Refinancing is similar to the standard procedure for concluding a mortgage agreement. The borrower must confirm the solvency and compliance of the mortgaged apartment with the bank’s requirements. Consider all the nuances of the procedure.
We will define you step by step how to arrange everything.
Step 1: Calculate the Benefit
The mortgage calculator will show you what your monthly payment will be. Knowing your monthly payment will help you decide if refinancing your mortgage is worth it.
Step 2: Collect Documents
So, you will need the following:
Passport of the borrower/co-borrower with a registration mark
For each refinanced loan, the borrower must provide the following information:
- Number and date of the loan agreement
- Validity of the loan agreement and the loan repayment period
- Loan amount and currency
- Interest rate
- Monthly payment
- Account details for repaying a refinanced loan
To confirm this information, you must provide the bank with any of the following documents: a loan agreement, a payment schedule, a notice of the total cost of the loan, and a document confirming the change in the details of the primary lender.
Additionally, the bank may request information from the client:
- On the balance of loan debt on a refinanced loan with accrued interest
- On the presence/absence of current arrears and arrears during the last 12 months
A document must confirm such information from the creditor bank for the refinanced loan (certificate, extract, or another document). The information must be current as of the date of submission to Sberbank.
Step 3: Apply for Refinancing and get a Decision from the Bank
Step 4: Submit Documents for Real Estate and Refinance Loans to the Bank
When the bank approves the application, it will be necessary to provide copies for real estate and refinanced loans within 90 days and conduct an assessment of housing. This assessment takes about five days. If you order an evaluation on Domclick, it will be faster – no more than three days.
The bank considers documents on real estate and loans within 3-5 working days. If everything is in order, the manager will contact you, and you will agree when you can sign a loan agreement and a mortgage (pledge) agreement and receive money.
Step 5: Get a Loan for Refinancing
After signing a new loan agreement and a mortgage (pledge) agreement, you will receive an amount that is enough to pay off the “old” mortgage.
One rate will apply before registering a pledge with Sberbank; after registration, the mortgage rate will decrease. Check with bank employees or chat for details.
Step 6: Pay Off the Mortgage in Another Bank
You need to write an application for early repayment of the mortgage in another bank to repay the entire remaining amount. You will only need a certificate of the absence of debt if you have provided other real estate as collateral.
Such a certificate must be brought to Sberbank two months after receiving the loan. If a mortgage is provided on real estate purchased or built at the expense of a mortgage, then a certificate is not needed.
Step 7: Remove the Encumbrance from Housing in Rosreestr and Register a Mortgage (pledge) Agreement
When you pay off the “old” mortgage, the bank will give you a mortgage if it was issued. The mortgage will state that you have no financial obligations left here. This mortgage must be taken to Rosreestr and applied to remove encumbrances from real estate. If the lender did not issue the mortgage, an application for removing the encumbrance would be sufficient.
Simultaneously with the application for removing the encumbrance, submit to Rosreestr the mortgage (pledge) agreement signed with Sberbank on real estate in 3 copies. Rosreestr removes the burden in favor of the “old” creditor and registers the pledge in a few days.
Step 8: Confirmation of Pledge Registration
After Rosreestr removes the encumbrance in favor of the “old” creditor and registers a pledge, confirm such registration by providing an extract from the USRN or a pledge agreement with Rosreestr’s mark to the bank’s office or online through the client’s account on Domclick. After confirming the collateral registration in favor of Sberbank, your loan rate will be lower by 2%.
It is necessary to meet the allotted time. Otherwise, the bank will decide that the loan was not taken for housing and begin the recovery procedure, and the bank will charge penalties on the loan. As a rule, a period of 3 months is enough for everything. The sooner you renew your mortgage, the sooner you can lower your interest rate.
All in All
First, calculate whether it is profitable to refinance your mortgage – compare your costs with possible savings.
If refinancing is profitable, you will need to go through the following steps:
- Approval by the bank of the online application – 90% of the answers from the bank come within 5 minutes
- Collection of documents for real estate and refinanced loans – 2-3 days
- Consideration by the bank of documents for real estate and refinanced loans – 1-3 days
- Obtaining a loan for refinancing, repayment of the “old” mortgage – 1-3 days
- Removal by Rosreestr of encumbrance from housing from the “old” bank – from 2 to 10 days
- Mortgage registration by Rosreestr at Sberbank – from 2 to 10 days