Modern housing is very expensive. Most of the inhabitants of our country cannot afford it. In Soviet times, the state built it at its own expense and simply distributed it to its citizens. In the nineties, with the collapse of the country, the old housing system collapsed.
But the problem remains. Some Russians have recently enriched themselves significantly and set about building luxury apartments. However, the remaining residents are even poorer than the Soviet era and were unable to solve their housing problems even on a minimal scale.
New government measures were needed to reduce tensions in the housing sector. In modern conditions, a way out was found in a social mortgage. So what are the conditions of social mortgage today?
Social Mortgage
Social mortgage is the state support of certain preferential social categories of Russian residents. The conditions for obtaining a social mortgage are that beneficiaries borrow money to purchase their own housing. A mortgage is a kind of pledge of housing real estate (future or existing with the borrower) for obtaining a loan. Issues of acquiring a social mortgage, establishing a loan program are specified by regional authorities.
Social assistance is issued in the form of:
- Covering the costs of part of the cost of an apartment purchased in a mortgage.
- The acquisition of housing from the state at a small interest rate.
- Compensation of part of interest on a mortgage loan.
goal
The aim of modern social mortgage lending programs operating in our country is to provide the Russian government with financial support for their citizens in improving their living conditions. The acquired loan can be realized in the following areas:
- for the purchase of finished, previously built housing;
- for the construction of a residential building;
- for the purchase of a land plot where a residential building is standing or its construction is planned;
- to repay an existing mortgage loan.
In modern Russia, there are a number of mortgage programs supported both from the federal Russian budget and partly from regional provincial budgets. Along with the usual (standard) mortgage, there is also a social structure of mortgage lending to certain segments of the population. According to such a social mortgage, the conditions of receipt will be relaxed as much as possible. Especially for the privileged segments of the population.
Features
The existing social mortgage to improve housing conditions allows socially weak categories of Russian citizens to improve their current housing conditions. That is, the state organizes such preferential social programs so that the acquisition of housing becomes accessible for low-income Russians, for example, for large, poor families, for state employees who do not have housing, for young officers, for young families and so on.
Manages and coordinates the activities of all existing mortgage programs in Russia, a specially formed organization - AHML - Agency for Housing Mortgage Lending. AHML develops the policy outlined by the state to increase the availability of low-cost housing for Russians, and implements the function of the state body to form the market for social mortgage lending. The agency should strengthen the balance of interests of all parties in the field of real estate - the Russian state, ordinary borrowers, private and state lenders and investors.
Signs
Specific conditions of social mortgage:
- issuing preferential interest to borrowers on a loan issued by a bank;
- issuing targeted one-time subsidies or social benefits for housing from the central federal or local regional budget;
- more preferential cost of purchased housing (usually this is a typical economy class property);
- reduced size of the down payment for the purchase of an apartment or house;
- assistance in paying the interest rate on a mortgage housing loan by issuing compensation;
- probability of a monthly loan reduction (“payment vacation”).
The main emphasis of social housing mortgages is on the elimination of existing housing hardships in that layer of working Russians who receive relatively medium and low financial incomes and at the same time are in great need of their house (or apartment).
Cost structure
Under the terms of social mortgages, the following financial cost structure is assumed:
- About thirty percent of the cost of housing will go to the buyer’s expenses.
- The share of state aid (the volume depends on the social category of Russians) is from about twenty to fifty percent of the total cost.
- The remaining payment for housing goes to the share of the mortgage.
The described structure of payment for purchased housing, as a rule, increases the possibility of obtaining mortgage loans for the residents of our country, and this, in turn, actively contributes to the growth of solvent demand of Russians for houses or apartments, thereby additionally financing the construction industry of the domestic economy and those that depend on it various industries.
Specificity
The main difference between the existing conditions of social mortgages and regular or commercial mortgages is, ultimately, a lower cost for housing allocated to citizens. In addition, it is necessary to highlight additional guarantees that lenders receive from a bank issuing a loan, working on social housing mortgage programs:
- Control of the "cleanliness" of the purchased premises.
- Insurance and purchased housing, and the life of the borrower.
- The bank’s promise to maintain the level of interest on the loan determined by the agreement until the completion of the loan agreement.
Participants of preferential programs
Conditions for social mortgages for obtaining a social mortgage loan may not be available to all Russians. Among the beneficiaries can be included, first of all, those residents of the country who are officially identified as needing housing and who are in line for the purchase of housing in local executive authorities. In addition, Russians living in houses that are officially classified as unsuitable for normal living are considered to be in need of housing; those who have housing in multi-apartment buildings included in the list of emergency and prepared for demolition or modernization. This condition is a common symptom for all clients of social preferential mortgages.
Other conditions required for the purchase of a mortgage loan depend on the form of the social mortgage program:
- families with several children in which the age of the wife or husband (or one parent in an incomplete family) is not higher than 35 years;
- families with three or more minor children;
- official war veterans;
- young officers who became participants in the Russian funded mortgage housing system;
- Russians working in state (or municipal) bodies that are part of scientific organizations or in the structure of scientific service;
- Russians working in state educational institutions, as well as health authorities, cultural structures, local social protection, employment systems, physical education and sports;
- employees of city-forming institutions, including science cities;
- workers working in the military-industrial complex;
- citizens working in state scientific bodies, as well as in various structures organized by state academies of sciences;
- employees of state unitary institutions on the rights of ordinary scientific bodies that implement their work in leading areas of science and industry in Russia;
- low-income Russians (a family approved by a resolution of local municipal governments is considered to be poor if the total income for each family member is lower than the subsistence level defined in each region; social housing mortgage refers to the allocation by the state of a poor Russian family to a house or apartment at a preferential price, and also other additional social guarantees).
Housing benefits for doctors
In addition to general social mortgages for housing, there are also individual ones aimed at helping social workers in solving housing problems. For example, these are doctors. There is a special program “Mortgage for doctors”. Its goal is to make it easier for doctors to get social mortgage lending.
At the level of individual regions, the organization of obtaining free land and targeted social lending to private construction.
In general, the conditions of a social mortgage for doctors lead either to a weakening of the credit burden for them, or to support in making a down payment on a mortgage.
An initial fee
A likely participant in the Russian social mortgage housing program must be tested for the ability to pay the cost of housing. Actually, the scale of the loan received from the bank will depend on the volume of existing savings (initial housing contribution), on the volume of monthly borrower funds. To increase the amount of a mortgage housing loan, the lender can additionally use the help of other solvent citizens (in particular, close relatives), who will then be added to the mortgage agreement as separate co-borrowers.
Under such conditions, the regions are experiencing a lively development of social mortgages.
Moscow
In Moscow in 2017, there is an active introduction of social mortgages. The conditions of Moscow under a special state program are quite good. Participants in social financial lending will take a mortgage at 9.5%. But there are a number of limitations. Such a loan will be given only to those Muscovites who will buy an apartment for themselves in new buildings in Moscow, included in the housing stock of the capital, in a building erected at the expense of the city. Potential borrowers must have a passport with Moscow registration (registration), they must have a stable place of work with constant income. In addition, they must meet certain criteria:
- be members of the state housing project "Housing for the Russian family";
- work at defense industry enterprises;
- have a disability group or have a disabled child in the family.
Moscow region
Social mortgage conditions in the Moscow Region are based on the same specific points as for residents of Moscow. The main criteria for obtaining such a loan are noted above. But it must be borne in mind that individual banks have their own characteristics of lending to customers, which can be found in the financial institution itself.
Tatarstan
In this region of our country, social mortgages are also very popular. The conditions of social mortgages in Tatarstan are aimed at obtaining benefits for employees of institutions that can effectively engage in financing social mortgages.
Housing under the social program takes place in a certain order. Competitions are organized in the region, apartments are selected that can be handed over to citizens of the republic in the framework of the social mortgage on special conditions:
- The citizen's need for better housing conditions. At the same time, one member of the family should have at least 18 square meters. m
- The longest term of the issued social mortgage is a little over 28 years.
- The realized interest rate is approximately 7%.
- Need an initial housing contribution. However, if a Russian has serious reasons, it is possible to get the consent of the relevant authorities not to make this contribution.
- Payment can be made not only in cash. The regional program refers to the payment of products of own production in the personal economy or the repayment of a loan by one's own labor.
- Part of the housing area that has not yet been paid for can be leased for commercial purposes.
- If a childless family received a social mortgage, and after a certain period a couple had a child, the state pays assistance in the amount of 200 thousand rubles.
Participants in the social program in Tatarstan
Under the terms of a social mortgage in Tatarstan, a social mortgage can get:
- Russians working in budgetary bodies;
- employees of institutions included in social mortgage financing programs;
- Russians who need urgent support.
It is necessary to accumulate a large rating. It is determined by the sum of human accumulations. These funds must be on the housing account. The winner of the competition will be the citizen with the highest rating, whose application will meet all the requirements.
Of course, there is a social mortgage in Kazan. Its conditions are generally similar to the provisions of the program for Tatarstan. It should be noted that the social mortgage in Kazan for 2017 will provide an opportunity for many socially weak strata of citizens to take out loans on favorable terms.