Which bank can a foreign citizen get a mortgage from?

Taking out a mortgage for a foreign citizen in Russia seems to be a difficult task. The fact is that most banks issue housing loans only if you have Russian citizenship. This is explained by increased risks that the lender does not want to take on. If a mortgage debt is not paid, it will be more difficult to collect it from a non-resident than from a Russian. However, mortgages are still available for foreign citizens in Russia.

Can a foreigner take out a mortgage in Russia?

If we look at Russian legislation, it does not impose any restrictions on housing lending to foreigners. But in practice, it turns out to be difficult for a foreign citizen to take out a mortgage, because banks put forward strict requirements for such borrowers. The reason is that a non-resident can leave Russia at any time, then the bank will suffer losses that are unlikely to be compensated.

Even the presence of collateral slightly reduces possible risks. Credit organizations try not to initiate legal collection unless unnecessarily necessary, because this is a serious expense. The natural conditions of banks providing mortgages to foreign citizens will be an increase in the interest rate, the down payment, the application of additional commissions and stricter issuance requirements.

Under what circumstances is it easier to obtain a mortgage for an apartment for foreign citizens:

having a permanent job and paying taxes to the Russian budget;
belonging to the CIS countries;
Russian citizenship of the borrower's spouse;
high income and lack of loans;
increased down payment with your own funds;
attraction of guarantors and additional collateral;
registration of life and health insurance;
excellent credit history.

For foreign citizens, you can even apply for a mortgage from banks with state participation, for example, VTB. It all depends on the internal policy of the financial organization and interest in attracting new clients, even representatives of other countries. It is also worth paying attention to commercial credit structures that are loyal to potential borrowers.

Having a residence permit in Russia allows foreign citizens to enjoy the same rights as Russians, including obtaining a mortgage. The loan is issued on standard terms. True, not all banks, for example, do not provide Sberbank mortgages for foreign citizens with a residence permit.

Mortgage with a residence permit in Russia for citizens of the CIS and other countries

The regulatory legal acts of the Russian Federation establish practically equal rights for foreigners with residence permits in our country with Russian citizens. This applies to the fulfillment of tax obligations, receipt of various social benefits and benefits. This clause can also be extended to the issuance of mortgage loans.

A mortgage with a residence permit in Russia is issued in the standard manner. As a rule, this category of borrowers legally works in Russia and can confirm their employment and income, which is extremely important for the bank when making a decision.

CONCLUSION: Practice proves that many banks demonstrate loyalty towards foreigners from the CIS countries with a residence permit in the Russian Federation. The procedure for considering a loan application, terms and basic conditions for them will be softer. A mortgage with a residence permit in Russia is more realistic for foreigners than the option of obtaining a mortgage for foreigners without a residence permit.

Which banks issue mortgages to foreigners?

The most favorable conditions for housing loans in Russia are offered by large banks. It is a pity that very few of them are ready to see representatives of other states as their borrowers. Probably, both Rosselkhozbank and Sberbank will offer mortgages for foreign citizens someday, but right now they are not available. The question arises: which banks issue mortgages to foreign citizens? Below we will describe in detail where housing loans are currently available to foreigners in Russia.

Which banks provide mortgages to foreign citizens? The first on our list is a large credit institution, more than half owned by the state - VTB. There are several housing programs () available to foreigners:

Housing loan based on two documents (). Issued for the purchase of finished or under construction housing. Amount from 600 thousand to 30 million rubles, rate from 8.4% (calculated individually), payment period up to 20 years, down payment from 30%.
Loan for finished housing. Amount from 600 thousand to 60 million rubles, interest from 8.4%, repayment period up to 30 years, down payment from 10%.
Loan for investment in apartment construction. Amount from 600 thousand to 60 million rubles, rate from 8.4%, down payment from 10%, payment period up to 30 years.

Of course, social mortgages are not available to foreign citizens at VTB. Programs such as the Far Eastern Mortgage or a Loan with state support for families with children are issued only to Russians. This is understandable, because they are subsidized by the Russian budget.

Alfa Bank offers mortgages for foreign citizens

is issued for all current programs. They are available only to residents of Russia, Belarus and Ukraine. You can get a home loan here on the following conditions ():

amount from 600 thousand to 50 million rubles;
interest rate from 8.49% for new buildings, from 9.19% for secondary housing;
repayment period up to 30 years;
down payment from 15% for a finished property, from 10% for a property under construction.

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At Rosbank, mortgages are available to foreign citizens in many areas:

A loan for the purchase of an apartment in a finished building or for part of it. Interest from 6.99%, down payment from 15%, repayment up to 25 years, amount from 300 thousand rubles.
To purchase an apartment in a new building. The rate starts from 6.99%, the first installment is from 15%, the payment period is up to 25 years, the amount is from 300 thousand rubles.
To buy a house. Interest from 8.49%, down payment from 40%, repayment time up to 25 years, amount from 300 thousand rubles.
Loan for a room. Interest rate from 7.49%, down payment from 25%, term up to 25 years, amount from 300 thousand rubles.
Loan to improve housing conditions. The first payment under this program must be 50% of the value of the property sold by the client. Rate from 10.49%, loan repayment period 3-15 years, amount from 300 thousand to 10 million rubles.
Loan for building a house. Interest from 7.49%, repayment time up to 25 years, amount from 300 thousand rubles, contribution with your own funds from 30%.
For the purchase of apartments. The rate starts from 6.99%, down payment from 20%, term up to 25 years, amount from 300 thousand rubles.
Loan for the purchase of a garage or parking space. Interest from 6.99%, down payment from 25%, payment time up to 10 years, amount from 300 thousand rubles.

Next on our list is Raiffeisenbank, which issues mortgages to both Russians and foreigners. Here you can get a housing loan for the purchase of a finished or under construction property under the following conditions:

interest rate from 8.39%;
amount from 500 thousand to 26 million rubles;
Debt repayment period is up to 30 years.

A foreigner living in Russia has the right to contact any of the listed banks and apply for a mortgage. However, you need to remember that the decision rests with the lender. A potential borrower can only increase the likelihood of approval by showing significant income () or providing additional collateral ().

Also among the banks working with foreign citizens are:

UniCredit Bank;
Absolut Bank;
Transcapital Bank.

Best deals

Despite the risks, many Russian banks still offer mortgages to foreign citizens, trying to expand their audience and client base. Of these, it is worth choosing the one that offers the most favorable conditions for the purchase of the desired type of real estate located in the Russian Federation.

Lending at Raiffeisenbank

Raiffeisenbank provides mortgage loans to non-residents of the Russian Federation for the purchase of housing in new buildings and on the secondary market, as well as their refinancing. The terms and conditions of the financial institution are:

per annum from 10.25% for salary clients and from 10.99% for all others;
amount from 500 thousand (800 thousand for real estate in Moscow) to 26 million rubles;
loan term from 1 to 30 years;
a decision on the application is made within 2-5 working days;
available methods of issuing funds - non-cash to a card, cash to a bank safe or in the form of a letter of credit;
the loan is repaid in Russian rubles, even if the foreigner receives income in a currency different from them;
the client is given a period of 3 months to find and register real estate after making a positive decision to issue a mortgage;
repayment is carried out in equal payments with a frequency of 1 month;
penalty for late payment - 0.06% of the amount per day;
repayment methods without commission: transfer from a card of another bank, as well as through ATMs and terminals of Raiffeisen, MKB, B&N Bank and Gazprombank.

Mortgage loans are issued to foreign citizens subject to their actual residence and employment in the Russian Federation. The remaining requirements for them are standard:

Availability of a complete package of documents from the borrower and all co-borrowers. This includes an application form, a passport, a certificate of income in form 2-NDFL or a bank, a business application form for owners and co-owners, and when purchasing housing on the secondary market - additional papers for it. The financial institution has the right to request additional documents to confirm the information received.
Age from 21 years at the time of registration of the contract to 65 (60 in the absence of insurance) years at its end.
The length of stay at the current place of employment is at least 3 months with a total work experience of 2 years or 6 months in 1 year. If the current job is the borrower's first, he must be employed in it for at least 12 months.
Owners and co-owners of a business, as well as individual entrepreneurs, must operate for at least 3 financial years.
Income from 20 thousand rubles for residents of Moscow, St. Petersburg (and the corresponding regions), Yekaterinburg, Magadan, Surgut and Tyumen, 15 thousand for everyone else and 10 thousand for a co-borrower. Calculated after tax.
Availability of a working mobile or landline phone for communication.
Good credit history and no more than two existing mortgage loans (including those issued at Raiffeisenbank).

If all conditions are met, the client has a good chance of getting a mortgage approved for foreign citizens. In Moscow, St. Petersburg and other cities, he will be offered real estate from Raiffeisenbank partners from more than a thousand new buildings. There is also the option of searching for housing on your own, but then the purchased apartment will be subject to certain requirements, which can be viewed on the bank’s website.

Receiving services from VTB 24

Mortgages are available for foreign citizens at VTB 24 or the Bank of Moscow. It is the result of a merger of several financial institutions and provides lending services to non-residents on the following terms:

rate from 9.1% (8.9% if the apartment area is more than 65 sq. m.);
amount from 600 thousand to 60 million rubles;
term up to 30 years;
The application is reviewed within 1-5 working days;
registration at the place of residence in the area of application is not required;
You can purchase real estate on the primary and secondary housing markets. and also refinance an existing mortgage;
down payment from 10%;
comprehensive insurance of both the borrower and his property;
taking into account the income of the entire family (up to 4 co-borrowers) when calculating the loan amount;
improved conditions for the bank’s salary clients and government employees;
the ability to repay the loan through VTB online, ATM networks, by transferring non-cash payments to an account from another bank or paying in cash at any office of the organization or through Russian Post;
early payment of debt at any stage of the transaction.

Foreigners may also be interested in the “Victory over formalities” program, which makes it possible to significantly simplify the process of obtaining a loan by providing a large down payment and can be obtained even by persons without a residence permit. But even without it, VTB Bank is a worthy candidate for obtaining a mortgage.

Alfa Bank terms and conditions

As of 2021, Alfa Bank offers quite favorable conditions for mortgages with the option of servicing foreigners. Their list looks like this:

rate from 10.29% (for salary clients - 9.29%) per annum, when entering into a transaction within a month it is reduced by 0.3%;
loan amount up to 50 million rubles for residents of Moscow and Moscow Region and 25 million for residents of St. Petersburg and Leningrad Region;
period from 3 to 30 years;
It is mandatory to insure the life and health of the borrower, as well as the risk of loss of the acquired property or rights to it;
Application review time is up to 2 days (usually several hours);
starting fee of 15% of the current market value of the purchased property;
the maximum loan amount ranges from 50 to 80% (85% for salary clients) of the value of the purchased property and depends on its type (50% for private houses with adjacent land, 75% for apartments and 80-85% for a townhouse or apartment);
you can apply for a mortgage only using your passport and SNILS without proof of income, but then the maximum loan amount will be reduced to 30 million (for Moscow residents) or 15 million (for property owners in St. Petersburg) rubles, and the rate will increase by 0.7%;
The only requirements for the borrower are to be within the age range from 21 to 70 years (at the time of signing and expiration of the contract, respectively) and work experience at the current place of work of 4 months, with a total of a year or more.

It is worth noting that this bank provides mortgages to foreigners, but not to stateless persons. They should look for another offer.

Mortgage from DeltaCredit

In order to get a mortgage in Moscow for Belarusians, Ukrainians and residents of other foreign countries, you can contact a bank called Deltacredit. It issues loans for the purchase of real estate under the following conditions:

interest rate from 8.25 to 10%;
loan amount from 600 thousand rubles for residents of Moscow and the Moscow region or from 300 thousand for residents of other regions;
term from 3 to 25 years;
you can buy ready-made or under construction apartments, a room or a share of an apartment, as well as country housing, land or a garage;
the client's citizenship does not matter;
you can attract up to 3 co-borrowers, who can be either relatives of the loan recipient or any third parties;
down payment from 15% - depends on the type of property;
the ability to confirm income through the State Services portal, which eliminates the need to obtain a certificate and make a copy of the work book;
Lending is provided to individual entrepreneurs, as well as business owners and co-owners.

Of the additional requirements for non-residents of the Russian Federation, Deltacredit Bank imposes only the need to show documents confirming the legality of a person’s stay in the country and his employment. Otherwise, applying for a mortgage for a foreigner in this institution will be no different from that for a full citizen of the Russian Federation.

In addition, in 2021, such banks as Otkritie, Soyuz, Transcapitalbank, RosEvrobank, Russian Capital and others are offering mortgages for non-residents of the Russian Federation. You can view the conditions of each of them and find out the procedure for drawing up a loan agreement on our website in the “Banks” section, or by contacting the nearest office of the organization.

Is it possible for a foreign citizen to get a mortgage without initial capital?

Applying for a loan without depositing your own funds is extremely rarely available to Russians, so foreigners should not count on it. True, a mortgage without a down payment for foreign citizens can be replaced by maternal capital. If the Russian wife of a foreigner has a certificate in her hands, it is allowed to be used instead of paying for part of the apartment in cash.

It turns out that it is easier for foreign citizens to take out a mortgage in Moscow than for residents of the regions, because the head offices of large foreign companies are concentrated in the capital. And the choice of banks is much more extensive, so foreigners living here are a little luckier.

Legislative side of the issue

Is it possible to get a loan from Sberbank with a residence permit?

Marina Danilova
20.03.2020

It is worth immediately clarifying that for banks, financial organizations and developers there is practically no difference whether a foreign citizen has a residence permit or temporary residence permit. The main thing for them is documented evidence that the foreigner is in the Russian Federation on legal grounds. The second important issue is the foreigner’s solvency.

Even with regard to Russian citizens, this point is checked very carefully, let alone citizens of other countries who can return to their native land, after which it will be extremely problematic to force them to pay off the debt. We can say that banks apply the same rules to foreign citizens as they apply to Russians, but they comply with them more strictly.

However, there are legal restrictions on issuing mortgages to foreign citizens . Just like Russians, persons with a residence permit can purchase real estate using bank loans.

Mortgage refinancing for foreigners

Mortgage refinancing for foreign citizens is available under the same conditions as obtaining a new home loan. It is worth paying attention to the same banks that we talked about in the previous section. What refinancing conditions do they offer:

VTB will refinance the existing mortgage at an interest rate of 8.8% for a period of up to 30 years (if according to a simplified package of documents - up to 20 years), the amount is up to 30 million rubles;
Alfa Bank issues a loan for refinancing in the amount of up to 50 million rubles, interest from 8.69%, repayment period up to 30 years;
Rosbank will refinance housing loans at a rate of 6.99%, for a period of up to 25 years, for an amount starting from 3 million rubles;
Raiffeisenbank refinances mortgages from 8.39%, in the amount of up to 26 million rubles, payment period up to 30 years.

Some of the most favorable rates for refinancing housing loans are offered by Gazprombank. However, unlike VTB, Gazprombank does not issue mortgages for foreign citizens. You should not look for similar programs in Rosselkhozbank, Sberbank, Otkritie, Sovcombank, Tinkoff Bank, etc.

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There will be costs associated with refinancing your mortgage. You will also have to insure the mortgaged property annually. To approve the application, you must provide real estate documents to the bank; most often, the lender requires a recent appraisal report. So the costs of the new loan will not decrease.

Please note that in addition to mortgages and refinancing, in the banks we list, foreigners can take out a loan secured by existing real estate. To obtain it, the borrower's property must be pledged. You can spend the funds received at your own discretion, that is, you do not have to report to the creditor.

Do Russian banks issue mortgages to foreigners?

Mortgage lending in our country is regulated by Law N 102-FZ “On Mortgage”. This law does not contain any restrictions prohibiting foreigners from taking out a loan secured by real estate. But, ultimately, it is banks who decide to whom and under what conditions they are willing to provide financial services. That's why:

a) not all financial organizations issue mortgages to citizens of other countries;

b) the requirements for them are more stringent than for Russians.

Foreigners from far abroad have the hardest time - they are most often rejected. Financial and credit organizations trust citizens of CIS countries more.

Requirements for borrowers

Mortgage conditions for foreign citizens are more stringent than for other borrowers. In this way, credit institutions minimize their own risks. Clients should be prepared for the following loan parameters:

high interest rate;
short payment period;
increased down payment;
requirement to strengthen security.

The easiest way to get a mortgage is for citizens of the Republic of Belarus, Uzbekistan, Tajikistan and Kazakhstan; for Ukrainians, obtaining a loan is now difficult.

Usual requirements of banks when obtaining a mortgage by foreign citizens:

the person is a tax resident (), that is, pays taxes to the budget;
residence in Russia for at least 190 days;
permanent employment;
experience in the current position from six months, but some banks raise the bar to 2-3 years;
having a good credit history and no current debt obligations;
making a down payment of 20% of the cost of housing, but this value can reach even 70%.

These measures are designed to reduce the risks of banks issuing mortgages to foreign citizens. If the potential borrower has a residence permit, this greatly simplifies the task. But the likelihood of approval is still lower than when applying from a Russian.

Mortgage without a residence permit

A non-resident of the Russian Federation will be able to obtain a mortgage for the purchase of residential real estate only if the following conditions are met:

he permanently resides in Russia or has intentions to move to permanent residence (the period of stay in the Russian Federation cannot be less than 183 days);
has stable employment with a Russian employer for at least six months;
regularly pays all taxes and fees;
has sufficient payment and creditworthiness (the sum of all the borrower’s obligations cannot exceed 40% of family income);
will pay an impressive share of the down payment for the purchased housing (usually at least 20%);
has no third-party debts or damaged credit history.

If these conditions are met, the bank will be able to meet the client halfway and issue the required amount of money for the purchase of real estate.

IMPORTANT! If a foreign citizen does not have any credit history, that is, he has never taken out any loans or credits, then the likelihood of being denied a mortgage will increase significantly, since it will be difficult for a credit institution to form a correct idea of his reliability and solvency.

Some banks, recognizing the category of foreign borrowers as high-risk, establish additional, increased requirements for them.

Among these requirements and restrictions are:

increasing the minimum length of work experience for a Russian employer company (for example, from 6 months to 2-3 years);
requirement to attract guarantors or co-borrowers;
increase in interest rate (usually no more than 1-1.5 percentage points);
increase in the amount of the down payment (up to 50-70% of the price of the property);
reduction of the loan term;
obligatory conclusion of a comprehensive insurance contract (in addition to real estate insurance, you will need to buy life and health insurance for the client).

Using the listed restrictions, the bank tries in any way to reduce possible risks in the future.

What documents will be required

The list of documents for obtaining a mortgage by foreign citizens with a residence permit is almost no different from the standard one. The package of securities is formed depending on the selected bank. It usually looks like this:

foreign passport and its notarized translation;
a document confirming the right to stay in the Russian Federation;
A completed application form;
other identification documents of your choice (for example, driver's license);
income certificate in the form or sample of the bank;
confirmation of employment;
additional papers if necessary (diploma, document on marital status, birth certificates of children, etc.).

A similar package of documents will be required from guarantors and co-borrowers.

Important to know: Mortgage without a credit history – chances of getting approval

How does a mortgage transaction work - frequently asked questions

How to confirm a down payment on a mortgage

Is it worth getting a mortgage through realtors - pros and cons

After the initial approval of the loan application, it is necessary to select a property that meets the bank’s requirements. These again can vary greatly depending on the lender. But as a standard, it is required to confirm the absence of encumbrances and legal claims of other persons, the house should not be in disrepair, etc.

Are mortgages issued to foreign citizens for properties other than apartments? Yes, it is possible to purchase a residential building with land outside the city, a dacha, a garage, apartments, etc. If the bank’s lending program provides for any of the listed real estate options, a foreigner will be able to purchase it.

For finished housing you should provide:

extract from the register of real estate rights;
a copy of the seller's passport;
technical documentation;
document establishing the right of ownership;
draft purchase agreement;
evaluation report;
certificate of registration and other papers depending on the situation.

When purchasing an apartment in a new building, foreign citizens must provide a draft construction contract and documents for the developer to the bank for a mortgage. If a loan transaction for finished housing involves the simultaneous registration of collateral, then an apartment under construction requires additional collateral.

During the construction of the house and its commissioning, a pledge of existing real estate or a guarantee is required. After registration of ownership of the apartment, the apartment is mortgaged; at this stage, you will need to provide the bank with an appraisal report, an extract from the real estate register and technical documents, as well as insure the property.

When applying for a mortgage to invest in the construction of an apartment, you should choose developers accredited by the bank. It is easier to get such a loan, and cooperation with large lenders is a kind of guarantee of timely delivery of the house and the reliability of the construction company.

Required documents

To submit and consider a loan application, the client must provide the bank with the following set of required documents:

Application form according to the bank form.
Passport of a foreign citizen, which must be accompanied by a notarized translation.
Documentary evidence of stay on the territory of the Russian Federation (migration card, residence permit, visa, temporary residence permit).
Documents confirming employment and receiving a stable income.
Work permit in the Russian Federation.
Documents for the purchased housing (certificate of title, purchase and sale agreement, cadastral passport, professional real estate appraisal report).

This list is not exhaustive. Additionally, the bank may require documents such as:

documents confirming education;
certificate of temporary registration;
documents for existing property owned;
bank statement for the client's personal accounts.

Transaction scheme

We have already found out whether mortgages are given to foreign citizens, now we will consider the procedure for conducting the transaction. In general, it is no different from the standard algorithm. Let's look at it step by step:

you must submit a mortgage application to the selected bank and receive approval;
then, during the period of validity of the positive decision, a property is selected and a package of documents for it is collected;
papers for the purchased apartment are transferred to the bank for separate verification;
after the purchase is approved, you can enter into a transaction;
a purchase agreement (or construction investment) and loan documentation are signed and submitted to the registration authorities;
at the same time the first payment is transferred to the seller;
The borrower receives title registration documents, then brings them to the bank to obtain a mortgage and transfer the remaining amount to the seller.

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How to get a mortgage - step-by-step instructions

In general, the procedure for submitting documents and considering an application for a foreigner is not much different from the process of applying for a mortgage by a citizen of the Russian Federation, for example, at Sberbank. The only distinguishing feature will be the search and selection of a bank that is ready to cooperate and offers the least stringent conditions for obtaining a loan. If we consider the issuance of a loan from the moment of submitting an application to the receipt of money by the seller, then it takes a longer time compared to Russians.

Carefully analyze the offers of banks offering mortgages for migrants. If you have any questions, it is better to additionally consult with the organization’s specialists. Many banks have qualified staff in a special department or even a mortgage lending center (like Sberbank).
Write an application to the organization with a request to consider the possibility of issuing a mortgage, attaching the required documentation package. The application form is issued by the lender's employees or the form is available on the Sberbank website.
After receiving approval for a certain amount by the bank, select a property and collect the necessary documents for it, in particular, carry out an assessment.
Make an agreement with the guarantor and provide his information for verification by the security service.
Sign an agreement with the lender and transfer funds to the seller of the apartment.

A citizen of Russia performs similar actions when obtaining a mortgage, including in such large banks as Sberbank. A migrant may be given a longer period of time to review the information he has provided.

Questions from readers

FAQ

Firuza: “I want to buy a house. Can I take out a mortgage? Since I never took out a loan. I have been working officially for 10 years. I am a foreign citizen. Married and have children. We want our own home. We can’t save money. Since rent, documents, transportation costs are more.”

Hello, I need to try to apply. You just need a down payment of 10-15% of the housing price. This money needs to be saved. And to be able to pay for insurance. Their cost depends on the mortgage amount. From banks to foreign citizens work if the work is in the Russian Federation: VTB Rosbank Unicredit Absolut Transcapital Raiffeisen

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Author:

Mortgage specialist Maria Yurievna Sokhan

Publication dateJanuary 10, 2020April 28, 2021