Mortgage is one of the most complex loan products, as it is associated with the purchase of real estate and the preparation of a mortgage. The application process and the likelihood of issuance directly depend on the marital status of the borrower. And it’s more difficult for single citizens to get a loan.
If a mortgage loan is issued by a legally married family, then the transaction involves two borrowers - both spouses. This is a big plus for the bank, and there are several reasons for this:
- the total income of the spouses is taken into account, that is, the total solvency of two borrowers is higher than when applying for a loan by one citizen. And this is one of the decisive factors when considering an application;
- less risks. If one borrower becomes insolvent, even temporarily, the second co-borrower can assume the burden of payments;
- there are several borrowers, so if something happens, claims can be brought against two citizens, the likelihood of collecting problem debt becomes higher;
- According to statistics, family borrowers commit fewer violations and pay off loans better;
- In the event of the death of one of the borrowers, the loan will be paid by the second. There are no problems with collection through heirs.
If a mortgage is taken out for one person, it is a riskier transaction for the lender, which entails a decrease in the likelihood of approval. Of course, this will not be a clear reason for refusal. If the applicant is objectively positive, he will be approved.
Why is it easier for a young family to get a mortgage?
The main reason is income level. Paying off your mortgage takes up a significant portion of your budget. For example, if we take a standard city, not the capital and St. Petersburg with their high prices, then with a loan amount of 2,000,000 rubles, an interest rate of 11% and a term of 15 years, you need to pay approximately 23,000 rubles monthly.
It is difficult for a single person to receive such a payment on his own; for this he must earn at least 45,000-50,000 rubles. If a married couple takes out a loan, then their combined income will be enough to apply.
Other reasons:
- the possibility of using government subsidies, which reduces the debt burden on borrowers: maternity capital, subsidies under the program for young families;
- A young and single woman may be denied a mortgage because she is likely to give birth to a child and become insolvent. In a family there is no such risk; the burden of payments will be fully borne by the second party to the transaction.
But in any case, if you think about whether it is possible to take out a mortgage while not married, this is not ruled out. Not a single bank sets restrictions and considers single citizens without any problems. If the application form shows that the applicant is able to pay the mortgage, he will receive approval.
Is it possible for one person without a family to take out a mortgage?
Beginning to get acquainted with a mortgage loan as a way to purchase a home is often associated with a large number of questions.
The most important and important question: can only one person get a mortgage?
In this article we will try to figure it out.
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The main criterion that a banking institution pays attention to when making a decision on a mortgage is the financial condition and solvency of the borrower.
- If the client has a stable income, then there are no special barriers to obtaining a mortgage.
- The larger the amount required, the greater the income should be and the more impressive the down payment.
- Of course, it is important for the client to have a permanent job with proof of income, funds for a down payment and a good credit history.
It is known that such a loan involves quite impressive amounts of funds issued for long periods.
Because of this, financial institutions may require:
- attract guarantors;
- insure the health and life of a single borrower.
That is, the bank, first of all, is worried about possible force majeure circumstances that cannot be predicted. And in the absence of a co-borrower, there is no one to pay the mortgage in the future. The main reasons for preferring young families over single borrowers are as follows:
It’s easier for two to pay off a loan than for one. If one of the spouses is sick or loses earnings, the other continues to work, and the possibility of payments remains;- if one of the co-borrowers dies, then the second with a high percentage of probability continues to pay the debt;
- the total family income is often higher than the earnings of one person;
- if a person evades payments, then he can be influenced through his spouse or relatives.
The difficulties lie in the additional requirements of the bank:
- provision of purchased property as collateral;
- provision of guarantors;
- health and life insurance, purchased housing, land, etc.
Another problem is income. Usually if you need a large amount. In such a situation, the client should receive an impressive salary.
If you believe the statistics, single borrowers make up 1/5 of all mortgage applicants. Banks are confident that if a person does not have a family and has a stable income and a promising career, then he is a desirable borrower. But if a single borrower has children, and he was divorced or unmarried, then the attitude of the financial institution depends on the gender of the borrowers.
When one person can get approval
Residential mortgages without guarantors and co-borrowers are offered by all banks, you can choose any one and submit an application to them. If the client is positive and creditworthy, he will receive a positive response. There are three factors that together will lead to the approval of a mortgage loan:
- good solvency. This is an income sufficient to pay a mortgage, work with a “decent” employer, work experience at this place of work for at least 1 year;
- positive credit history. It definitely has to be there. Before applying for a mortgage, you need to build a history, for example, take out a small trade loan and pay it off without any complaints;
- Availability of a down payment. And the bigger it is, the better. Typically, banks ask you to contribute at least 10% of the apartment price with your own funds towards the purchase, but single citizens are better off saving 20% or more.
The ideal option for getting a mortgage for an apartment is to contact a bank that is a payroll bank. In this case, the probability of receiving a positive answer will be the highest. You can also count on a loyal attitude if you submit a request to the bank where you previously took out loans and successfully repaid them.
The Central Bank pays close attention to the level of creditworthiness of potential borrowers and does everything possible to prevent banks from issuing loans to citizens who may violate the payment procedure due to insufficient solvency. Try to select lending terms so that less than 50% of your net income is spent on paying off the mortgage. If there are other existing loans, include payments on them in this 50%.
Preferential loans for single mothers in Chelyabinsk
But if the question of whether a single man will be given a mortgage can still cause difficulties, then a woman raising a child without a husband has a much greater chance of getting a loan. Moreover, we may not be talking about standard loans, but about preferential loans, for which part of the costs is borne by the state.
To participate in this type of program, of course, you need to meet additional conditions, but the end result is definitely worth it: social mortgage loans allow you to count on:
- reduced interest rate (for example, not 9, but 5% per annum);
- direct repayment from budget funds of a significant share of the loan (sometimes a woman remains to pay no more than 40% of the cost of housing);
- issuing a loan without a down payment, which under normal conditions banks try not to do;
- recalculation of the monthly payment downward if the borrower’s official income does not allow her to fulfill standard lending conditions.
Thus, you found out whether a mortgage is given to one person without a family. Single applicants can calculate their chances of getting a loan to buy a home in Chelyabinsk by evaluating the real offers of banking institutions operating in the region, as well as using the online mortgage calculator available on our portal.
Requirements for the borrower
Each bank sets its own criteria. There is no single rule, but in general, lenders apply approximately identical criteria. Let's look at what is needed to get a mortgage for an apartment and the requirements for a single borrower:
- reaching 21 years of age. And the older you are, the higher the likelihood of extradition. But at the same time, many banks indicate that the housing loan must be repaid before the client reaches retirement age;
- having an official job. This is exactly the case, because a 2NFDL certificate and a copy of the work book certified by the employer are required;
- length of service at the declared place of work - from 6 months, total - from 1 year;
- positive credit history;
- sufficient level of solvency.
The most important thing is the ratio of income and expenses. The bank will issue a mortgage only if the person pays it off. He should have enough money to make monthly payments, to pay off other loans, if any, and to pay for utilities. If the applicant has children, expenses for them are also taken into account.
When will a single person be denied a mortgage?
There are situations when a single applicant will definitely be denied a housing loan:
- negative credit history or lack thereof;
- low income;
- Frequent job changes, low work experience. Banks generally do not like borrowers who often change one place to another; there is a high risk of falling into a debt trap;
- if the applicant is a young man under 27 years of age who has not served in the army. There is a risk of conscription. Exceptions - documentary evidence that conscription is impossible;
- if a woman is on maternity leave. Sometimes young applicants who do not have children are also refused. Obviously, over the long term of the loan, she will give birth to one or more children, and her financial situation will worsen.
In general, it is easier to get a mortgage for a single applicant who is over 30-40 years old. At this age, the situation is more stable, financial literacy is at a normal level. Banks are more loyal to such applicants.
Tips for single applicants
If you are thinking about how to get a home mortgage or planning to get one outside of marriage, then prepare to submit your application in advance. If you are saving money for a down payment, place it in a deposit account at the bank where you plan to take out a loan. This will be a plus when considering.
Apply when all other loans and other debt obligations have been closed. So the level of creditworthiness will be higher. Don’t forget that banks look not only at credit histories, but also check the bailiff database. There should be no debt for fines, taxes, alimony, etc.
If necessary, invite a guarantor who will become an additional guarantee for the bank to return funds; the bank will be more loyal. But keep in mind that the guarantor’s income is not taken into account when considering.
If you want to take out a mortgage for one of the spouses while you are married, then this is impossible. By law, all property and debts acquired during marriage are joint, therefore both spouses must apply for a loan.
What is important to the bank?
For any credit institution working with housing loans, one thing is important - to receive previously provided funds within the period previously agreed upon with the borrower and without any losses. That is why the main attention from the outside is paid to the financial stability of the potential client. Its main feature remains the amount of income of the person wishing to receive a loan. The larger it is, the more favorably the lender will treat the candidate who submitted his application form for consideration. In other words, the bank is interested in one thing - whether you have enough money to repay the loan or not. Accordingly, if you have the necessary income, then you will not face any serious obstacles to taking out a mortgage for one person.
The situation will be completely opposite for those whose mortgage ambitions clearly do not correspond to their salaries. Having asked for a loan in an amount that they are unable to repay, such individuals are faced with one of the most common reasons for being denied a mortgage. Of course, it is possible that the bank will simply offer you to reduce the loan amount or increase its term, but the likelihood of this is low.
