During 2024, Ukrainians took out mortgage loans for a record amount, which exceeded even the indicators of pre-war 2021. This result was made possible thanks to state programs aimed at supporting citizens in purchasing their own homes.
Let's consider how you can apply for a housing loan.
Before the war, the Ukrainian mortgage lending market was growing rapidly. Even in 2020, despite the coronavirus pandemic, the number of loans increased by more than a third compared to 2019. This was made possible by lower interest rates, which stimulated demand for housing loans. However, the market collapsed after the start of the large-scale Russian invasion in 2022.
However, as of December 2024, the monetary volume of housing loans managed to overtake not only the previous year, but also the pre-war 2021, which was the most successful. In particular, according to the Ministry of Economy, since the beginning of 2024, Ukrainians have taken out 8,515 loans for UAH 14.6 billion for the purchase of housing only under the “e-Housing” program.
Standard mortgage terms
The terms of standard mortgage loans in Ukraine can vary significantly from bank to bank. Loans are provided to citizens aged 18 to 70, although some banks set other limits, for example, from 23 to 65.
The annual interest rate directly depends on the discount rate of the National Bank of Ukraine, which is 13.5% as of the end of 2024. As a result, the cost of a mortgage loan for housing ranges from 14 to 30 percent per annum.
For example, for a housing loan worth 1 million hryvnias at 20% per annum, you will have to pay the bank 200 thousand hryvnias in interest per year. The standard down payment is usually 30-40% of the cost of housing, which in this case will be 300-400 thousand hryvnias.
The loan is repaid monthly according to the payment schedule, and the size of the monthly payment depends on the rate, amount and term of the loan. For example, at a rate of 20% per annum and a loan of 1 million hryvnias for a term of 20 years, the monthly payment will be about 17 thousand hryvnias.
Rates on standard mortgages can be either fixed or floating. For banks that have a fixed rate, it only changes in the first year, as the real interest rate is taken into account. This is an indicator that takes into account the full cost of the loan, including all additional costs: commissions, insurance payments, administrative fees, etc.
For example, OTP Bank has a fixed annual interest rate of 29.99% on a mortgage loan for an amount from 200 to 750 thousand UAH for a term of 1 to 5 years. In real terms, this rate will be from 36.47% to 42.79%. However, at this rate, the loan will have to be paid only for the first year, after which it will return to 29.99% per annum.
Banks with a floating rate tie it to the UIRD index (Ukrainian Index of Retail Deposit Rates), which reflects the average rate on retail deposits in hryvnia. As of December 25, 2024, the UIRD is 12.83%.
Mortgage application under the “eOselya” program
The e-Housing program is implemented through ten partner banks: Oschadbank, Privatbank, Ukrgasbank, Globus Bank, Sky Bank, Ukreximbank, Sense Bank, BISbank, RadaBank and Bank Credit Dnipro. They provide mortgage loans at 3-7% per annum for a term of 1 to 25 years for amounts from UAH 100,000 to UAH 12 million.
The interest rate depends on the borrower's category and professional activity. A loan at 3% per annum is provided to public sector employees, in particular:
- Security and defense sector (military, law enforcement officers, employees of the State Emergency Service, border guard service, SBU, etc.).
- Medical workers (doctors, nurses, employees of state medical institutions).
- Educators (teachers, lecturers, educators of public educational institutions).
- Scientists working in state scientific institutions.
- Borrowers must not have other housing or real estate that does not meet sanitary standards.
A loan at 7% per annum is available to other citizens of Ukraine under the following conditions:
- Official income, solvency and age from 18 to 70 years (at the time of loan repayment).
- Lack of own housing or having housing that is: less than 52.5 m² + 21 m² for each additional family member or located in a combat zone or temporarily occupied territory.
- The borrower is not on any sanctions lists and is not a participant in other government housing programs.
After registering and submitting an application in the “Diya” application, the bank begins its consideration. To do this, you need to provide a package of documents, including a passport, identification code, income certificate, confirmation of employment in one of the preferential categories, as well as documents on marital status.
At the same time, it is necessary to choose housing that can be purchased under the “eOselya” program. The program allows you to purchase both new buildings and real estate on the secondary market, but it must meet the bank's technical requirements and be evaluated by a certified expert.
It is worth considering that in the first year the real rate will also be higher than 7 or 3 percent.
