Far Eastern mortgage: how to get it in 2021

The concept of “civil marriage” does not exist in regulations. The relationship of a couple, which is commonly called a civil marriage, from a legal point of view is considered simply cohabitation and does not have any legal consequences. Property acquired during a civil marriage and registered in the name of one of the spouses is not considered jointly acquired. The opposite can only be proven in court. Is it possible to buy a home with a mortgage while in such a relationship, and what could be the consequences?

Legislative subtleties

Before you find out whether it is possible to take out a mortgage in a civil marriage, you need to familiarize yourself with the norms of the current Russian legislation.

The fact is that such a concept as “civil marriage” is not spelled out in any regulatory document, so any illegal relationship will be considered a simple cohabitation that does not have any legal consequences.

Because of this, any real estate purchased during a civil marriage and registered in the name of one of the spouses will not be considered jointly acquired. This means that upon separation, everyone receives exactly as much as was written in their name.

So how can you get a mortgage for two people in a civil marriage to avoid conflicts? There are two different options. Let's look at each of them.

Option #1. Applying for a mortgage for one person (most often for the one with the highest income)

In this case, all rights to the purchased property automatically transfer to the person whose name is indicated in the mortgage agreement. As for the second cohabitant, he can act as a guarantor.

However, upon separation, it will be extremely difficult for him to prove his participation in repaying the loan, so this option is suitable only for those couples who completely trust each other.

Option #2. Distribution of a housing loan between two people

Registration of shared ownership for a mortgage in a civil marriage involves the division of loan obligations between two spouses: one of them becomes a borrower, the second a co-borrower (roles are distributed by the bank depending on the level of income).

In addition, partners can divide the housing into two and take out 2 separate loans . In this case, each party becomes the full owner of the property, bears equal responsibility for its safety and makes payments independently of each other.

As for the share of property, it is formed according to the amount of invested funds.

Shared ownership becomes impossible in two cases - when purchasing a one-room apartment and when one of the spouses does not have an official place of work.

It should also be noted that a mortgage for two imposes joint liability on the couple - if the borrower stops fulfilling his obligations, they automatically fall on the shoulders of the co-borrower (without taking into account who the property is registered in).

Division of property in the future

Even at the stage of deciding to apply for a mortgage in a civil marriage, you need to think about what will happen to the purchased living space if the couple’s relationship ends. In such a case, one of the following scenarios is possible:

continuation of regular payments, followed by peaceful division of living space after repayment of the debt;
abandonment of real estate in favor of another borrower without a requirement for compensation;
refusal of the apartment and mortgage obligations, but with a requirement for monetary compensation for previously deposited funds.

In the last two cases, the bank’s consent is required, which it may not give. The mortgagee's decision depends on how much the borrower's income will be reduced without a cohabitant. The bank can agree to divide obligations only if its size will allow it to continue paying bills.

The development of events is also influenced by whether the union will be officially registered subsequently or not.

If there is no wedding

If the relationship ends and the couple does not have time to get to the registry office, the division of the mortgaged property will be carried out in court.

If it was issued to one borrower, the second will have to prove through the court the fact of his participation in repaying the debt. If the case is successful, he will be paid monetary compensation in the amount of the invested funds.

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If the mortgaged apartment was registered as shared ownership, each of the co-borrowers will receive their part of the apartment, according to the amount of contribution to repaying the debt. In this case, their relationship is regulated by a loan agreement, which stipulates not only the obligations of the parties, but also their rights.

If the marriage is consummated

If the couple decides to officially register their union in the future, the division of mortgage real estate during a divorce will take place in a different manner.

According to the law, property acquired before marriage is not jointly acquired and is not subject to division. But in the case of a mortgage, the second spouse can declare his rights and protect them, because immediately after the wedding he receives the same rights and obligations under the loan as the main borrower. Therefore, it is possible to prove through the court your participation in repaying the debt and receive compensation.

Important! After the marriage is registered, the spouse for whom the mortgage is issued solely owns only that part that was paid before the wedding. The remaining obligations are divided equally between the husband and wife, as are the rights to real estate.

Underwater rocks

Applying for a mortgage in a civil marriage has several important nuances. Here are just a few of them:

Possible litigation. Practice shows that the main reason for filing lawsuits is either the reluctance of the second partner to participate in further repayment of the mortgage, or the intention to prove their ownership of the apartment (for example, if the loan was issued to one of the spouses, and payments were made from the common budget);
Difficulties with using maternity capital. If the loan is issued to the father, and the certificate is issued to the mother, then the money received from the state cannot be deposited into the bank account (either as a down payment or to repay the principal debt). In this case, the only way out will be to re-register the mortgage agreement;
The risk of being left without housing if the mortgage agreement is not drawn up correctly;
Difficulties with the further sale of shared property. The cost of an apartment divided into several shares will be several times lower than the market price, or even less than the mortgage itself. In addition, not every buyer will want to purchase only one room if the second borrower refuses to sell his part of the home;
Lack of right to participate in housing programs (both regional and state) and receive subsidies;
A decrease in the level of creditworthiness, which does not allow you to take out a loan in your name;
High probability of obtaining a negative credit history;
Uneven calculation of the tax deduction - if the property was purchased for two people, its size will be reduced in accordance with the shares of the spouses.

Be that as it may, a civil marriage, unlike an official one, gives partners the right to choose. The main thing is to carefully study all the pros and cons.

Registration procedure

Registration of a mortgage in this case is a standard procedure:

borrowers need to select a property;
find a bank that is willing to provide the required amount;
submit an application and wait for a decision;
prepare documents and sign a loan agreement;
purchase an apartment or house;
re-register the property;
start repaying the loan.

In order to select a bank, you can submit several online applications. At the same time, it is important to take into account not only your solvency, but also the bank’s requirements for the property. It is easier to purchase an apartment in an apartment building with good liquidity. Lenders often require additional guarantors or collateral.

After purchasing a home, it must be registered in the name of the borrower. Naturally, in this case, an encumbrance is imposed on the property. Ownership can be registered in the name of one of the spouses or both. Shared ownership in this case guarantees that each of the borrowers will be able to receive a part of the apartment.

Documentation

Banks require their borrowers to carefully prepare all documentation. Mortgages are issued only to those citizens who are of suitable age, have an official job and can prove their solvency. The following documents must be provided:

Statement. You can submit a preliminary application for a mortgage online.
Personal documents of the borrower.
Questionnaire completed previously.
Certificate of income (2-NDFL).
Real estate documents.
SNILS.
A copy of the work book.
Additional documents.

If the first installment is paid using maternity capital, then you will need a certificate. When dividing a mortgage loan, similar documents must be provided by the co-borrower.

Underwater rocks

When applying for a mortgage in a civil marriage, it is important to know how to protect yourself. Situations vary, and when it comes to expensive property, disputes and conflicts may arise.

Litigation. You should be prepared that the second co-owner of the property may refuse to pay the mortgage. Or the common-law spouse may claim part of the property for which he did not pay the mortgage.
Only the person for whom the certificate is issued can make a down payment using maternity capital. If the father takes out the mortgage, and the mother’s name is written on the certificate, then she must become a co-borrower.
It is important to pay attention to the correctness of the mortgage agreement. Banks often include additional insurance or hidden fees in contracts.
If the property is divided between borrowers, it may be difficult to divide in the future. Especially if only one of the owners decides to sell their share. If the buyer does not want to purchase only a room in the apartment, and the co-owner refuses the pre-emptive right to purchase, he will have to either live in this apartment or rent out the room.
Borrowers are not eligible to participate in various government housing programs.
Failure to pay the mortgage will not only lead to repossession of the property, but also to a bad credit history.

When purchasing real estate with a mortgage, you need to take into account all the pros and cons. The advantages include the absence of requirements for a stamp in the passport, as well as financial assistance in repaying a mortgage loan.

How to protect your right to credit housing?

How to protect yourself from a big loss of money and defend your right to the purchased apartment? Follow these tips.

Tip 1. Register the property as shared ownership.

Tip 2. Keep all documents confirming your participation in loan repayment . They can be receipts, checks and bank statements that allow you to track the transfer of funds. In this case, special attention should be paid to papers related to the down payment, because jointly accumulated funds are most often used to make it. Please note - receipts must be issued in the name of the payer (even if the loan is issued to another person)!

Tip 3. Write down all the nuances in the mortgage agreement.

Getting a mortgage and getting married

There are a large number of cases where real estate was acquired during a civil marriage. After some time, the couple decided to legitimize their relationship and get married. After some time, it turns out that the spouse may be left without a share of their property.

The fact is that when completing the mortgage transaction, the spouses forgot to indicate shared ownership. As a result, during a divorce, the potential homeowner has every right to withdraw his property and leave the second party to the transaction without his share.

That is why professional lawyers recommend preparing in advance for the likely division of acquired property. Particular attention must be paid to the mortgage agreement during its execution.

When registering shared ownership, you must take into account your financial capabilities. For example, if a spouse has not been employed anywhere during the years of marriage, then during a divorce she will not be able to pay most of the mortgage agreement or the full cost of the mortgage transaction.

Experts recommend thinking about a marriage contract, which clearly states all the conditions of the family union. It is recommended to pay special attention to the paragraph in which it is necessary to clarify that all jointly acquired movable and immovable property is subject to equal division between the two spouses, regardless of the circumstances. Thus, each participant in the family union has every right to take his share in the event of a divorce.

How is mortgaged property divided?

Problems with dividing a mortgaged apartment in a civil marriage arise when a couple decides to separate before the end of their loan obligations. In this case, there are several options for the development of events.

If the housing loan is issued for two people:

The property is divided according to the shares specified in the agreement;
The former spouses continue to make contributions, and after the mortgage is closed, they deal with the apartment at their own discretion (sell, rent, donate, etc.);
The housing loan is reissued to one owner - he will repay the entire remaining amount. Such changes are possible only with the permission of all parties to the agreement. Do banks give unconditional consent to this operation? Unfortunately, a financial institution has the right to refuse a client if he does not have a high level of income or does not meet other important requirements;
Selling encumbered housing to third parties allows you to pay off the mortgage “in one fell swoop.”

Former spouses who were unable to reach a mutual decision can go to court. If the loan is issued to one of the spouses, there should be no problem, because by law he is the only borrower and owner of the property.

How to get a mortgage in a civil marriage?

In 2021, the procedure for obtaining a housing loan takes place in several stages:

Selecting a suitable property.
Applying for a loan.
Receiving a response from the credit manager.
Concluding a preliminary agreement with the seller.
Collection of the necessary package of documents. It includes:
Income certificates in form 2-NDFL;
Borrower questionnaire;
IIN certificate (copy);
Documents for the apartment (preliminary purchase and sale agreement, which contains the names of all borrowers);
Act on the estimated value of housing;
A copy of the work record;
SNILS;
A copy of the certificate of ownership of the purchased property.
Signing a mortgage agreement.
Concluding a purchase and sale transaction (standard or with the allocation of a share of each spouse).
Registration of purchased housing as property.
Contacting the insurance company.

Now you know how to properly apply for a mortgage in a civil marriage, and you can avoid all the unpleasant moments.

How to protect yourself in the future

When taking out housing loans in a civil marriage, you should immediately think about how to protect yourself in the future. The best option to avoid problems is to enter into a joint loan agreement and register the purchased apartment as shared ownership. In this case, the risk of disputes over the division of property is minimal.

You can also:

draw up a loan agreement between common-law spouses, which will regulate how much each of them contributes to the purchase of real estate;
when making monthly payments, indicate your personal data;
keep all receipts for money transferred to the bank, which will confirm the fact of fulfillment of debt obligations to the creditor.

If common-law spouses subsequently decide to formalize their union, it is worth drawing up a marriage contract. In this agreement, it is important to pay special attention to mortgaged real estate purchased before the visit to the registry office and indicate how the rights to the apartment and loan obligations will be divided in the event of a divorce.

Thus, it is quite possible to be in a civil marriage and take out a mortgage. For the bank, it is not of fundamental importance what kind of relationship the borrowers are in, therefore, if you have the appropriate income, you can get the application approved. But applicants themselves must take into account all the risks of such a loan option, as well as the impossibility of using government benefits and subsidies in the absence of a marriage registration stamp.

Be sure to sign up for a free consultation with our lawyer through an online consultant in a special form on the website. Get advice on your situation to avoid problems in the future.

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A mortgage in a civil marriage is quite common, because it allows you to take into account the general level of income.

However, in addition to this important advantage, this procedure has several features that should be understood in advance.