During 2024, Ukrainians took out mortgage loans for a record amount, which exceeded even the indicators of the pre-war year 2021. This result became possible thanks to state programs aimed at supporting citizens in purchasing their own housing.
Let's consider how you can apply for a home loan.
Before the war, the Ukrainian mortgage lending market grew rapidly. Even in 2020, despite the coronavirus pandemic, the number of loans increased by more than a third compared to 2019. This became possible due to the reduction of interest rates, which stimulated the demand for home loans. However, the market collapsed after the start of a large-scale Russian invasion in 2022.
However, as of December 2024, in terms of the monetary volume of home loans, it was possible to surpass not only last 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 worth UAH 14.6 billion for the purchase of housing only under the "eOselya" program.
Standard mortgage conditions
The conditions of standard mortgage loans in Ukraine can differ significantly in each individual bank. Credit is granted to citizens from 18 to 70 years old, although some banks set other limits, for example, from 23 to 65 years old.
The annual interest rate directly depends on the discount rate of the National Bank of Ukraine, which as of the end of 2024 is 13.5%. As a result, the cost of a home mortgage loan ranges from 14 to 30 percent per annum.
For example, for a home loan worth 1 million hryvnias at 20% per annum, you will have to pay the bank 200 thousand hryvnias in the form of 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 interest rate, amount and term of the loan. For example, with an interest rate of 20% per annum and a loan in the amount of 1 million hryvnias for a term of 20 years, the monthly payment will be about 17 thousand hryvnias.
Rates on standard mortgage loans can be both fixed and floating. At banks that have a fixed rate, it changes only in the first year, because 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 rate of 29.99% for a mortgage loan in the amount of 200 to 750 thousand. UAH for a period 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 the rate of 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 for deposits of individuals in hryvnia. As of December 25, 2024, the UIRD is 12.83%.
Issuance of a mortgage under the "eOselya" program
The YeOsel 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 100,000. UAH up to UAH 12 million.
The interest rate depends on the category of the borrower and his 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, SBU, etc.).
- To employees of the medical field (doctors, nurses, employees of state medical institutions).
- Educators (teachers, lecturers, educators of state educational institutions).
- To 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 repayment of the loan).
- Lack of own housing or housing that is: less than 52.5 m² + 21 m² for each subsequent family member or located in a combat zone or temporarily occupied territory.
- The borrower is not on the sanction lists and is not a participant in other state 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 that includes a passport, an identification code, a certificate of income, 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 buy both new buildings and real estate on the secondary market, but it must meet the technical requirements of the bank 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.
