Hello, dear readers of the site magazine! In this article we will talk about mortgage refinancing: what it is, how to refinance a mortgage loan correctly, where to find the best offers for refinancing mortgages from other banks in 2019.

After reading this article from beginning to end, you will also learn:

• Is it profitable to refinance a mortgage at all?
• What are the features of refinancing a military mortgage;
• How many times can you refinance your mortgage and much more.

Also at the end of the article we traditionally answer the most popular questions.

This publication will be useful to study not only for those who are planning to refinance their mortgage, but also for anyone who wants to improve their level financial literacy. You will find a lot of useful information in our article, so we recommend that you start reading right now.

About what mortgage refinancing is, how to refinance a mortgage loan in the same or another bank, what documents you will most likely need to refinance a mortgage - read in this issue

1. What is mortgage refinancing - an overview of the concept in simple words + an example of mortgage refinancing

Mortgage refinancing(or mortgage refinancing) - this is the registration of a new loan for more favorable conditions in order to repay the existing mortgage loan with the funds received.

However, it should be understood , What this situation has nothing to do with cases when the borrower, in the absence of money to fulfill debt obligations, draws up new loan. The result, most often, is getting even deeper into debt.

Features of the mortgage refinancing procedure is its absolute transparency. The main goal is to ease the mortgage burden. At the same time, the lender knows for what purpose the borrower is applying for a loan - that is, on full repayment current. A new loan is issued on terms that are better for the borrower than the existing ones.

Mortgage refinancing example 📎

Let's say in 2015 year a mortgage was issued at a rate 14 % per annum. IN 2019 year, a refinancing program was issued in Sberbank. The rate on it was 9 % . As a result, if the amount of debt remains the same, the overpayment will be less⇓ by 5% per year.

If in the same situation the client takes out a loan under a different program because he cannot cope with the credit load, this is no longer refinancing. Financiers consider such behavior unreasonable. Often such actions lead to aggravation of an already difficult situation.

We talked in more detail about what it is in one of our articles.

2. Pitfalls of refinancing a mortgage loan

Refinancing a mortgage with the right approach is quite beneficial not only for clients, but also for lenders. However, it should be borne in mind that this process has certain difficulties and a number of nuances.

❗The primary risk for a borrower when refinancing a mortgage is the possibility of a negative decision on submitted applications at any stage of registration.

Sometimes a refusal occurs after initial training:

• warning the lender who issued the primary mortgage about the intention to refinance;
• ordering a report on the assessment of a property (which, by the way, is not cheap);
• preparation of a complete package of documents.

At the same time, the bank is not obliged to inform the potential borrower what the reasons for the refusal are.

❗The second difficulty of refinancing a mortgage is that its registration is not available to everyone.

There are a number of circumstances in which submitting an application makes no sense:

1. Damaged credit history. Even if you make all your mortgage payments on time, you can still end up with a lot of delays, for example. As a result, your refinancing application will almost certainly be rejected.
2. Small remaining amount and term on the existing mortgage. Most banks set minimum size the named characteristics.
3. Availability of delays on an existing mortgage loan.
4. The mortgage was recently issued. Most often, the bank’s requirements include a minimum period for successful payments on a housing loan. In most cases, the restriction is for at least six months.
5. The mortgage loan previously underwent a restructuring procedure.

❗The following feature concerns primarily property deduction on mortgage loans. The fact is that when refinancing, banks often offer to combine several multi-purpose loans or get additional sum of money in cash. As a result, the tax authorities may evaluate the new loan agreement non-targeted and refuse to pay the deduction.

❗Another nuance in relations with the tax authorities arises in case of registration refinancing. The fact is that the law provides for receiving a deduction on a mortgage, as well as when refinancing. However, about repeated refinancing in Tax Code nothing is said. Theoretically, this could lead to a denial of the deduction.

It is important to carefully study all the nuances of mortgage refinancing. This will help avoid a number of problems in the future.

3. Is refinancing a mortgage actually profitable?

Before you decide to refinance your mortgage, you should understand how profitable it will be.

To do this, you need to make several calculations:

1. Analyze the amount of interest remaining to be paid on the existing mortgage. For this purpose, you can use the payment schedule issued at the conclusion of the contract. The same information can often be clarified by using Internet banking. If you are unable to figure out on your own how much interest will still be paid, you can request a certificate from the bank.
2. Analysis of the amount of interest that will be paid on the new loan. To do this, first of all you will need basic parameters future mortgage. You need to know the interest rate and term. It turns out that reliable information can only be obtained if you have prior approval of an application for mortgage refinancing.
3. All that remains is to calculate the savings . At the same time, from the current interest it is necessary to deduct not only the overpayment in case of refinancing, but also all the costs of its registration.

When the result of the calculations is found, you need to evaluate for yourself whether the savings are worth the effort that will have to be made for refinancing.

Experts identify the following cases when refinancing a mortgage is likely to be profitable:

1. Current home loan issued in a currency different from the one in which wages are paid, that is, converting a dollar mortgage into rubles usually brings serious savings;
2. Refinancing is carried out at preferential terms which the bank offers to corporate and payroll clients, as well as individual categories citizens;
3. The current mortgage was issued quite a long time ago, since then the conditions for housing loans have changed in favor of the borrower;
4. There is still quite a lot of time before the end of the mortgage agreement (if payments are almost completed, interest savings may not cover the costs incurred during refinancing);
5. In order to reduce the credit burden, a decision was made to combine several loans with a mortgage.

In the process of analyzing the benefits of the refinancing procedure, it is important as carefully as possible study the offers available on the market. Some banks do not work with certain types of real estate. If you do not take this fact into account, time studying their conditions may be wasted.

A Comprehensive Guide to Refinancing Your Mortgage Loan

4. How to refinance a mortgage at a lower interest rate - 5 main stages of refinancing

Often, those who want to refinance their mortgage simply do not know how best to do it. In fact, it is enough to know the main stages of this procedure to make refinancing as profitable and comfortable as possible.

Stage 1. Decision making

For many borrowers, the first step is the most difficult. The refinancing procedure is quite lengthy– in most cases, the entire process takes about 1.5 months . This is why it can be difficult for some mortgage payers to decide on it.

During the refinancing process, serious work will have to be done. But you just have to decide and start, and then it will be much easier. We have already told you how to evaluate the benefits of refinancing. When this is done, you can safely move on to the second stage.

Stage 2. Selecting a bank

Choosing a bank is no less important than calculating the savings from the refinancing procedure. This step requires the borrower to carefully analyze his own financial situation.

First of all, you will have to evaluate the following factors:

• on which property the mortgage is issued (most often it is apartment, a private house or Earth);
• whether the ownership right has been formalized (when lending secured by an equity participation agreement, the borrower does not have a certificate);
• was involved in obtaining a mortgage? maternal capital;
• type of employment - hired or entrepreneurial;
• Is the employment official, is there any possibility of documentary confirmation;
• how income is confirmed - a certificate in the form of a creditor or 2-NDFL.

The best chances for a positive decision in almost any bank are for clients who are employed and receive an official salary, confirmed by a certificate 2-NDFL. An additional advantage will be the presence of a certificate of ownership.

If it was used to pay off the mortgage or when applying for it, and children are registered in the purchased area, it will be almost impossible to find a bank for refinancing. Difficulties with the search also arise in cases where a mortgage is issued on a private house.

Stage 3. Contacting the bank

When a bank is selected, it is necessary submit an application and package of documents for consideration. It is best to check the list of required papers directly with the lender. The fact is that each bank independently develops such a list.

Before submitting an application, you should carefully analyze your own solvency. Amount of monthly payments for all existing loans should not exceed half wages. If this rule is not followed, the refinancing will most likely be denied. In such a situation, you can try to attract co-borrowers.

The period for consideration of applications submitted for refinancing is determined by the lender. In most cases, banks spend from 2 to 5 working days. However, during periods of influx of clients, the time frame may increase significantly (in some cases, up to two weeks).

Bank approval for a refinancing application usually includes the main parameters of the loan being issued - client data, sum, term And interest rate . In some cases, this document may be supplemented with individual conditions, For example, the requirement to close.

Stage 4. Approval of the property

When the borrower’s candidacy is approved by the bank, it is necessary to go through the procedure for approving the property (often both processes take place simultaneously to save time).

Since the real estate will act as collateral for the loan, the following actions will have to be taken in relation to it:

1. Prepare a package of documents required by the bank;
2. Conduct an assessment of the property and attach a report on it to the documents;
3. Contact the insurance company to obtain approval to issue a policy (this information is also sent to the lender).

For assessment and insurance, you should contact specialized organizations that have been accredited by the bank. You can check their list directly with the lender.

As soon as the bank receives all the documents for the property, their review begins. This usually takes approximately 2 -5 working days. If the property is approved, the refinancing transaction is completed.

Stage 5. Confirmation of repayment of the existing mortgage

Some borrowers mistakenly believe that the refinancing process ends with the signing of an agreement. In fact, until confirmation of repayment of the existing mortgage is provided to the bank and the collateral is not reissued, the rate on the new loan is set at an increased level.

To complete the mortgage refinancing process and reduce the interest rate on the new loan, you will have to take the following steps:

1. Pay off the existing mortgage and obtain a certificate to this effect;
2. Take out a mortgage from the bank where the loan payment was made;
3. Register the transaction with the MFC - pay off the old mortgage, register a new one and a refinancing agreement;
4. Provide documents from the Registration Chamber to the bank.

Usually the bank reduces the interest rate the very next day after submitting the documents.

Many people find the mortgage refinancing process quite complicated. However, in fact, it is quite possible to arrange it. The instructions presented above help to cope with the task much easier and faster.

Required list of documents for mortgage refinancing

5. What documents are needed to refinance a mortgage - list of required documents 📋📒

Each bank independently develops internal regulations for processing mortgage refinancing. Based on it, a list of documents necessary for the procedure is formed.

Despite this, we can identify a list that all banks require.

Required documents for mortgage refinancing:

• statement;
• passport of a citizen of the Russian Federation;
• certificates confirming employment and income level;
• documents for the property being the subject of collateral;
• contracts and other agreements confirming the transaction;
• documents from the current creditor - a certificate of the remaining debt and the absence of arrears, a loan agreement, details for repaying the mortgage.

It is important to ensure that all documents are completed correctly. Moreover, some banks set validity periods for various certificates. To avoid having to redo documents, it is necessary to monitor their compliance.

Features of mortgage refinancing for military personnel

6. Refinancing a military mortgage - main points and nuances

Despite the fact that payments are made entirely from state budget, refinancing is also relevant for similar housing loans. Firstly, at the end of the service, the client pays the balance of the debt himself. In such a situation, it is quite natural to want to do this on the most favorable terms. Secondly, for the state, reducing payments is also extremely important.

Meanwhile, today the market average for military mortgages is at the level 10% per annum. At the same time, literally three or four years ago it was about 12%. In such a situation, changing lending conditions was an important problem for both the borrower and the state.

Before the beginning 2018 military mortgage refinancing was not provided. Today there is an opportunity to carry out such a procedure. However, not everyone still understands whether it makes sense to refinance military mortgage, and also what are the nuances of such a procedure.

6.1.

Is it beneficial for a military mortgage participant to refinance a mortgage loan? To understand how profitable it is to refinance a mortgage, it is important to know how the mortgage rate has changed. At the moment the program starts in 2005 for the housing loans under consideration it was set at ten percent per annum. Subsequently on the wave economic crisis

, falling oil prices and rising dollar and euro exchange rates, the rate was increased by several points. 2017 In September of the year Central Bank 8,25% the key rate was reduced to the level . The consequence of this decision was, among other things, a reduction in the rate on military mortgages in some banks. AHML 9% , set it at level And Sberbank – 9,5% , Gazprombank – 9,7% VTB 24

. During the same period, the maximum mortgage size under the program in question was increased. 2005 Thus, those who took out a military mortgage at the very beginning of its formation - in year, there's no point in trying to refinance it

. Today's rate is approximately at the same level. If the execution of the mortgage agreement took place during the years of crisis, it is worth trying to re-issue it.

Refinancing a military mortgage allows you to reduce monthly payments, as well as reduce the final overpayment for the entire loan term. This procedure acts as an excellent insurance policy. It is important to remember that in case of dismissal from service, the borrower will have to pay the bank independently.

6.2.

How to refinance a military mortgage - where to start 2015 And 2016 The final decision on refinancing the mortgage is made by the bank. Many people still don’t understand why it’s worth undertaking such a procedure, since the government makes payments for the borrower. But do not forget that in years indexation of annual

savings contribution was not carried out. Moreover, forecasts for its level were also lowered. As a result, there is a danger that some military personnel will be left with debts at the end of the mortgage agreement. Although certain measures have been taken to reduce such risks, they are most likely to work for those who took out a military mortgage

until 2014 . The remaining borrowers still risk leaving the service with debts. A huge advantage in the described situation could be a reduction in mortgage rates. Today its size begins

Take note! Unlike conventional mortgages, for which refinancing has been popular for many years, such a procedure was previously not possible for military home loans. It was simply not provided for in the standards of Rosvoenipoteka. Only at the beginning 2018 year, the possibility of refinancing the loans under consideration was introduced.

To refinance in order to reduce the interest rate on a military mortgage, you can contact both the bank where it was issued and another lender. Upon completion of the refinancing, the borrower will be issued funds that will be used to pay off the existing mortgage. After this, payment will be made on new terms and, possibly, new bank.

Experts recommend To refinance a mortgage, first of all contact the credit institution where it was issued. Often banks meet the borrower halfway and reduce the rate by 1-2 points. Today this practice exists in Sberbank, Gazprombank and some other credit organizations.

When you contact “your” bank to approve refinancing, it’s usually quite good credit history. If the matter concerns a military mortgage, even this fact turns out to be irrelevant, since payments are made by the state.

In relation to military mortgages, the following applies today: recommendation Central Bank on the execution of contracts at a rate of 8.25% per annum. Experts advise borrowers whose loan rate is more than two points higher than the stated rate to contact the bank to review it.

Where to begin?

In the name of the credit institution you must write the appropriate statement . It is not difficult to find a standard form on the Internet. It is important to indicate in the text number And date of execution of the military mortgage agreement. It is also worth indicating as a basis fact about rate reduction Central Bank RF.

It would be useful to write that the borrower undertakes to make timely payments insurance premiums and provide the documents necessary to process refinancing. If the bank refuses to reduce the interest rate, you should request a written copy of such decision.

Thus, you should not neglect the opportunity to refinance your military mortgage. Experts recommend that military personnel contact the bank not alone, but together. Such actions may push the lender to take decisive steps, since the risk of a large number of reliable clients leaving for others will be visible. financial organizations.

7. The best offers for refinancing mortgages from other banks this year - an overview of the TOP 3 most profitable offers

To select the optimal refinancing program mortgage loans It is important to analyze and compare the offers of several banks. Only in this case will it be possible to carry out the procedure under the most favorable conditions.

However, not everyone is able to independently study the conditions of a large number of banks and choose the best among them. Bank ratings compiled by financial professionals can come to the rescue. Below is an overview TOP 3 proposals to refinance mortgages from other banks.

No. 1.

Sberbank Sberbank offers mortgage refinancing with the possibility of combining it with other loans. In this case, the total amount of loans must be 1 no less 7 and no more million rubles 30 . The maximum repayment period is

years. The interest rate under the agreement depends on what loans are planned to be refinanced. If only a mortgage is being refinanced, it begins from 9.5% per annum . If others are combined with a housing loan, minimum bid

will be 10%.

1. Sberbank imposes the following requirements on clients planning to refinance:
2. At least 21 years of age;
3. On the date of the last payment, the borrower must be under 75 years of age;

When signing a contract, the duration of work in the last place must be more than six months.

No. 2. Gazprombank 85 When refinancing a mortgage, Gazprombank issues no more % of assessed value

collateral real estate 9,5 -14,5 . In this case, the size of the loan issued must be in the range from 500 thousand to 45 million rubles.

The rate is set at the level

% per annum. Its size is determined depending on the insurance coverage. The repayment period can be up to thirty years. No. 3. VTB And For refinancing programs at VTB, a limit of 30 million rubles has been established. This restriction applies to Moscow Moscow region, in the regions it is slightly lower. 80 There is a restriction– the loan amount cannot exceed 50 % of assessed property value.

, serving as the subject of collateral. If the borrower wishes to refinance by providing a minimum package of documents, the loan size is limited 9,5 % of assessed value 11 The rate under on-lending agreements is set in the range from

before

% per annum. The maximum repayment period can be 20-30 years. For salary clients, it is expected to increase.	For a more convenient comparison of mortgage refinancing programs in the banks reviewed, their main conditions are presented in the table below.	Credit organisation	Sum
Bid	1-7 million rubles	From 9.5% per annum when refinancing a mortgage From 10% when combining a mortgage with other loans	No more than 30 years
2) Gazprombank	From 500 thousand to 45 million rubles (no more than 85% of the estimated value of the property)	9.5-14.1% per annum The rate depends on insurance	Up to 30 years old
3) VTB	Up to 30 million rubles, but not more than 80% of the estimated value of the property and 50% if a minimum package of documents is provided	9.7-11% per annum	20-30 years (for salary clients, perhaps more)

*For current information, see the official websites of banks.

8. The bank offers restructuring instead of mortgage refinancing - what is the difference and what are the consequences of such a procedure

Before deciding between refinancing and restructuring, you should carefully study these two concepts. Borrowers often confuse them and agree to one procedure instead of the other.

People who are far from finance believe that refinancing And restructuring - essentially the same thing, because they have the same initial goal. It consists of reducing the mortgage burden and improving loan repayment conditions. In fact these concepts are significantly different. To understand the difference, it's worth studying them in terms of the end result.

Refinancing It is beneficial for banks primarily to attract new borrowers. This procedure allows you to attract clients who previously paid mortgages to other credit organizations. This allows the bank to increase its portfolio of long-term loans, as well as profits, even though the interest on such loans is lower.

Restructuring credit institutions offer existing borrowers. This measure is aimed at maintaining relationships with the client. However, the primary purpose of restructuring is to help pay problem debtors. This procedure is primarily aimed at reducing the mortgage burden in situations where the payer has financial difficulties.

Restructuring is most often used when the probability of delay is high, or it has already occurred.

There are several options for restructuring:

1. Reducing the rate under the loan agreement;
2. Increasing the mortgage term;
3. Recalculation of the payment schedule, including changing annuity payments to differentiated ones;
4. Credit holidays, when the borrower is given a deferment either for the entire amount or for the principal debt (that is, for a certain time only interest will have to be paid);
5. In some cases, fines, penalties, and penalties are written off.

Banks do not always use restructuring only when working with difficult borrowers. They often offer this procedure to clients who have approached them for refinancing. In order not to lose the borrower and not lose profit in the form of interest on his mortgage, the bank offers him restructuring .

What could be the consequences in this case?

The client's rate is reduced and the monthly payment is reduced. Most often, the borrower is completely satisfied with such actions. Problems arise much later if the borrower decides to refinance such a mortgage with another bank. In this case, first of all, the lender is interested in whether the loan has been restructured. A positive answer to this question is usually followed by a refusal to refinance.

The negative decision on the refinancing application is explained, first of all, by the main purpose of the restructuring. Since this procedure is carried out to resolve the situation with problem clients, the bank believes that the borrower has previously had difficulties making mortgage payments. For the lender, this means an increased risk of non-payment on loans issued.

Thus, before agreeing to a mortgage restructuring, you should think carefully. If you have difficulties making payments, this procedure will help you avoid losing your apartment (or other real estate), cope with your debt without ruining your credit history, and without contacting debt collectors. However, if the bank has proposed restructuring in order to prevent refinancing from another lender, it is better to refuse.

9. What you should pay attention to when deciding to refinance a mortgage loan 🔔

So that the decision to refinance a mortgage turns out to be correct, and the procedure actually brings savings, It is important to pay attention to the following expert advice:

1. First of all, study the offers of the banks where you are a payroll or corporate client. For such borrowers, banks usually develop individual, more favorable conditions.
2. You should not start registration based only on advertising. Often real offers banks are very different from the ones they use to lure clients.
3. Pay attention to the purpose of the loan, which is specified in the refinancing agreement. It is not possible to recover the tax deduction for a non-targeted loan.
4. Find out which real estate is used as collateral by a particular bank to refinance a mortgage.
5. Before deciding to refinance, be sure to calculate the benefits. The principal debt will have to be paid in any case, but the savings consist of the difference in interest. At the same time, do not forget to take into account the costs of the procedure. If they exceed the savings, refinancing turns out to be unprofitable.

In addition to following the above recommendations, you should also rely on to your own situation. When refinancing, some banks offer to combine the mortgage with other loans, or issue a certain amount of money in cash. If this is relevant to you, you should contact these credit institutions.

10. Answers to frequently asked questions (FAQ)

Mortgage refinancing – the topic is quite broad, it has a number of nuances. Therefore, in the process of studying it, it may arise a large number of questions. So that you don’t waste time searching, we answer the most popular ones.

Question 1. How many times can you refinance your mortgage?

Number of borrower requests to credit institutions regarding mortgage restructuring is not limited by law. But the bank can independently limit this procedure. Also, if there are late payments, refuse approval altogether.

Contacting a bank for refinancing mortgage received here, should be considered that financial organizations allow the terms of the primary contract to be revised only. This forces borrowers to approach such a decision with maximum responsibility.

If refinancing is planned to be carried out at another bank, you will need to go through the assessment and approval procedure from the very beginning. This means that you will have to collect a full package of documents, pay for the services of an appraiser and an insurance company.

In order not to waste time, before applying for refinancing, you should carefully study the proposed conditions. Only a thorough analysis and additional calculations make it possible to understand whether it makes sense to undertake this procedure or whether it is worth leaving the existing loan.

Question 2. What are the requirements of banks for borrowers to refinance a mortgage without proof of income?

Requirements for the borrower when refinancing a mortgage loan without income certificates

The opportunity to refinance a mortgage without confirming income is available only to bank clients who meet the following conditions:

• presence of Russian citizenship;
• age over 21 years;
• good credit history;
• work period of at least 12 months;
• the opportunity, if necessary, to attract a co-borrower or guarantor.

Each bank independently develops requirements for borrowers. Therefore, the above list can be expanded. Most often required: availability of registration in the region of registration, provision of a package of documents. Among them: certificates of registration and divorce, birth of children, bank account statements and others.

Question 3. Is a tax deduction available when refinancing a mortgage?

All citizens of the Russian Federation who have purchased an apartment (or other housing) are entitled to receive tax deduction. When a mortgage is taken out for this purpose, compensation is due as follows: on the cost of the purchased property, so on interest paid.

At its core, mortgage refinancing is the replacement of one loan with another. Therefore, the borrower making payments under such an agreement has full right to receive a deduction. At the same time, in tax office you will have to provide both mortgage agreements: the original and the new one, so that the Federal Tax Service can track changes in conditions.

It is important to consider that the refinancing agreement must indicate intended use funds – mortgage refinancing . If the borrower decides to combine several loans into one, he will have to forget about the tax deduction for interest paid. The problem is that refunds are not available.

Question 4: Which mortgage can be refinanced?

The possibility of refinancing a mortgage is only available if it meets a number of requirements:

1. Banks often set restrictions regarding the duration of the mortgage agreement. In most cases, you will not be able to refinance a home loan that is less than six months old or has less than three months left to expire.
2. Credit institutions may also set a limit on the amount of refinancing. At least 20-50% of the principal must be paid on the original mortgage.
3. Current arrears on a refinanced mortgage are not permitted.
4. Monthly payments must be made on time for at least a year. In fact, banks also estimate a longer payment period. If there have been delays in the past, the likelihood of a positive decision is significantly reduced.
5. Previously, there was no restructuring procedure for mortgages.

Question 5. What are the requirements for a property when applying for refinancing?

When refinancing a mortgage, banks impose a number of requirements on the property that serves as collateral for the transaction. Each lender independently develops their list.

However, we can highlight the requirements for real estate that apply to almost all banks:

• the collateral under the refinancing agreement must be the same real estate as under the original mortgage agreement;
• ownership must be documented and registered in accordance with current legislation;
• the borrower himself, as well as his relatives, can be registered on the living space;
• the property must not have any encumbrances other than the primary mortgage;
• Until the collateral is transferred to the new bank, the living space cannot be rented out.

11. Conclusion + video on the topic

Thus, without any doubt, refinancing a mortgage is an important financial procedure. Its main goal is to reduce the level of overpayment on a housing loan.

However, you should not agree to refinance your mortgage without making preliminary calculations. It is important to make sure that the final savings will cover all the costs of completing the procedure.

Some borrowers are lazy about refinancing, claiming that they don’t have time for it. However, savings can start from a few hundred and reach millions. Such amounts will almost certainly convince anyone.

That's all for us, but the site team does not say goodbye to you!

If you have any questions, comments or additions on this topic, write them in the comments below. Also, don’t forget to share the article on social networks with your friends. See you again!

A record reduction in mortgage rates provoked massive requests from clients to their banks asking for cheaper loans. It is known that banks often ignore borrowers. We tell you how to refinance your loan.

Banks are constantly reducing mortgage interest rates. Since 2015, rates have decreased from 15 to 11.1% per annum. On September 18, a message appeared that the Central Bank was reducing the key rate to 8.5% per annum. AHML predicts that against the backdrop of a decline key rate The Central Bank's average mortgage rate will continue to decline. On this moment Mortgage rates have reached record lows, and everyone who took out loans before is looking to refinance.

What is refinancing?

Refinancing is the replacement of one debt obligation with a new debt obligation, in other words, the replacement of one loan with another. In this case, it is possible to replace the old mortgage (for example, at 15%) with a new one (at 11%). This option is (theoretically!) possible both in your bank and when moving to another bank.

Can I go submit my documents now?

It's not that simple: banks officially say that refinancing programs work for all clients, but in practice it turns out differently. Here is a typical story that can be seen on mortgage forums on the Internet. The borrower submits documents for refinancing. After some time, the manager talks about approving the new rate - the same 11% instead of 15%, but they are in no hurry to explain the specific terms of the contract (you may, for example, be sent to the bank’s website to look for information on your own, which may not be there) and delay the review in every possible way applications.

It is quite difficult to continue this procedure: the manager does not respond to letters, and he is also unavailable by phone due to his busy client reception schedule. All this can go on for quite a long time. After this, the bank may ask for some additional documents, which will be extremely difficult for you to obtain, and also refuse to review the loan agreement in advance. Of course, it is clear to those working in a credit institution that most clients will not look at documents just before signing. From the outside it may seem that everything is being delayed on purpose so that the client cannot renew the mortgage loan.

Why doesn't my bank want to approve refinancing?

Most likely, banks are finding it difficult to cope with the influx of clients who demand a review of loan terms. A significant reason for refusal may be the high cost of the money given to you to purchase a home. The simplest analogy is this: for a merchant who bought a product for 100 rubles, it is profitable to sell it for 150, not 90. A bank, in order to issue a mortgage at a conditional 15%, accepts deposits at 10% and makes money on the difference of 5%. If he starts changing conditions mortgage lending from 15 to 10% or 9, it will not make money or even go to a loss. It turns out that the bank's management is faced with a choice - to lose money or refuse the client; Judging by published reviews and public discussion, bankers choose the second option.

Do you need to go to another bank?

Yes, perhaps this is the way out. It is profitable for banks to lure mortgage holders away from competitors when rates are falling. Moreover, after mortgage boom recent years the number of potential clients has decreased significantly. It should be noted that when refinancing loans from competing banks, risks are reduced. Borrowers coming from other credit institutions already have a positive credit history (banks do not undertake to refinance loans from other banks taken out less than six months ago, this is how they assess the solvency of the new client) - thus, the most disciplined borrowers are eliminated. The risks are minimal; in addition, real estate is also used as collateral.

Is it true that you can save more than a million?

It all depends on the amount and conditions. Most large banks in Russia (in April 2017, Sberbank was included in this list) have mortgage refinancing programs. If you manage to reduce your mortgage even from 14 to 12%, this is worth taking on. Let's say the bank issued 4 million rubles (the entire loan is 5 million, but you made a down payment of 1 million) for 20 years. The monthly payment at 14% will be almost 50 thousand rubles per month (49,740.83), and at 12% - 44 thousand rubles. Savings - 6 thousand rubles per month for the same period, in 20 years you will leave in family budget 1.440 million rubles!

At the same time, you should not forget about the additional costs of registration and paperwork that the new lender may require. These will be the costs of insurance, real estate valuation, extract from the Unified State Register of Real Estate (state duty), certificates from the previous bank, state duty for re-registration of the contract in Rosreestr.

What documents need to be brought to the new bank?

You need to prepare in advance for quite a long paperwork. Here is the information you need to send to the bank about the borrower (this can be done by email, which makes the process much easier):

Passport;

Application form;

A certified copy of the work book;

Certificate of income;

A copy of the loan agreement;

Initial repayment schedule;

Additional agreement to the agreement to reduce the interest rate;

A statement of the account from which the debt was recently repaid.

A notarized consent of the spouse (in case the object was purchased during marriage) to conduct the transaction may also be required.

If you have a new building, you need to add:

A certificate from the developer confirming payment for the property;

Acceptance and transfer certificate of residential premises.

After this, you need to submit documents on the property - an assessment report. And the following documents for the appraiser himself:

Certificate of ownership;

Agreement on participation in shared construction;

The act of acceptance and transfer of the object;

Certificate of payment for the property from the developer;

Cadastral passport;

Form 40 certificate;

Extract from the Unified State Register of Real Estate (in paper, not electronic form).

Before the transaction, you need to obtain documents from current bank, also write a complete application there early repayment. Another list:

Certificate of debt balance;

A certificate confirming the absence of current overdue debt and the number of days of delay for the last 180 calendar days on the refinanced loan;

Certificate of account details from which the loan is being repaid;

A copy of the application for early repayment with a mark of acceptance by the primary creditor.

Do not forget that documents are paid and their validity period is limited. In addition, you need to contact the Registration Chamber to remove the encumbrance from the mortgage, and then register the encumbrance under a new mortgage agreement.

Study the documents more carefully

There is a fly in the ointment in this barrel of honey. It is known that in the Law “On Mortgage” there is an article according to which a transfer to another bank is possible if this is “not prohibited by previous mortgage agreements on the same property.” Lenders often include this option in their mortgage agreements, experts say.

Kommersant writes that the Central Bank of the Russian Federation is looking into the situation with refinancing and is discussing how to facilitate the procedure for changing a lender. According to the press service of the Central Bank, additional proposals are currently being developed to increase the long-term stability of the mortgage lending market.

Mortgage refinancing has become one of the most popular banking products 2017. Every fifth new home loan in this year– refinancing of the old one. For some banks this figure exceeds 40%.

Pros of refinancing mortgage loans

Benefit #1: Reduced monthly payment

When refinancing, the borrower can take out a mortgage for any period approved by the bank. This makes it possible to significantly reduce monthly payment– both by reducing the rate and by “stretching” the lending period for several more years. But keep in mind: if the difference in rates is small, the overpayment will also increase.

Let's take this example: we bought an apartment worth 3 million rubles with a mortgage. with an initial payment of 20% for 10 years at 13.5%. We paid for a year, then refinanced at 11% for the same period.

With a saving of 4,500 rubles per monthly payment total savings, thus, amounts to about a million rubles even taking into account the actual increase in the loan term by a year after refinancing. The calculation was made without taking into account additional costs, which will be discussed in the example below:

Reviews from mortgage providers

We took out a mortgage from Sberbank in 2014 for an apartment in a building under construction. At 14.25% while construction is underway and 13.25% after the house is commissioned. They paid for two years, glad that they managed to do it before the rates increased, and then they began to be sad.

By the end of 2016, our rate began to seem astronomical. We examined the mountain of bank offers and settled on Absolut Bank. Then he offered excellent conditions - 11.25% instead of our 13.25% per annum. The monthly payment was thereby reduced by 4,300 rubles, taking into account the preservation of the loan term. We grabbed a calculator and calculated that we would win more than 885 thousand over the remaining years.

But they soon realized that there would be additional expenses. With the new bank we had to insure not only our apartment, but also our life and health. This is plus 10.3 thousand rubles per year.

The only consolation was that Sber paid 7,600 a year for insurance, the difference is not too big. Additionally, we paid 2,500 rubles for the assessment, 300 rubles for an extract from the Unified State Register of Real Estate, and a state fee for re-registration of 668 rubles for two. But even after deducting expenses, they gained more than 830 thousand, and the monthly payment became, although not much, less stressful.

Benefit #2: Reducing loan overpayments

If you leave your monthly payment the same and shorten the term of your mortgage after refinancing, your overpayment in interest will drop sharply. Let's show with the same example:

The overpayment is thus reduced by more than 1.7 million rubles over the entire loan term.

Benefit #3: Removal of encumbrances from the property This is possible when replacing a mortgage loan. Now the rates offered by banks already make it possible to do this, if not with profit, then at least with zero losses. The point of such refinancing is that the apartment becomes at the full disposal of the borrower and ceases to be bank collateral

. It can be sold, donated, and so on without any consultation with the bank.

Let's say we took out a mortgage for the same apartment worth 3 million rubles. with an initial payment of 20% for 10 years at 13.5%, but they paid for 5 years, and for the remaining period they refinanced with a consumer loan at 12.9% per annum (the real rate of Sberbank, which is difficult, but still possible to obtain).

In total, we see that the cost of both loans, taking into account insurance and other side expenses, will be approximately the same. However, your apartment will be mortgaged for only 5 years instead of 10.

An extremely relevant opportunity for borrowers who took out a mortgage in dollars and paid for it after the rate jump at the end of 2014. Another thing is that not every bank is ready to change the loan currency. Similar services are now provided, for example, by Gazprombank.

Benefit #5: Increased ease of loan servicing

While Sberbank, VTB24 and several other large credit institutions have reliable and more or less convenient online banks, borrowers of many other lenders have to pay through branches, ATMs and terminals.

Refinancing your mortgage may be a good opportunity to ease the burden of traveling across town to the only working ATM with a bill acceptor. It is also convenient to transfer the mortgage to the bank where you receive your salary.

Cons of refinancing a mortgage

• The disadvantage of refinancing in the second half of the loan term with annuity payments. In this case, you pay most of the interest in the first years, and refinancing only makes sense if you want additional ease of service.
• High additional costs. When refinancing your mortgage, you will have to again submit to the bank the entire package of documents for the property - including a new appraiser's opinion. You will also have to insure the collateral again.
• The need to go through all stages of lending again. If your income has decreased over the years of mortgage payments or the worst side your property situation has changed, refinancing may not be approved. However, the bank can issue a refusal or unsuitable conditions without any compelling reason - the procedure is not transparent and is carried out according to the internal standards of the credit institution.

Reviews from mortgage providers

I applied to VTB24 to refinance a mortgage loan in the amount of 1.6 million rubles. Over the phone, and then in the office, they confirmed that I fit all the parameters, so to speak, with a reserve. I have a high salary, a large stable company, and we have a salary project at VTB24. the manager promised a refinance at 9.7% per annum.

I waited a week. A girl calls and says in a cheerful voice: “You have been approved for a loan at 10% per annum in the amount of 1 million rubles.” What? What million? I asked why this decision was made. The girl promised to clarify - and... that’s it. Nobody called again. I asked a question on Banki.ru. The bank's technical support replied that these are the conditions: if you want, take it, if you don't want, go somewhere else.

Who is eligible for mortgage refinancing?

• holders of loans with an interest rate at least 1% higher than that offered by the “new” bank; for annuity payments - in the first half of the payment period;
• borrowers who find themselves in difficult life situations;
• owners foreign currency mortgage, taken before 2015;
• clients of small banks with an undeveloped system of branches, ATMs or inconvenient Internet banking.

When is it not profitable to refinance your mortgage?

There is little point in getting into refinancing if you have taken Housing loan several months ago under market average conditions: rates in most banks have not dropped enough since then for refinancing to have any serious effect.

Keep in mind that you will have to re-order a real estate appraisal, extracts from registers, pay for insurance and incur other expenses.

What mortgages can be refinanced?

The loan you intend to refinance must meet the following requirements:

• The loan must be repaid on time for at least the last 12 months (in fact, throughout the entire credit history, since the presence of at least one late payment, even many years ago, significantly reduces your chances of being approved for refinancing). There must also be no current overdue debt.
• As a rule, refinancing a mortgage loan is impossible before six months of its validity. Some banks have a limit on the amount of refinancing - the client must repay the initial loan from 20% to 50% of the cost of the property.
• The same applies to the expiration of the mortgage term - you cannot refinance the loan if there are less than three months left before its expiration.
• The loan must not have been previously issued.

Which bank is more profitable to refinance a mortgage?

Here are offers from 12 leading Russian banks providing mortgage loan refinancing services. They are aimed at various borrowers, and if you wish, you can find “your” bank without much difficulty.

Bank	Interest rate and amount	Loan terms	Borrower requirements and documents
set it at level	From 9.5% to 10.5% (when consolidating other types of mortgage loans, the rate is from 10% to 11%). From 1 to 7 million rubles.	Up to 30 years old	21-75 years old, 6 months of experience. at your current place of work. Russian passport with permanent or temporary registration, confirmation of income and employment (except for salary clients), loan agreement and information about real estate (provided within 90 days after approval of the application).
Gazprombank	From 9.7% to 11% Up to 10 million rubles (for Moscow – up to 30 million rubles). The loan is issued for an amount of no more than 80% of the appraised value of the property (for a loan based on two documents - no more than 50%)	Up to 20 years (up to 30 years for payroll clients)	Passport (registration in the region where the bank operates is optional), SNILS, proof of income, proof of employment,),
Raiffeisenbank	9,99%. Up to 26 million rubles.	Up to 30 years old	21-65 years old, permanent or temporary registration in the region where the bank operates, residence there. Minimum income– 15,000 rub. (20 thousand rubles for Moscow, St. Petersburg and some other cities). The minimum current work experience is from 3 months to 1 year, depending on the total experience. Passport (of any country), proof of income and employment. Loan agreement and information about real estate (including an extract from the Unified State Register or Unified State Register).
Bank opening	From 9.35% (when insuring the risks of loss, as well as the life and health of the borrower, the loan term is 5 years and the loan amount is up to 50% of the value of the property) to 13.5%. From 500 thousand rubles. up to 15 million rubles (up to 30 million rubles in Moscow and St. Petersburg)	From 5 to 30 years	18-65 years old, Russian Federation citizenship, current work experience of 3 months. Russian Federation passport with permanent or temporary registration, proof of income and employment (except for salary clients), loan agreement and real estate information
Tinkoff	From 8.5% (the bank acts as a mortgage agent, giving a discount of up to 0.5% from the rates of other banks). Up to 100 million rubles	Up to 30 years old	Passport, proof of income and employment. Loan agreement and real estate information. If necessary, other documents requested by third-party banks.
Rosbank	From 8.75% (subject to comprehensive insurance and a one-time payment of 4% of the loan amount), to 12%. From 300,000 rubles (from 600,000 rubles for Moscow and St. Petersburg)	Up to 25 years
DeltaCredit	From 9% to 15%. From 300,000 rubles (from 600,000 rubles for Moscow and St. Petersburg)	Up to 25 years	20-65 years old, citizens of the Russian Federation. Russian passport, proof of income and employment. Loan agreement and real estate information.
Alfa Bank	From 11.99% to 18% (only in combination with other loans - replacing a mortgage with a consumer loan secured by real estate). From 50 thousand rubles. up to 3 million rubles	Up to 5 years	From 21 years old. Permanent income from 10 thousand rubles, current experience from 3 months. Russian Federation passport, permanent registration in the region where the bank operates. TIN, SNILS, confirmation of income and employment or financial solvency. Availability of a landline telephone. Loan agreement and real estate information.
Sberbank	From 9.5% (with comprehensive insurance) up to 14.1%. From 500 thousand rubles. (but not less than 15% of the cost of the object) up to 45 million rubles. (no more than 85% of the cost of the object)	From 1 to 30 years	20-65 years old. Citizenship of the Russian Federation. Current experience – from 6 months, total – from 1 year. Russian Federation passport, permanent registration in the region where the bank operates. Proof of employment and income. SNILS, TIN, marriage certificate and other documents - if available or upon request. Loan agreement and real estate information.
Binbank	From 13.9% to 22.5% (only in combination with other loans - replacing a mortgage with a consumer loan secured by real estate). From 50 thousand rubles. up to 2 million rubles	From 1 to 7 years	20-65 years old, Russian citizenship. Russian passport + driver's license/TIN or other identification document. Proof of income and employment. Loan agreement or certificate of debt balance.
Promsvyazbank	From 10.5% to 14.2%. From 1 to 15 million rubles.	From 3 to 25 years	21-65 years old, Russian citizenship. Current experience – from 4 months. Russian Federation passport. SNILS. Permanent registration/actual residence/place of work in the region where the bank operates. Proof of income and employment. Availability of a landline telephone. Loan agreement and real estate information.
Uralsib	From 9.9% to 11.9%. From 300 thousand rubles. up to 50 million rubles	From 3 to 30 years	18-65 years old, Russian Federation citizenship, current work experience of 3 months. Russian Federation passport, permanent registration on the territory of the Russian Federation. It is possible to issue a loan without proof of employment and income for holders salary cards. Loan agreement and real estate information.

Mortgage refinancing: step-by-step instructions

1 Contact the bank offering refinancing for advice on the conditions.

2 We collect a package of documents, which includes:

• Application form according to the bank form (can be filled out online or directly from the manager).
• Passports (most often of the Russian Federation, Sberbank allows passports of other countries) of the borrower and co-borrowers, if available. Please note: the borrower's spouse is a co-borrower by default, regardless of income or employment level.
• Proof of income. These can be certificates 2-NDFL, 3-NDFL, a certificate in the form of a bank, an extract from a personal account, certificates of additional part-time income, etc.
• Confirmation of employment (irrelevant for payroll clients of any bank). Usually this is a copy of a work record book or a civil contract.
• and (VTB24 requires it in mandatory, Alfa Bank - as a document of choice, and all other credit organizations enter the number of the pension insurance certificate in the application form, if available).
• Documents for the current mortgage (loan agreement, certificate of debt balance, some banks require a certificate of quality of loan repayment - a monthly payment schedule and a statement of the flow of funds in the mortgage account).

3 If the bank is satisfied with the submitted documents, then a positive decision is made within 2-5 days. The period can be extended both for objective (additional study of documents and credit history) and for subjective reasons (the manager, having accepted the package of your papers, went on vacation without transferring the case to anyone).

Refinancing approval is valid for 90-120 days - during this period you must settle relations with the bank where you have the original mortgage.

4 We obtain permission from the original bank to transfer the collateral or refuse such permission. We clarify the procedure for early repayment (whether you need to write an application).

5 We collect a package of documents for a mortgaged property. It includes:

• extract from the Unified State Register of Real Estate
• cadastral passport
• extract from the house register
• certificate of absence of debt on utility bills

We submit a package of documents to the bank, which will refinance the loan.

6 Signing the loan agreement. Issuing a loan: “new” bank non-cash payment transfers to the former's account. The refinanced loan is repaid (do not forget to take a certificate of no claims against you from the original bank - it will be issued free of charge within 28 days, for a fee - within three days, cost - 500-1000 rubles, depending on the bank; this document must be submitted to the “new "bank).

7 Change of mortgagee. IN different banks This procedure is carried out differently. Somewhere, a credit institution takes on the responsibility of working with the original mortgage holder, while Raiffeisenbank, for example, requires the borrower to pick up and deliver the mortgage himself.

One way or another, the process lasts from 1 to 4 months, during which your new loan is considered unsecured and has an increased rate of 1-3%. It is impossible to avoid these expenses; take them into account initially when calculating the benefits of refinancing.

8 We insure the collateral against the risk of loss. it's the same mandatory expenses. In some cases, it is possible to maintain insurance when transferring a loan from one bank to another. However, most often Insurance companies to one degree or another with banks and refuse to continue insurance when the mortgagee changes.

9 We begin to pay on the new loan.

Welcome readers of our project! Today we’ll talk about what mortgage refinancing is, how to properly refinance a mortgage and whether it’s worth transferring a mortgage to another bank, reader reviews. If you have a mortgage and you are not satisfied with the rate, term, additional fees, or just the bank itself, and you want to transfer your mortgage from one bank to another, then this post is for you.

So, what is mortgage loan refinancing? It is the refinancing of a mortgage (issuing a new mortgage to pay off the old one) in order to obtain better conditions for servicing the mortgage loan.

Under better conditions it is generally understood:

• Reducing mortgage rates;
• Increasing the loan term (to reduce the monthly payment);
• Reducing the loan term (to reduce the total overpayment);
• Cancellation of additional commissions, insurance and fees (savings on mortgage servicing);
• Replacing the mortgage loan currency (protection against the collapse of the ruble);
• Transfer of mortgage to another bank (convenience of service).

At the same time, mortgage refinancing is possible both in your own bank and in another bank, where the conditions are more favorable.

Let's now figure out when mortgage refinancing is profitable and when it is not.

Profitable or not

So, what is a profitable mortgage refinance? Before refinancing a mortgage, you should make a preliminary calculation taking into account all the parameters. In order not to be abstract, let's look at a specific example. This is refinancing the mortgage of our readers - a family from Novosibirsk.

Mortgage - refinancing with another bank:

Initial data Mortgage with a principal balance of 2,196,700 at 11% per annum. Number of months until mortgage completion is 196. There is no life insurance on the mortgage. Collateral insurance for an apartment does not provide for penalties for late provision of insurance. The mortgage was issued by Sberbank. Family of 3. Only my husband works. The wife is expecting the birth of her second child.

The best conditions for refinancing a mortgage in another bank at the moment are in Raiffeisenbank - 10.9% per annum (later we will look in more detail at refinancing mortgages from other banks and the best offers of 2017). Now let’s calculate whether it will be profitable for our family to move from Sberbank to Raiffeisenbank.

1. Let's start with the interest rate. If you take out a mortgage from Raiffeisenbank for the same 196 months at 10.9% per annum, then the overpayment for the entire period will be 2,514,850. If you leave the mortgage with Sberbank, then the overpayment will be 2,541,677. The benefit from refinancing is 26,827 rubles.
2. Now we consider further the additional costs of the mortgage, namely life insurance. Let's take an average rate of 0.5% of the principal balance. During the entire period you will have to insure yourself 17 times. The approximate payment for this period will be about 119,701. Our family has a Sberbank mortgage compulsory insurance there is no life. The benefit from refinancing, taking into account the previous point, is already negative - minus 92,874.
3. The father of the family receives his salary, like a fairly large number of Russians, on a Sberbank card, which means that you will either need to pay a transfer fee of 1% of the amount, or look for a Raiffeisenbank ATM.
4. It will be necessary to transfer the collateral from Sberbank to another bank and re-register the transaction, which means a lot of wasted time, nerves and registration costs.
5. For the period until you transfer the collateral to a new bank, the interest rate will be increased by 1%, and this is another couple of thousand in excess overpayment.

It follows from this that for our readers from Novosibirsk, refinancing a loan for an apartment will be unprofitable for a number of reasons:

1. The benefit from lower mortgage interest rates is minimal.
2. The appearance of an obligation to insure one's life on a mortgage takes an additional more than 100 thousand rubles from the family.
3. The assignment of a mortgage is associated with a large number of bureaucratic delays and additional expenses from the budget. Instead of working and bringing income to the family, dad will be forced to take time off from work and waste his time and nerves interacting with banks.

Subscribe to our project updates at the end of the post, and you will find out how, with the help of our project, this family will repay their mortgage profitably. To begin with, we recommend reading the post “Mortgage restructuring with the help of the state”, it will tell you personal experience this family from participating in the mortgage assistance program.

When is it profitable to refinance? Let's outline a number of parameters that will help you make the right decision.

1. The mortgage rate should be lower than the current 1%, or better yet, higher. In our example, refinancing at 10% per annum will bring a benefit of about 272,408 rubles. Even taking into account insurance, this is beneficial, because the mortgage will still be closed ahead of schedule due to maternity capital, a tax deduction on the mortgage and restructuring with the help of the state (follow this on our project).
2. There are no additional commissions and payments for the mortgage (for example, insurance), or they are lower than the current ones.
3. It is possible to transfer the mortgage to your salary bank or a bank where it is convenient for you to make payments.
4. You have a lot of free time and nerves to refinance.

Now you already roughly understand whether refinancing your mortgage is beneficial for you or not. Let's now learn more about how to refinance a mortgage.

General conditions and requirements for the borrower for refinancing

Each bank has its own requirements and conditions for mortgage refinancing. They are almost no different from standard requirements and mortgage conditions in each specific bank. You can find out about them in advance at the bank or on our website in the special “Banks” section.

Let's discuss the general conditions:

1. Typically this is fixed rate for the entire period.
2. The mortgage term depends on the bank (from one year to 30 years).
3. The currency is exclusively ruble.
4. There are no issuance or processing fees.
5. The loan amount is 80-85% of the cost (of the apartment) and depends on the requirements down payment at a specific bank. Maximum 30,000,000.
6. Repayment in equal monthly installments with the possibility of early recalculation of the mortgage. There is no deferment on the mortgage for the period of re-registration of the collateral.
7. Collateral is the security of your property.
8. There are penalties and fees for late payments.
9. Canceling life insurance increases the interest rate by 0.5 to 1%.
10. Mortgages are provided in non-cash form.

The requirements for the borrower are quite simple:

1. Age from 21 to 65 - 70 years at the end of the mortgage.
2. Work experience of at least 3 months in the last position and at least one year of total experience.

Very important! You must understand that your solvency will be re-evaluated. There is a fairly high risk of being refused if your salary has decreased or your spouse has gone on maternity leave. Refinancing will also be problematic if you have problems with your credit history.

How does the mortgage refinancing procedure and documents work?

Now we’ll talk in more detail about how to refinance a mortgage loan with another bank and how to transfer a mortgage effectively. This process consists of a number of stages:

1. Contacting the bank for preliminary consultation on refinancing.
2. Collection of documents for approval (application form, passports, income certificate, SNILS, copy of employment record, military service for men under 27 years old, certificate from the bank about the balance of mortgage debt and the absence of current arrears, certificate about the quality of mortgage repayment from the beginning to the current date or statement of cash flow in the account, loan agreement and schedule).
3. Receiving a positive decision on refinancing (4-5 days). Further, it is really about 120 days.
4. Permission from your current bank to transfer the collateral (Sberbank almost always refuses to transfer the collateral, so you need to get a shift refusal from them).
5. Providing documents on your property (appraisal, Unified State Register, etc. a detailed list can be obtained from your loan officer).
6. The refinancing bank issues a new loan and transfers money to your creditor bank to pay off the mortgage (they may first ask for a certificate of the balance of the mortgage). The refinanced loan is closed (when refinancing a mortgage, check the conditions for early repayment of the current mortgage in advance; you may need to write an application for early repayment).
7. Change of mortgagee by mortgaged apartment. This is the most difficult and confusing stage. It differs from bank to bank in terms of implementation. Refinancing a mortgage at the Bank of Moscow and VTB 24 assumes that banks will spend 3-4 months independently and without the participation of the borrower sorting out the transfer of the mortgage between banks ( security by which the holder of the mortgage and the terms of the mortgage agreement for your apartment are determined) and the registration of a new entry in it for the holder. During this period, the mortgage rate will be increased by 2%. Mortgage, if provided for mortgage agreement is always in the jar, you don’t have it in your hands. At Raiffeisenbank, after paying off the mortgage in third party bank, the borrower must himself obtain a mortgage from the bank and transfer it to Raiffeisenbank. Next, the new mortgage is registered and a mark is made about the new mortgage holder.

Is it possible to refinance a mortgage in own bank? This procedure is extremely rare, because it is not profitable for the bank to lose income and, most likely, you will be refused.

The best offers from banks in 2019

Now you can look at our bank TOP and find out which mortgage loan refinancing program is right for you. The table indicates the final interest rate that you will have based on the results of refinancing, taking into account the satisfaction of all the bank’s requirements for the down payment and the method of confirming income.

Bank	Bid, %	Note
Rosevrobank	9,75
Alfa Bank	11.54
Sberbank	9,2
Absalutbank	10,25
Deltacredit	10
Bank opening	9,35
VTB Bank of Moscow and VTB 24	8,8
Uralsib	10,4
set it at level	9,5
Raiffeisenbank	9,5
Rosselkhozbank	9,3	It is possible to reduce to 9.05 if the salary loan and mortgage are more than 3 million
DOM.RF	9

Mortgage refinancing is not currently available at Sberbank and Rosselkhozbank. Subscribe to our project update to find out about the activation of this program in these banks.

It is worth using our standard one to calculate the benefits of this event. Just enter the desired value in the interest, amount and term column.

Loan currency		Russian rubles
Minimum loan amount		from 300,000 rubles
Maximum loan amount		Should not exceed the lesser of: 80% of the value of the property indicated in the appraisal report - the amount of principal balances and current interest on refinanced loans, as well as the amount requested by the borrower or co-borrowers for personal consumption Maximum amounts for various purposes of obtaining a loan: To repay a mortgage in another bank: - up to 7,000,000 rubles – for Moscow and the Moscow region; - up to 5,000,000 rubles - for other regions. To repay other loans: 1,500,000 rubles For personal consumption: 1,000,000 rubles
Credit term		from 1 year to 30 years
Loan issue fee		absent
Refinanced loans		With one loan “Refinancing secured by real estate” you can refinance: - One mortgage loan provided by another credit institution for the purposes of: Acquisition/construction of residential real estate Purchase/construction of a residential property and its major repairs/payment for other inseparable improvements Up to five different loans: Consumer loans provided by another credit institution Car loans provided by another credit institution Credit cards, debit bank cards with permitted overdraft, provided by another credit institution Consumer and car loans provided by Sberbank Refinancing a mortgage loan is required to obtain a loan under the “Refinancing secured by real estate” product.
Loan issue fee		absent
Loan collateral		Pledge of real estate: residential premises (apartment, including in a residential building consisting of one or several block sections - “town house”) House room part of an apartment or residential building, consisting of one or more isolated rooms (including part of a residential building of a blocked building - “town house”) residential premises with the land plot on which it is located If the property is purchased with a refinanced mortgage loan, it may be encumbered with a mortgage in favor of the primary lender. This encumbrance is removed after the refinanced mortgage loan is repaid, after which the property is pledged to the Bank. If funds from a refinanced mortgage loan were not used when purchasing a property, then such property must be free from encumbrance with the rights of third parties/ be under arrest (ban).
Insurance		Voluntary life and health insurance of the borrower in accordance with the requirements of the Bank.

Age at the time of loan provision	at least 21 years old
Age at the time of repayment of the loan under the agreement
Work experience	at least 6 months at the current place of work and at least 1 year of total work experience over the last 5 years**
Attracting co-borrowers	The Borrower/Title Co-borrower must be a borrower/one of the co-borrowers on the Refinanced Loans on the refinanced home loan (only if he is the spouse of the borrower on the refinanced home loan). If there are conditions in the credit documents for a refinanced housing loan, according to which all actions related to its execution, receipt, support are assigned to a specific co-borrower, the Borrower/Title Co-borrower must be this individual. The requirements for the Co-borrower(s) are similar to the requirements for the Borrower. The spouse (s) of the title co-borrower is not included in the composition of the Co-borrowers only in the following cases: the presence of a valid marriage contract establishing the regime of separate ownership of the property of the spouses, including in relation to real estate, the spouse of the Title Co-borrower does not have citizenship of the Russian Federation.
Citizenship	Russian Federation

The spouse of the title co-borrower is a mandatory co-borrower, regardless of his/her solvency and age***.

* The loan repayment period falls entirely on the working or retirement age of the borrower/each of the solvent co-borrowers.

** This requirement does not apply to clients receiving salaries into a Sberbank account.

*** Except in cases of a valid marriage contract.

To consider a loan application you need:

• Passport of the borrower/co-borrower with a registration mark;
• A document confirming registration at the place of stay (if temporary registration is available);
• Documents confirming the financial condition and employment of the borrower/co-borrower/guarantor
• 
  - loan agreement number
  
  
  - loan amount and currency
  - interest rate
  - monthly payment
  

  This information must be confirmed by providing the bank with any of the specified documents: loan agreement, payment schedule, notification of full cost loan, a document confirming the change in the details of the Primary Lender.

• For each refinanced loan the following information must be provided:
  - loan agreement number
  - date of conclusion of the loan agreement
  - validity period of the loan agreement and/or loan repayment period
  - loan amount and currency
  - interest rate
  - monthly payment
  - payment details of the Primary Lender (including account details for repayment of the Refinanced Loan)

  To confirm the specified information, you must provide the bank with any other document: loan agreement, payment schedule, notification of the full cost of the loan, certificate/statement of the debt balance confirming the change in the details of the primary creditor.

During the consideration of the loan application, the bank reserves the right to additionally request from the client information about the refinanced loan:

• on the balance of the loan debt on the Refinanced loan with accrued interest
• on the presence/absence of current overdue debt and overdue debt over the last 12 months

Such information must be confirmed by a document from the creditor bank for the refinanced loan (certificate, statement or other document). The information must be current as of the date of submission to Sberbank.

About the details for repaying refinanced loans:

Payment details, which will be used to send the amount to repay a loan from another bank, must be provided when submitting to the bank primary package of documents. If these details will change during the period of time between submitting an application and issuing a loan by the Bank, the loan will not be issued and loan application You will need to re-submit with new details.

If refinanced the loan was transferred/sold to another bank(other organization: for example in . The consequence of this decision was, among other things, a reduction in the rate on military mortgages in some banks.), That when submitting an application You must provide the Bank with a document confirming the change in the details for repaying the refinanced loan.

Documents that can be provided after approval of the loan application:

• Documents on the collateral provided (can be provided within 90 calendar days from the date of the Bank’s decision to issue a loan)

If you partially repaid a refinanced housing loan with maternity (family) capital or maternity capital was used when purchasing real estate pledged to the Bank, you need to obtain consent from the guardianship and trusteeship authorities to pledge the real estate (based on clause 3 of article 6 of the Federal Law -102 “On mortgage (real estate pledge).”

The loan is provided to citizens of the Russian Federation in the branches of Sberbank of Russia:

• at the place of registration of the borrower and co-borrower;
• at the place of accreditation of the company-employer of the borrower/co-borrower;

Loan application review period

No more than 8 working days.

Procedure for granting a loan

One time.

Loan repayment procedure

Monthly annuity (equal) payments.

Partial or full early repayment of the loan

It is carried out upon an application containing the date of early repayment, the amount and the account from which funds will be transferred. The early repayment date indicated in the application must fall exclusively on a business day.
The minimum amount of an early repayable loan is unlimited.
There is no early repayment fee.

Penalty for late loan repayment

The penalty* for late repayment of the loan corresponds to the amount of the key rate of the Bank of Russia in force on the date of conclusion of the Agreement, from the amount of the overdue payment for the period of delay from the date following the date of fulfillment of the obligation established by the Agreement to the date of repayment of the Overdue Debt under the Agreement (inclusive).

*According to loan agreements concluded from July 24, 2016.

Take advantage of insurance programs real estate(within the framework of a mortgage), as well as the life and health of the borrower in Sberbank Insurance LLC and Sberbank Life Insurance LLC - 100% subsidiaries of Sberbank PJSC:

• Simple, convenient and fast registration. For example, when renewing an insurance contract, you do not need to submit a copy of it to Sberbank yourself; the documents are sent automatically
• Availability of the ability to resolve the issue online: from signing an insurance contract to settling losses due to an insured event
• The conditions of the insurance programs comply with the Requirements for the conditions for the provision of insurance services within the framework of credit products Sberbank 1
• The insurance tariff/cost of insurance when prolonging the insurance contract for the second and subsequent years is 10% lower
• When advancing insurance event You can contact any Sberbank branch, regardless of where the agreement was drawn up
• You can issue a policy in a few minutes on the DomClick website, on the website of insurance companies - Sberbank Insurance LLC and Sberbank Life Insurance LLC, or at any Sberbank branch.

Life and health insurance under the “Protected Borrower” program 2

What's included in the program?

Insurance is provided in case of:

• Death of the Insured Person
• Establishing a disability or group for the Insured person

What are you getting?

• Reducing the Sberbank mortgage rate to the established level under the “secured loan” condition;
• The insurance rate is determined individually depending on the gender and age of the client.

website.

Mortgage insurance 3

What's included in the program?

Insurance of the property pledged (except for the land plot) against the risks of loss and damage.

Additional benefits:

• 1 additional month of validity of the insurance contract when issued at Sberbank branches

Detailed insurance conditions can be found on the website.

1 Mandatory requirements of the Bank for insurance companies and conditions for the provision of insurance services for property insurance

2 Insurance service provides Sberbank life insurance LLC. License for insurance SZh No. 3692 (type of activity – voluntary insurance life) issued by the Bank of Russia for an indefinite period. OGRN 1037700051146, www.sberbank-insurance.ru Address: Moscow, st. Shabolovka, 31G. Office hours: Monday – Friday from 08.00 to 20.00 Moscow time

3 Real estate (mortgage) insurance. Insurance services are provided by Sberbank Insurance LLC. License of the Bank of Russia to carry out voluntary property insurance SI No. 4331, issued 08/05/2015 for an indefinite period. OGRN 1147746683479, www.sberbankins.ru Address: 115093, Moscow, st. Pavlovskaya, house 7, tel. 8 800 555 555 7, Opening hours Monday-Friday from 9:00 to 19:00 Moscow time.