The Russian government made it easier for recipients of maternity capital who took out a mortgage with this money, access to refinancing loans. This was reported on the website of the Cabinet of Ministers on Tuesday, April 20.
The changes affected the registration of ownership of mortgage housing.
According to the previous rules, within six months after the mortgage was repaid with the help of a new loan, the borrower had to register the ownership of the share in the apartment for the children. As a result, the refinancing bank received property as collateral, the owners of which were also minors. If the borrower stopped repaying the loan, it would not be easy for the lender to foreclose on the mortgaged property.
The Cabinet of Ministers noted that due to such risks, many banks were reluctant to refinance mortgages with a mother capital, and citizens could hardly re-issue a loan at a lower interest rate.
Now families will be able to arrange housing for children after the full repayment of the loan from the bank that refinanced the mortgage loan.
From April 15, 2020, certificates for matcapital are issued in an unreported manner. After the birth of the child, the document automatically appears in the mother’s personal account on the public services portal.
Since 2021, the size of the mother capital has been increased to 483,882 rubles for the first child and 639,432 rubles for the second. Funds can be spent on the purchase or construction of housing, tuition fees, the formation of the funded part of the mother’s pension, the purchase of goods and services for disabled children.
In March, the government simplified the procedure for using maternity capital to improve housing conditions. Russians no longer need to submit documents to the Pension Fund on the work performed to improve housing conditions. To compensate for the costs of construction or reconstruction, you only need an extract from the Federal Registration Service that the land plot and the house built on it are owned by a citizen.