The volume of mortgage lending in Ukraine in May 2025 remains lower than last year, despite some revival in the market. In total, banks issued 599 mortgage loans amounting to 1.09 billion UAH. This is one of the best results of the current year and also 31% more than in April. However, compared to May 2024, the number of issued mortgages decreased by 37%.
This is reported by Finway
Structure of the Mortgage Market and Rate Dynamics
The majority of loans, specifically 352 totaling 639.6 million UAH, were issued for the purchase of housing in the primary market. Of these, 106 loans for 187.2 million UAH were secured by property rights to future assets. The remaining 247 mortgage loans for 451.1 million UAH were issued for the acquisition of housing in the secondary market.
The weighted average effective rate in the primary market was 8% per annum, while in the secondary market it was 10%. According to the National Bank, the quality of the mortgage portfolio remains at an acceptable level: the share of non-performing mortgages is about 15%.
Geography and Trends in Mortgage Lending
The highest number of mortgage loans in May was received by residents of Kyiv region, the city of Kyiv, Lviv region, Ivano-Frankivsk region, and Dnipropetrovsk region. Experts predict that the gradual recovery of the mortgage market will continue, although the volumes still significantly lag behind last year’s figures.
“The decline may be due to restrictions on the issuance of mortgage loans under the ‘eOselya’ program for secondary housing, which now must not be older than three years.”
A significant reduction in mortgage lending has been recorded specifically after changes in the state program, which complicated access to mortgages for purchasing older housing in the secondary market.