How to repay a mortgage with maternity capital: instructions – Mortgage – Domklik Magazine

Repaying a mortgage with maternity capital through the MFC is one of the options for the certificate owner who has decided to use the funds to pay off the loan debt. The procedure for submitting documents is clearly regulated, but has certain nuances and features.

Mortgage repayment requirements and process

Maternity capital is allowed to repay the loan if it was used for the following purposes:

• apartment purchase;
• purchase of a private house;
• construction or reconstruction of real estate.

Starting from 2021, maternity capital can be used to pay for the purchase of a residential building located in a gardening partnership. Subsidy funds cannot be used to purchase land.

In order to use maternity capital to pay off a mortgage, the conditions must be met (Law No. 256-FZ of December 29, 2006):

1. The property is suitable for living, there are all necessary communications.
2. The loan agreement stipulates the possibility of full or partial early repayment.
3. The owner of the certificate is not limited in parental rights in relation to the child, with the birth of which the family has the right to a subsidy.
4. The bank complies with the requirements established in Art. 10 of Law No. 256-FZ.
5. The property must be located on the territory of the Russian Federation.
6. When purchasing a house or apartment, it is necessary to draw up a notarized obligation to allocate shares to all family members. Parents can waive their parts, but minors must be registered in the document.

The application must indicate an amount that does not exceed maternity capital or the balance of unspent funds.

Military mortgage

A mortgage with maternity capital and the conditions for obtaining it require participation in programs for military personnel. To improve their living conditions, citizens on contract service have the right to MSC for a mortgage loan if:

• there are savings (credited to a special account by the state);
• contract service exceeds 20 years;
• in some cases, when serving for more than 10 years;
• a targeted housing loan is used.

Important! The relationship of capital with programs for military personnel is determined by special resolution No. 627 of May 25, 2017, regulating the provision of housing for certain categories of citizens.

Where to contact?

In order to dispose of the subsidy, the owner of the certificate must contact the Pension Fund of the Russian Federation.
You can do this in the following ways:

• personal visit;
• transfer of documents through a representative;
• contacting the MFC;
• registered letter with notification;
• Internet resources.

An electronic application can be filled out in your personal account on the website of the State Services or the Pension Fund of the Russian Federation. After its acceptance, you will need to provide paper documents to the Pension Fund office within a certain time frame.

From April 15, 2021, the owner of the certificate has the right to submit an application for disposal of funds to the bank. A representative of the credit institution will independently transfer the documents to the Pension Fund. To do this, the bank must have an information interaction agreement with a government agency.

List of documents

To pay off your mortgage you will need to collect the following documents:

• passport of the certificate holder;
• statement;
• certificate or its duplicate;
• SNILS;
• Marriage certificate;
• a copy of the loan agreement;
• certificate of the balance of mortgage debt;
• extract from the Unified State Register of Real Estate;
• a copy of the purchase and sale agreement;
• obligation to allocate shares.

The application must be accompanied by documents confirming the change in personal data, including a marriage or divorce certificate. When submitting papers through a representative, you must present a notarized power of attorney.

How to apply for a mortgage using capital in stages

In order to apply for a mortgage using maternity capital, you must:

1. Collect 20% of the cost of the apartment. The rest of the amount is issued by the bank for the conclusion and payment of finished housing or shared construction on the primary real estate market.
2. After that, the bank approves the issuance of the required amount, and then the family does the following: draws up and executes all documents for housing; registers the mortgage in Rosreestr to obtain an extract from the Unified State Register of Real Estate; The bank transfers all loan funds, along with the down payment, to the account of the home seller.
3. Without waiting for the child to reach the age of three, the owner of the certificate obtains a certificate from the bank about the current debt, collects the entire package of documents for the Pension Fund and submits an application to dispose of the funds.
4. In the event that the housing is not registered as shared ownership together with all family members, a notarial undertaking must be attached to the documents, which stipulates the mandatory allocation of shares to children and spouse no later than 6 months after repayment of the mortgage.
5. The Pension Fund reviews applications and, if approved, transfers money to a bank account. On average, the entire procedure takes 1.5-2 months, during which the family is still obliged to pay the loan in full, without violating the payment schedule. Failure to pay may result in the Pension Fund’s application being rejected and fines being assessed.

Reference! You can also pay a down payment with maternity capital if the family does not have the opportunity to save 20% of the cost of housing. This option must be clarified with the creditor bank.

Repayment instructions

In order to use maternity capital to pay off the mortgage, the procedure is as follows:

1. Visit a credit institution.
2. Fill out an application to the Pension Fund and provide the necessary documents.
3. Wait for notification of the decision.
4. Write an application to the bank for full or partial repayment of the debt.
5. Wait for the funds to be transferred.
6. Receive a certificate of fulfillment of obligations or a new payment schedule from the credit institution.
7. Contact the registering state authority.

Important! The extract from Rosreestr is prepared within 3 days. It indicates that the encumbrance has been removed from the apartment. There is no state fee for this procedure.

The owner of the certificate can repay the debt either fully or partially. In the latter case, he has the right to choose whether to reduce the size of monthly payments or the loan term. This information must be indicated in the application submitted to the financial institution.

An example of calculating a mortgage payment if the down payment is capital

The largest and most reliable bank in Russia is Sberbank. And he also offers some of the most favorable lending conditions. With the help of maternity capital from Sberbank, you can cover the first mortgage payment in whole or in part.

For the calculation, you can take the most standard lending case with the following conditions:

• The intended purpose is to purchase an apartment on the primary real estate market, that is, in a new building;
• The loan will be issued in Moscow;
• The cost of the apartment is 3,000,000 rubles;
• The down payment to receive a lower interest rate will be 600,000 rubles;
• The loan will be issued for a period of 7 years.

Sberbank also has improved lending conditions if the certificate holder receives a salary on their card. Let's assume that it exists, and take into account that the family agreed to the terms of the Life Insurance program and reduced the final cost by another 1%.

You can also take the most positive option and assume that the parents rent an apartment from a developer who offers a discount for families participating in this program. Let's assume that this discount is 2.2%.

In this case, the bank can offer 2,400,000 Rubles as a loan at an interest rate of 6.5%. This means that every month the family must pay a minimum of 35,624 rubles, and its total monthly income cannot be less than 50,892 rubles.

How to submit an application through State Services?

The application can be submitted electronically through government services.
To do this, you must have a verified account on the portal. The procedure for the certificate owner is as follows:

1. Go to the website and select the “Services” section.
2. Go to the “Family and Home” category.
3. Click on the link “Management of maternity capital”.
4. Select “Electronic service”.
5. Fill out and submit the application form.

If the application is approved, the certificate holder will be invited to the Pension Fund with original documents within 5 days.

Why can they refuse and what should they do?

Civil servants do not always make a positive decision on an application.
The reasons for refusal to repay a mortgage using maternity capital may be the following:

• documents provided with errors or inaccuracies;
• an incomplete package of papers has been prepared;
• deliberately false information is provided;
• the parent is deprived of the right to receive maternity capital funds;
• the property does not meet the conditions imposed on it by the Pension Fund.

If the problem is that the wrong documents were provided or there is an error in them, then the applicant only needs to correct the shortcomings and re-apply to the government agency.

A parent cannot dispose of maternity capital funds if he is deprived of rights to the child or has committed a crime against a minor. Legal representatives are deprived of the right to a certificate if the decision on adoption is cancelled.

Maternity capital funds should be used to improve housing conditions. Therefore, the Pension Fund may refuse to transfer funds if the housing was purchased in a dilapidated or dilapidated building. In accordance with the requirements, the degree of depreciation of the property should not exceed 50%.

If a citizen does not agree with the decision of the Pension Fund, he can appeal it to a higher authority or court.

Matkapital as a down payment

Under preferential bank lending programs, maternity capital can act as a down payment. MK is issued to those families in which a second or more children were born or adopted, if the parents did not previously use maternity capital. As of January 1, 2021, according to the certificate, each family is entitled to 466,617 rubles.

A parent can spend the money received on a mortgage immediately after the birth of the child and receipt of the subsidy.

Then the whole process will look like this:

1. The parent chooses a bank and a mortgage program that meets the conditions, which involves lending to improve housing conditions.
2. There is no need to pay the first installment yourself, since the Pension Fund will transfer the required amount to the bank details.
3. Next, the owner of the certificate submits an application for a mortgage at the bank.
4. If the bank is ready to cooperate with the family, you can begin to search for a suitable developer or apartment on the secondary real estate market who are also ready to work in this mode.
5. If the other party approves this procedure, the deal is concluded. All necessary documents are transferred to the Pension Fund of the Russian Federation, which transfers maternity capital to the bank.

Housing purchased under such conditions is registered as the common property of each family member (parents and each child).

Their shares are determined additionally by agreement. All family members, including minor children, must become home owners. If the child becomes an adult before the final repayment of the loan, he has the right to renounce his share in favor of his relatives.

Allocation of shares to family members

In Art.
10 of Law No. 256-FZ states that a property acquired with maternity capital must be shared ownership of all family members. An apartment or house purchased with a mortgage is pledged to the bank until the loan is fully repaid. Therefore, the owner of the certificate must formalize an obligation to allocate shares with a notary. Important! The document is written on behalf of the owners of the property. This can be either the certificate holder or his spouse. The obligation is drawn up by both parents if they are listed as the owners in the purchase and sale agreement.

To draw up a document you will need to present to the notary:

• identification;
• children's birth certificates;
• certificate;
• Marriage certificate;
• contract of sale;
• extract from the Unified State Register of Real Estate;
• loan agreement.

If minors were adopted, then a court decision on this is attached. The cost of the service depends on the region, usually 2-3 thousand rubles.

After the mortgage is fully repaid and the encumbrance is removed, it is necessary to fulfill the obligation and allocate shares to minors within 6 months if the housing was purchased during the construction phase, or immediately if the property was purchased on the secondary market.

The legislation does not establish the size of the allocated parts. In most cases, parents determine shares in accordance with the amount of invested funds. The procedure involves drawing up a notarized agreement. By law, parents cannot allocate shares to minors in other housing that belongs to them. Real estate purchased with a government subsidy must be jointly owned by all family members.

More about maternity capital

The maternal or family capital program (abbreviated as MSC) has been in effect since 2007. Until the beginning of 2021, parents of two or more children born after 2007 could receive the appropriate certificate.

In 2021 the rules have changed. Now parents of even one child can receive MSC. True, the amount will be less than for families with two or more children:

• MSK in 2021 for a family with 1 child – 466,617 rubles ;
• for a family with two children – 616,617 rubles .

If the couple has a second child, there will be an additional payment of 150,000 rubles.

In the table we have given the size of maternity capital in different years so that we can track the dynamics.
The amount of maternity capital by year

You can receive maternity capital:

• families where at least one parent is a Russian citizen;
• the child must be a citizen of the Russian Federation.

The program also applies to adoptions.

Important information about maternity capital:

• issued only once, and not for each child;
• You can receive a certificate for maternity capital at any time, there is no limiting period;
• the certificate can be issued both in paper and electronic form;
• If you lose the paper version, you can always make a duplicate;
• maternity capital does not involve receiving cash, only non-cash payments are possible;
• The official MSK program is currently activated until 2026.

Questions from our readers

Is it possible to use maternity capital to repay a mortgage loan taken out before the birth of a child?
The latest version of Law No. 256-FZ of December 29, 2006 allows you to send a subsidy to repay a mortgage that was issued before the appearance of a minor in the family, giving the right to payment. To do this, you need to contact a financial institution to obtain a certificate about the type of lending and the balance of debt obligations. The document is submitted to the Pension Fund.

How to pay off a mortgage with maternal capital at Sberbank

At Sberbank, you can pay off all or part of your mortgage debt using maternity capital. To do this, after receiving the certificate, you must submit an application and documents to the financial institution. Bank employees will independently transfer the papers to the Pension Fund. The applicant will be informed of the decision.

Is it possible to repay the remaining amount or part with a certificate?

If the family already has an existing housing loan, necessarily for the full amount of the property, the initial agreement is unlikely to indicate maternity capital.

Then the procedure will be as follows:

1. The mortgaged apartment is issued to each family member, and the share participation agreement is registered with Rosreestr.
2. After this, the Pension Fund transfers the loan funds to the account of the apartment seller towards the entire remaining amount or part thereof.
3. If maternity capital pays off the entire balance, the family remains in settlement with the seller and the apartment becomes their complete disposal. Otherwise, until the loan is fully repaid and all interest for the use of funds is paid, the property will be pledged to the bank.

As for the bank, you need to interact with it according to the following scheme:

1. From the bank that provided the mortgage loan, you need to get a certificate about the remaining amount of debt and declare your desire to pay it off with maternity capital.
2. At the branch of the Pension Fund at the place of registration, the necessary documents are submitted, to which a loan certificate is attached.
3. Within a month, the Pension Fund is studying the application for this method of disposing of the state subsidy. If the decision is positive, the Pension Fund transfers the money to the bank account within the next month.

If only part of the debt was repaid with maternity capital, after the transfer of funds, the bank approves a new schedule of monthly payments, which reduces their amount and the final payment terms.

It’s also useful to read: Is it possible to pay off a mortgage with maternity capital?

In the video there is additional information about repaying a mortgage using matkapital:

Underwater rocks

Certificate holders may encounter the following problems:

1. The bank independently sets the conditions for partial loan repayment. To prevent this from happening, the borrower must write in the application that he prefers to reduce the payment or the payment period.
2. The financial institution refuses to repay the mortgage early with maternity capital. According to the law, any bank is required to accept government subsidies to pay off debt. If a refusal is received from a financial institution, the citizen has the right to go to court.
3. When purchasing real estate, it is necessary that it meets the requirements for improving living conditions. If the new housing is worse than the previous one, where minors lived, then the Pension Fund may refuse to use maternity capital funds.

Documents submitted to the Pension Fund of the Russian Federation

By submitting papers to the Pension Fund of the Russian Federation, the borrower pursues the main goal - to prove that the money will be spent specifically on covering the loan debt.
This amount is never issued in cash. After checking the documents submitted by the borrower, the Pension Fund makes a decision whether to grant the application or refuse, and if the decision is positive, the amount is transferred to the bank by bank transfer.

Basic package of documents

There are a basic (mandatory) and an additional package of documents. Mandatory items include:

1. Statement of the established form.
2. Certificate for maternal capital.
3. The passport of the person in whose name the mortgage is issued, as well as the co-borrower (spouse).
4. SNILS.

In some regions, in addition to the mandatory list, they require adding a copy of the marriage certificate.

Download for viewing and printing:

Sample application form for a housing loan

Additional list of documents

In addition to the above list you will need:

1. A copy of the mortgage agreement with a notarization stamp.
2. A certificate from the bank about the remaining unpaid debt and interest on it.
3. An extract from the Unified State Register confirming the registration of ownership of the housing purchased with a mortgage.
4. An undertaking (in writing) by the main borrower confirming that within a period of up to 6 months all family members will be registered as owners of this property.
5. An extract confirming the number of persons registered in a given living space (from the house register).
6. A copy of the borrower's personal account.

Important!
The Pension Fund of the Russian Federation is very careful in checking the documents provided by borrowers to repay a mortgage with maternity capital. No corrections, inconsistencies, or inaccuracies are allowed in them. It is better to double-check each copy and certificate several times so as not to risk getting rejected.