About

For many families, Maternity Capital (or similar state-sponsored family subsidies) serves as the critical financial lever to enter the housing market. Whether used as a direct down payment or to pay down the principal of an existing loan, applying these funds correctly can save tens of thousands in long-term interest.

However, the mechanics of how banks apply these funds matter. Some apply it to reduce the loan term, while others reduce the monthly payment. This calculator demonstrates the mathematical impact of injecting a lump-sum subsidy into your mortgage equation, providing a clear 'Before vs. After' comparison of your financial obligations.

Formulas

The standard annuity payment formula is adjusted based on the Net Loan Amount (L_net):

L_net = P_price − D_cash − S_matcap

The monthly payment (M) is then calculated:

M = L_net × r1 − (1 + r)⁻ⁿ

Where S_matcap is the subsidy value and n is the total number of months.

Reference Data

Subsidy Use Case	Financial Impact	Speed of Effect
Down Payment	Reduces initial Loan-to-Value (LTV) ratio. May eliminate PMI (Private Mortgage Insurance).	Immediate (At Closing)
Principal Reduction (Keep Term)	Lowers monthly payment significantly. Total interest paid drops drastically.	Post-Closing (Recalculation)
Principal Reduction (Shorten Term)	Monthly payment stays same. Loan is paid off years earlier. Maximum interest savings.	Post-Closing (Recalculation)
Interest Repayment	Not recommended. Pays off 'rent' on money rather than debt itself.	Immediate

Frequently Asked Questions

Yes, most banks allow you to use the certificate funds as part or all of the down payment. However, some lenders may still require you to contribute a small percentage (e.g., 5-10%) of your own personal funds to ensure borrower stability.

If used as a down payment, it reduces the initial loan size, resulting in a lower monthly payment from the start. If applied later to an existing loan, you typically have a choice: reduce the monthly burden (payment drops) or keep the payment the same to shorten the loan life.

Pension funds or state agencies typically review applications within 10-30 days. Once approved, the transfer to the bank can take another 10-15 working days. You should plan your closing date accordingly.

Yes. A strict legal requirement of using Maternity Capital for housing is that the property must be shared among all family members (parents and children). Failure to do so can lead to prosecution and a demand to return the funds.