Having received a loan, many people want to pay it off as soon as possible to avoid overpayments. Banks allow early repayment of military mortgages. What funds are allowed to pay off the debt, and is it worth doing?
Legislative regulation
Is it always possible to pay off a military mortgage early? According to , banks can impose a ban or limit early repayment of loans. This also applies to military mortgages. Therefore, having sufficient funds, the borrower can immediately begin repaying the debt. The loan can be paid off by repaying it ahead of schedule in installments, or in one payment. Typically, banks offer the following scheme: deposit an amount greater than a certain payment into the account, according to the schedule, and after accumulating a sufficient amount in the account (only the amount indicated in the schedule is withdrawn monthly), write an application for early repayment.
Since we are talking about benefits for military personnel, the borrower, before repaying a military mortgage ahead of schedule, will need to write an application to Rosvoenipoteka, if the source of repayment is funds in a special account of a serviceman. If you use other payment options, you will have to contact other structures.
Early repayment options
A serviceman is allowed to repay a housing loan in the following ways:
- using personal savings to pay off a military mortgage (self-repayment);
- funds in a special account under the NIS program;
- maternal (family) capital.
One of the frequently asked questions is: “Can I pay off my mortgage with a military mortgage?” This option is possible, but in practice it does not occur often. A tripartite discussion of the situation is needed: with the borrower, Rosvoenipoteka and the bank.
From personal funds
Having his own funds and wanting to use them for early repayment of the military mortgage in part or in full, the debtor submits an application to the bank where the loan was issued. At the same time, you need to clarify a number of points: what is the minimum that needs to be paid in case of early payment (for partial repayment), how to write a statement of intent to make a payment, to which account the money should be transferred.
The bank must independently notify Rosvoenipoteka about the recalculation of payments due to the premature repayment of part of the loan. If a different payment method is chosen, the procedure will be different.
Repaying a military mortgage with maternity capital
Before the debtor receives the right to use maternity capital for early repayment, he will have to communicate with representatives of the Pension Fund. But this is additional time that you will spend collecting documents and waiting for the application to be reviewed. - a measure of state support for the population, and it will not be possible to use it for any purpose. Therefore, representatives of the Pension Fund check all the information provided to them.
List of documents that will be needed:
- . This document has been reviewed for a month.
- Certificate for maternal capital.
- Passport of the person who received the certificate.
- Mortgage agreement with the bank.
- Ownership of housing, if any. And in this same case, an extract from the house register.
- An important document is the obligation to register housing for all family members after the ownership right comes into force. This measure is aimed at supporting minor children. The document is certified by a notary.
- Information from the bank about the loan balance.
The serviceman will receive information about the decision made 5 days after the commission considers the case. This happens within a month after submitting the documents.
Important: maternity capital funds can be transferred to repay the mortgage within two months. During this time, you will need to pay the monthly payment yourself.
Funds in the personal account of a serviceman under the NIS program
A serviceman can use funds from his personal NIS program account or additional sources, for example, a long service bonus. Any action of this kind must be approved by Rosvoenipoteka.
You can send documents to request funds from Rosvoenipoteka in several ways: in person, by email or by letter via Russian Post. The package of documents includes:
- application requesting the use of funds;
- copy of the passport.
In the application, you must indicate the numbers of the loan agreement and the LLP, your address, e-mail and telephone number.
This right can be exercised after the loan has been repaid and only after three years from the start of service. Rosvoenipoteka will independently notify the bank about sending money to pay off the debt.
Is early repayment beneficial?
Whether to pay off a mortgage loan in advance is a personal matter. But with early payments, there are advantages for the serviceman:
- overpayment on the loan is reduced;
- early repayment allows you to leave service before the age of 45;
- in case of dismissal, you will not have to pay off the debt to the state from personal funds;
- it becomes possible to accumulate a new amount in the serviceman’s personal account.
After partial repayment, the bank changes the schedule and amount of payments.
Payment schedule
When repaying a debt, the borrower independently chooses what is more profitable for him: reducing the amount of monthly payments or the repayment period of the loan. The decision depends on the person’s future plans: leaving the army earlier, accumulating more funds in a special account, or something else. The right to choose is granted each time the debt is repaid early. How to find out the payment schedule for a military mortgage? This information is updated once a year at the request of the payer. In addition, when contacting the bank, its employees will be ready at any time to provide such information to the applicant when providing identification.
Every NIS participant, after purchasing an apartment, sooner or later asks the question: is it worth paying off the military mortgage early?
Early repayment is beneficial because it reduces the amount of overpayment of interest by reducing the mortgage term. After repaying the mortgage loan, the NIS participant will have and will grow savings in his account at the Federal State Institution “Rosvoenipoteka”.
Paying off a military mortgage on your own makes it possible to relieve yourself of obligations to the bank and retire from service ahead of schedule.
Be careful, with a valid military mortgage, if you retire at your own request before reaching 20 years of (preferential or calendar) service, the former serviceman is obliged to pay the full cost of housing. That is, all contributions - initial and monthly - received in the past from NIS to the bank by the military personnel are obliged to be reimbursed to the state on their own.
The terms of a military mortgage allow partial and full early repayment of the loan. In case of partial repayment, the bank will recalculate the payment schedule.
How to make partial or full early repayment of a military mortgage
Method No. 1. From your own funds
Own funds are inheritance, savings and other personal financial resources.
First, a statement of intention to make partial early repayment is written and submitted to the bank. The application form may differ from bank to bank, so you need to find it on the website or ask a bank employee at a branch.
What to pay attention to before applying:
- what are the requirements for the minimum repayment amount;
- on what date is it possible to make partial early repayment;
- where to transfer funds - to a current account or to a special Military Mortgage account.
All questions can be clarified with an employee of the bank where the military mortgage was issued. After receiving information and instructions from the bank, you can deposit your own funds correctly, avoiding further difficulties.
Within 10 working days after making an early repayment, the bank independently notifies the Federal State Institution "Rosvoenipoteka" about the recalculation.
Method No. 2. From maternity capital
To use maternity capital as early repayment of a military mortgage, you need a number of documents for the Pension Fund of the Russian Federation (Pension Fund of the Russian Federation). Mandatory list for all cases:
- application for disposal of maternity capital funds (considered within 30 days from the date of submission);
- maternity capital certificate;
- passport of the manager of maternity capital;
- loan agreement;
- certificate of state registration of ownership of residential premises purchased using a mortgage loan;
- extract from the house register and financial and personal account;
- a notarized obligation to register the purchased apartment as the common property of all family members, including minor children, after the encumbrance is removed from it.
Additionally, to submit an application, you will need a bank certificate about the amount of the balance of the principal debt and the debt to repay interest for using the loan.
A positive decision or refusal must be known to the serviceman no later than 5 days from the date of the decision.
As soon as approval is received from the Pension Fund of the Russian Federation, the NIS participant must submit an application to the bank for partial repayment of the mortgage loan with maternity capital.
The transfer of maternity capital funds is made by the Pension Fund of the Russian Federation within 2 months from the date of the positive decision.
It is possible to track the situation via the Internet if the bank provides clients with the “online banking” service. Your personal account provides information on transactions, including partial early repayment.
Method No. 3. Using funds in a personal savings account (at the Federal State Institution “Rosvoenipoteka”) or from additional payments
Additional payments include bonuses, rewards, length of service allowances and other types of payments established by the Government of the Russian Federation.
To transfer the balance of savings to the Federal State Institution “Rosvoenipoteka”, an application is sent with a copy of the NIS participant’s passport addressed to the manager. The application shall indicate the number of the loan agreement, the number of the target housing loan agreement, residence address, email address and contact telephone number.
You can submit documents to the Federal State Institution “Rosvoenipoteka” in three ways (at your personal discretion):
- contact the branch of the Federal State Institution "Rosvoenipoteka";
- send to the official email address of the Federal State Institution "Rosvoenipoteka" - [email protected](the application must be in PDF format, one file, the size of which does not exceed 3 MB);
- send a registered letter to FGKU "Rosvoenipoteka".
The application is reviewed within 30 days. Information about the application and the status of its consideration can be checked on the website of the Federal State Institution “Rosvoenipoteka”, see the section “INFORMATION ABOUT THE STAGES OF REVIEW AND REGISTRATION OF DOCUMENTS IN THE INSTITUTION”.
Please note that early repayment is only possible after the first mortgage payment has been made.
When transferring the balance of savings, the Federal State Institution "Rosvoenipoteka" notifies the bank and the military personnel about the transfer of funds for partial early repayment of the mortgage loan.
Most often, the bank carries out early repayment without the written consent of the NIS participant. However, there is the opposite experience, so it is better for the military personnel to check with the bank whether an additional application is required to write off funds for early repayment of the mortgage loan.
If a serviceman decides to improve his living conditions through the state program “”, he must know about all the nuances of this government initiative. Participants in the savings-mortgage system are especially concerned about early repayment of military mortgages, since in most financial institutions such a desire by the borrower is subject to penalties.
How to pay off a military mortgage early
A loan issued by a banking structure under the military mortgage program must be repaid with funds from a targeted housing loan, which is provided by the Federal Budget.
First, the monthly loan payment amount is transferred to the military man’s personal account, after which it is debited by the bank. Such a system allows the serviceman not to be directly involved in repaying the loan and not to interfere with the system of accrual and payment for the loan. Each military borrower has the right to repay the mortgage loan in small amounts stipulated in the contract. However, this social program also provides for early repayment.
If, for personal reasons, an Armed Forces employee does not want to wait 20 years to take advantage of the gratuitous subsidy and completely close the loan at the expense of the state, he can do this from his own savings.
Early repayment can be made using private funds if the participant in the savings-mortgage system has the right to additional payments. In addition, it is possible to close the loan using the money received under the Maternity Capital Certificate. There are no penalties or fees for early loan repayment.
