Ukraine is experiencing a significant revival in the mortgage lending market. In September, Ukrainian banks issued 851 mortgage loans totaling 1.6 billion hryvnias, indicating stable demand for housing and the preservation of attractive lending conditions. Experts note that banks continue to manage risks in their portfolios, and effective rates remain unchanged.
This is reported by Finway
Current Dynamics of the Mortgage Market
In the primary housing market, 532 mortgage loans were issued in September for 1 billion hryvnias, while the secondary market saw 319 contracts totaling 621 million hryvnias. The average effective rates were 8.13% per annum for new buildings and 9.37% for secondary housing. The highest activity is observed in regions with a developed real estate market and active construction: Kyiv region topped the ranking with 303 loans for 599 million hryvnias (37% of the total volume), followed by the city of Kyiv (155 contracts for 350 million), Lviv region (46 loans for 95 million), Ivano-Frankivsk region (53 contracts for 90 million), and Volyn region (35 loans for 61 million hryvnias).
Proposals for Improving Subsidized Mortgage Programs
Alongside the revival of the mortgage lending market, there is ongoing public discussion about the need to improve state support programs. The head of the parliamentary Finance Committee, Danilo Hetmantsev, has called for a review of the conditions of the subsidized mortgage program “eOselya” for employees of social services in state and municipal institutions. He emphasizes that due to low salaries and high housing rental costs, this category particularly needs affordable mortgages.
“A rate of 3% is a fair and necessary support for them, as this category can currently only qualify for 7% under the program.”
According to Hetmantsev, such changes would help reduce staff turnover in the social sector, enhance employee motivation, and ensure stability for those on whom the well-being of thousands of citizens depends.