A mortgage is a heavy burden. If a person manages to find a bank that will issue a loan on more favorable terms, it makes sense to refinance to reduce the monthly payment and overpayment for the entire period. This procedure is called mortgage refinancing. It involves closing a loan in one bank and “opening” it in a new one, but on more favorable terms. How to refinance a mortgage, and what difficulties will you encounter?

Mortgage refinancing – when, why and to whom?

In essence, refinancing is the right of the borrower, which is enshrined in the Law “On Mortgage” (Chapter 7). The legislator clearly indicates that collateral (real estate) can be transferred to secure a loan to another creditor.

Almost every major bank can offer its clients a mortgage loan refinancing program. Since competition in the banking industry is high, mortgage lending products have favorable conditions for borrowers.

Persons who have taken out a loan at a high rate, before refinancing their mortgage with a third-party bank, can try to reduce the terms of the current agreement. It is not profitable for the bank to lose a conscientious payer, so, most likely, it will be possible to reach a consensus. For example, VTB willingly reduces the inflated interest rate to its current clients if they fulfill certain conditions. If you cannot reach an agreement, you can safely submit an application for refinancing to other financial institutions.

When you may need refinancing:

• The borrower cannot secure the loan obligation under the same conditions - loss of job, birth of children, etc. In such a situation, it is worth preparing the ground for refinancing in advance. Write an application to the bank about the changed living conditions and ask to restructure the debt or defer mortgage payments for some time. If you are refused, ask to change the terms of the agreement (mortgage refinancing).
• The person managed to find a bank that offers a lower loan rate - even a 1.5-3% difference can reduce the monthly payment by several thousand rubles.
• The loan was issued in foreign currency and due to the increase in the exchange rate, the payment became too high - you can look for a loan in rubles (VTB24 Bank and Alfa-Bank refinance such obligations - the conditions are individual for the borrower).
• The borrower's financial situation has improved - in such a situation, refinancing will help to significantly reduce the overpayment. This happens both due to favorable interest rates on the loan and a reduction in the loan term. If a decision is made to issue a loan for a shorter period, most banks “encourage” such payers and reduce the mortgage interest by an average of 0.5 - 1%.

Most likely, your bank will “oppose” refinancing your mortgage in another financial structure. True, many banks themselves are ready to refinance you so as not to lose a client. What to do in this case:

• Write an application to the bank where you have a mortgage, asking to refinance the unfavorable loan. In such a situation, you can save a lot of money on additional costs, which will be discussed below. The operation within the bank will not require any special costs, because the structure has already assessed the apartment or house, it has all your documents and income certificates. In some situations, you may be asked to prove that your situation has worsened - take a new income certificate or provide a tax return for the last reporting period.
• You were refused - you should defend your intention. Look for a bank with lower interest rates and provide this information. We still don’t agree - we are preparing to refinance with another bank.

The new lender will carefully check your history, and if it is “doubtful”, you should not expect a positive outcome. It will significantly reduce the chance of refinancing at a bank if you have already applied to another bank and were refused.

Where to go for mortgage refinancing?

First of all, analyze the loan rates offered by banks. If your mortgage is issued, for example, at 16-18%, then it makes sense to contact the banks: VTB, UniCredit Bank, Alfa-Bank, Sberbank, MTS Bank, Rosbank, Gazprombank. These structures offer to refinance you at reduced rates - from 9.5% per annum. In cash, this difference is quite significant, and banks’ programs are very flexible. Please note that banks will not give you 100% of the collateral amount, but 70-90%.

Refinancing for a new bank is, in essence, opening a new loan. This means that you will have to go through the entire procedure again to confirm your solvency and more. How it all happens:

• An old agreement is provided for analysis by creditors, payment receipts, and a certificate of absence of debts to the first bank.
• A new agreement is concluded with the selected bank.
• The collateral must be insured, and an independent assessment of the property will also be required. Banks have their own accredited experts, so the price for the service can be significantly higher than that of independent specialists. The borrower's life is insured.

The first scenario is that three parties sign (the old bank, the new bank and the borrower) a tripartite agreement. This document will become the second-stage collateral, but only on condition that the old lender has agreed to refinance. The new bank then transfers the full amount to pay off the mortgage, ensuring that the funds are used for their intended purpose. After which the old creditor is obliged to remove the encumbrances from the property in the register of prohibitions and the collateral (apartment, house) must completely pass into the possession of the new creditor. The new bank, in turn, again places an encumbrance on the property and becomes the holder of the mortgage.

If your bank does not agree to refinance, another scheme applies:

• The full amount of the mortgage (the balance in the old bank) is transferred by wire transfer to the lender.
• The borrower writes an application for early repayment of the mortgage.
• The old creditor removes the encumbrances (the procedure lasts 1-2 months).
• The collateral is transferred to the new lender and you are issued a new mortgage loan on more favorable terms.

But in such a situation, the lending bank must receive a guarantee, a new pledge for the period while the encumbrance is in force and, in fact, the apartment belongs to the old bank. The collateral can be other property or real estate of the borrower.

There is no such thing - for this period your interest on the loan may increase by 2-3 points. But Rosselkhozbank is ready to “take a risk.” It does not require collateral for the period of removal of the encumbrance and does not increase the mortgage rate; the maximum credit limit in this case is 5 million rubles. A package of documents required for collateral real estate can be submitted to Sberbank after approval of refinancing, but no later than 90 days.

Remember that in any case you will have to pay for such a “reboot”, but if you are offered good conditions, the costs will quickly pay off.

Mortgage broker - when should you use the services?

This is another option for refinancing a bad mortgage. Here's the thing - you don't have to wait until your old mortgage is paid off. A new loan will be issued before the old one is completely closed. The role of the mortgage broker is that he will become a guarantor to the new bank for the “unsecured” lending period, as long as the encumbrance exists and is reflected in the register. We are talking about 1-2 months, during which the old bank will lift restrictions.

The specialist will also help in collecting and preparing the necessary papers, selecting advantageous offers for refinancing, promptly resolving controversial issues that arise, and will independently interact with the bank.

The cost of intermediary services is determined as a percentage of the loan amount. Today this value averages 1–5% of the transaction price. What's the benefit? If your monthly payment decreases with a new mortgage by 5,000 - 6,000 rubles. monthly, it's worth doing.

Conditions for on-lending - documents and costs

You have found a new bank and agreed on the terms with the old one - you will have to go through the long-forgotten procedure for applying for a mortgage again! But here you cannot do without extra costs. What to prepare for:

• New valuation of collateral - as a rule, each bank has its own accredited appraisers. Their services will cost from 3,000 to 10,000 rubles.
• The commission associated with refinancing a loan - each bank has its own fee, on average 1 -1.5% of the mortgage balance. This fee, according to the conditions of a particular bank, may not exist.
• Transferring money to another bank by bank transfer - from RUB 1,000.
• New insurance contract. The amount of the insurance premium directly depends on the size of the loan.
• Payment (state duty) for the removal of encumbrances from the property.
• Certification of the mortgage agreement by a notary - although this norm is not mandatory, many banks require you to go through the procedure.

In addition to the mandatory procedures, it is necessary to submit identification documents, a certificate of income, a copy of the work book, registration documents for an apartment or house, and an old mortgage loan.

Refinancing your mortgage can be a profitable endeavor if you find a bank that offers good interest rates. True, it is worth remembering that the main condition for successful refinancing is a “clean” history.

The essence of credit debt restructuring

The process of restructuring a loan debt involves changing the terms of the financial agreement. This reduces the client’s burden and reduces the loan payment amount. The difference between restructuring and refinancing is that the change in the credit terms of the agreement occurs at the original creditor bank. The borrower submits an application for restructuring to the bank that issued the loan.

Reasons for carrying out the on-lending process:

• The occurrence of an insured event.
• The occurrence of negative situations for the borrower is determined by the inability to pay the loan debt in full.

Changing the terms of the loan is the best option to solve the client’s problems. The banking organization meets people halfway, pursuing the following goals:

• Quality of the loan portfolio.
• No litigation.
• Repayment of loan funds

Credit debt restructuring is available to clients of any age category. Typically, banks welcome the borrower’s desire to correct the negative status with the financial structure and continue to repay the loan.

Pros of restructuring

• Drawing up a new loan agreement with an increase in the loan term, which reduces the size of the monthly payment.
• It is possible to provide a new interest rate, lower.
• Availability of a convenient payment schedule.

The bank’s actions to repay the debt in cases where the client does not apply for restructuring, but continues to persistently hide from payments:

• Introduction of strict repayment conditions.
• Calculation of penalties.
• Cooperation with collection services.
• Going to court.
• Litigation statistics show that debt forgiveness is a rare occurrence.

The borrower expects to receive easing conditions from the bank. The following options open up:

• Maintaining a positive credit history.
• Avoidance of litigation.
• Saving.
• Getting rid of default (minimizing payments according to the loan agreement schedule).
• No penalty payments.
• Protection from forced collection of loan debt.

The on-lending process is regulated by regulations. Documents are prepared in accordance with the legislation of the Russian Federation.

Refinancing by type of lending

The banking system includes many types of credit products: consumer lending, trade credit, mortgages, car loans.
For example, restructuring of a consumer loan: in this case, the terms of the loan agreement are revised. since there is no collateral or guarantors, the terms of the loan term and sometimes the interest rate are usually revised.

Mortgage lending for restructuring is a more labor-intensive process. Russian legislation has decided to support mortgage borrowers. This led to the introduction of a special restructuring program, the creation of the structure “Agency for Restructuring Housing Loans for a Separate Category of Debtors.” Agency work scheme:

• Providing a grace period to the borrower.
• The mortgage is repaid through a monthly tranche of the company.

The essence of a stabilization loan is to provide the client with support. The loan is provided:

• To pay for mortgage insurance.
• For compensation of penalties.

This process avoids loss of property. The client undertakes to improve his financial condition during the grace period.

Car loan restructuring occurs using simplified methods. The borrower contacts the bank with an application. The bank offers refinancing conditions.

The repayment period is extended, the interest rate is sometimes reduced - a restructuring option is available for loyal customers.

For persistent defaulters, the bank increasingly confiscates the car as a debt - this covers part of the principal debt, and the client pays the rest.

Types of restructuring

Contacting the bank indicates the client’s desire to repay the loan debt.

There are the following types of restructuring:

1. Loan extension. The essence of this process is characterized by an increase in the loan term. The monthly payment is reduced. The downside of the deal is the increase in the final overpayment on the loan. Preliminary calculations are carried out by a credit expert and agreed upon with the client.
2. Replacement of currency in lending>. An increase in the foreign currency exchange rate implies an increase in the cost of the loan when it is paid in ruble payments. This option is not beneficial for clients. Converting to Russian rubles allows you to soften the terms of debt repayment.
3. Credit holidays. The bank provides the client with the opportunity to repay only the body of the loan over a certain period of time. No interest is accrued or paid for this period; there is no additional overpayment on the loan debt. This option is especially attractive for the borrower. The general provisions of credit holidays are determined by the conditions of specific banking organizations.
4. Lowering the interest rate. The restructuring program, which results in a rate reduction, is carried out for clients with a positive credit history.
5. A combination of rollover and currency replacement. Combining types of restructuring results in larger overpayments. the currency is recalculated at the Central Bank exchange rate on the date of conclusion of the new agreement. The debt in the new currency is fixed, the interest rate on the loan is set appropriate for the given currency, the loan term is changed, and the PSC is calculated taking into account the new conditions.

Algorithm for changing the terms of credit debt

Restructuring is the best option for solving problems with loan repayment, when it is important to reduce the monthly payment to the optimal amount to resume regular monthly payments.

Procedure for changing loan obligations:

• Collection of necessary documents (citizen's passport, application form, work book, certificates from the place of work, consent of the spouse to change the terms of the loan).
• Loyalty of the banking organization. The financial structure receives evidence of the borrower's bankruptcy.

There are a number of conditions under which restructuring is carried out:

• Reduced client income.
• Loss of an additional source of profit.
• Taking leave to care for a disabled person.
• Conscription.
• Serious illnesses.
• Occurrence of insured events (death, disability).

Basic provisions of restructuring

The advantage of refinancing is that this operation is free of charge. The exception would be a mortgage loan. This case involves the payment of associated expenses: notary services, re-issuance of the loan agreement. The disadvantage of restructuring is the large final overpayment. This occurs due to an increase in the loan term and this, of course, is not in favor of the borrower. However, it is worth understanding that the inability to pay the loan under the old terms was due to the fault of the client. Exception: occurrence of an insured event. But a definite advantage will be a reduction in the monthly payment, which will allow you to make payments painlessly and on time. Therefore, loan restructuring is the best option for solving problems.

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Recently, mortgage loan refinancing has become very popular among banking services. The increase in demand for this procedure is due to the fact that in the fall of 2017 the Central Bank lowered the mortgage interest rate, which is now 9-9.5%.

Unfortunately, regular customers are reluctant to reduce the interest rate, so it becomes profitable to switch to other banks that offer more tempting options. In search of an opportunity to reduce their financial burden, people are faced with questions about how this procedure works and what documents are required to refinance a mortgage.

Mortgage refinancing process

First, you should carefully study the conditions offered by popular banks, find out the availability and number of ATMs nearby. When the choice is made, find out in detail about the details of the transaction.

Each lender sets its own conditions under which the client must meet in order to be able to refinance. Standard conditions:

1. Positive credit history;
2. No debt on the refinanced loan;
3. The loan repayment period is more than a year;
4. Sufficient family income;
5. The client's life and property are insured;
6. The real estate pledge suits the new creditor (the property is not worn out and will not be demolished).

Some banks offer to repay other loans by including them in the cost of a new one, on new terms.

The client must take into account the possible costs associated with this procedure:

1. Appraisal of the apartment (about 10,000 rubles);
2. Life insurance;
3. Commission fees.

Design methods

The refinancing process takes place in several ways:

• The loan currency will be changed. After the sharp rise in the exchange rate of the dollar and euro in 2014, this is relevant for people with loans in foreign currency;
• The interest rate will be lower than it was when you originally took out the loan. This option is beneficial for those who do not need to change currencies or do not have sudden changes in their financial situation;
• The monthly payment amount will be lower if you increase the loan repayment period. This method is suitable for those whose monthly income has decreased.
• cancellation of insurance premiums and commissions. Even if the interest rate decreases, the cancellation of the above encumbrances will significantly ease the situation for the borrower, since banks often charge huge additional payments.

The choice among the listed methods is made individually, based on the financial situation of the borrower. Before making a final decision, it is recommended to consult with bank employees in person, online, or by calling the hotline.

Registration procedure

A mortgage refinance is essentially a new loan. The lender pays off the remaining debt and issues a mortgage on new terms. Therefore, you will have to go through the same steps that were completed when taking out the initial loan.

Main stages:

• Applying for mortgage refinancing. The potential borrower will receive detailed information about refinancing at the selected branch and possible costs;
• Collection of documents necessary for the transaction;
• Receiving a positive decision (as a rule, if all documents are in order and the property is satisfactory to the mortgagor, approval comes within 5 to 30 working days);
• Transfer of collateral. This will require the consent of the original creditor. At this stage, unfortunately, the deal may fall through if the previous bank does not agree to transfer the client;
• Payment of debt by a new bank. The future creditor repays the debt from the old bank ahead of schedule;
  Re-registration of mortgage. The client needs to obtain a mortgage from the original mortgagor by writing an application, then take all the certificates received to the new mortgagor.
• Signing an agreement and receiving a payment schedule is the final stage of restructuring. After this, new debt obligations come into force.

What documents need to be collected to refinance a mortgage?

Before you start collecting the package of documents necessary for the transaction, it is advisable to obtain a complete list. Each lender develops its own requirements, but they are similar:

1. Questionnaire and application filled out by the future client. issued by the bank, at the same time consent is given to the processing of personal data;
2. A photocopy of the passport, as a rule - the main page, registration, a spread with marital status and the presence or absence of children;
3. for the last six months, a copy of the work record book certified by the employer to exclude the possibility of dismissal of the borrower at the time of the transaction;
4. Certificate of marriage or divorce;
5. Individual personal account insurance number (SNILS)
6. Notarized / spouses;
7. All documents for the apartment: certificate of ownership, purchase and sale agreement, deed of transfer of property, appraisal album, cadastral and technical passport of the residential premises;
8. Documents from utility services confirming the absence of debts;
9. Confirmation that the property is insured;
10. Life insurance;
11. An extract from the house register, which reflects how many people are registered or registered in the living space;
12. A copy of the financial and personal account;
13. Loan agreement with payment schedule from the first bank;
14. An account statement to which money will be transferred for early repayment of the current debt.

This is a basic list of required documents. Some banks provide a more modest list, but, in any case, it will take some time to collect all the certificates.

If the borrower is married, his spouse is automatically considered a co-borrower, and the entire list must be collected for both. If there are minor children in the family, their birth certificates will be required.

Often, after reviewing a huge list of documents, a person has a question: is it possible to resort to on-lending without certificates? Some organizations take this step if you have one or more guarantors, but usually this means registration for a short period or with a higher interest rate. For example, Sberbank in such cases issues an amount of no more than 1 million rubles.

If all the certificates have been collected and the bank’s requirements for the borrower have been met, wait for approval. However, in some situations difficulties arise even if the client fully meets the basic conditions. One of these situations is repaying part of the loan using maternity capital funds.

The fact is that when receiving this financial support from the state, parents are obliged to allocate shares to all children. And taking on such collateral is a very risky step, because if the borrower fails to fulfill contractual obligations in good faith, it will be impossible to do anything with the apartment, since minor children are registered there. Not everyone will agree to such an unprofitable encumbrance, therefore, before choosing a bank, you should find out the practice of approving a pledge on property in which funds from maternity capital have been invested.

In what cases is a certificate in Form 9 needed? How to get it?

In some situations, it is additionally required to provide. It contains information about all citizens registered in the residential premises. Additionally it contains the following information:

1. Date of birth of the registered person;
2. Date of registration and expiration date;
3. Family connection with the owner of the apartment;
4. Type of registration - permanent or temporary.

As a rule, the certificate is valid for a month, but some organizations ask that it be valid for no more than 2 weeks, in order to avoid unforeseen changes in the situation. You can obtain the document at the housing office or at the passport office at your place of residence.

The bank may request this certificate to find out whether pensioners or minor children are registered in the apartment, as well as who can apply for housing.

Obviously, mortgages significantly ease the financial burden, but are considered quite complex and lengthy. Before making a decision, you should study various offers, assess your financial situation and act based on the situation.

You can refinance an existing home loan at a lower interest rate either at your bank or by contacting another. What is on-lending, what costs are involved, which bank is better to contact, is it profitable, and what stages does it involve, we will consider in detail in the article.

Mortgage refinancing concept

A mortgage loan for the majority of average Russian families today is practically the only way to buy their own home. And many took advantage of this opportunity several years ago. The market does not stand still, and the conditions of many banks are now much more favorable than even a couple of years ago. Naturally, many borrowers would like to refinance on more favorable terms. This is also beneficial for banks. Mortgage in the credit line of banks is one of the most profitable products. Therefore, most of them try to sell as many mortgage loans as possible to increase profits. One of the tools for attracting mortgage borrowers is refinancing mortgages from third-party banks.

Mortgage refinancing or refinancing is the registration of a mortgage with one bank in order to repay the debt obligations of another bank on more attractive terms (at a lower rate, with a shorter term, or with the issuance of an additional amount in cash).

Is it profitable to refinance a mortgage?

At first glance, refinancing seems to be a profitable banking product. The lower the rate and loan term, the less you will overpay for your home, and you will be able to reduce your monthly payment, especially if the loan was issued for a long period.

Based on statistical data, it is worth considering transferring your mortgage to another bank if the difference in rates is at least 2-3 percent.

But in addition to the interest rate, it is worth considering other costs associated with refinancing. These include:

1. At the application stage, the amounts are insignificant, 50-100 rubles for issuing a certificate of the balance of the loan debt (not charged by all banks).
2. Small costs when preparing documents for collateral real estate (certificate from the BTI, registration certificate, etc.).
3. New assessment report on the collateral (about 6-7 thousand rubles).
4. Payment of the state fee for removing the encumbrance and registering a new pledge.
5. Costs for drawing up an insurance contract in favor of a new bank. The calculation of the amount is individual. The minimum rate is 0.2% of the value of the collateral, but it must be taken into account that only insurers accredited by the bank are suitable. In some cases, you can enter into an additional agreement to an existing policy to change the beneficiary, or terminate the contract early. It is better to discuss this issue with the insurance company in advance.
6. When refinancing, in most cases, the right to tax deductions for the purchase of real estate and mortgage interest is lost.
7. Notary expenses.

Thus, the answer to the question about the profitability of refinancing will depend on the specific conditions of each borrower.

Typically, with a long term of the initial loan, a small number of payments already made, and a difference of 2% in rates, the associated costs are recouped in the first year. If, at the same time, the right to a tax deduction is fully realized, then it is definitely worth deciding on refinancing.

Your bank or someone else's?

Of course, if there is such an opportunity, then initially you should contact your creditor bank with a request to reduce the interest rate.

In addition to the financial costs of revaluing property and re-registering collateral, refinancing involves a lot of time and effort. Therefore, refinancing at your bank is most convenient.

But this is not profitable for banks. Reducing the interest rate on loans already issued will reduce the planned profit. Therefore, existing refinancing programs for our own clients are very rare.

Refinancing with a current lender

If the current lender does not have a mortgage refinancing program for its clients, but the current rates are already lower, or, in general, there has been a decrease in interest rates in the market, it is necessary to write an appeal to the head of the credit institution to consider the issue of reducing the rate. In your application, please indicate your details and the details of the loan agreement. The review period is usually no more than 30 calendar days.

If the bank's policy and the terms of the agreement provide for the possibility of revising interest rates, then a positive decision is possible.

In 2017, Sberbank was one of the first in Russia to reduce mortgage rates to 7.25% and launched a program for refinancing loans from third-party banks at a rate of 9.5% per annum. However, this program did not affect its clients.

Reviews on the banki.ru portal indicate that for many borrowers, in response to their requests, rates were nevertheless reduced. Mainly, under contracts concluded a very long time ago or at the beginning of 2015, when rates skyrocketed to 14.5%.

How to motivate your lender

The fact is that, according to the regulations of the Central Bank of Russia, refinancing one’s own loan is equivalent to restructuring and entails additional costs to increase bank reserves.

The only way to motivate can be an approved application for refinancing at another bank.

A similar appeal is written as in the first case, but with a copy of the positive decision of the new creditor on the application attached. Practice shows that the chances of an affirmative answer increase.

Refinancing a mortgage with another bank

If you refuse to reduce the rate at your bank, you can always contact another or even several.

Applying to another bank involves going through procedures for approving a mortgage, collateral, transferring money to repay a new loan, re-registration of collateral rights, a collateral-free period, and concluding a new insurance agreement. Let's take a closer look at each of these stages.

Mortgage refinancing conditions

Bank	Interest before mortgage registration and loan repayment	Interest after mortgage registration and loan repayment	Term	Sum	Pledge	Requirements for the borrower
Sberbank	11,5 %	From 9.5%	Up to 30 years old	From 1 to 7 million rubles, but not more than 80% of the housing assessment	Apartment, house, townhouse, room, plot of land and a residential building on it, part of a house, apartment	Russian citizens, 21 – 75 years old (at the time of debt repayment), six months at the current place of work, one year of experience over the last five years
VTB 24	From 9.45% for the entire loan term		Up to 30 years (according to 2 documents up to 20 years)	Up to 30 million rubles, but not more than 80% of the housing assessment (50% according to 2 documents)		Citizenship of the Russian Federation, registration in the region of presence of the banking division, availability of permanent income
AHML	Before registration: no After: 9% - loan less than half of the appraisal value; 9.25% - from 51% to 70%; 9.5% - from 71% to 80% (The rate increases by half a percent if income is not confirmed by 2-NDFL)		From 3 to 30 years	300 thousand rubles. – 20 million rubles. for Moscow, Moscow Region and St. Petersburg; 300 thousand rubles. – 10 million rubles. for other regions	Apartment or non-residential premises. For a facility under construction, a pledge of rights of claim	21 – 65 years (by the date of repayment), six months at the current place of work (individual entrepreneur – 2 years without losses)

The requirements for the previous loan are the same for all offers:

• valid for at least six months:
• lack of restructuring;
• without any current or past delays.

If the borrower cancels the life and health insurance contract, 0.5–1% is added to the rate. Collateral insurance is mandatory.

Registration procedure

To apply for refinancing, you must submit a loan application with the required documents to the selected bank.

Primary package of documents:

1. A completed application form for all borrowers (official spouses automatically become co-borrowers, even without taking into account solvency).
2. Passport and any additional document.
3. Salary certificate.
4. A scanned copy of the work document with certification (if certified by power of attorney, then a copy of the document on delegation of authority).
5. Certificate of loan balance (valid for 10 days).
6. Details for repaying the current loan.
7. Certificate of no overdue payments (not everywhere).
8. Loan agreement, repayment schedule (on request).

After a positive decision, you will need to provide documents for collateral within 3 months:

1. Documents of ownership.
2. Extract from the Unified State Register of Real Estate.
3. Evaluation report.
4. Technical passport.
5. Consent of the spouse to transfer property as collateral, certified by a notary.
6. Certificate of registered residents.

The final list may be supplemented at the discretion of the bank. This usually corresponds to the standard package for accepting collateral.

When the bank agrees on the subject of collateral, a loan agreement is signed. The money is transferred to pay off the old loan.

Re-registration of collateral

The re-registration of the pledge does not take place simultaneously, that is, first the first bank’s encumbrance on the housing is lifted, and after that the new pledge is registered. Usually the new bank gives 2 months for this.

After full repayment of the loan, you must request documents from the old bank:

• certificate of full repayment of loan obligations;
• mortgage agreement;
• a mortgage note indicating the full closure of the loan, including fines and penalties;
• a bank power of attorney in the name of the client regarding the possibility of representing the interests of the bank.

Actions to re-register the pledge are carried out by Rosreestr. In this case, it is more convenient to use the services of the MFC.

To cancel a pledge at the MFC, the following documents are required:

1. Passports of adult owners, birth certificates of registered children.
2. Certificate of ownership.
3. Documents from the bank (valid for 30 days).
4. Technical documentation for housing.
5. Certified consent of the spouse to cancel the pledge.
6. Statement.
7. Receipt for payment of state duty.

Processing time is 3 working days. As a result, a new certificate of ownership is issued with no encumbrance mark.

The next stage is registration of a new pledge.

Documents required for MFC:

1. Bank documents confirming the authority of the representative.
2. Mortgage documents (loan agreement, DCT or DDU, collateral agreement, mortgage).
3. Housing documents (appraisal, property, BTI certificates, technical documentation).
4. Application for registration from the bank and from the owner.
5. Copies of passports of all participants in the transaction.
6. Receipt for payment of state duty.

Registration period is 5 working days.

Important! When processing documents at the MFC, you must add 3-4 days to the official deadlines for courier delivery of documents. When receiving documents from the MFC, be sure to check the certificates for errors and typos.

Unsecured period

The unsecured period is the period of time after the issuance of a mortgage loan until the mortgage is registered by Rosreestr. Its duration is about 2 months, subject to compliance with deadlines by all parties.

This period is considered the most risky for the bank in which the refinancing was issued, since there is no collateral. Therefore, the loan rate for this period increases by approximately 2 percent.

Obstacles

You will not be able to refinance your loan if:

• there has already been restructuring, late payments, refinancing;
• The loan agreement contains a clause on a moratorium on early repayment (possibly in old agreements). Since 2011, it has been prohibited by law to prevent early repayment of loans;
• bad credit history, insufficient income, non-compliance with other bank criteria;
• the housing does not meet the terms of the new bank's collateral.

Risks of refinancing a mortgage

Refinancing risks:

1. If the bank refuses to issue a loan, the costs of preparing documents, including collateral, will not be compensated.
2. The duration of the procedure and a large number of bureaucratic issues can increase the period of re-registration of the mortgage, and, accordingly, delay the moment of establishing a low rate.

How to transfer a mortgage to another bank with a more favorable interest rate: refinancing a mortgage step by step

Summarizing all of the above, here is a step-by-step algorithm for refinancing a mortgage:

1. Selecting a bank with suitable conditions.
2. Collecting documents and submitting an application for consideration to the bank.
3. If the bank's decision is positive, preparation of documents for the collateral property.
4. If the bank is satisfied with everything regarding the collateral, then a transaction is scheduled.
5. Submission of home insurance documents (at some banks this can be provided later).
6. Signing a mortgage agreement and transferring money to the old bank to repay the loan (you must first submit an application to your bank for full early repayment of the loan).
7. Repaying the loan and requesting documents to remove the encumbrance.
8. Submitting documents to cancel the pledge.
9. Submission of documents for registration of collateral in favor of a new bank.
10. Providing documents to the bank confirming the registration of the pledge.
11. The bank sets a low interest rate.
12. Annual provision of payment documents on the renewal of the insurance contract (if necessary).

Refinancing a mortgage is not an easy process that will require not only material investments, but also a huge investment of your own time and effort. All this makes sense if in a particular case the benefits significantly exceed the costs. Therefore, it is very important to calculate and weigh everything in advance.

The article tells you what documents are needed to refinance a mortgage and explains the intricacies of the legislation.

Refinancing a mortgage at VTB 24 or any other financial institution means issuing a new loan to pay off the old loan.

It is especially profitable to refinance when the interest rate changes.

For example, Grigorieva took out a loan at 12% per annum. A year later, the interest rate dropped to 9%. In this case, it makes sense to refinance in order to repay the loan on more favorable terms.

There are other reasons for a credit reset:

• change the loan repayment period;
• change the payment currency (especially important for foreign currency mortgage holders);
• change the loan size.

The credit institution may change the collateral.

Example. The Stanovovs bought an apartment for their son. The collateral under the agreement is their home. Now they have decided to improve their living conditions and sell the house. To do this, you will have to change the collateral. The encumbrance will be removed from the house, then transactions can be carried out with it.

The issue of refinancing a mortgage can be resolved with your financial institution or choose another bank.

Mortgage refinancing

What borrowers need most is to refinance their mortgage debt. Foreign currency mortgage holders found themselves in a hopeless situation. The dollar exchange rate has risen sharply, making loan repayments more and more difficult. The courts are in no hurry to side with mortgage holders. They suggest that you negotiate with the bank yourself.

To refinance a mortgage at Sberbank, you must first agree with the company’s management and collect documents.

Many companies offer credit reset. Among them are Sberbank, VTB-24, Alfa Bank and many others. To approve the transaction, the borrower must insure his life and the object itself.

Is there any benefit from the deal?

It is necessary to clarify in advance with the refinancing institution how much the documentation will cost.

6 expense items:

• property valuation;
• payment for removal of encumbrance;
• payment for re-registration of the right;
• insurance payment;
• bank commission for issuing a loan;
• commissions for wire transfers.

When can re-registration be refused?

The question of what documents are needed to officially refinance a mortgage will not have to be resolved if the financial institution has prohibited such operations.

Some banks prohibit repaying a loan early. True, such decisions can be challenged in court. Therefore, most banks give the go-ahead for early fulfillment of obligations.

Sometimes re-registration is not allowed due to the fault of the client himself. For example, debt on a loan or unpaid debt prevents a credit reset.

If the borrower's income has decreased or he has lost his job, the bank may also refuse to issue a loan. In this case, doubts arise about the borrower's solvency.

The collateral may also not suit the bank. The requirements for the degree of wear and tear of an object differ. One bank may approve the purchase of an apartment in a building built in 1975, but for another bank such an object may be too old.

Important! You must be prepared to provide additional collateral. While the encumbrance is being lifted, it is necessary to secure a new loan. If the borrower has nothing to his name, then this will be quite problematic.

In any case, you need to obtain up-to-date information from bank employees.

Sberbank is a reliable financial organization, so many citizens want to make on-lending there.

7 advantages that refinancing provides:

1. The ability to collect several loans in one loan from different financial institutions.
2. Simplify debt repayment. There will be a single payment date and one invoice will be issued.
3. There is no need to collect certificates of debt balance from other companies.
4. The consent of the primary lender is not required to receive the next loan.
5. Receiving benefits. The amount of contributions will decrease, which means you will have to pay less.
6. Opportunity to receive additional funds for personal expenses.
7. Low loan rate.

Conditions may vary from company to company, so it is advisable to collect the necessary information in advance.

Refinancing pitfalls

Credit reloading has positive and negative sides.

5 disadvantages of the deal:

1. The borrower will be checked again. After all, the company must make sure. That he will really be able to fulfill his obligations.
2. Again you will have to decide what documents are needed for re-registration.
3. The object may not be suitable. This situation is especially relevant when it comes to car loans. Vehicle requirements can vary greatly.
4. You will have to bear additional costs. Many borrowers have every penny in their account, so additional expenses are extremely undesirable.
5. The likelihood of being rejected. This possibility cannot be ruled out. In case of refusal, the commission for consideration of the application will no longer be refunded.

In some situations, it is no longer necessary to talk about the pros and cons. When creditors are literally knocking on the door, and there is nothing to pay, you have to look for a way out of the situation.

How to make a deal

You need to act consistently to refinance with VTB-24, Sberbank or another company.

Procedure:

1. Submit an application.
2. Wait for an answer.
3. Collect documents for the apartment.
4. Wait for approval and confirm the transaction date.
5. Sign the mortgage agreement and register it.
6. Receive funds.
7. Pay off the original loan.
8. Obtain supporting certificates.

It is important to submit documents regarding debt repayment no later than forty-five days from the date of payment.

After the primary loan is repaid, the financial institution will be able to reduce the interest rate on the loan.

Borrowers should take into account that to receive a property deduction under Art. 220 of the Tax Code they will not be able to.

Requirements for the borrower

Each company sets its own requirements for borrowers.

3 general conditions:

• age from 18 to 55 years;
• presence of registration in the region where the banking unit is located;
• permanent work for six months.

If a co-borrower appears in the primary agreement, then he is also assigned responsibilities for on-lending.

Sberbank establishes preferential conditions for its salary clients.

Required documents

There are documents that the borrower must provide:

1. Completed application form.
2. Passport.
3. Certificate of temporary registration, if the citizen is temporarily registered.
4. Certificate of income.
5. A copy of the work book.
6. Details of the initial loan agreement:

• date of signing and serial number;
• monthly payment amount;
• loan currency;
• payment details to the original creditor.

1. Payment scheme.

Once the application is approved, property documentation is submitted.

Summary

A credit reset makes it possible to repay a loan that was issued on unfavorable terms. The issue of refinancing is especially relevant for foreign currency mortgagers and those who took out a loan with an unfavorable interest rate.