OREANDA-NEWS. November 20, 2012. Sviaz-Bank started accepting the motherhood capital as down payment, or part of it, for mortgages. For this purpose, the Bank had developed a new program it had named “Motherhood Capital.” Previously, motherhood capital could be used to pay off mortgages already issued by the Bank, reported the press-centre of Sviaz-Bank.

The new program is available to individuals entitled to receive funds from the federal budget as government support in the form of a motherhood (family) capital certificate that can be used to improve a family’s living conditions and buy real estate on the secondary housing market.

This can be an apartment in an apartment house, or a residential home or townhouse with land on which they stand. A loan is made for the purchase of real estate against the security of the real estate to be purchased or already owned.

The maximum loan made under the program may reach 30 million rubles for up to 30 years, at a minimum interest rate of 10.5% per annum in rubles. The borrower is not required to contribute any funds of his own, in addition to the motherhood capital, but he can do that at his discretion.

“We hope that our new program will help Russian families to use the motherhood capital funds efficiently as a down payment and, in this way, to increase the total loan amount, something they could not do previously, and to buy a larger and more comfortable housing unit for the family,” said Olga Oleinik, Vice Chair of Sviaz-Bank’s Management Board. “Previously, no opportunity like that existed at all, and many families avoided taking out a mortgage because they lacked the funds to make the down payment averaging 20% of the housing price, a fairly large amount for them.”

To apply for a mortgage, visit a Sviaz-Bank office of your choice and have with you a personal certificate and documents showing the balance in your account with the Federal Pension Fund.