In Russia, the shadow sector of the economy is about 30%. This means that approximately the same part of the population is working informally, depriving themselves of the social package and the opportunity to prove their income. This need arises when contacting the bank. Do they have a chance to get financing without the treasured personal income tax certificate?
Where can I get a mortgage without proof of income?
Mortgages - the only opportunity for many to get their own housing. But the banks are conservative: they put forward strict requirements for the applicant and mercilessly refuse those who are at least a little outside the framework of the requirements. However, this is not the only factor for failure. Additional reasons are the insufficient solvency of the applicant and the low quality of the acquired property.
Statistics say that Russians do not lack financial services. The number of banks and other lending institutions is increasing from year to year, and the number of people who still have not been able to obtain the status of a bank client does not decrease. What is the catch?
Information field around banks
Can I get a mortgage without proof of income? Some offers are very attractive, and the conditions are acceptable. But this is only at first glance. To understand the ins and outs of the situation, you should consider all the nuances of the mortgage issue. At least three parties participate in the transaction: seller, bank and buyer. Consider the position of each of the parties and its obligations. In a normal transaction, everything is very clear: the buyer and seller come to a notary or to the registration chamber, sign a purchase and sale agreement, settle and diverge. What is the difference between a bank transaction?
For seller
The seller of housing does not owe anything to anyone, but when potential buyers decide to opt for their housing, they are obliged to inform that they are going to purchase through a bank. To obtain a mortgage, the buyer must provide copies of documents for housing. In this regard, realtors help well. If they cooperate with the owner of the apartment on the basis of the contract, then they have all the necessary copies on hand.
Another benefit of intermediary companies is that they can help you find liquid housing that meets the requirements of the bank. The buyer must decide in advance on the method of calculation: cash or cashless. It is also necessary to discuss the settlement procedure: after registration of rights with state bodies or before.
For the bank
Bank - a financial institution interested in making a profit from cash transactions. One of the main types of services is a mortgage. By financing the purchase of real estate by individuals, the bank intends to make a profit in excess of the amount that it allocates in the present. The total amount that the applicant must return is divided by the selected period of months.
Banks that give a mortgage without proof of income or on the basis of other documents risk their own funds and potential income from this loan. Suppose, if the applicant fails to pay on time, the bank will remain at a loss for two items: on its own funds and on expected income. Given this outcome, the lender has the right to demand a guarantee from the applicant. They are primarily the acquired housing.
As an alternative:
- other housing not encumbered with the rights of third parties;
- a surety in the person of a solvent person on the part of the applicant;
- other types of property: cars, commercial real estate, gold bullion;
- a deposit account with the bank itself with enough money to cover the loan.
In addition, it is necessary to prove that the applicant's monthly income covers the amount of payments plus the basic needs of family members. It is for this reason that it is rarely possible for anyone to take a mortgage without proof of income.
For buyer
Attracting third-party funds on interest terms, the buyer overpays a substantial amount for housing. It all depends on the current price level and market trends. If you buy housing at the peak of rising prices for mortgage lending, then the overpayment will be significant, but given the trend of large cities, where housing prices are only rising, mortgages may be the only sure way to solve the housing problem. From this point of view, a mortgage without proof of income is the dream of many applicants for housing.
Such a serious step as the registration of a mortgage should be planned in advance. If there are illegal incomes, you need to legalize them. If the applicant receives the salary "in an envelope", then you need to think about ways to legalize it. Keep in mind that official income is needed not only for mortgages. With legal income, personal income tax is paid, from which you can receive a deduction for the purchase of housing, treatment or education. You can leave it on the account of the FIU and accumulate a substantial pension.
What documents are needed?
Bank requirements are formed from the above aspects, so most of the required documents are aimed at proving the reliability of the transaction. The standard package of documents includes the following papers:
- applicant’s general passport;
- spouse's passport;
- Marriage certificate;
- certificate of employment;
- income statement;
- real estate documents;
- appraisal of the apartment;
- plan;
- documents of guarantors and information about their financial situation.
Depending on the individual requirements of the bank, this list may be increased. But, as already mentioned, only those who can officially confirm income are financed under such a system. Next, we will talk about the chance of obtaining a mortgage.
Who can’t confirm the income?
The reason why a mortgage without proof of income has become popular is the fact that some citizens earn in one of the following ways:
- remotely - by a freelancer;
- the official salary is small, the other part is issued "in an envelope" or "past the cash register";
- work in the shadow sector of the economy;
- not officially registered at the place of work.
Earnings of some categories of citizens are at a decent level and fully cover the repayment of the monthly mortgage payment, but banks still cannot fully adapt their requirements to reality. However, not all is lost.
Is there any chance?
What to do if the treasured 2-NDFL certificate is not available, and the income allows you to plan large purchases? For this category of customers, some banks practice a system called "Mortgage under two documents without proof of income." This is believed to be a simplified version of the requirements, but is it really so?
The first task the client will face is to find a bank that practices such a system. Yes, the proposals, at first glance, are enough. But those who really get to the deal are convinced that the vast majority of the information available is nothing more than a marketing ploy. A conditional wording called "Mortgage under two documents without proof of income" requires alternative methods of proof of solvency.
What conditions await if there is no confirmation?
The banking sector is conservative. Despite the great competition, their services, which really allow to realize large plans, are available to a very limited circle of people. The lender understands that those customers who apply for a mortgage without proof of income pose a big risk for financing. Therefore, more stringent requirements are put forward for them.
In particular:
- Longer loan term: up to 25 years. As you know, the longer the term, the more expensive the transaction.
- Higher interest rates: if the bank promises 10-12% according to the standard system, then a mortgage without confirmation of income and employment entails interest rates of 15-17% or more.
- High down payment threshold: from 40% or more as opposed to the standard scheme from 10%.
- The presence of guarantors: perhaps not one, but two or three solvent persons willing to share risks.
- Insurance liability: the bank insists on compulsory insurance of the property, life, health and income of the applicant.
Cardholders or depositors - special category
It is a mistake to believe that only low-income people apply to the bank for a mortgage without proof of income. Everything can be and vice versa. For example, a person does not work on a well-deserved pension, or a small fortune is inherited.
In the banking environment, special services are provided for certain types of cards and categories of depositors. They have the highest chances, because when applying for a mortgage without proof of income, banks will know about their condition by a special statement. The chances are close to 100% if the card holder meets the following requirements:
- He goes to the same bank where his savings are located or his card is served.
- The amount of money in the account is comparable to the amount of funds requested or more.
- The applicant is ready to make as an initial contribution more than 50% of the value of the object.
Also, a special provision applies to participants in various banking programs, but participation in them is usually due to the availability of official employment.
If the applicant is an IP?
In practice, individual entrepreneurs are more likely to finance than officially employed persons with stable wages. But only on one condition: the form of ownership is not formal, and commercial activities are actually conducted.
Those citizens who do not want to work "for uncle", but the social package and the benefits of official income are important, it is recommended that you think about registering an IP. The reporting system is simple, and there are much more rights and opportunities. If it becomes necessary to obtain a mortgage without a down payment and without proof of income, then the chances of a successful outcome are quite high.
IP Benefits
An individual entrepreneur has a chance to win on several points at once:
- A positive credit history is inherent in most entrepreneurs at the initial stage.
- Transparency of income, since the amount of income is not conditioned by anything and can be anything. The main thing is to honestly reflect them in tax reports.
- He regularly deducts taxes, including personal income tax, the declaration of which is already considered a powerful supporting document.
- The tax system can be simplified or UTII - as it is convenient for the subject.
- Depending on the term of the entrepreneur, his income is considered relatively stable. Seasons are not a hindrance.
In addition, an individual entrepreneur must have a bank account. Account statement is a great way to prove your solvency.
Actual offers
The good news is that banks are slowly taking steps toward customers who are unable to confirm revenues. For example, the leader of the domestic financial market, Sberbank offers a program according to which financing can be obtained on the basis of only two documents.
In this case, it will be necessary to make at least 50% of the cost of housing. A mortgage without proof of income at Sberbank is ready to consider an application for any amount not exceeding 15,000,000 rubles. The amount to be refunded will differ from the originally issued amount by 10-11% upwards, excluding the costs of processing, credit commission and other related expenses.
A similar system offers and VTB-24. The program with the titled “Victory over formalities” is ready to consider applications from all citizens who are 25 years old and who are confident in their solvency. Such persons can count on financing in the amount of up to 30,000,000 rubles. In this case, the owner must deposit at least 40% of the cost to the bank. Rates start at 12.6%.
Particularly loyal attitude stood out "Bank of Moscow", ready to provide any amount. True, the rates were not disclosed for a wide range, but if the client applies for loans with a minimum of documents, then the interest overpayment does not exceed 0.5%. You need to have at least 40% of the value of the object with you.
Conclusion
Regardless of whether it is possible to confirm income or not, a mortgage can be a good way to get your own housing. Over the past few years, real estate prices have fallen slightly. A lull is periodically observed, but fundamental changes in prices are hardly to be expected.
To find a bank with suitable conditions, you should be guided by the experience of other customers. For these purposes, it is advisable to read the reviews on the mortgage without proof of income. They say that banks are increasingly meeting their customers and are ready to consider each situation individually. Interest rates may be slightly higher or longer.
For example, judging by customer reviews, Gazprombank is ready to finance the acquisition in a new building with an initial payment of 40%. The base rate starts at 11.5%, the indicators will be higher if the applicant refuses to insure personal risks.
"Delta Credit" is ready to provide a mortgage for the purchase of a private house at rates from 8.75 to 10.25%. The applicant must pay at least 50% of the cost of housing.
Of the many mortgage offers, Delta Bank customers chose a loan on simplified terms, and the bank individually went forward: instead of verifying income, they offered to mortgage equivalent property.
Many families do not decide on a mortgage, because they are not confident in their abilities: without proof of income, they will experience exhausting running around and collecting documents. But the conditions are changing, and if you are a debit card holder at Sberbank, there is a chance to apply for a mortgage with minimal effort.
Given the positive trend, we can say that everyone has the opportunity to buy their own housing with a mortgage. True, you will have to tighten your belts and work hard non-stop. But as mentioned above, housing is the most expensive property that a person can have, and it is certainly worth the effort.