Is it possible to take out a mortgage for 2 apartments? The question in this discussion is frequently asked. Let's look at it in as much detail as possible.
This type of mortgage is acceptable. This could be a mortgage from one bank or two mortgages from different banks. It has also become possible for military personnel to purchase a mortgage for 2 apartments on the basis of a military mortgage. This process is labor-intensive and it is better to prepare yourself in advance to prepare a large number of documents.
Conditions for issuing a loan:
It is possible to take out a second mortgage, but you must meet certain criteria.
1. Loan payments will not exceed 45% of all existing profits. This criterion is the main one when a financial institution approves a second mortgage. The condition is also relevant for the first real estate loan.
2. Your credit history must be positive. The primary focus will be on repaying the loan on the first mortgage. If there were still delays in payments, the bank will take into account the duration of the delay, but it is best if payments were received on time.
3. Official employment with a transparent salary. This factor is considered in more detail than when considering a first mortgage application.
4. You must have guarantors and co-borrowers who have not been guarantors for other loans and have no debts for the given period.
The commitment to obtaining a second mortgage is very serious. Accordingly, getting a second mortgage is not so easy, even with an income that allows it.
5. Insurance. Property insurance leaves risks such as the life of the applicant and loss of rights to the purchased property at the discretion of the bank. An agreement with the bank on such conditions will increase the bank's favor towards you. This will be a responsible step on your part.
Taking out two mortgages at once is hard work, even for those with high incomes.
Despite the fact that the determining factor will be your impeccable credit history, the presence of a permanent job and a stable salary. This option requires a deposit and the presence of guarantors.
DOCUMENTS FOR MORTGAGE.
1. Proof of your identity, in the form of a passport, military ID;
3. Certificate of registration in the E.G.R. Borrower;
4. Confirmation of registration in the form of a co-borrower’s certificate in the E.G.R;
5. Documentary evidence of the acquired education of the borrower and co-borrower;
6. Sample for purchasing a loan in the form of a template application and its approval by the bank;
7. A document that confirms the presence of marital status (marriage certificate, divorce certificate, death certificate of husband (wife), etc.);
8. Birth certificate of children;
9. Evidence of your employment;
10. Work book;
11. Certificate from the place of employment about legal profit and payment of taxes during the calendar reporting year, form No. 2-NDFL, data on the activities of the borrower or co-borrower;
12. An employment contract is required, if available;
13. Certificate from additional work with a certificate of white profit and taxes for the last calendar reporting period - 12 months.
Documents for purchasing a second mortgage.
You will have to repeat the procedure of collecting documents and presenting them to the bank. It doesn’t matter that the bank already has the required information in the form of documents provided when applying for the first mortgage.
Your saved information has no weight without presenting documents.
Original passport and copy of passport;
Tax number along with a copy;
Certificate of current income.
A mortgage can be issued at another bank if the conditions of this bank do not suit you, or the bank may offer to transfer an existing loan.
Before you take out a mortgage, you need to figure out whether to take out a second mortgage with your old or new bank.
If the owner of an apartment taken on a mortgage is faced with the need to take out a new loan, most likely he will have to sell the previous “mortgage” apartment.
Good income - big loans
As Tatyana Khobotova, head of the Mortgage Lending Center of the St. Petersburg branch of VTB24 Bank, notes, today the main borrowers of mortgage loans are young families.
At the same time, the average term for which a borrower takes out a mortgage loan in Russia, according to Andrey Yazykov, director of the insurance company AHML, is 15 years. Therefore, it should be expected that over such a long period of time the borrower's life circumstances will change. For example, children will be born in families. And in most cases, new - more spacious - housing will be needed before the “old” loan is repaid.
If the family earns well, has accumulated an amount commensurate with the initial mortgage payment in a bank account and has not had any arrears on the repaid loan, there are no problems. With a high salary, it is easier to repay an old loan ahead of schedule or, without paying off the old one, take out a new one.
The bank, assessing the creditworthiness of a potential client, will deduct from his income the amount paid on the first loan. That is, the bank will agree to issue a new loan if the balance is enough to pay and to ensure that the family does not live from hand to mouth. The logic of bankers’ behavior here is as follows: “If the borrower’s income allows him to service two loans, then why not make money on it?”
Simply put, it is necessary that the total payments on both loans do not exceed 50% of the confirmed income of the borrower and co-borrowers. Let us clarify that confirmed income is not only the salary indicated in the 2NDFL certificate or in the certificate in the bank form. In addition to wages at the main place of work, income takes into account payments for part-time work, dividends from deposits and securities, funds received from leasing various property, and other income.
Not a lot of choice
However, even if there is enough income to improve living conditions, future borrowers usually do not have accumulated funds for a down payment.
In theory, some banks could take the “previous” apartment as collateral. For example, if 90% of the loan has already been paid and the apartment overlooks Nevsky Prospekt, then it would be ridiculous to refuse such collateral.
As, for example, Irina Ilyasova, regional director of DeltaCredit in the Northwestern Federal District, told BN, in the practice of her bank there was a case when initially future borrowers owned such a “luxurious” apartment that the bank gave two mortgage loans against it.
But such cases are rare. Some banks generally do not accept existing real estate that is not encumbered with a mortgage as collateral. “Our bank does not issue loans secured by existing real estate,” explains Dmitry Alekseev, head of the mortgage lending department of the Absolut Bank branch in St. Petersburg. “For currently existing mortgage products, the bank does not accept existing housing as collateral,” echoes Igor Kaplenov, manager of the St. Petersburg branch of Bank Vozrozhdenie.
Moreover, even if the bank agrees to the second transaction, the borrower is at a disadvantage. “Usually the rate on loans secured by existing real estate is higher than on loans secured by purchased real estate,” explains Dmitry Alekseev.
Note: interest rates secured by existing and purchased housing differ by 3-5%. The reason is that a mortgage secured by existing real estate is a mortgage by virtue of an agreement, and a mortgage secured by the acquired property is a mortgage by force of law. And for the bank, the first is considered a riskier product, since in the event of force majeure, it is more difficult for the bank to foreclose on such an apartment.
As a result, potential borrowers are forced to sell the apartment they previously borrowed and is not free of collateral. And use the proceeds to pay off the loan and use the remainder as a down payment when taking out a mortgage for the next apartment.
The time has come to part
It should be clarified that the decision to sell a “mortgage” apartment before the loan is fully repaid is also not particularly welcomed by bankers. There are quite frequent cases when banks ask for their consent for 1% of the unpaid balance or do not give the borrower consent to such actions at all.
However, these “obstacles” are surmountable.
If the bank does not give consent, you need to find a buyer who, for a certain discount, will agree to pay off the remaining debt early. At the same time, the purchase of mortgaged apartments is now turning into a separate type of business. As private realtor Petr Graf, who specializes in these transactions, explained to BN, if the apartment is liquid enough, he is ready to buy it at a 10% discount on the average market price for the property.
And, according to NDV-Real Estate, 30-40% of mortgaged apartment sales occur in situations where sellers plan to purchase housing of higher quality or larger area, again using mortgage loans.
If, after the transaction, the seller wants to return the 1% paid for the banking permit, he needs to go to court. In the vast majority of cases, the judge will consider this payment illegal
The popularity of mortgage lending in modern Russian conditions is largely due to the fact that the vast majority of citizens simply have no other real opportunity to purchase new housing. An important feature of this type of loan is the long term of the agreement with the bank.
Fact. The number of Russian families who purchased housing with a mortgage during 2001-2017 exceeded 7 million. Moreover, almost half of Russians (45%) want to improve their existing housing conditions.
It is not surprising that in the process of fulfilling financial obligations, a situation may arise when the borrower needs to take out a second mortgage without paying off the first. The reason for this development of events can be a variety of life circumstances, for example, the birth of a child or even two, as well as the desire to live with elderly parents.
The main regulatory act regulating the rules for processing mortgage loans is Federal Law No. 102-FZ, which was issued on July 16, 1998. During its validity, this document was changed several times, and the last adjustments were made on December 31, 2017. Provisions No. 102-FZ do not prevent a bank client from obtaining a second mortgage; however, the right to make a decision on issuing a loan is granted, as in the case of any other loan, to a financial institution.
Despite the absence of a legislative prohibition, it is difficult to call the procedure for registering a second mortgage before repayment of the first one a banking service often encountered in practice. This is due to a number of reasons, including:
However, there are serious arguments in favor of a second mortgage. The main one is the presence of collateral for the transaction in the form of the purchased housing. If an apartment or private house has high liquidity and is in good technical condition, this acts as a significant guarantee for all participants in the credit process.
Today, for a large number of military personnel who have already taken advantage of the savings mortgage system, the question of whether it is allowed to take out a military mortgage a second time has become a serious issue. Current legislation does not prohibit such a transaction, however, for its implementation several conditions must be met, in particular:
Fact. The number of NIS participants for military personnel currently exceeds 350 thousand people. Moreover, approximately 10% of the participants have already received housing under this program.
To successfully fulfill the requirements described above, the borrower must have sufficiently serious resources. Therefore, military personnel are often forced to take out a consumer loan and service it until they receive a second mortgage loan. This is one of the main reasons for the rare use of military mortgages for the second time.
When attempting to obtain a mortgage loan for a second time without repaying the one previously taken, the potential borrower is formally subject to standard requirements for this type of loan. However, in practice, the answer to the question of whether bank specialists will approve a second mortgage depends on several important factors, including:
Fact. The amount of three types of insurance for a mortgage is approximately: real estate insurance - 0.3-0.5% of the loan amount, title insurance - 0.2-0.7% of the loan amount, personal insurance of the borrower - 0.3-1.5 % of the mortgage loan depending on the insurance program.
The package of documents that must be collected when applying for a second mortgage is also not at all different from what was provided when receiving the loan for the first time. The procedure for considering an application is carried out in a similar way, which can be submitted both during a personal visit of a potential client to the bank, and on the website of a financial institution online.
Practice shows that the likelihood of approval of a second mortgage loan is much higher when applying to the same bank where the first one was issued. But this rule applies only if the borrower is conscientious and fulfills its financial obligations in full and on time. In such a situation, many banks accommodate the client halfway, not only approving the issuance of a loan, but also providing preferential and favorable conditions for its processing.
The second criterion when choosing a bank is the stability of the financial condition of the credit institution. After in the second half of 2017, two large private banks from the top 10 of the Russian rating, namely Otkritie and Binbank, were subjected to a reorganization procedure by the Central Bank of the Russian Federation, a significant part of clients began to more actively use the services of banking organizations with state participation.
Fact. More than three-quarters of the mortgage lending market is accounted for by the three largest state-owned banks, namely Sberbank, Rosselkhozbank and VTB.
The largest of them include Sberbank, VTB and Rosselkhozbank. An additional argument in favor of the listed financial structures is their active participation in various government programs for preferential mortgages.
To increase the likelihood of the bank approving the issuance of a second mortgage, the borrower applies standard actions in such situations. They suggest:
The main condition for the bank's approval of the transaction is the confidence of the credit institution's employees in the financial capabilities of the potential borrower. It is the availability of income sufficient to service two loans at once that the borrower must first confirm. All other requirements are secondary.
Before changes were made to the current domestic legislation in 2013, a tax deduction for interest on a second mortgage was not provided. However, since the beginning of 2014, slightly different rules have been in effect. They do not establish any restrictions on the number of transactions that are eligible for the tax deduction. The main and only requirement concerns the maximum amount, which in 2018 is equal to 3 million rubles, which is 390 thousand rubles, based on the 13% personal income tax rate.
As a result, it is quite possible to return interest on a second mortgage today. But it is necessary to add up the amount of tax deduction for both transactions. Receiving compensation is possible within the limits of 390 thousand rubles indicated above.
The procedure for returning interest on a second mortgage to the tax office is quite simple. It involves the preliminary collection of documents confirming receipt of the loan and the borrower’s right to a tax deduction. Receipt of payments is possible within 3 years from the date of purchase of the apartment or house.
The need for a mortgage loan often arises among different citizens. This is due to low incomes, with which it is simply impossible to save the required amount to purchase real estate from personal funds.
Banks carefully check borrowers before giving them such a large loan. At the same time, people may often need to take out a second similar loan before the final repayment of the first mortgage loan.
Typically, the reason for such a decision is the need for additional real estate, which can be purchased exclusively with borrowed funds.
When obtaining approval for such a loan, you will have to face numerous difficulties, since you will have to repay two large loans at the same time.
It is possible to get a second mortgage if a citizen really has a significant income, so he can make two large monthly payments, and at the same time he must have the means to live.
This opportunity exists, but it is very difficult to take advantage of it. This is due to the fact that every banking organization tries to reduce its risks of losing funds, and this especially applies to such large loans as mortgages.
How to take out a mortgage correctly? More details in the video:
Therefore, each person applying for a re-loan is carefully checked by the organization.
Even if the borrower receives approval, then some nuances are taken into account:
The need for a second mortgage usually arises because, while paying off the first loan, people’s living conditions change and they begin to need additional real estate.
Every person with high solvency can count on such a second loan.
There will be no problem getting a second loan for citizens who are responsible payers with a high income if they can invest the required amount in the form of a loan, and they should not have any arrears or other problems on the first loan.
How to buy a secondary home using a mortgage issued by Sberbank? See.
Not only the income of the direct borrower is taken into account, but also the cash receipts of his official spouse, as well as all invited co-borrowers.
Any bank considers issuing a mortgage loan profitable, as it ensures good profits over a long period of time.
People who meet certain requirements can apply for a second such loan:
Scheme for obtaining a mortgage. It is taken into account that even when submitting an application to the same bank where there is already a mortgage, the borrower will be carefully checked again, since there is a possibility that he has changed jobs or his income level has decreased.
The main important assessment factors include:
If the borrower meets all of the above criteria, you can expect bank approval for a second mortgage.
To apply for a second mortgage, you will need the same documents that are needed for the first loan.
This includes:
How to apply for a mortgage without leaving home? Answer by .
The bank may require other documents if necessary, as it must ensure that the borrower meets all requirements.
All citizens applying for a second mortgage must be Russian citizens. Their age should not be more than 65 years, and they must also have permanent registration in the region where the bank branch is located.
Should you take out a second mortgage without paying off your first? Answer in video:
Work experience is also taken into account. All these factors may vary slightly from bank to bank.
To increase the chances of obtaining a second mortgage, potential borrowers take into account various factors:
How to reduce the mortgage rate at Sberbank? Read on.
If you cannot get approval, you can use it to get a small consumer loan, in which you can try to get a mortgage loan again.
Taking out two mortgages is a significant risk for borrowers. It is justified only if there is an urgent need for additional real estate.
Documents for mortgage. It is also important to make sure that the family's budget and income are really large enough to cope with all the necessary payments.
Thus, in certain situations, it is possible to take out two mortgages at once, but only if you have the appropriate financial capabilities. Various bank requirements are taken into account, as well as some recommendations to increase the likelihood of getting approval for a second mortgage loan.
Mortgage lending carries many risks for both the borrower and the lender. The presence of two existing contracts increases such risks significantly. Let's take a closer look at whether it is possible to take out two mortgages at the same time and what requirements must be met.
The current legislation of the Russian Federation does not prohibit the execution of several mortgage loans at the same time. Neither 102-FZ nor the Civil Code says anything about this. Therefore, the final decision on the advisability of double lending rests solely with banks.
Most credit institutions adhere to an unspoken rule according to which no more than 2 products of the same type are allowed for one borrower. That is, no more than 2 consumer or car loans.
Mortgage here is an exception for many banks due to its characteristics. A long repayment period and a significant monthly payment are factors that increase the risk of non-repayment or delays. Two existing mortgage loans from one borrower can ultimately become an unbearable burden and lead to an irreversible process - default (the inability to service one’s obligations).
Therefore, the possibility of simultaneously obtaining 2 mortgages at once is discussed with a specific bank on an individual basis. A positive decision can be made for an almost ideal client who meets the following requirements:
An additional advantage will be the provision of guarantors who also meet all the requirements of the lender.
CONCLUSION: If the client manages to convince the bank of his reliability and creditworthiness, then there is a high probability of approval of two mortgage applications at once.
Life situations can be very different. Some cases may require you to take out multiple mortgages at the same time. This can be done in two cases: with full compliance with all bank requirements and high income, and also with the simultaneous submission of a second application to another bank, hiding this fact from the first. Let's consider both situations in more detail.
The credit policy of the leading banks of the Russian Federation provides for a maximum burden of monthly payments of no more than 40% of the total family income. If the load on the mortgage application submitted is higher, then a negative decision will be made against such a client, since the risk for the bank will be increased.
A borrower for whom the credit burden on both loans is feasible (monthly payments account for no more than 40% of the family budget) will be considered solvent. Confirmation of this fact by providing official documents and certificates in most banks will be mandatory.
In addition to the level of solvency, the lender will pay attention to the length of service and job stability. If your salary allows you to apply for several mortgages, but your experience is not sufficient, the bank will recommend applying for a loan later.
Credit specialists study and analyze in detail the data provided by the client. In particular, based on documents on the level of income and information specified in the application form, the bank will take into account the current level of expenses of a particular family, the number of dependents, and the share of payments on current and future obligations. Based on this information, a conclusion will be made about whether income is sufficient or insufficient to cover payments on all loans.
There are two ways to apply for a mortgage:
If the total income in the family is not sufficient to service several mortgage loans, then any bank will immediately refuse cooperation. No one wants to get involved with a borrower who can violate the terms of the contract at any time.
An option that allows you to count on a positive outcome is to simultaneously submit loan applications to several banks at once. Once the bank approves the issuance of a mortgage, promptly proceed with registration at the second bank. This will only be possible if the information in the BKI does not have time to be uploaded.
It all depends on the lending bank. Some banks have automatic programs for submitting data to the BKI (any transactions regarding a specific client begin to be displayed from the moment they are recorded in this program), while in others, this is done by ordinary bank employees.
In the latter case, the procedure for submitting data to the BKI is not carried out every day, but with some delay. Therefore, a client applying for two mortgages at once can only be lucky in such a bank.
It is also worth understanding that only the fact of issuing money is considered the basis for transmitting data to the BKI that the loan has been issued. If you have only been approved for a property, then the BKI will not contain information that you already have an existing mortgage.
So, if you apply for one of the mortgages at Sberbank, then you should know that after your property is approved, you will no longer have your credit history checked. An exception is various rollbacks of an application when changing an apartment or other parameters. You can safely go to another bank and apply for a mortgage until registration has passed and Sberbank has issued money to your account.
The application mechanism is as follows:
It is important to know that if you have a letter of credit form of payment and the mortgage money is transferred to the account before registering the transaction, then in such a bank you need to apply for a mortgage for the second property, and not for the first one. You will have information in the BKI immediately after transferring money to your account.
The conditions for obtaining a second mortgage will be almost identical to those for the first. However, the client needs to be prepared for the fact that the requirements will become more stringent, since the risks will increase in proportion to the increasing credit load.
The procedure for registering a transaction for a second mortgage is also similar to the first. For registration, a purchase and sale agreement, a loan agreement and a mortgage are required (the latter is deposited with the bank). You can receive the mortgage immediately along with a certificate of absence of debt after fulfilling all obligations.
By analogy with a primary loan for the purchase of residential real estate, the borrower will need to collect and prepare a full package of documents in advance and prove his solvency.
Let's consider which banks in Russia can issue a second mortgage, and what to do if income is not enough.
After deciding on the need to obtain a second mortgage loan, the client is faced with the question of which bank to contact. The logical answer to this question would be to submit an application to the bank where the first existing mortgage was issued. This should only be done if you have an excellent credit history with this bank and long-term cooperation.
Below is a table with mortgage registration programs in banks that allow several existing loans:
If the borrower does not have the opportunity to officially confirm the adequacy of his income to obtain a second mortgage, then the following may be a way out of this situation:
It will also be a big plus to provide documents confirming the availability of liquid movable and immovable property in the borrower’s ownership, as a fact of confirmation of solvency.
Amount of credit
Payment type
Annuity Differentiated
Interest rate, %
Maternal capital
