How to get a mortgage for pensioners

By providing mortgages to pensioners, Sberbank does not deprive them of the right to enjoy all privileges and benefits. The conditions are always acceptable, the rates are minimal. Moreover, a retired person has a better chance of getting approved for a mortgage. The income is guaranteed by the state, and pensioners themselves belong to the category of reliable payers, as they always pay off their debts. And now the age limit for applicants has been raised to 75 years. Therefore, anyone who wants to improve their standard of living and provide their children and grandchildren with an inheritance contacts Sberbank and submits an application.

Pros and cons of a mortgage from Sberbank

With the help of a loan, different goals are achieved, and each borrower has his own:

Leave an inheritance to children, grandchildren, great-grandchildren.
Leave with relatives.
Buy the actual home and donate the old one.
Move to live in another city, region, outside the city.
Do what you love (grow a garden, vegetable garden).
Grow agricultural crops in greenhouses and greenhouses.

It’s difficult to give a complete list of advantages; everyone’s goals are different. The main thing is that the money is given immediately, and you can return it until your 75th birthday or within thirty years. However, with all the advantages, a mortgage loan also has disadvantages. As long as the debt is not paid, the property can be used. But the status of collateral will not allow it to be sold, donated, or exchanged. And after the disclosure of the will, the heirs will accept not only the property, but also the debts that remained outstanding at the time of the death of the borrower.

Housing lending to pensioners has its positive and negative characteristics.

Advantages and disadvantages

A mortgage loan can be issued for a fairly long period when compared with the standard Military Mortgage program.

Interest rates have been significantly reduced, which means that the terms of using a mortgage loan will be more favorable.

Loan repayments are made in accordance with a flexible schedule. An individual approach is applied to each client.

Citizens can purchase their own square meters of any type on a mortgage or take out a loan to build their own private home.

If the borrower violates the terms of the agreement or defaults on payment, then the lending company may impose sanctions, which may even include seizure of the collateral.

The client will have to pay for the services of a qualified appraiser from his own budget.

A borrower who has not previously been listed as a bank client must pay a fee for transferring money from a mortgage account.

Mortgage without down payment

There is no special program that allows you not to deposit your own funds. However, there are opportunities to use money from other sources. To apply for a real estate loan without an initial investment, the following methods are often used:

They issue a non-targeted loan, which can be used for a down payment or for the purchase of housing, if the amount received is sufficient.
Apply for a loan from an insurance agent. Usually it all ends with an artificially inflated cost with a “virtual” loan.
They become participants in promotions held by developers when one of the conditions states that there is no down payment.

In any case, the requirements for the borrower are standard. The main difficulty arises for those who receive a minimum pension. If the pension is not enough, close relatives are brought in as co-borrowers. The alternative is to provide additional collateral.

Loan secured by real estate

This is a way to purchase housing without an initial investment. True, it is available to people who have their own real estate. In this case, the loan terms are as follows:

The program allows you to receive up to 10 million rubles.
If the requirements are met, the interest rate is 11.3%.
The maximum loan period is 20 years (until the applicant’s 75th birthday).
The minimum loan limit for a pensioner is half a million rubles.

The collateral can be a residential apartment or town house, as well as a house with all the buildings on the plot. Land is also taken into account. The security is provided by the owners of dachas, garages, parking spaces, etc.

Mortgage for a military pensioner

Military personnel do receive benefits, but only during their service, and only if they have participated in the savings program over the past three years. Retired military personnel lose the opportunity to take advantage of a military mortgage. They submit applications through the Dom Click system or in person at a bank branch on a general basis. Pension for military personnel comes early, as well as for employees of the Ministry of Internal Affairs. Sberbank is loyal to this category of citizens, and the loan can be issued for a long term.

How can a pensioner get a mortgage without a down payment?

Among the lending programs that retiree clients can take advantage of without thinking about the amount of starting funds is a loan secured by existing residential real estate. You can offer the bank an apartment or house you own as collateral for the loan. The amount of the available loan will be 60-70% of the cost of the housing pledged as collateral. The advantages of the method are obvious:

secondary market housing is pledged to the bank;
many lenders consider this type of loan as a non-targeted loan, which can be used not only to purchase a home, but also to repair or purchase a car;
relatively low interest rate - 13-15% per year;
The loan term can reach 10-15 years.

Among the features of the program, the requirements are also put forward for the property:

fully executed title documents for housing and land;
absence of minors and incapacitated persons among the registered persons;
satisfactory technical condition.

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One way to get a mortgage without having the funds for a down payment is to get a consumer loan for the missing amount. Features of such a loan for a pensioner borrower:

lending is carried out for a period of up to 5 years;
The loan amount is relatively small - 3-5 million rubles;
the interest rate on the loan increases with the increase in its amount;
For participants in salary projects or pension account holders, loyalty discounts are applied; registration is carried out using two documents;
no co-borrowers are required.

A way to avoid a down payment is to buy an apartment on the secondary market on credit with an inflated cost. The transaction scheme is as follows:

The loan applicant needs to find an apartment that would be sold at a price below the market value by about 20-25%. Such situations are possible if the seller changes his place of residence and urgently needs to sell the property.
They agree with the bank on the purchase of such housing on credit.
Contact an appraisal company, which will determine the real market value of the property.
The seller issues it to the buyer and it is provided to the bank to confirm payment of the down payment.
The purchase and sale transaction is registered. When it is drawn up, the contract indicates an inflated cost of the apartment by the amount of the down payment.
The bank issues a loan to the buyer for the amount minus the initial funds.

In order for the parties to the transaction to reach parity, another receipt is drawn up, in which the buyer confirms the return of funds by the seller. The reason for the return is stated to be deficiencies in the technical condition of the apartment.

Until what age are pensioners given a mortgage?

This issue requires detailed consideration. You can get a mortgage from a bank until you are 75 years old. But, before this significant date, the loan must be fully repaid. This means that a pensioner cannot always take advantage of the maximum loan term. For example, if the borrower is already 55, then a mortgage will not be given for more than 20 years. Moreover, it does not always make sense to involve a retired relative as a co-borrower. Sberbank, under the same conditions (age 55), will reduce the period for repayment of loan funds to the same two decades.

Question to the expert

Can a pensioner be a co-borrower on a mortgage?

People of retirement age can be co-borrowers not only if their spouse takes out the loan, but also in other situations. For example, if close relatives of a pensioner want to take out a loan to buy real estate or a car. But in this case, the candidate co-borrower must meet the requirements of the credit institution.

Will a non-working pensioner be given a mortgage loan?

A non-working pensioner can receive a housing loan if his candidacy meets all the bank's requirements and he has collected all the necessary documents. Among the required papers are: a passport with Russian registration, a pension certificate and a certificate from the Pension Fund about the amount of old-age benefits.

Is it possible to get a mortgage for a pensioner without a down payment?

Potential borrowers will not be approved for a mortgage loan without a down payment and this is not related to the category of clients. Banks are reluctant to issue loans for the purchase of real estate without depositing a certain amount. Sberbank requires a minimum of 15% of the market value of the selected property. The total loan amount cannot be more than 85% of the cost of the apartment or house.

How can a pensioner calculate a mortgage?

Preliminary calculation is required. This is necessary to determine how difficult it will be to repay the loan. There are two ways. One involves going to a Sberbank branch. You will have to spend time on the road and in line. Another is a remote way to calculate the terms of a future loan. For this purpose, a special online calculator is available on the website. Based on the results obtained, it is easy to make a decision on the advisability of a loan. Moreover, the pensioner will be able to choose the best conditions by changing the initial data.

Mortgage calculator

To obtain reliable loan figures, you must follow the following step-by-step algorithm:

Select the type of loan and payment procedure.
Please indicate the amount required.
Enter the planned repayment period.

The calculation results will appear immediately. This is the amount of the monthly payment, the total overpayment for the entire period, as well as a detailed monthly schedule. The system will automatically select the optimal programs from which you can choose. Change the repayment period within acceptable limits to change the terms of the loan and overpayment.

Features of mortgages for pensioners from Sberbank

According to Sberbank requirements, mortgages are available to citizens who are able to repay them before the age of 75. Moreover, registration is possible not only for working people, but also for non-working pensioners. Under the mortgage lending program at Sberbank, you can borrow money for the construction of private housing, purchase on the secondary market, or an apartment in a new building.

Since Sberbank takes risks by issuing mortgages to pensioners, the bank requires guarantors or collateral of existing real estate as guarantees.

Sberbank provides money at interest for the purchase of housing under the following conditions :

term - from 3 months to 5 years ;
amount - from 15,000 to 3 million rubles ;
The interest rate is determined based on the income of the borrower and the guarantor, the valuation of the property secured, and the amount of insurance.

An important condition from Sberbank when issuing mortgages to pensioners: payment exclusively in Russian currency.

Sberbank clients have an advantage. That is, if a pensioner receives a pension or salary from a given bank, the chances of approval of a mortgage, subject to compliance with mandatory requirements, are quite high.

Getting a mortgage from Sberbank: step-by-step instructions

The detailed algorithm of actions consists of the following steps:

Preparation. The pensioner collects the necessary primary documentation and makes a preliminary calculation.
Selection of real estate options that meet the wishes and needs of the loan applicant.
Filing an application. You have to either contact a bank branch or fill out a form on the DomClick website.
Collection of additional documentation. The pensioner will be told what papers are missing to make a positive decision.
Obtaining approval and signing of the contract. You must have a passport and a second ID with you.

After this, the pensioner only has to make the initial investment and make timely contributions according to the schedule agreed with the bank.

Re-registration in Rosreestr is mandatory. Otherwise, it will not be possible to talk about the emergence of a property right to dispose of the apartment. True, until the mortgage is repaid, the pensioner will not be able to sell it, donate it, exchange it, or rent it out. The living space is collateral for the loan, and an encumbrance is placed on it.

Required documents

There are the following groups into which the documentation necessary for a pensioner to obtain a mortgage is classified:

Identity documents. A loan will not be given without presenting a passport, as well as a choice of: international passport, driver’s license, SNILS, service ID, pass, military ID, etc. For minor children, this is a birth certificate. Family ties are confirmed by a marriage certificate, cohabitation by a certificate of family composition.
Confirming income and the availability of side earnings. This is a certificate from the Pension Fund. If a pensioner receives payments to a MIR card from Sberbank, this requirement is absent. Working pensioners provide a salary certificate in the form of a bank or 2 personal income tax. Availability of a workplace and sufficient length of service is determined by a copy of the work book, certified by the employer. The exception is salary clients of Sberbank.
Characterizing the property purchased with a mortgage. The pensioner’s task is to draw up a preliminary agreement with the construction contractor or developer if the building has been put into operation. Accordingly, if a secondary home is purchased, the transaction is concluded between the seller and the buyer. It is highly advisable to attach an assessment report and technical documentation.
About the availability of collateral and money for the primary deposit. In the latter case, a certificate of account status is sufficient if it is opened in another bank. The collateral property is assessed, and the technical parameters are indicated in the passport (for an apartment, cadastral, etc.). In addition to real estate, pensioners accept securities, precious metals in bullion, etc. as collateral.

Sberbank approaches the consideration of applications from pensioners individually. Bank employees have the right to request additional papers necessary for approval and issuance of loan funds.

The purchase and sale agreement, preliminary contract, documents from the bank are signed by authorized persons, autographs are certified by the seal of the seller, developer, Sberbank, respectively.

Application Form

In order for a pensioner to be provided with a mortgage with a minimum interest rate, the application must be submitted through Dom.Click. On your first visit you will have to register. In the future, to enter your personal account, just enter your login and password. Online applications with a bad history are accepted on a general basis. But in case of refusal, Sberbank has the right not to report the reason for such a decision. In the form, provide information according to the prompts. The main thing is that the information is reliable. Inaccuracies will cause distrust on the part of credit department employees.

When applying for a mortgage, a pensioner must make scanned copies of documents and send them along with the completed application form.

Sample

The form is available, you must provide the required information:

Full name and personal contact information.
Details of the seller, the object of the transaction.
Purchase price according to the contract.
Down payment amount.
Desired interest rate.
Level of pension received.
Availability of additional income, its size.
The period of planned repayment of the mortgage debt.
Other information according to the prompts.

Show special attention, do not try to be disingenuous. A lie will cause the mortgage to be refused, and the pensioner will have to look for other ways to solve the problem.

Mortgage approval by the bank

It usually takes two to five days to review the data provided and make a decision on the request. If it falls on a weekend, the review period increases to eight. The pensioner receives a notification of approval to the phone number specified in the application and is duplicated by email. Refusal does not always come. If the bank requires additional information to apply for a mortgage, an incoming call will be received and a Sberbank employee will ask the necessary questions and tell you what needs to be done. Keep your phone on.

After approval, the pensioner has three months to complete the procedure for obtaining a mortgage with subsequent re-registration of the property in his name.

Conclusion of an agreement

After agreeing on the terms and checking the provided data, the pensioner will be invited to the bank branch. You must have the originals of the documents required to apply for a mortgage with you. Before signing a loan agreement, a pensioner needs to carefully re-read it in its entirety, or even better if it is done by a professional. Then the pensioner will not have to be surprised at the consequences of his own carelessness when the time comes to pay off the mortgage.

Conditions

It is worth mentioning right away that not all banks are ready to provide loans to pensioners for a number of reasons: advanced age, lack of a sufficiently high income, possible health problems.

However, they may well qualify for a mortgage, but the conditions will be somewhat stricter than usual.

Retirement occurred before age 65, but the borrower continued to work. It is desirable that the work experience is not interrupted or is at least a year.
The borrower has a high enough income to pay the mortgage on time.
It is necessary to accurately calculate the amount of monthly payments: it should not exceed 40-45% of income.
Most likely, banks will insist on additional life and health insurance due to age, which will increase the total amount. But refusing insurance can significantly reduce your chances of approval, or even eliminate them altogether.
In addition, it must be remembered that the repayment terms of the mortgage will also be reduced: banks are unlikely to agree to issue mortgages to elderly people aged 55-65 for more than 10 years. However, this does not apply to people who retired early, as well as to teachers and military personnel: for them the terms may be extended.
Many banks are more willing to agree to issue a mortgage if a married couple with or without children applies for it. Any additional source of income - work, child support, spouse's pension - provides a guarantee of loan repayment and is positively assessed.
A mandatory item is that both the borrower and the co-borrower have a good credit history.

It is worth noting: the listed conditions for obtaining a mortgage are general: banks can put forward their own requirements, which must also be met.
To obtain a mortgage you will need to collect a package of documents:

mortgage application form;
passport and pension certificate;
certificates about the amount of pension and salary if the pensioner is working;
some other documents: certificates of income of co-borrowers, from the Pension Fund, etc.

All documents are carefully checked without fail in order to minimize the bank’s risks.

You may be interested in an article about mortgages secured by existing real estate.

Read an article about the specifics of appraising an apartment for a mortgage here.

Mortgage loan insurance

Collateral property is required to be insured. This is in case of damage as a result of natural disasters, unforeseen situations, fires, floods, etc. however, a pensioner should take care of an insurance policy for his own life and health. This is not necessary, but the bank’s reluctance to minimize the risks becomes the reason for refusing a mortgage. The interest rate will also not be minimal if there is no insurance. This is necessary so that in the event of a failure, the agency will bear the cost of repaying the debt.

Voluntary but mandatory insurance when applying for a mortgage for pensioners

When issuing long-term or large loans, the bank usually requires the borrower to purchase a life and health insurance policy. Moreover, you will have to insure yourself throughout the entire loan term. This circumstance significantly increases the cost of a mortgage, which is sensitive even for borrowers with good salaries or business income.

In the case of pensioners, the situation is further complicated by the fact that insurance companies do not seek to enter into contracts with elderly and, often, not very healthy people. An elderly person will have to undergo a full medical examination (most likely for a fee), and then sign out an insurance contract on conditions that are not the most favorable for themselves.

A mortgage is a secured loan. The subject of collateral can be either new real estate purchased on credit, or any other property that the borrower can provide as property security for its obligations. A mandatory condition for mortgage lending is collateral insurance, which, unfortunately, is also not cheap.

A pensioner has a much higher chance of getting a loan if, in addition to him, a co-borrower and a guarantor are included in the mortgage agreement. These participants in the transaction will have to, firstly, provide passports and documents about their employment and income. And, secondly, both the co-borrower and the guarantor will also be forced to enter into life and health insurance contracts.

What to do if your mortgage is rejected?

If the refusal is motivated by the need to change the conditions or the presence of errors made during the preparation of documentation, Sberbank will send the pensioner a notice stating when and under what circumstances it will be possible to re-apply for a mortgage. Then it is enough to follow the described instructions. If you were refused for another reason, do not refuse the mortgage. Try to contribute more funds when paying the down payment, attract co-borrowers, provide collateral.

An alternative way to purchase real estate using a loan, but not a mortgage, is a non-targeted secured loan. The service is available to pensioners on a general basis.