The law allows the use of CZH funds after three years of participation in the NIS program, but after the expiration of the specified period, servicemen have accumulated less than 1.0 million rubles in their personal account, and therefore they have to resort to using a mortgage, which entails the need to pay interest on it and, as a result, there is a significant decrease in the efficiency of the investment behavior model in NIS. In this connection, Military Relocation recommends a very balanced approach to resolving this issue, since any incorrect action within the framework of this system is reflected in the final outcome - i.e. on what the serviceman will be left with alone by the end of his service, and the difference can ultimately amount to several million rubles between a liquid option purchased with an optimal loan and illiquid housing purchased under an unfavorable lending program.

An example of calculating the amount of savings for a military mortgage

For example, a serviceman decided to obtain an NIS certificate in July 2016, at the beginning of the three-year period of participation in the NIS program. The calculation under such conditions will be as follows:

The amount of half of 2013 (this is 111,000 rubles) + the amount of the full year 2014 (this is 233,100 rubles) + the amount of the full year 2015 (this is 245,880 rubles) + 6 months of 2016 (this is 122,940 rubles).

The total amount allocated from the Russian budget for 3 years will be equal to 712,920 rubles.

In addition to those funds allocated from the budget, do not forget that if timely included in the NIS, the state program participant receives quarterly, which will also be included in the amount of the accumulated amount.

The amount a serviceman can expect on a military mortgage

It is the amount of savings and investment income that will be provided as a down payment under the military mortgage program if the serviceman nevertheless decides to buy an apartment or house using a military mortgage.

The full amount of savings will be indicated in the NIS Participant Certificate, which must be received by those wishing to purchase an apartment with a military mortgage after writing the appropriate report. But this amount will be slightly less than the actual amount, since it will be directly related to the month the Certificate is issued, and its implementation usually occurs after 3-5 months, for which additional monthly contributions are taken into account in the serviceman’s personal account. Next, the bank loan should be added to this amount.

Each bank has its own maximum loan amount. The features of the current loan programs of banks working on military mortgages can be found at, where a military mortgage calculator is also posted.

Knowing this data, the serviceman will be able to find out the amount to expect on a military mortgage. But in order to make the most correct decision, which will allow you to remain in a favorable position in the medium and long term, we recommend that you seek advice from Military Relocation specialists.

Several years ago, Russia adopted a law on a savings-mortgage system for military personnel.

Over the past 10+ years, thousands of contract workers have used this program to improve their situation. This bill allows you to take out a loan to purchase an apartment already in the 4th year of service and not have to worry about paying it off throughout the allotted period.

The essence of the program is that annually a certain amount of money is transferred to the serviceman’s account, which is used to repay the loan taken. The savings mortgage system for military personnel has its own conditions and requirements, and their compliance is monitored by the Ministry of Defense and Rosvoenipoteka.

At all times, providing housing for military personnel has been the primary task of the state. The previously developed housing support system was rejected as unjustifiable. In Soviet times, housing for military personnel was built with budget money. Finished houses and apartments were occupied in order of priority. But the implementation of this system encountered serious financial costs and technical difficulties, which led to a huge increase in the queue and an insufficient volume of construction. In 2005, a law was passed that seriously revised previously existing norms. He allowed contract workers to choose their own housing, regardless of its location.

The savings and mortgage system is a program developed by government authorities to provide military personnel with their own property. It is designed primarily for those people who want to purchase housing, but do not have such financial opportunity. NIS allows you to buy your own apartment through targeted lending, while the loan itself is paid from budget funds and does not require personal investment.

A distinctive characteristic is that the choice of future real estate is given directly to the serviceman himself, moreover, he is not limited by the budget amount of funds, and, if desired, can add his own savings to the amount or take out an additional loan from the bank.

Advantages and disadvantages

Military mortgages have their advantages and disadvantages. Of course, the following circumstances are considered positive qualities of the program:

1. The choice of future real estate and its location depends solely on the buyer himself.
2. The amount of budget funding allows you to purchase an apartment sufficient for a family to live in.
3. The purchase and sale operation is observed by several parties at once - the lender, Rosvoenipoteka and the buyer himself, which eliminates the possibility of fraud on the part of the seller.
4. A serviceman can move into an apartment immediately and live in it for the entire time along with his family.

In addition to the obvious advantages, the program also has negative aspects. The disadvantages of a military mortgage include:

1. The registration process takes quite a long time. This is due to the fact that the buyer will have to collect a large number of documents at each stage of the registration procedure.
2. Some stages require financial investments. For example, you will have to pay out of your own pocket for an independent expert assessment of the value of a real estate property, insurance, and the services of a realtor, lawyer and notary.

A significant disadvantage is that the apartment is pledged until the mortgage loan is paid in full. The encumbrance is removed after the last payment is made.

Legislative regulation

The rules for mortgage lending to military personnel are enshrined in Federal Law No. 117-FZ “On NIS...” dated January 1, 2005. The law has been fully operational since 2009.

This regulatory document allows us to maintain an important balance of interests. On the one hand, the state receives guarantees that the serviceman will not resign after several years. On the other hand, a NIS participant can, upon completion of three years of service, purchase housing, which, subject to mandatory conditions, will remain his property forever.

NIS participants receive money into their personal account and can accumulate it there. These amounts can be spent solely on improving existing housing conditions or purchasing real estate. The NIS state program allows military personnel to purchase apartments in two ways:

1. With the participation of a financial institution, buy a home on credit, which will be repaid monthly.
2. First, save the maximum possible amount of funds, and then select a premises without resorting to the services of banks.

Each person in need solves the problem of choice independently.

Rules for participation in the program

The state loan program for military personnel consists of two stages:

1. Registration in Rosvoenipoteka as a participant in NIS.
2. Registration of a military mortgage.

Each stage has its own rules and conditions. But the first thing to clarify is whether the service member is included in the category of persons eligible to participate in the program. Federal Law No. 117 contains a complete list of contract workers who can receive budget funding. If we try to combine them with common criteria, we get the following picture: those military personnel who have served at least three years under a contract can count on purchasing housing at the expense of the state. The specified period includes the period of receiving education in specialized military training institutions. It is also important whether a particular citizen expects to connect his life with this type of profession. Dismissal from the Ministry of Defense will lead to the fact that the former contractor will be forced to repay the loan himself, and if it comes to forced resignation due to gross violation of labor discipline, the property itself will be returned to account for the funds previously allocated from the budget.

At the time of applying for a mortgage loan, the serviceman is required to renew his contract with the Ministry of Defense. The duration of the new document is not specified, but it is generally accepted that it should be no less than five years.

Accumulation system

You can get a military mortgage only after the serviceman becomes a full member of the NIS.

From the moment a report is submitted to include the applicant in the list of recipients of budget funds for the purchase of housing, the process is considered to have begun. Rosvoenipoteka specialists create a current account in the name of the report submitter and funds begin to be credited to it. Receipts are made once a year, and the amount is determined by government officials, taking into account indexation over the past period.

From the moment of initial registration with Rosvoenipoteka, at least three years must pass before a contractor can begin processing a military mortgage in the chosen bank. But the maximum period of savings is determined only by the NIS participant himself and the time of his retirement.

The state program provides for a strictly developed savings system. Their amount does not depend on the time of service, military rank and the amount of allowance; it is the same for all NIS participants.

Annual contribution amount

In 2005, for the functioning of the new state program to provide housing for military personnel, the amount of subsidies per participant was established. Subsequently, the amount of state aid was annually revised and increased due to inflation. If we present the past years in full, the increasing trend looked like this:

1. 2005 – 37,000 rubles.
2. 2006 – 40 600.
3. 2007 – 82 800.
4. 2008 – 89 900.
5. 2009 – 168 000.
6. 2010 – 175 600.
7. 2011 – 189 800.
8. 2012 – 205 200.
9. 2013 – 222 000.
10. 2014 – 233 100.
11. 2015 – 245 800.
12. 2016 – 245 800.
13. 2017 – 260 141.
14. 2018 – 268 465,6.

Subsequently, amounts will be indexed as necessary. Part of the savings is used as a down payment, and the rest is used to pay off monthly loan installments.

Methods for checking savings

The amount of savings of a serviceman depends on two factors:

1. The size of budget transfers.
2. Duration of participation in the program.

The start of the countdown for enrollment in the ranks of NIS participants is an individual date. Budget funds are transferred not in a single amount, but every month in the amount of 1/12 of the established annual transfer. All together, this does not allow you to offhand determine the amount of accumulated funds in the account yourself.

A serviceman has the right to check at any time exactly how much is in his account. This can be done in several ways, but each of them assumes that the participant knows the individual number assigned to him. This information is provided by Rosvoenipoteka in writing. If for some reason the letter is lost or not received, you can look up the number from the head of the unit, since the data on the assigned numbering is attached to the serviceman’s personal file and is stored throughout the entire period of service and even after retirement.

Having the registration number in hand, the contract soldier can submit a report to the head of the unit with a request to provide him with data on existing savings. This method takes too long, since the answer comes within a month. There is an option that allows you to obtain information much faster and without the participation of your superiors in this process. To do this you need:

1. Register on the Rosvoenipoteka website. Registration involves creating a personal account with entering the personal data of the NIS participant.
2. In your account, select the “Requests” tab, and fill in all the lines in the field that appears.

Once the required data has been entered and the request has been sent, a response regarding the accrual amount will be received within 10 calendar days. It will be delivered by email and to your personal account on the Rosvoenipoteka website.

Using savings

You can use the accumulated amounts no earlier than three years have passed from the date of registration. During the specified period, the account will have an amount that will cover the down payment for the purchased property, usually it is equal to 10-20% of the cost of the selected property.

The procedure for obtaining a military mortgage begins with the serviceman submitting a report with a request to issue him a CJL certificate to apply to the bank. The submitted documentation is processed within one to three months, and upon expiration of the period the applicant receives a certificate in hand.

Savings can be used to purchase:

1. Apartments from the secondary market.
2. Premises in a building under construction.

Theoretically, a military mortgage can be issued for the purchase of a house or its construction, but in practice banks are not very loyal to this choice.

For a financial institution, the most important thing is the level of liquidity of the selected property, and whether it will be able to return its funds in the event of force majeure.

Buying a home

Buying a residential property is an extremely important moment, and when deciding it, it is important to choose not only the real estate itself, but also a lending institution. A serviceman is unlimited in his choice of bank; he has the opportunity to use the services of any financial organization that meets his needs.

State financing allows you to purchase housing within the established cost - 2.4 million rubles. If a service member wants to buy a more expensive property, he can add funds from his own savings or take out an additional mortgage loan from a lender. The amount paid in excess of the established amount is repaid by the contract employee independently from his own income.

Having determined the loan amount, you can begin choosing real estate. At this stage, it is extremely important to focus not only on your own preferences, but also on the requirements of the banks that will make decisions about the possibility of purchase.

Down payment on mortgage

Credit institutions issue a military mortgage provided that the borrower makes a down payment for the selected living space. It usually ranges from 10 to 20% of the amount of the purchased object. If the money accumulated over three years does not cover the down payment, the serviceman will have to add the missing difference from his own savings.

The down payment is transferred by Rosvoenipoteka directly to the bank. This procedure is carried out after the apartment has been selected and contracts with the financial institution and the seller have been concluded. It takes up to six months to transfer money from the NIS participant’s account to the creditor’s account. The process itself is initiated by a serviceman and is accompanied by the collection of documentation that confirms the fact of obtaining a mortgage and purchasing a home.

Share participation in construction

The mortgage program for military personnel provides the opportunity to purchase an apartment in a building under construction. This method of acquisition allows you to save a considerable amount of money, since shared construction involves incurring lower costs due to the reduced cost per square meter.

The procedure itself differs only slightly from the standard one. The main discrepancy is that initially a mortgage is issued on the basis of an agreement for shared participation in construction. This document does not allow the buyer to take ownership, which means that such an apartment cannot be taken as collateral. And only after the entire facility is put into operation, the buyer receives the right to own the square meters, and they are immediately encumbered.

A military mortgage implies that the purchased property is double-collateralized - by the lender and by the Ministry of Defense. Payments on the loan taken are distributed in such a way that the loan falls until the serviceman turns 45 years old.

You might be interested

One of the many problems of the Russian army is providing housing for military personnel. In order to resolve this issue, back in 2004, a law on military mortgages was created and adopted. This loan program was created in order to eliminate the queue for housing, but taking into account the benefits of military personnel.

After a while, we received a new law on military mortgages in 2013.

Due to the influence of a long period of time, the military lending program was not significantly changed. Its essence lies in the fact that throughout the entire service, the defender of the fatherland’s account will be replenished through savings proceeds, which will then be used as an investment in housing. The Federal Military Mortgage Act differs from the conventional mortgage programs of most banks in that its interest does not depend on the initial deposit, loan term and total payment amount.

Every year there is a systematic adjustment of the interest rate and savings for each loan product. The new law on military mortgages of 2013 means that each participant will receive a savings contribution in the amount of 222,000 rubles. According to the new rules, each month a direct transfer of funds must be made without the participation of the borrower - who serves to repay the loan.

The Federal Code on Military Mortgages specifies that “participants in the mortgage system can only be military personnel of the Armed Forces - citizens of the Russian Federation who are serving under a contract, as well as military personnel assigned to activities in the interests of state security and national defense.”

To become a member of the mortgage lending program this year, you must adhere to certain conditions:

1. The term of the contract is of fundamental importance for the mortgage program participant.
2. A serviceman can purchase housing with the help of a government subsidy after 3 years from the date of concluding the contract.
3. A military serviceman, according to the 2013 law on military mortgages, can independently determine the parameters of housing and the region of purchase.
4. The maximum amount promised by the state is 2.2 million rubles. The minimum loan amount is 300,000 rubles, loans are issued in ruble equivalent.
5. Each participant in the mortgage program is required to repay a certain portion of the loan. The size of the bet depends on the age of the defenders of the homeland (the older he is, the lower the percentage). Under the terms of the law on military mortgages, the rate this year is no more than 11.25%.
6. The amount of the monthly contribution depends entirely on the savings credits to the military account. As of 2013, the monthly transfer is equal to 18,500 rubles.
7. Loans are issued for a period from 3 to 25 years.

According to the Federal Law on Military Mortgages, in order to include military personnel on the list of those wishing to do so, you must present:

• a) a copy of the military application;
• b) a copy of the serviceman’s passport;
• c) a copy of the soldier’s first contract (for sergeants and sergeants – a copy of the second contract).

Rights and responsibilities of applicants

The military mortgage law states that real estate purchased under such a program is only the private property of the military personnel. The right to register family members in living space is not limited in any way. However, it is worth noting that the new version of the law, as before, provides for the deprivation of all benefits in relation to a dismissed (broken contract) serviceman.

Thus, after dismissal, the former serviceman is excluded from the NIS register. In addition, the federal body has the right to remove from the register a serviceman who died or disappeared during service.

At the same time, the latest version of the law on military mortgages provides for the possibility of attracting the serviceman’s own funds to pay off a military loan. Thus, repayment of a home loan on a military mortgage, loan servicing, and payment of the down payment are possible using the savings of a serviceman who is included in the NIS register and has received the appropriate special certificate from the unit command.

By attracting their own savings, military personnel receive the right to increase the loan amount for a military mortgage. In other words, the borrower is given the opportunity to purchase more expensive housing.