Military mortgage
The military mortgage was developed by order of P resident of the Russian Federation in 2004, as a special program for military personnel that provides the opportunity to buy housing with a loan.
In 2016, the amount accrued by the state to the NIS participant was 245880 rubles.Military mortgage savings will increase in 2017. The amount of accruals will be 260,141 rubles . The contribution amount appears to have increased in 2017 compared to the previous year..
Inclusion of a military personnel in the register of military mortgages
A military personnel who has reached the age of 25 can become a participant in the savings-mortgage system (NIS) in accordance with the Federal Law of the Russian Federation of August 20, 2004 N 117-FZ “On the savings-mortgage system of housing provision for military personnel.” After three years of participation in the NIS, he can purchase housing without waiting for the end of his service. Obligatory private members of NIS are considered to be officers and warrant officers who entered into their first contracts for military service on January 1, 2005. All officers who entered service by conscription or voluntarily from the reserve after January 1, 2005. On a voluntary basis, persons who received a higher military education and the first military rank of officer after January 1, 2005 can become participants in the NIS, and the contract must be concluded before this date. Officers and warrant officers who signed the first contracts before the military mortgage law came into force. Also, sergeants, petty officers, soldiers and sailors who entered into a second contract after January 1, 2005 can become voluntary participants in the NIS program.
The right to participate in the NIS is completely independent of the participant’s living conditions and marital status.
Those who are obligatory participants in the “military mortgage” receive a written notification of their inclusion in the register of NIS participants, and a savings account is opened in their name. Voluntary participants must write a report addressed to the commander where they serve. Signed enters Ministry of Defense of the Russian Federation, after that - toFGKU Rosvoenipoteka , where a certificate of the NIS participant’s right to receive a housing loan is issued.
The date of registration of such a document is considered the starting point for the receipt of funds into the savings account (according to the Federal Law, inclusion of a person in the register of NIS participants must occur no later than 10 days after writing the application). After receiving the certificate, the participant must find housing to purchase within 6 months. If this fails, then the certificate must be submitted by filling out an appropriate application at the nearest branch of Rosvoenipoteka. To purchase the home you like, you will have to issue a new certificate.
To replenish the savings accounts of military personnel, money from the federal budget is used, and the account also receives money from investing funds in the account. The savings contribution is set for each year taking into account inflation. It will be possible to receive the amount from the account after three years of participation in the NIS. The funds can be used to purchase residential property, pay or repay a mortgage. If a military member participating in the NIS has not used the funds in the savings account, then after 20 years of service he can use them at his own discretion. The same opportunity is available to a soldier who has served 10 years or more and is dismissed upon reaching the age limit for service or for health reasons, or due to , or for family reasons. Close relatives of an NIS participant will have the same right to receive money due to his death, destruction or recognition as missing.
Exclusion of military personnel from the NIS register
In case of early departure from service, the NIS participant will be obliged to repay the entire targeted housing loan, i.e. down payment and all monthly payments to pay off the mortgage loan, as well as pay interest on the loan. The loan can be repaid within 10 years. Only after all debts have been paid in full will the deposit in favor of the state be removed from the housing. Also, the loan debt to the bank can be repaid using personal money, but in this case the bank has the right to independently change the conditions (increase the loan rate, shorten the payment period). The deposit in favor of the bank will be removed only after the loan has been fully repaid.
A preferential military mortgage can only be granted as long as the borrower serves in the Armed Forces. If a serviceman is discharged early on grounds in which he does not have the right to use the accumulated funds, he will be charged additional interest payments based on the bank rate in effect at the time of signing the agreement.
Apartments with military mortgage
You can choose an apartment in any city: Moscow, St. Petersburg, Yekaterinburg, Samara, Rostov-on-Don and others regions and settlements of the Russian Federation. An agreement for the purchase and sale of residential premises is concluded between the NIS participant and the seller. Since 2015, you can buy both primary housing and an apartment on the secondary market. The monthly payment amount is 1/12 of the NIS participant’s savings contribution.Which banks offer military mortgages in 2017?
Until the end of 2011, mortgage loans under the Military Mortgage program were issued only by AHML partner banks. In 2017, the following banks and credit institutions operate military mortgages: AHML, Sberbank of Russia, Gazprombank, Rosselkhozbank, Svyaz-Bank, VTB24, Bank ZENIT. Currently, Sberbank of Russia issues military mortgage loans to military personnel at 15.9%. Military personnel conduct analytics of banks and loan programs for military mortgages. As a rule, NIS participants choose a reliable bank that provides mortgages at a lower interest rate.
When calculating the loan term, the bank assumes that the loan must be repaid when the borrower reaches 45 years of age. However, the loan term should not exceed the period specified in the Certificate of the right of a participant in the savings-mortgage system to receive a mortgage loan. The minimum loan term is 36 months.
Military mortgage: loan amount in 2017
How much do banks give for military mortgages in 2017? This question worries many participants. The maximum loan amount for a military mortgage in 2014 was 2,300,000 rubles, the minimum was 300,000 rubles. These payments are the same for all military personnel and are indexed annually by the state.
Amount of savings contributions on military mortgages since 2005:
| 1 | 2005 year | 37,000 rub. |
| 2 | 2006year | 40 600rub. |
| 3 | 2007year | 82 800rub. |
| 4 | 2008year | 89 900rub. |
| 5 | 2009year | 168 000rub. |
| 6 | 2010year | 175 600rub. |
| 7 | 2011year | 189 800rub. |
| 8 | 2012year | 205 200rub. |
| 9 | 2013year | 222 000rub. |
| 10 | 2014year | 233 100rub. |
| 11 | 2015year | 245 880rub. |
| 11 | 2016 | RUB 245,880 |
Military personnel receive savings for a military mortgage in 2017 to a personal account in monthly equal shares, such as 1/12 of the annual accrual amount.
Discussions on military mortgages and legal advice are conducted on our website. In the forum sections you can also find out news on military mortgages in 2017.
Until recently, in order to get their own housing, officers had to stand in line to receive an apartment, like other citizens of our country. At the same time, having rejected an unsuitable option, they could find themselves back at the “tail” of the list.
In order for military personnel to be confident in the future and know that they and their families are guaranteed to receive housing of their own choice, in the coming years, and not at the time of retirement, and also in order to attract young people to serve in the army under contract , the Ministry of Defense and the Government of the country developed a funded system, which began to operate in 2005.
The savings-mortgage system allows you to become the owner of your own home in the first years of service.
The system includes all aspects of this issue, including legal, financial and organizational relations. Military personnel of any branch and rank can use the program. All issues are regulated Federal Law “On the savings and mortgage system of housing for military personnel” No. 117. The law reflects the main goals of the program, the principles of its operation, the requirements for participants, the formation of the register, inclusion and exclusion from it, as well as the mechanism for implementing the program itself.
The system implies creating a list (register) military personnel who entered the program. A separate personal account is opened for each person, where monthly savings contributions are transferred. Afterwards, a loan can be provided from federal budget funds, its amount is equal to the funds that a program participant could collect from savings contributions, subject to service for at least twenty years. Funds are paid up to three months after the participant submits the application. By law, you can use the program just one time.
Funds are accrued based on the Government Decree of November 7, 2005 “On the procedure for functioning of the savings-mortgage housing system for military personnel” No. 655.
In addition to Federal Law No. 117, “military mortgage” is based on some provisions and resolutions of the Bank of Russia, the law “On the status of military personnel”, “On mortgage (pledge of property)” and other regulations.
Implements the operation of the program Federal State Institution "Rosvoenipoteka", which reports to the Ministry of Defense.
Procedure for financing and accrual of funds
During the entire period of service, monthly contributions are taken into account in the personal accounts of program participants.
Their amount cannot be constant: annually indexing occurs taking into account the inflation rate. Thus, in 2005, since the beginning of the program, it amounted to 37,000 rubles per year. In 2014, due to the crisis, indexation decreased, and in 2016 the government completely refused to index contributions. The military personnel immediately felt this for themselves, since as a result they “owed” credit institutions up to 1 million rubles. indexation has resumed, and today the amount of the annual contribution is 260,141 rubles.
In addition, income from investing funds is credited to personal accounts every quarter. The selection of companies that will manage funds and invest them makes "Rosvoenipoteka". The military personnel themselves cannot influence this, since until the moment of payment the funds do not belong to them. 
Who can become a participant
Military personnel of different categories can join the program, regardless of rank and branch of service.
Submit a report about participation in the “military mortgage” can:
In a programme do not participate military personnel transferred to the reserve due to retirement after 01/01/2005. For them, the Ministry of Defense has adopted a different housing scheme.
After three years of participation In the program, a serviceman can purchase an apartment using funds accumulated in a personal account. At the same time, he can choose a property in any place, without tying it to the region of service. The choice of housing is also not affected by the presence of another real estate property, the composition of the family and the area of the purchased apartment or house.
Participants' rights
After a system participant has served under a contract for three years, he has the right to dispose of the savings collected in his personal account.
They may be spent for the purchase of any home with a mortgage or using a targeted loan. In addition to mortgages and borrowed funds, military personnel can use this money to purchase housing without using a loan or spend it on improving existing housing conditions.
When purchasing a home on credit, a serviceman can expect to receive 13%.
Along with a “military mortgage,” any other “civilian” loan product can be used if the applicant does not have enough NIS funds to purchase the desired property. Moreover, if a service member has a mortgage, he can use the funds accumulated in his account to pay off the existing mortgage.
In the event of a divorce, housing purchased with NIS funds cannot be divided, since while the serviceman is a participant in the program, the apartment or other type of residential real estate is pledged simultaneously to both the bank and the Ministry of Defense.
Regarding the rental of empty housing purchased under a “military mortgage”, if this clause is not specified in the contract, in order to rent it out you will need the consent of the credit institution with which the apartment or house is pledged.
Loan repayment procedure
Funds from the military savings and mortgage system are used to repay a targeted housing loan. All funds collected in the account by the time the loan is issued are used to make the initial deposit. All obligations for the remaining loan payments are assumed by Rosvoenipoteka.
You can only spend money for such purposes:
- acquisition of residential real estate on collateral;
- making an initial payment on a mortgage loan and further payments to repay the debt;
- acquisition of residential real estate under an equity participation agreement.
Housing purchased using “military mortgage” funds becomes the property of the serviceman, but remains pledged to the bank and the military department until the end of the payment period.
In order to purchase housing under the program, you need to complete the following: actions:
The program participant must understand that by joining it, he must serve in the Armed Forces for at least 10 years. If after this period he retires, he will have to pay off the remaining mortgage debt on his own, without the participation of budget funds. Those who have served for 20 years or more are in a much more advantageous position: the entire loan debt is paid off through the program, so it is better for military personnel to join it earlier and start using the funds.
In addition to 20 years of service, targeted use of funds is possible if the serviceman has reached the end of service or was dismissed due to staff reduction; in case of death or recognition as missing; due to the onset of disability (in this case, the balance of the loan debt will be repaid not from the funds of the military family, but from the regional budget for the obligations of the state to the NIS participant).
Registration number and verification of savings
All military personnel participating in the program receive a special number indicating their registration in the registry.
To do this you first need to write an application addressed to the head of his military unit. After this, the candidate submits information about himself to the regional branch of Rosvoenipoteka, where the participant is registered and assigned individual registration number of the participant. It is necessary in order to open a special account in which funds will be collected and receive information about their receipts and expenditures.
Notification of the assignment of a number to each military personnel is sent by official mail at the place of service. If three months after writing the report, the notification has not arrived, you can find out your number in the personal card of the military man in your unit. If the card does not contain information about IRNU, then you need to submit a report to the leadership and make an official request to Rosvoenipotek and the housing department to which this military unit belongs.
After registration, you will be able to control the status of your account through your Personal Account on the portal of the registering authority.
Restoring a lost certificate
If you lose your NIS participant certificate, you need it as quickly as possible restore. This is done according to the same scheme as the initial receipt.
A report is written to the leadership of the unit, which includes information about the serviceman’s passport, registration data in the system: date and individual number. The report in the unit must be assigned a registration number and an entry about this is made in a special journal. After that within 30 days a new certificate must be obtained.
The recovery status can be checked via the Internet; in the appropriate section you will need to enter your data, after which the system will find all the information about the readiness of the document. You can also check your account status in the same way.
Service housing
At the place of service, the soldier and his family must be provided with housing for three months after arrival at the unit. It is temporary and subject to transfer to the state after transfer to the reserve.
If, simultaneously with receiving official housing, a serviceman owns an apartment in another region or locality other than his place of service, which he purchased under a “military mortgage”, the right to use municipal housing remains with him.
The same applies to the case when a military man applying for departmental housing becomes a participant in the NIS. According to the law, the presence of living space (municipal or private) is not an obstacle to participation in the program.
The benefits of participating in the system discussed are described in the following video:
Over the course of several years, it gave many servicemen in need of housing the opportunity to become owners of apartments and even houses. But it was not possible to fully satisfy the needs of all military personnel on the waiting list, in connection with which the possibility of introducing a new program is now being considered, which should, together with the NIS, fulfill the task.
Over the years, the law and program adopted in 2004 have undergone many changes. Those introduced annually did not affect the law itself, but only clarified some legal interpretations and were adjusted according to the demands of time and the desire of the military. on practice? It has become possible to purchase housing not only among offers on the secondary market, but also in new buildings, houses under construction, in suburban residential properties with plots and also townhouses.
Savings contributions
Changes annually, which is credited to the participant’s personal account. Rosvoenipoteka and its amount of annual contributions are commensurate with the growth of square meters, which became more expensive due to the high level of inflation. Already in 2013, the amount of the savings contribution for the year amounted to 222 thousand rubles, which, in comparison with 37 thousand in 2005, is, of course, significant. for 2014, has already approved, on the basis of a Government Resolution, the amount of the annual contribution in the amount of 233,100 rubles. Thus, the monthly amount will be 19,425 rubles.
Thanks to this attention to military personnel, the opportunities for participants in the savings and mortgage system to purchase comfortable housing have expanded.
It is also worth noting that military mortgages are also available for other structures where military service is required by law. For example, also uses NIS.
Information on the official website
You can find out the essence of providing military housing under this program and become familiar with its requirements. It is on the official website that you can find out the mortgage options developed by AHML:
- The standard mortgage option offers a fixed payment that is 1/12 of the military mortgage savings installment. With a quarterly increase in the savings contribution, the difference between the contribution amount and the payment to the bank remains in the personal account of the NIS participant. The remaining amount can then be spent at the discretion of the account holder.
- Under the second option, the loan amount will be the total amount of contributions that a participant in the savings-mortgage system must receive during his service. The monthly payment amount will be 1/12 of the annual receipts to the account. The rate varies and depends on inflation. The funds are transferred in full to the lender, and accumulation in the personal account stops.
Only those military personnel who are included in the register and have received a notification with an individual registration number.
All military personnel included in the register of NIS participants must independently pay for the costs associated with the assessment of real estate, obtaining an insurance policy and other related services.
About the NIS participant certificate
And an important question is the validity period of the certificate of a participant in the savings-mortgage system, information about which can again be found on the official website of mortgages for military personnel. The signed Certificate is drawn up in Rosvoenipotek and sent to the addressee in the unit where he serves, or directly to him.
The certificate is valid for six months from the date of signing. That is, during this time the soldier must:
- select a bank;
- find real estate, negotiate with the seller;
- conduct an assessment;
- obtain bank approval and draw up a loan agreement;
- draw up an agreement with the seller;
- send documents to the Federal State Public Institution Rosvoenipoteka.
If the deal fell through or there was not enough time to search for housing or choose a bank, then at the nearest branch of Rosvoenipoteka you need to write an application and attach an unused Certificate.
By visiting the official website of Rosvoenipoteka ru, every military man can find out how to get into the register of NIS participants, which banks work with Rosvoenipoteka according to AHML standards, and which ones according to their own standards.
The law provides for the purchase of housing in any city and region. But if the serviceman believes that I will transfer the money indicated in the Certificate to another city, and the issue of purchasing an apartment will be resolved. No, that's not entirely true. A prerequisite for performing legal actions is the presence of a notarized power of attorney. And a number of banks require a personal signature on a targeted housing loan agreement.
Rights of a participant in the savings and mortgage system
Military personnel enrolled in the register of NIS participants receive a state subsidy for the entire period of service. The right to use savings begins within three years from the date of enrollment in the NIS.
In a market economy, military personnel are not able to earn money to purchase housing. The savings mortgage system for military personnel (hereinafter referred to as NIS) is designed to correct this situation.
In 2019, most active-duty military members can become automatic or voluntary participants in the program. It allows you to take out a mortgage already in the fourth year of participation and not have to worry about repaying it.
What it is
NIS is a set of activities carried out by several government agencies. These include:
- Ministry of Defense.
- Federal Directorate "Rosvoenipoteka";
- "Agency for Housing Mortgage Lending" (AHML).
The essence of the program is as follows:
- Funds are allocated and transferred from the state treasury to personal accounts
- Only military personnel who fall within the established parameters can obtain the right to savings.
- Money has a specific purpose, therefore, it can be spent:
- to buy an apartment or house;
- to pay off the mortgage.
Who can join the system
- received officer ranks upon graduation from educational institutions from 01/01/05;
- entered into a contract for;
- midshipmen and warrant officers who began service on 01/01/05, after a three-year term;
- Soldiers, sergeants, and sergeants are entitled to participate in a re-contract signed after 01/01/05.
College graduates automatically join the savings system upon receiving their first rank. The lists are prepared by the Ministry of Defense. The remaining soldiers and officers must declare their desire to take part in the program. This is done by submitting a report to senior management.
Attention: relatives of deceased military personnel are provided with preferences related to the provision of money credited to the personal account of the deceased.
Do you need information on this issue? and our lawyers will contact you shortly.
Who is excluded from participation?
- death of a serviceman;
- the court declared him missing;
- dismissal from military service;
- allocation of an apartment (house) at the expense of the state budget.
Special conditions
The law allows you to use accumulated money in any locality in the country. This leads to the need to provide the military man and his family with housing at the place of service. These factors are also taken into account in the terms of the program.
They stipulate that participation in the system:
- does not affect the right to receive official housing;
- is not related to the ownership of real estate by a military man or his relatives.
How the military is included in the NIS
The rules for registration of participants were approved by government decree No. 89 of February 21, 2005. In particular, the text of the document contains a limiting clause:
- Only a citizen of the Russian Federation can become a participant in the savings program;
- the applicant must have a contract with the Ministry of Defense.
Registration is carried out by entering the participant’s data into the register. In 2019, graduates do not need to submit a report. All information will be included in the list automatically, upon submission of the educational institution (after signing the contract).
Attention: there is a different set of measures to provide housing. They are not included in the NIS.
Voluntary applicants are required to write a report to the head of the department. The document is registered in the office and sent to Rosvoenipoteka. After checking the information, the applicant receives a notification that his data has been included in the register and funds are credited to his personal account.
Hint: the first day of participation in the system is the date of submission of the report. Download for viewing and printing:
How money is transferred from the state budget
After the applicant is included in the register, he is sent information about the registration number. This is sent in writing to the address of the military unit indicated in the report. This information is needed for:
- confirmation of participation in NIS;
- tracking the accumulation process;
- planning how to spend money.
Important: transfers are made monthly:
- in the amount of 1/12 of the contribution established for the current year;
- starting from the date of submission of the report;
- for college graduates - from the day of conferring the first title.
Thus, the amount of military savings depends on two factors:
- The amount of the annual contribution from the federal budget established by the Government of the Russian Federation.
- Period of participation in the system.
Savings do not depend on the following factors:
- number of family members;
- position, title, etc.
How and when you can spend money
The procedure for using funds is prescribed by law. Participants in the system receive the right to invest them if certain conditions are met:
Hint: savings are indexed annually. In addition, military personnel are awarded a certain percentage for their use in investment projects.About the contribution amount
The initial amount is established by law. Thanks to annual indexing, its value increases annually. Thus, in total for 2017, each participant received 260,141.0 rubles.
For information: transfers in previous years are as follows:
- 2012 - 205.2 thousand rubles;
- 2013 - 222.0 thousand rubles.
How to purchase a home
The investment algorithm is similar to applying for a mortgage. So, the program participant will have to do the following:
- Study the offers of partner financial organizations (the list is on the program website).
- Choose a suitable bank.
- Order a settlement for the maximum amount, taking into account the lender’s conditions.
Hint: The mortgage is calculated so that the last payment is made by the service member before his 45th birthday.
- Choose housing at your own discretion within the amount specified by the lender.
- Conclude a preliminary agreement with the seller and conduct an independent assessment of the value of the property.
- Sign a loan agreement based on the documents provided (specified in the previous paragraph).
- Insure the purchased property.
- Conclude a purchase and sale agreement.
- Send a package of documents to the Federal State Institution “Rosvoenipoteka” to organize the transfer of funds to the bank.
Attention: housing is immediately registered as military property. However, until the terms of the transaction are completed, it is jointly pledged by:
- states;
- credit organization.
When is it more profitable to invest savings?
Due to the various subtleties of the conditions for using funds, the following must be taken into account:
- If you enter into a mortgage agreement after three years of military service, you will have to:
- remain in the military until at least ten years of service;
- pay off the loan balance from your own funds in case of early dismissal;
- If you wait until 20 years of experience, then:
- savings are enough for a large apartment;
- The loan balance will be paid by the budget.
Information: if a serviceman dies in the line of duty (or is declared missing), then relatives receive the right:
- to receive money from a personal account;
- to continue loan repayments within the framework of signed agreements.
Advantages and disadvantages of the program
The following circumstances are recognized as the undeniable advantages of military savings for apartments and houses:
- the amount of earthly funds allows you to purchase good housing (credit is provided to defenders of the Fatherland in a larger volume than to civilians);
- You can buy a house in any corner of the country;
- the military man is freed from the need to worry about where his family will live after discharge;
- In addition, he does not spend money from his salary on the purchase of real estate.
The disadvantages include the registration process. It requires collecting a large amount of paperwork. You have to conclude contracts and attract specialists, which is quite difficult without legal support.
In addition, the system participant is required to pay money from his own pocket for:
- conducting an independent real estate assessment;
- insurance;
- real estate and legal services.
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Welcome! Today we’ll talk in more detail about the savings-mortgage housing system for military personnel, how savings mortgages help military personnel realize their right to housing from the state.
The savings and mortgage system for military personnel was created with one main goal - to help military personnel and their families acquire comfortable housing with the help of mortgages on preferential terms. Let us examine in more detail the features of the implementation of the state program with the participation of NIS.
On behalf of the President of the Russian Federation, in order to realize the rights to own housing with the help of a mortgage for military personnel, in 2005 a savings-mortgage system (NIS) was developed and began its work. For this purpose, the Federal State Institution “Rosvoenipoteka” was created, the main functions of which are:
- posting on the official website all necessary information for the population;
- preparation of documents and certificates;
- maintaining a register of participants;
- accounting of all savings in accounts;
- implementation of measures aimed at obtaining funds for military personnel;
- other functions provided for by law.
All functioning of the savings and mortgage system is regulated by the following regulations:
- Federal Law No. 117 “On the NIS of housing provision for military personnel” dated August 20, 2004.
- Civil Code of the Russian Federation.
- Housing Code of the Russian Federation.
- Decree of the Government of Russia No. 655 of November 7, 2005 “On the procedure for functioning of the NIS of housing provision for military personnel.”
The main one, of course, is 117-FZ, which establishes the obligations, rights of the parties involved, features of the targeted expenditure of funds and other restrictions and opportunities.
The essence of the NIS lies in monthly subsidies from the federal budget to the personal accounts of military personnel participating in the system from the very moment of registration/receipt of a confirming certificate. The balance of funds in each account is determined by the total term of participation and the established contribution amount.
You can use the money accumulated in the account only after 3 years from the date of its opening to pay the down payment on the mortgage or pay off part of the current debt under the loan agreement.
Military mortgage allows NIS participants to buy an apartment or a separate house in both the primary and secondary real estate markets. The acquisition of land for the purpose of further construction under this program is not permitted.
How to register with NIS
In order to become a participant in the NIS, a serviceman must comply with the categories of military personnel entitled to receive a military mortgage established by 117-FZ. These categories include:
- military personnel with the rank of officer who entered into their first contract for service in the RF Armed Forces after 2005;
- warrant officers, midshipmen and petty officers with a contract duration of more than 3 years;
- soldiers, sailors, sergeants with a repeat contract concluded after the start of the state program.
The registration procedure itself in NIS is carried out in two ways:
- automatically (the register and lists of military participants are formed in educational institutions and upon concluding a contract for service without the participation of the military man himself);
- using an application (military personnel who do not fall under the requirements of federal legislation can, on their own initiative, submit a report addressed to their immediate superiors with a request to become a member of the NIS and subsequently receive a preferential mortgage).
If the outcome of the case is positive, the applicant will be included in the register and will receive a supporting certificate. After this, Rosvoenipoteka will assign the military man a unique identification number (registration number of a participant in the savings-mortgage system) and open a personal savings account, to which government funds will then be credited.
How the personal account of a member of the NIS institution of the Federal State Institution Rosvoenipoteka works is discussed in detail in the next post.
Participation in NIS and use of savings
The legislation annually establishes the amount of the NIS contribution, which will be transferred to the military personnel to his personal account. The transfer is carried out by dividing this amount into equal 12 parts - that is, for each calendar month. In 2017, the contribution of the savings-mortgage system is 260 thousand rubles. This amount is subject to annual indexation and adjustment taking into account inflation, but since 2016 it has remained unchanged. This is due to the unfavorable economic situation in the country.
After three years of participation in the NIS, when there is already a sufficient amount in the account, the serviceman will be able to use these funds to apply for a targeted housing loan under the preferential “Military Mortgage” program. In summary, the process of implementing the NIS program is as follows:
- Choosing housing
Since 2016, military personnel have been given the right to independently choose the property they are purchasing, including the area of the city or town, house, number of floors, layout and area. But naturally, there are a lot of restrictions imposed both by Rosvoenipoteka and banks. Housing must be included in the list of facilities accredited by these structural divisions (you can find out more specifically on the websites or in person) and meet the established requirements. Such requirements include the permissible level of wear and tear of the building (for the secondary market), the presence of necessary communications, compliance with all social and sanitary standards according to the Housing Code of the Russian Federation, etc. It will not be possible to buy dilapidated housing subject to demolition or reconstruction, as well as apartments with illegal redevelopment . No one will give such permission.
- Studying offers in banks
NIS participants will be able to obtain a mortgage loan only from certain partner banks. Currently, 13 largest Russian banks are implementing such programs, including Sberbank of Russia, Gazprombank, Rosselkhozbank, Svyaz Bank, Zenit Bank and others. The lending conditions in them are quite similar, but there are still some differences. They relate to the interest rate, type of payments, the need for insurance and the requirements for the borrower. Before making a final choice in favor of a specific lender, the client is recommended to study the loan parameters in detail and use a visual mortgage calculator, which will allow you to estimate the final cost of the loan in advance and in case of force majeure (for example, dismissal) be prepared for such a financial burden.
- Preparation of a package of documents and submission of a loan application
Along with the NIS participant certificate, the military man will have to provide the bank with a minimum set of documents, including a Russian passport, an application form and documents for the purchased property. Some banks may additionally require a marriage certificate, SNILS, consent of the spouse to receive a loan and transfer of housing as collateral. For secondary real estate, it will be necessary to provide a report on a professional assessment of the property (the assessment is carried out at the serviceman’s own expense).
- Submitting the submitted application to the Credit Committee and making a final decision
Like any other mortgage application, an application for a military mortgage is considered at least 5-7 days, since a thorough check of the provided documents and real estate, in particular, is required. The maximum duration for making a decision does not exceed 14 working days. After this, the final decision will be immediately announced to the client.
- Conclusion of a purchase and sale agreement
If the bank makes a positive decision in favor of the potential borrower, then the next stage will be the conclusion of a tripartite purchase and sale agreement between the buyer (NIS participant), the seller and Rosvoenipoteka. The contract must stipulate in the clause on the procedure for payment for the purchased housing that the transfer of money will take place using borrowed funds.
- Conclusion of a mortgage agreement
The mortgage agreement is concluded after agreeing on all details and terms of registration with the bank and Rosvoenipoteka. A payment schedule will be a mandatory annex to the agreement. After signing the contract and schedule, Rosvoenipoteka will transfer the amount of the down payment to the account of the real estate seller. All operations by this body are carried out exclusively in non-cash form, which allows for maximum transparency of all procedures. All terms for receiving money are set out in detail in the mortgage agreement. As soon as the government agency transfers the money to the seller, the remaining amount will be credited by the creditor bank.
- Fulfillment of loan obligations by the borrower
The current payment schedule details the terms of repayment of the client's debt, broken down by month. The repayment scheme is such that every month money from the budget is received into the military account as part of the annual contribution, which is written off as payment under the concluded mortgage agreement. Since the contribution amount can be adjusted, the schedule will also change accordingly. The new schedule is sent by Rosvoenipoteka to each borrower, or can be obtained directly from the bank.
If the monthly payment from the state budget is enough to service the mortgage debt, then the serviceman does not contribute any of his own funds. If not, then the remaining part is paid by him. The agreement also allows for repayment of the debt ahead of schedule in full or in part.
Pros and cons of the savings-mortgage system
The NIS, as a proven government support measure, has many obvious advantages. Among them:
- the opportunity to obtain housing almost immediately after entering the service, without waiting for long years of service and retirement;
- permission to participate in the program even if the military man and his family have their own housing;
- equality of annual contributions for all ranks and ranks of military personnel, without any discrimination;
- the ability to independently select the property to be purchased (district, area, layout, number of floors, etc.);
- preferential lending conditions (lower interest rates) and loyal attitude towards borrowers;
- possibility of early repayment of debt.
But there are also disadvantages:
- limitation of the maximum amount (up to 2.8 million rubles);
- the need to contribute your own funds to pay additional expenses (for an assessment report, purchase of an insurance policy);
- bureaucracy and lengthy processing times by government agencies;
- exclusion from the register and requirement to return all savings in case of dismissal.
In general, participation in the savings-mortgage system is an effective financial form of assistance to military personnel with families who do not have their own housing. This is a good alternative to the previously used program to provide this category of citizens with ready-made housing, which did not differ in comfort and desired living conditions.
You can learn more about how savings mortgages work in different banks from a special post.
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