Banks provide foreigners who have received a residence permit on the territory of the Russian Federation the opportunity to obtain a mortgage. For persons who do not have Russian citizenship, financial and credit institutions are developing special credit programs.
Does the residence permit give the right to take out a mortgage? Legislative provisions
In accordance with Federal Law No. 102 "On Mortgages", there are no restrictions on the acquisition of real estate, depending on citizenship. Banks have the right to conclude mortgage agreements with foreigners and even stateless people. But issuing loans to citizens of other countries is associated with a number of risks. If the borrower returns home, it will be problematic to find him.
Banking organizations prefer to cooperate with those migrants who have a residence permit. Lenders look at the period of residence in Russia, the total length of service. The longer a person lives in the Federation and works in one place, the more likely they are to pay off their mortgage.
Difficulties and nuances of lending to foreigners
Taking a mortgage with a residence permit for immigrants from other countries is easier than obtaining a consumer loan or an installment plan. Banks are more active in agreeing to secured loans.
But when trying to take out a mortgage loan, foreigners face a number of difficulties. Banks impose more stringent requirements on them in comparison with the conditions on which loans are provided to Russians.
Attention! Financial institutions do not have access to credit bureaus of other countries, they cannot assess the good faith of a potential client. Banks carefully check the citizens who have applied - they analyze the place of employment, family ties, creditworthiness and reliability.
People who live and are employed in Russia on legal terms have the right to count on getting a mortgage loan. Foreigners who have received a residence permit are equated in rights with Russians, so banks are ready to lend to them.
The attitude of local banks to lending to persons in a residence permit
Many banking institutions prefer to cooperate only with Russians. Lending to foreigners is associated with the following risks:
- A migrant can go home, leaving the loan unpaid;
- An employer can terminate a cooperation agreement with a foreigner.
The level of income of a foreign citizen is confirmed only by a certificate provided by the employer, it is difficult to check his solvency. Although some lending companies treat mortgage lending differently, they believe that buying your own home motivates you to be more responsible about your obligations.
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Basic requirements for foreign citizens who decide to take out a mortgage
To obtain a mortgage loan, every potential client who does not have Russian citizenship must register the right to live and work in the Federation.
Banks also impose the following requirements on migrants:
- Age over 21 years on the day of submission of the application form up to 65-70 years old on the date of the last scheduled payment;
- Availability of a valid mobile number;
- Official employment and continuous work experience with a Russian employer from 6 months;
- Accommodation, registration in the city where the bank has a representative office.
Banking organizations often require co-borrowers and / or guarantors from persons with foreign citizenship.
Loan terms
When considering an application for a mortgage loan, banking organizations assess the reliability and solvency of a potential borrower.
Before giving a mortgage, the bank will check that the client meets the following conditions:
- Legal residence in Russia;
- Correct payment of tax payments and fees;
- Solvency (the amount of borrowers' obligations should not exceed 40% family income);
- No other debts;
- Good credit history (if a foreigner has previously taken out loans in Russia).
Some banking institutions require seniority in Russia to exceed term 2 years. Banks can set other credit conditions for migrants to minimize their risks.
Currency and interest rates
Russian banks issue all mortgage loans in rubles. It is impossible to take out a mortgage in another currency.
The amount of overpayment is directly related to the credit policy of the bank. But financial institutions issue more expensive loans to foreigners. The interest rate increases by 1-1,5% compared to the cost of loans for Russians.
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In the mortgage lending market, you can find offers for which the overpayment on the loan is from 9,25% annual.
Down payment, insurance requirements
Russian banks issue mortgages to citizens of other countries only after making an initial payment. For migrants, banks set it in the amount of 15%... But some raise to 50-60% from the appraised value.
You can avoid paying the first installment if other liquid assets are pledged as collateral. It is important that the loan amount does not exceed 85% from the value of the collateral.
Many lenders require you to insure collateralized real estate when issuing a mortgage loan.
Warning! Some banks issue money to foreign borrowers only on condition that the client's life and health are insured.
The list of necessary documents for registration of a mortgage by persons with a residence permit
To obtain a mortgage from a Russian bank, a migrant must submit an application and attach:
- Civil passport of the country of which he is a citizen, with a notarized translation;
- Documents confirming the right to stay in Russia (residence permit, migration card, visa, residence permit);
- Papers confirming the presence of official employment and the amount of income;
- Work permit in the Federation;
- Documents for housing that a potential borrower plans to buy.
A financial and credit institution has the right to demand:
- Bank statement of accounts to confirm solvency;
- Documents for previously acquired property;
- Papers that confirm the received education.
At its own discretion, the bank can expand the list of required documents.
Banks in the Russian Federation that provide mortgages
You can get money to buy your own home in:
- Alfa Bank;
- VTB;
- UnicreditBank;
- Raiffeisenbank;
- DeltaCredit.
Sberbank does not work with foreigners. One of the requirements for a loan from the most famous bank in Russia is Russian citizenship.
Information on the terms of lending by various credit institutions is provided in the table:
| Bank | Loan amount, rub. | Mamaximum loan term, years | Minimum down payment,% | Minimum interest rate,% |
| Alfa Bank | 50 000 000 | 30 | 15 | 9,29 |
| VTB | 60 000 000 | 30 | 20 | 10,1 |
| UniCredit Bank | 30 000 000 | 30 | 15 | 10,75 |
| Raiffeisenbank | 26 000 000 | 30 | 15 | 10,25 |
| DeltaCredit | The minimum amount is 300,000 | 25 | 15 | 8,75 |
Reasons for refusing to provide a mortgage to a foreign person with a residence permit
If, during the verification of documents, fakes are revealed, or the borrower looks unreliable, then he will be denied a loan. They will not give a mortgage to persons who do not meet the requirements and conditions put forward by the bank.
But even providing a full package of documents, having a job, high income and registration is not a guarantee that the issuance of a mortgage will be approved.
Credit experts name the following among the most common reasons for refusals:
- Lack of credit history (there is no way to assess the reliability of the client);
- Bad credit history;
- Insufficient number of scoring points (people who are married and have children have a higher chance of approval of the application);
- Convictions;
- Unpaid fines, debts on loans, alimony;
- Lack of higher education;
- Unreliable employer;
- Insufficient amount of free funds on accounts;
- Previous convictions or bad credit history with relatives, guarantors, co-borrowers.
Sometimes a refusal can be received if the bank suspects that the borrower is planning to repay the loan ahead of schedule. If there are already several refusals from other financial institutions in the credit history, then the next appeal to a new bank may also end in failure.
We increase the chances of obtaining a loan and bypass pitfalls
You can increase the likelihood of mortgage approval by contacting the newly created banks. They are more willing to approve loans, because they need to build up their client base.
Credit experts recommend to potential borrowers:
- Provide only reliable data;
- Bring a co-borrower, guarantors;
- Provide other collateral (in addition to the property being purchased);
- Always be in touch;
- Comply with the requirements and deadlines for submitting documents.
Advice! First, you can try to get a consumer loan or credit card at the selected bank. Financial institutions are more willing to approve other loans to their clients.
You can avoid problems when submitting applications and reduce the likelihood of refusal if you know about all the pitfalls of Russian mortgage lending. Mediators can help to sort out the nuances.
Foreigners have the right to obtain a mortgage in Russia, many banks work with residents of other countries. But migrants who legally reside in the territory of the Federation, are employed, have official income and live in the region where the bank is located can count on receiving a loan.
