Agricultural Bank in the number of branches in the cities of the Russian Federation is second only to Sberbank. Today, the number of representative offices of this credit and financial organization has reached the figure of 1,598. Therefore, a branch of the Russian Agricultural Bank can be found in almost any city with a population of more than 30 thousand people. This is important because mortgage lending is much more serious than a small consumer loan. And in order to arrange a home purchase on credit, it is recommended to personally start the bank office, and not just fill out an online application on the organization’s website.
Agricultural Bank Mortgage is a completely state initiative. Consequently, it supports all relevant programs, meaning concessional mortgage lending. Them mortgage options are many, each has its own set of interrelated conditions. The financial institution mentioned above issues loans for any real estate (but this article only means residential):
- buying an apartment in the primary or secondary market;
- mortgage to buy a private house with or without a land plot;
- incomplete payment of shared construction;
- construction of a private house;
- purchase of a plot of land for the purpose of building a private house on it or without it;
- the acquisition of “frozen” construction projects at any stage of construction.
Important points regarding mortgage loans in this bank
Good Finance can distinguish the following set of main criteria that are directly related to the mortgage down payment. These conditions define the core of the housing loan system. They are based on all major mortgage loan programs (according to date from November, 2017).
- Mortgage loan is in the range from 100 thousand rubles to 20 million rubles.
- The size of the loan is influenced by: term of the mortgage, interest rate, down payment, type of residential real estate, option of the mortgage program, and even currency.
- From Good Finance
mortgage loan is given in three currencies – rubles, dollars and euros.
- The part of the standard mortgage loan can not be more than 85% of the market value of the purchased housing.
- Financial resources for real estate can be obtained by the borrower in three ways: 1) the entire amount in full or in large parts in a short period of time when ready real estate is bought; 2) even payments-tranches when it comes to construction; 3) irregular payments with a floating schedule according to an open credit line (as you go to the bank) is also a construction.
IMPORTANT! The client has the right to choose between the type of payments to repay the loan – annuity (fixed payments) or differentiated (the amount of payments decreases as the cancellation proceeds).
- Full freedom of early repayment of the debt without commission and hidden interest is maintained.
- Proof of income by bank form.
Interest rate features
The interest rate on the mortgage is not without reason considered to be the main condition. After all, it is the level of overpayment above the market value of housing. The Agricultural Bank is trying to maintain such a percentage in order to keep up with Sberbank by profitability. It is known that the mortgage rate at the Agricultural Bank is determined by the size of the down payment and the period for which the loan is taken. Of course, there are other factors that influence annual percentages, but these are two main determinants. The larger the down payment, the lower the rate. And vice versa. That is, inversely proportional dependence. The longer the loan term, the greater the rate. And the sooner you learn how to apply for a short-term mortgage from the Agricultural Bank, the lower the annual interest will be. That is directly proportional dependence. Agricultural Bank offers the following conditions for rates.
|An initial fee||Annual interest rate|
|Up to 5 years||5 to 10 years||10 to 15 years||15 to 25 years|
|From 15% to 30%||12.9%||13.5%||14%||14.5%|
|From 30% to 50%||12.4%||13%||13.5%||14%|
|More than 50%||11.9%||12.5%||13%||13.5%|
You need to know a few more important points that can increase or decrease the rate.
- By 3.5% if the borrower refuses to apply for health and life insurance.
- At 0.5% if the property is still under construction. Enhancement is valid until the end of construction. Similarly, the rate rises until the borrower completes a mortgage (or full insurance).
The rate is reduced by one percent if:
- The client has a bank card to which his salary is transferred. That is, is a member of the “payroll project.” It is even easier to take a mortgage in the Agricultural Bank to those people who work directly on this bank. But this condition does not work if the borrower wants to take a housing loan in dollars / euros;
- the client submitted all the necessary documents for a mortgage to the Agricultural Bank before the due date;
- the client must insure a mortgage without fail (only land plots are not subject to compulsory insurance);
- the client as a co-borrower attracts a wife / husband or other individual (not a relative). Such co-borrowers can be up to 3 people.
Borrower’s identity and required documents
In this regard, Bank Good Finance is not much different from most other competitors, who gave you the documents for registration and also ask for other documentation. The main list of documents is described below (these items mainly apply to individuals). Client age should be in the range of 21–65 years. Moreover, the upper age bracket is the age at which the hypothetical mortgage will already be repaid, and not taken. Client’s experience in the last 5 years is at least 1 year. And at the last job – at least 6 months (a copy of the workbook, certified by the employer). Separately, it should be said that persons who have a vegetable garden, a farm, fields, etc., may not confirm their work experience, since this bank adheres to the policy of maintaining agriculture. What documents are needed depends also on what type of mortgage lending the borrower chooses. But in general, this is a standard list:
- Original passport and its full copy.
- Completed application form (fill in online or at a personal visit to the bank).
- Certificate confirming the level of income (2-NDFL or in the form of the bank).
- Men under 27 years old – a certified copy of the military card and the original.
- A separate package of documents for the mortgage, which characterizes residential real estate (cadastral and technical passports, the report of the appraiser, etc.).
- The document proving ownership of housing, which will be secured to the bank as a guarantor. If it is the credit property itself, then the seller must submit the document. If the borrower already owns some kind of living space, then he presents the title deeds.
- Insurance list for the property being acquired.
- Other documents that the bank may require on an individual basis.
Having read the list, it can be understood that, the guarantees of the return of funds, RSHB accepts as a pledge:
- Real estate, the purchase of which is carried out in debt to the bank (the most common option).
- Real estate, which the borrower already owns.
- Either the bank will be satisfied with the help of financial guarantees of co-borrowers / guarantors, if they have proved their material status.
Preferential and special programs
This financial institution supports social programs: military mortgages, mortgages for young families, housing loans for low-income families. They have their own special mortgage terms that are more profitable and gentle than those that are offered as part of the usual market mortgages. Below is a table of examples of military mortgages. To become a participant in the program, a soldier needs to register with the NIS (accumulative mortgage system).
|Rate||Amount, rub. (max)||Crediting term, years (max)||Purpose of the mortgage||An initial fee|
|10.5%||2,050,000||22||Resellers (flat), private house||ten|
|11.9%||20,000,000||25||Any housing options||15%|
For a young family, they give a housing loan at the Agricultural Bank, where the down payment may not exceed 10%. But to participate in the program, one spouse must be younger than 35 years old. If the child is born, the maternity capital may be used to pay the down payment. Moreover, after the birth of the child, the bank is ready to issue a three-year delay in payments (refinancing). A young family can receive the same reprieve for the waiting period while their future housing is being built, but for the time being they have to collect all the documents for a mortgage.
Finally, the Agricultural Bank offers to issue a mortgage for an apartment / house, but through foreign currency. For the purchase of housing, the institution is ready to provide up to 600 thousand dollars or up to 500 thousand euros for 25 years with an initial contribution of 15% and at ten percent interest rate.