Today in Ukraine there are about 650,000 families on the waiting list and in dire need of new housing. At the same time, one and a half million internally displaced people are waiting for assistance from the state in the question of housing.
Since March 1, 2021, a program to support citizens with relatively low income – “Affordable Mortgage 7%” was launched in Ukraine. The initiative is part of the state program “Affordable credits 5-7-9,” and will be financed from the Enterprise Development Fund. It will give Ukrainians the opportunity to obtain housing on credit with partial compensation of interest by the state.
The conditions of the first stage of the program:
- The first minimum payment – from 15% of the value of the property;
- The age of the property – 3 years, which means that the subject of the mortgage must be commissioned no earlier than 2018;
- The maximum loan amount – 2 million UAH, and the value of the housing must not exceed 2.5 million UAH;
- Term of credit – 20 years;
- The normative area of housing is 50 square meters per person or family of two members. Each subsequent family member is entitled to an additional 20 square meters.
- The total area may exceed the normative by 20%, but the excess will be compensated by the borrower. And not at the reduced rate of 7%, but on general conditions offered by a particular bank.
Initially, the program was allocated 5 billion UAH, ie help in purchasing housing would be able to about 5 000 people. On April 13, the Verkhovna Rada of Ukraine adopted changes to the state budget for 2021, which included an additional 20 billion UAH for the purchase of housing mortgages (about 8 000 apartments) and financial leasing (about 12 000 apartments). In addition, changes were made to the conditions for the implementation of the program: the term was increased to 30 years, and the first part of the payment should be 20% of property value.
Also, the government defines the profile of the potential borrower:
- A citizen of Ukraine, who at the time of final repayment of the loan must not be older than 70 years;
- Does not own a home with a total area of more than 50 square meters. m;
- Citizens in need of better housing conditions, namely: consisting in housing queue; having a living area that does not exceed 13.65 square meters. m, residents of dilapidated or emergency buildings, young families, HGO, employees of the public sector;
- The maximum level of income must not exceed 10 average salaries in the region in which the subject of credit.
Interestingly, the list of developers from whom it is possible to buy real estate determines the banks. Get a list of potential properties and arrange a mortgage is possible in 11 Ukrainian banks:
- Oshchadbank and PrivatBank,
- UkrgasBank and Kredobank,
- Megabank and Globus Bank,
- OTP Bank and CredoBank;
- JSCB Lviv and others.
In case of improper fulfillment of the terms of the mortgage agreement, the bank has the right to collect penalties from the borrower. At the same time, interest compensation may be suspended if the borrower violates the prescribed obligations for more than one month.
Payment of compensation may be continued if the borrower pays the debt within 90 calendar days. The most severe penalty is the falsification of information about the borrower’s status. In such a case, the contract may be canceled and interest payments will not be made at the preferential rate.
The most up-to-date information about the possibility of obtaining a mortgage can be found on the website of the Entrepreneurship Development Fund.