Mortgage lending market almost at full stop in Ukraine - NBU

This is stated in the National Bank’s Financial Stability Report, December 2022, seen by Ukrinform.

"From March to September, almost no new mortgage lending was performed; loans were isolated. In September-October, a little more than a hundred mortgage loans were issued with an average volume of about UAH 1 million, almost all of them – on the secondary market," the report says.

Demand for real estate remains weak and unstable: the interest of a few buyers depends on the intensity of shelling of populated areas. Real estate offers have been on decline. Together with the destruction of the housing stock by shelling, this will lead to a further reduction in housing offers in the near future, and then – to its possible shortage. Reported purchase prices are mostly on the rise, while rental prices remain at almost half their pre-war levels.

It is noted that the mortgage market will remain inactive until the end of the war due to high risks. The state lending support programs "Affordable Mortgage" and "eOselya" can somewhat increase the demand for mortgages.

The eOselya affordable mortgage program for Ukrainians has been running on the Diya portal in test mode. Preferential rates of 3% are offered to four categories of the population and 7% -- to all other categories, including contracted servicemen, law enforcement operatives and their families, as well as doctors, teachers, and researchers – all working in the public and municipal sectors.

Lending conditions include a preferential interest rate, maximum credit term of up to 20 years; and minimum first payment of at least 20%.