lenders, it is possible for a foreigner to obtain a mortgage only in a few banks. The conditions and rates will differ significantly from the conditions and interest rates that banks offer to Russian citizens, even if the foreigner lives in the country with a residence permit.

Watch a video about the possibility of obtaining a mortgage for housing for non-Russian citizens with a residence permit:

Can a foreigner take out a mortgage in Russia?

If we look at Russian legislation, it does not impose any restrictions on housing lending to foreigners. But in practice, it turns out to be difficult for a foreign citizen to take out a mortgage, because banks put forward strict requirements for such borrowers. The reason is that a non-resident can leave Russia at any time, then the bank will suffer losses that are unlikely to be compensated.

Even the presence of collateral slightly reduces possible risks. Credit organizations try not to initiate legal collection unless unnecessarily necessary, because this is a serious expense. The natural conditions of banks providing mortgages to foreign citizens will be an increase in the interest rate, the down payment, the application of additional commissions and stricter issuance requirements.

Under what circumstances is it easier to obtain a mortgage for an apartment for foreign citizens:

• having a permanent job and paying taxes to the Russian budget;
• belonging to the CIS countries;
• Russian citizenship of the borrower's spouse;
• high income and lack of loans;
• increased down payment with your own funds;
• attraction of guarantors and additional collateral;
• registration of life and health insurance;
• excellent credit history.

For foreign citizens, you can even apply for a mortgage from banks with state participation, for example, VTB. It all depends on the internal policy of the financial organization and interest in attracting new clients, even representatives of other countries. It is also worth paying attention to commercial credit structures that are loyal to potential borrowers.

Having a residence permit in Russia allows foreign citizens to enjoy the same rights as Russians, including obtaining a mortgage. The loan is issued on standard terms. True, not all banks, for example, do not provide Sberbank mortgages for foreign citizens with a residence permit.

Features of loans from banks for non-residents in the Russian Federation

No bank has a special mortgage program for foreigners. Those institutions that issue housing loans to this category of borrowers draw up an agreement on an individual basis, taking into account the base rates, the client’s income level, the availability of certain documents and property for collateral.

IMPORTANT : Mortgages for foreigners are usually issued only with a large down payment. You can reduce it and the interest rate by registering your existing housing as collateral, which is located in Russia.

One of the features of such lending is the short term. The mortgage can be issued for a period of up to 10-15 years.

To reduce the likelihood of refusal, the borrower can:

1. Involve a co-borrower or guarantor in drawing up the agreement . In this case, the additional participant in the transaction must be a citizen of the Russian Federation, just like the borrower, have an official place of work and sufficient income to repay the loan.
2. Immediately provide the bank with documents for ownership of expensive property (apartment or car). In this case, the bank will consider the application taking into account these circumstances. Collateral is a good guarantee for the lender.
3. Provide the bank with evidence of the availability of money to pay the down payment . If the borrower is willing to contribute more than 20% of the property price, this will increase the chances of receiving a loan.

What documents will be required

The list of documents for obtaining a mortgage by foreign citizens with a residence permit is almost no different from the standard one. The package of securities is formed depending on the selected bank. It usually looks like this:

• foreign passport and its notarized translation;
• a document confirming the right to stay in the Russian Federation;
• A completed application form;
• other identification documents of your choice (for example, driver's license);
• income certificate in the form or sample of the bank;
• confirmation of employment;
• additional papers if necessary (diploma, document on marital status, birth certificates of children, etc.).

A similar package of documents will be required from guarantors and co-borrowers.

Important to know: Mortgage without a credit history – chances of getting approval

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After the initial approval of the loan application, it is necessary to select a property that meets the bank’s requirements. These again can vary greatly depending on the lender. But as a standard, it is required to confirm the absence of encumbrances and legal claims of other persons, the house should not be in disrepair, etc.

Are mortgages issued to foreign citizens for properties other than apartments? Yes, it is possible to purchase a residential building with land outside the city, a dacha, a garage, apartments, etc. If the bank’s lending program provides for any of the listed real estate options, a foreigner will be able to purchase it.

For finished housing you should provide:

• extract from the register of real estate rights;
• a copy of the seller's passport;
• technical documentation;
• document establishing the right of ownership;
• draft purchase agreement;
• evaluation report;
• certificate of registration and other papers depending on the situation.

When purchasing an apartment in a new building, foreign citizens must provide a draft construction contract and documents for the developer to the bank for a mortgage. If a loan transaction for finished housing involves the simultaneous registration of collateral, then an apartment under construction requires additional collateral.

Recommended article: Sberbank mortgage for a dacha

During the construction of the house and its commissioning, a pledge of existing real estate or a guarantee is required. After registration of ownership of the apartment, the apartment is mortgaged; at this stage, you will need to provide the bank with an appraisal report, an extract from the real estate register and technical documents, as well as insure the property.

When applying for a mortgage to invest in the construction of an apartment, you should choose developers accredited by the bank. It is easier to get such a loan, and cooperation with large lenders is a kind of guarantee of timely delivery of the house and the reliability of the construction company.

Reasons for refusals

Most banks do not lend to foreigners for one simple reason: their stay in the country may not be long. A migrant who has obtained a residence permit may lose it at any time. A residence permit can be canceled for violation of laws, for failure to fulfill obligations to the migration service, due to the lack of registration or place of work. Withdrawal of the residence permit will entail his deportation, which means non-payment of the mortgage loan.

State-owned banks refuse to issue mortgages to migrants on the basis of an increased risk of loan default. Another part of the lenders is accommodating to such clients, since many foreigners living in Russia do business here and already own real estate. However, even in this case, lending conditions will be strict, the repayment period will be short, and the down payment will be large.

Review of interest rates and other terms

Today, a migrant who has received a residence permit can apply for a mortgage from four Russian banks - VTB 24, Alfa-Bank, DeltaCredit and Unicredit.

Mortgage refinancing for foreigners

Mortgage refinancing for foreign citizens is available under the same conditions as obtaining a new home loan. It is worth paying attention to the same banks that we talked about in the previous section. What refinancing conditions do they offer:

• VTB will refinance the existing mortgage at an interest rate of 8.8% for a period of up to 30 years (if according to a simplified package of documents - up to 20 years), the amount is up to 30 million rubles;
• Alfa Bank issues a loan for refinancing in the amount of up to 50 million rubles, interest from 8.69%, repayment period up to 30 years;
• Rosbank will refinance housing loans at a rate of 6.99%, for a period of up to 25 years, for an amount starting from 3 million rubles;
• Raiffeisenbank refinances mortgages from 8.39%, in the amount of up to 26 million rubles, payment period up to 30 years.

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Some of the most favorable rates for refinancing housing loans are offered by Gazprombank. However, unlike VTB, Gazprombank does not issue mortgages for foreign citizens. You should not look for similar programs in Rosselkhozbank, Sberbank, Otkritie, Sovcombank, Tinkoff Bank, etc.

There will be costs associated with refinancing your mortgage. You will also have to insure the mortgaged property annually. To approve the application, you must provide real estate documents to the bank; most often, the lender requires a recent appraisal report. So the costs of the new loan will not decrease.

Please note that in addition to mortgages and refinancing, in the banks we list, foreigners can take out a loan secured by existing real estate. To obtain it, the borrower's property must be pledged. You can spend the funds received at your own discretion, that is, you do not have to report to the creditor.

Statement

The application form is the same as for citizens of the Russian Federation. It contains the following information :

1. Full name, passport details, residential address.
2. Information about work activity (position, length of service, salary, field of activity of the company).
3. Information about family composition, a list of close relatives (only those who live in Russia must be indicated).
4. Information about existing real estate and vehicles (those registered in the Russian Federation).
5. Information about outstanding loans.
6. Required amount and period.

Most often, Russian citizens take out mortgages in the Russian Federation. Therefore, on our website you will find information about mortgages for them without a down payment, about the necessary documentation, about early repayment, about preferential offers, about programs, about the removal of encumbrances, about refinancing, about mortgages with bad credit history and about insurance.

Submission of papers and review deadlines

TIP : The application and documents can be submitted to the bank branch at your place of permanent residence or online through the bank’s website.

Typically, consideration of an application takes no more than 5 working days . However, when accepting papers from a foreign citizen, this period may be extended by several weeks, as the bank carries out additional checks and makes requests to the Federal Migration Service and other authorities.

It is quite possible for a foreign citizen or stateless person to obtain a mortgage loan from a Russian bank. Main conditions: availability of a residence permit, official employment and a high level of income.

Reviews from foreign citizens about mortgages

Reviews on the quality of services, affordable rates and other important nuances of mortgage lending for immigrants are best read on banking aggregator websites. This guarantees the honesty of the review, since individual banking structures do not have influence on such Internet portals.

In other words, all reviews – both positive and negative – are published on aggregator sites. In this way, the portal visitor can find out an honest assessment.

Recently, a loan for foreign citizens from Sberbank has received positive reviews. According to the bank's clients, the proposed lending conditions are as accessible as possible, and the requirements are easily met.

VTB 24 also has a positive review. The client shared that the mortgage interest rate for foreign citizens was reduced by the developer, who is a partner of VTB 24. For this reason, the loan was issued on favorable terms and with an acceptable monthly payment.

In general, mortgage loans are assessed by immigrants as a profitable deal that allows them to acquire their own living space.