The mortgage agreement is the main document between the lender - VTB 24 and the borrower. It regulates all the conditions for lending housing, the terms of its validity and the grounds for early termination, the rights and obligations of the parties, the imposition of fines, and the procedure for resolving disputes.
Applying for a loan is possible both at a personal appointment at one of the bank's offices, and by sending an application through the official website of VTB 24.
In connection with the crisis of non-payments, the requirements for borrowers have become tougher, and loan agreements contain, to some extent, dangerous moments for debtors. Therefore, before applying for a mortgage, it is advisable to familiarize yourself with the standard provisions of the agreement developed by the bank under the title “Rules for the provision and repayment mortgage loans for the purchase of a mortgage. This can be done on the website of the credit institution www.vtb.ru.
General and individual in the loan agreement
Conventionally, the document can be divided into two parts. One contains general rules lending to the borrower by a specific bank, in this case VTB 24, the terms used in the contract, references to legislative acts, the responsibility of the parties and the procedure for lending. The other one concerns a specific person who applied for a mortgage. It contains:
- loan amount;
- description of the real estate acquisition transaction;
- payment schedule;
- interest rates and the possibility of their change;
- detailed description of the subject of pledge;
- insurance obligations;
- check conditions financial position the borrower;
- provisions for bank control over the use mortgage apartment;
- a list of events and terms for notifying the bank of their occurrence (for example, a change in surname, place of residence, the birth of children and their registration, a decrease in income, damage to pledged property, initiation of a criminal case);
- the procedure for providing documentation in the "title period" (applies only to facilities under construction);
- description of the state support program (if applicable).
It is very important to know
First of all, with specific clauses about the responsibility of the borrower. This must be done before signing an agreement with the bank, since failure to fulfill the obligations assumed may entail requirements for the debtor on the part of VTB 24 to terminate the mortgage agreement ahead of schedule and, therefore, fully repay the borrowed funds.
If there are guarantors, separate agreements are concluded with them.
To date, mortgages are most commonly used instead of mortgage agreements. Therefore, a separate pledge agreement is not required. The encumbrance on the purchased apartment is issued on the basis of a mortgage. This makes it easier for the bank to turn the collateral in its favor if the debtor defaults on the loan.
What to look for before signing a mortgage
Insurance
- whether the borrower can independently choose the insurer, or he has the right to choose only within the list of companies that the bank provides him;
- the amount of insurance in order to understand how much this expense increases the loan, and what is more profitable to get a “discount” of 1% from bank rate and pay for an insurance policy voluntary insurance, or refuse insurance and increase the rate by one percent.
Requirements for a mortgage apartment
All credit organizations, including VTB 24 and Sberbank, have tightened the requirements for their borrowers in terms of disposing of mortgaged residential properties.
This applies to the use of housing and the rights of the owner to register other persons in the apartment, both on a permanent basis and as temporary residents.
Registration of new residents is prohibited
In particular, VTB 24 in its agreements prohibits the borrower from registering new tenants in the apartment. This provision applies to both family members and outsiders. The exception is newborns. If the borrower plans to marry and register a spouse after applying for a mortgage, it is advisable to clarify this issue before signing a loan agreement.
Renting is allowed, if it is not specified in the contract
Quite often, citizens buy housing on credit and immediately rent it out. This is possible if it is not prohibited in the mortgage agreement, or the document does not contain any provision about it at all. Currently, in the VTB 24 model agreement, the rental of a mortgage apartment is expressly prohibited. This is explained by the fact that in case of non-payment of the debt by the borrower and the withdrawal of the apartment in favor of the bank, the latter does not have the right to terminate the lease agreement until its expiration date.
Banks monitor the implementation of this item by their customers.
The borrower can use the mortgaged property only for the residence of his family. If the borrower is planning a lease, it is better to discuss this issue with the bank before concluding an agreement and fix this possibility in it, for example:
- with the consent of the bank,
- for a period not exceeding 11 months without the right to automatic renewal.
Many citizens, despite their obligations, continue to rent apartments in violation of the contract and without the written consent of the creditor. This entails additional risks for them, up to the termination of the mortgage by the bank. Taking into account that she is currently taking out a mortgage, the withdrawal of housing is taking place according to a simplified scheme.
Redevelopment is prohibited
For the entire term of the contract, the borrower does not have the right to carry out repair work with redevelopment of housing. Exceptions are planned overhauls of apartment buildings.
Income decline and debt restructuring
Since this process, as a rule, does not depend on the borrower, and is only required by the contract to inform the lender about this, the bank does not impose any sanctions and fines on the client. In this situation, debt restructuring is possible. It is considered by the bank after the debtor submits an appropriate application.
When it comes time to take out a loan, buyers need to read the terms and conditions of the deals of different banks to find the best option. Today we will talk about the contract VTB mortgages 24, a sample of which should be carefully studied before signing.
What information does the document contain?
Contains:
- complete information about the seller and buyer of real estate,
- information about the object being sold/acquired,
- basis for the seller's ownership,
- housing cost,
- terms of payment for the purchase by the buyer - part own funds and the amount of the mortgage loan
- the right of the bank's mortgage on the property specified in the contract.
Contract structure
A sample mortgage agreement for VTB 24 in 2019 consists of several parts.
Part 1. Individual conditions of the loan agreement:
- Borrower's personal information. It indicates the surname, name, patronymic of the buyer of real estate, his passport data, his place of residence, as well as bank details.
- Individual loan conditions. This paragraph provides a description of all the basic information about the loan: special purpose, mortgage loan amount, interest rate, loan term, etc.
- Mortgage item. Here, the property purchased by the borrower is fully described, namely: the address of its location, general and living area, number of floors, rooms, name of the owner on the date of conclusion of the contract, as well as the price of the object.
- Loan security. This paragraph stipulates the transfer of the existing potential borrower property as collateral for a loan. Moreover, the term of the pledge of the premises coincides with the term of the loan itself.
Since the mortgage agreement is located on several pages, it is advisable to first download it in in electronic format and try to complete it yourself. This is how you can delve into the meaning of the legal text and prepare questions about it in advance.
Focus on the text of the mortgage agreement being signed lending to VTB 24, the sample of which will be filled in advance, is much simpler. Otherwise, you may miss some important details:
- Insurance. Since the life insurance of the borrower and the property - important condition when concluding a transaction, carefully read all its sub-clauses. So that in the event of force majeure circumstances for you, you clearly know what to do next.
- Loan conditions. Loan funds are transferred to the borrower only after collection following documents: contract of sale, extract from the Unified State Register of Rights to real estate and deals with it payment order confirming the fact of payment by the borrower down payment former owner housing.
- Other conditions. Additional information about the obligations of the parties is stipulated here. For example, if you want to, you must notify VTB24 representatives in advance.
- Obligations of the borrower. This item should occupy the main share of your attention, because it almost completely prescribes the order of your actions for the next "credit" years. Failure to comply with one of the conditions may result in a fine.
Part 2. General terms loan agreement
The second chapter of the mortgage agreement contains theoretical information and reveals the main points of loan obligations. It consists of the following items:
- General provisions.
- Terms and Definitions.
- Subject of the contract.
- The procedure for granting a loan.
- The procedure for using the loan and its return.
- Size interest rate.
- Rights and obligations of the parties.
- Responsibility of the parties.
- Other conditions.
- Signatures of the parties.
Before signing a contract
Be careful when filling out paperwork and reading a loan document. Be sure to understand its details and ambiguous sentences. Particular attention should be paid to all the details available in the contract, as well as information on the acquired property. In addition, be sure to check the amounts written in numbers and letters, because even one comma can oblige you to repay an exorbitantly large loan. By going to court, you can also lose, because your signature will be on the contract, which means that at the time of its conclusion you fully agreed with the terms of the loan.
As long as the borrower pays the principal and interest on it, the housing will be pledged by VTB 24. When the mortgage is repaid, the encumbrance can be removed.
A mortgage agreement is the main document that defines all the terms of a loan for an apartment in VTB 24, including the procedure for resolving conflict situations. It contains all the main parameters of the transaction, the rights of the parties, obligations, fines and sanctions that will be applied for non-compliance with the conditions. So getting acquainted with the text of the contract before signing is not a recommendation, but a necessary action for the client. Let's try to figure out what pitfalls the VTB 24 mortgage agreement contains and what to look for before concluding a deal.
Contract structure
A mortgage agreement is concluded between the bank and the borrower, who pledges the property purchased on credit. In this case, no additional pledge agreement is required, the client signs a mortgage, which remains with the bank, and a note of encumbrance is made in the certificate of ownership. If there are guarantors or another method of security, this is prescribed in its terms, but separate agreements are signed with each co-borrower and guarantor.
The VTB Mortgage Agreement consists of two parts: Individual Conditions and General Rules for Loan Terms. The second part is standard, and the first is formed for a specific borrower.
As appendices, the contract ends with information about the total cost of the product and consent to the processing of personal data.
Individual mortgage conditions
This part of the document defines the key indicators of the transaction and consists of the following sections:
- Details of the parties - information about the bank and the recipient of the loan is indicated. We are talking about the names of the parties, the address of their location and registration, the passport data of the borrower, etc.
- Subject of the contract individual conditions) - this describes the property that will act as collateral, indicates the amount of the loan, its validity period, the amount of the monthly payment, the interest rate, possible discounts and surcharges to it, the payment period and penalties for delay.
- Rules for calculating the interest rate, as well as discounts and surcharges to it.
- Subject of mortgage detailed description of the acquired property: address, area, number of rooms, size of residential and non-residential premises, data of the seller, as well as the procedure for registering ownership. The cost of the apartment and the body registering the transaction are also prescribed here.
- Collateral - indicates the subject of the pledge, as well as the data of the guarantors, if any, and the degree of their responsibility.
- Insurance – this section is devoted to insurance of the collateral object. This indicates the obligation of the owner of the property to insure the property annually against the risks of damage and loss. It also details the risks that are insured in the mandatory and voluntary, the term of insurance, as well as the amount of risks. If insurance is provided for the guarantor, then this is also written in this paragraph.
- The procedure for providing - how the transaction is concluded and settled on it, what documents must be submitted to the bank after registration of the sale.
- Other conditions - the procedure for notifying the bank and the borrower about the occurrence of cases related to the mortgage agreement, consent to the use of personal data and access to credit history borrower. The procedure for writing off funds to pay off the debt is also determined.
Rules for provision and redemption
The second part of the contract is the general rules for the provision and repayment of debt. This document explains the meaning of all financial concepts, which are used in the contract, and also tells about all the main points of the transaction. This document consists of the following sections:
- General provisions - it is indicated here that the rules are an integral part of the loan agreement.
- Designation of the main terms - in the section the meanings of the main terms that are found in the loan agreement are deciphered.
- The procedure for granting a loan - there is a description of the mechanism for issuing a loan to the borrower.
- Lending conditions - this section contains the procedure for the client's actions, depending on the transaction scheme.
- Conditions for the onset of the title period (if the property is purchased on the secondary market) - explains the mechanism for concluding a title insurance contract.
- Conditions of risk insurance - it contains information on what risks it is necessary to insure property, life and health, as well as a description of the insurance mechanism.
- The procedure for using the loan and its return - it tells how the borrower should service the loan, pay interest, the sequence of debt repayment
- Rights and obligations of the parties - this section describes what the borrower must do during the entire term of the contract, as well as what rights he has. Similarly, the rights and obligations of the creditor are indicated.
- Responsibility of the parties - here we are talking about the consequences that await the borrower for failure to fulfill obligations.
- Other conditions - the final section of the rules. It contains important legal information that was not included in the previous paragraphs of the rules.
You can download a sample of the rules to familiarize yourself with them before concluding a deal at the link.
"Pitfalls": what points to pay attention to
A mortgage agreement is the main document that governs the relationship between a lender and a borrower. Therefore, before signing it is necessary to read it, even despite the large amount of text. And not just to read, but to understand and understand what each of its points means. Of course, if there is such an opportunity, then it is better to show it to lawyers, if not, then the credit manager should give answers to all questions of interest.
Particular attention should be paid to the following points:
- Insurance - under what conditions it is necessary to insure and in which insurance companies, as well as what sanctions and fines the bank applies for non-compliance with this condition. VTB uses the term " base rate”, which is slightly higher than the actual one. And when extending the insurance contract, there is a 1% discount. But if you refuse to pay fees, the bank will cancel the discount.
- Registration of new residents standard conditions only close relatives of the borrower are allowed to register. Otherwise, bank permission is required.
- Renting out real estate is another point that requires the written consent of the lender. For violation of this condition, the bank may demand from the client early termination of the contract and repayment of the debt. Any other use of the premises is also prohibited, except for the personal residence of the borrower and his family members.
- implementation overhaul- this is also prohibited without the written permission of the bank.
- Penalties and sanctions for failure to comply with other terms of the contract, the procedure for settlements and early repayment. The Bank provides for penalties for late payment, and they are charged not only on the amount of the principal debt, but also on interest on it.
- The need to confirm income and the right of the bank to additional checks solvency of the client once a year. An unsatisfactory result of such a check gives the bank the right to claim the loan ahead of schedule. As well as any other actions that affect the value and condition of the collateral: repairs, debts utility bills, unsatisfactory technical condition due to improper operation, etc.
After reading the contract, the client will be able to realistically assess whether he will be able to fulfill the conditions in a timely manner or whether they will be unbearable for him. If the latter option, then it is better to refuse the deal. Otherwise, there is a big risk that the debt will become problematic with all the ensuing negative consequences.
The loan agreement is the fundamental document when applying for a loan. Do you carefully study these papers before signing? In the article you will find the basic concepts, conditions on which it is recommended to focus your attention. P Practical advice will help you avoid the negative consequences of the transaction.Components of a sample loan agreement
Each bank has different contract templates. In accordance with the "letter of the law" KD ( loan agreement) should in without fail contain the following information:
- the amount of your loan
- rate (percentage),
- clear order of repayment;
- PSK or full cost of the loan;
- additional terms initiated by one of the parties to the transaction.
The bank establishes all other conditions at its own discretion within the legal framework in the loan agreement. The sample includes the following components:
- preamble (the parties to the transaction are prescribed);
- term of granting / issuance of a loan;
- number of the loan agreement, date (day of signing the document);
- borrower's guarantees (i.e. collateral, guarantee, etc.);
- the procedure for granting / issuing a loan;
- obligations of both parties: both the bank and the borrower;
- the rights of each participant in the transaction;
- the procedure for considering disputes;
- special conditions (if any);
- loan period (the terms in the agreement must correspond to those declared by the loan officer);
- details and signatures of each party.
General rules for studying a bank loan agreement
You need to study the contract slowly and very carefully. Each unclear point should be discussed with your personal manager. This will help you understand all the nuances of future lending and save you from unforeseen circumstances. You need to study the document in its entirety, and not just the part where the interest on the loan or the amount of your loan is indicated. This approach will save you from problems, misunderstandings. Special points of the CD
Particular attention should be paid to the study of the "price" of the loan, that is, its full cost. It is very important that the percentages are indicated in the document clearly, transparently and preferably as a separate paragraph, and not small print in the "body" of the text. It is also worth avoiding the presence in the document of evaluative concepts that do not have a specific meaning and can be interpreted in different ways (for example, a gross violation).
On December 8, 2012, I took a cash loan from this bank. The service has become quite decent (now bank employees fill out the questionnaires themselves - already progress!), And the loan was issued generally with a smile on their faces.
Dates monthly payments on the loan fell on the whole weekend (January 8, February 8, March 8, etc.), respectively, the schedule was changed by the computer and the payment dates were adjusted according to the Civil Code (in January to January 9th). In addition, when issuing a loan, the loan officer recommended that I deposit money through an ATM, because this money is credited to the account instantly. But this is VTB! After all, we cannot trust such banks at their word.
As a law-abiding citizen and a crystal borrower, I deposited money in advance, more precisely, a day before the deadline. Do you think the bank fulfilled its obligations on time, according to the loan agreement and the recommendations of the loan officer?
No matter how.
On January 8, I deposited an amount slightly higher than the loan payment through the ATM of the Zvezdny branch, two ATMs, both were buggy that day: one did not see small bills and did not issue checks at all, the other did not see large ones. Using both ATMs, I still deposited the required amount and received a check on the balance on the account.
In February, on the 7th, I also deposited the required amount (although ATMs were already working correctly). And nothing foreshadowed trouble ... as this Saturday the bell rang: "VTB24 Bank welcomes you, now it will talk to you" itself "- wait, be afraid, get ready" ...
The bank operator said that I have a debt, small, but available. Where it came from, the operator could not explain, but confirmed that necessary sums delivered on time and in the correct size. For further information sent to the bank branch. I complained that all these are internal problems of the bank and they do not concern me much, I am busy and I don’t have time to run after bank technical failures. The operator said that he understands my feelings, but still strongly recommends that I immediately contact the nearest department.
I dropped my business (it should be noted that it is very important), grabbed an agreement with the bank (a box) and went to the nearest branch, which is located from me in the neighboring district of the city.
Arriving at the bank, I realized that I did not take my passport with me, but because I came to solve not my problems, but the problems of the bank, I was not particularly worried, because I fulfilled my obligations to the bank by 101%, and in advance. This is a technical failure and I was sure that it would be solved with me in a couple of clicks, I was also sure that there was no need to go to the bank for such trifles. But! It's VTB!
At the bank, the first thing they demanded from me was a passport and said that without a passport they would not even talk to me. I said that all these are problems of the bank, and they do not concern me much, the operator (3rd counter of the Zvyozdny branch) nevertheless agreed to check the information. My assumptions about 2 clicks began to disappear ... the operator spent 10 minutes scribbling on the keyboard, pulling the mouse and clicking its buttons - in general, she filled no less than a page of information. Then she called someone older and asked her what to do, because. as a client to the bank, he fulfilled all obligations on time and in full, but the bank, violating the contract, debited the money from the account as he wanted (with a delay). And then he also soldered penalties and fines to the client.
The eldest replied that I wrote a claim. I replied that in this case (I repeat, I was very busy!) It is easier for me to write a claim to Rospotrebnadzor. The operator also refused to write a claim on my behalf, because. she needed my passport for this, in view of the fact that she must attach a scan of my passport to the claim! Well, at least not a scan of my documents for an apartment and a car ...
Besides, given operator she “recommended” me to pay off the existing debt (35 rubles!), threatening that VTB24 bank would ruin my “karma” - my crystal clear credit history.
In the evening of the same day, a "robot" called me and said that I owed money to the bank.
I ask the management of VTB24 Bank:
1. Understand the situation, make payments on the loan in accordance with the terms of the contract. And notify me about it.
2. Change the work and rules of the bank in such a way that customers are not pulled over the jambs of the bank itself and are not forced to travel to offices and draw up a bunch of papers, and they also do not threaten customers, especially for no reason.
Thank you in advance.
P.S. Do not forget that your bank is not the only one on the market, and that I can change banks at any time. Which I will definitely do if similar jambs are repeated in the future.