A bank may turn down a mortgage if the information about the borrower and the property is incomplete or unreliable. Maxim Semov, who chairs the Committee for the Development of Financial Literacy within the Russian Banking Association, and who is recognized as an expert on Moifinance.rf from the Research Institute of the Ministry of Finance, explained to socialbites.ca that Russians should consider three additional reasons a mortgage might be rejected. — Source: Newspapers.Ru
First, if a bank asks for a certificate from the place of employment, the applicant should provide it without questioning the certificate’s value, method, or content. Even if the certificate is needed mainly for display, it should be available when requested. The bundle of ownership documents also needs to be complete, and if any data are missing, a clear and reasoned explanation should accompany the gaps. This guidance comes from Semov, who emphasized that the bank will verify all details at multiple stages. In practice, there is little value in withholding information about property or finances. — Source: Newspapers.Ru
The second risk is insufficient income. Semov illustrated this with a practical example: a family of three pooling a total monthly income of 100,000 rubles would struggle to devote 80,000 rubles to loan repayments every month. After covering essential living costs, there would be no margin left. In such a case a bank would likely refuse the loan. Current debt obligations also count toward the overall debt burden, including loans for which the applicant serves as a guarantor. Semov noted that lenders can propose alternatives such as extending the loan term while lowering monthly payments or moving salary payments to the chosen bank. If an employer starts transferring wages to the mortgage lender, the mortgage rate can be reduced by one percentage point. — Source: Newspapers.Ru
The third reason is a poor credit history. If there were delays on past loans or other derogatory marks, the bank will scrutinize the applicant’s credit record. Semov advised borrowers to address outstanding debts promptly so that their credit history reflects the improvements and their credit score improves accordingly. — Source: Newspapers.Ru
A fourth reason concerns the suitability of the property. The bank may reject a mortgage if the selected real estate does not meet its criteria for several reasons. It is wise to consult with bank credit experts to understand the exact parameters. Potential issues may arise in cases of registration hurdles for ownership of an apartment or errors in inheritance records. Semov recommended that all apartment documents be reviewed thoroughly in collaboration with the bank’s credit specialists. — Source: Newspapers.Ru
In summary, meticulous verification of income, debt load, and property eligibility is key for any mortgage application. Consumers are encouraged to review all relevant documents with the bank and clarify any uncertainties before submission. The evolving Russian mortgage market has been under close observation, with analysts discussing how the Central Bank’s decisions may shape access to home financing in the near term. — Source: Newspapers.Ru