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MIL OSI Translation. Region: Russian Federation –

Resolution of April 16, 2021 No. 603

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Resolution of April 16, 2021 No. 603

It will become easier for families with children to refinance mortgage loans taken with the help of maternity capital. The changes necessary for this have been made to the rules for channeling funds from materiel to improve housing conditions and approved by the Chairman of the Government, Mikhail Mishustin.

The changes, in particular, affected the procedure for registering ownership of housing purchased using a mortgage loan. According to the previous rules, within 6 months after the mortgage was repaid with the help of a new loan, the borrower was obliged to formalize the ownership of the share in the apartment for the children. Thus, the refinancing bank received an apartment as a pledge, the owners of which, among other things, were minor citizens. And if the borrower, for example, stopped repaying the loan, it would be difficult for the bank to foreclose on the mortgaged property. Because of such risks, many banks were reluctant to agree to refinance mortgages with a mother capital, and citizens could hardly re-issue a loan at a lower interest rate.

Now these difficulties have been settled by the Government. Families will be able to register an apartment for their children after the full repayment of the loan from the bank that refinanced the mortgage. This will protect the rights of recipients of maternity capital and provide them with access to refinancing on an equal basis with other citizens who have taken out a mortgage.

The signed document changes theGovernment Decree of December 12, 2007 No. 862.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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