Mortgage loans in Ukraine have become record accessible throughout history. Over the past three years, the weighted average rates for housing loans have been at their lowest levels since 2006, significantly increasing the availability of financing for citizens.
This is reported by Finway
Dynamics of Mortgage Rates in Recent Years
According to analytics from the Center for Economic Research and Forecasting “Financial Pulse”, from 2006 to 2021, the weighted average mortgage rate in Ukraine fluctuated between 11.8% and 20.6%. The average for this period was 16.2%. The highest rate was recorded in 2009, when, under the influence of the financial crisis, high inflation, and the rising dollar exchange rate, rates reached 20.6%. In the following years, despite fluctuations in the economic situation, rates gradually decreased: in 2015-2016, they fell to 11.8-12.4%, and in 2021, they were at 12.2%.
The implementation of the state program eOselya in 2022 became a key factor in the further reduction of rates. Thus, in 2022, the weighted average mortgage rate decreased to 8.6%, in 2023 to 9.4%, and in 2024 it remained at 8.8%.
“Mortgage rates are a kind of indicator of the overall state of the economy. They depend not only on the NBU’s discount rate but also on the cost of resources for banks, inflation, demand for loans, the level of competition, the exchange rate, and many other factors,” explains the head of the analytical department of “Financial Pulse” Dilyara Mustafaieva.
Growth of the Housing Market and Its Impact on the Economy
The positive trends in the mortgage market have stimulated the development of the construction industry. By the end of 2024, the volume of commissioned housing increased by 32% and reached 85% of the pre-war level. This indicates a gradual recovery of the real estate market and an increase in activity among investors and buyers.
Experts note that the reduction in mortgage rates, supported by the eOselya program, creates favorable conditions for the further development of the housing market, provides citizens with the opportunity to purchase their own housing on favorable terms, and contributes to the stabilization of the economic situation in the country.