When residents of "Khrushchev" will be relocated to new buildings: they promise to move the reconstruction of obsolete housing from a dead point
In Ukraine, a new version of the law on the reconstruction of dilapidated and dilapidated housing is being developed. Every year, apartments in Khrushchev’s are getting cheaper by 15-20%, and…

Continue reading →

How to get a building permit in Ukraine according to a simplified procedure - recent changes
First you have to get a construction passport for the future home. A simplified procedure is being introduced in Ukraine in order to obtain a building permit and draw up…

Continue reading →

Do Kyiv need new shopping centers: will there be enough for all visitors
Supply does not yet satisfy demand and rental rates are rising In the capital, they continue to build and open new shopping centers, both large-scale and small. Do you need…

Continue reading →

Mortgages in Ukraine in 2020: what are the conditions and how much loan rates will be reduced

Mortgages in Ukraine froze in anticipation of a reboot

Mortgages in Ukraine in 2020 should give impetus to the primary real estate market. Strengthening of the hryvnia, rising construction costs and high mortgage rates have reduced sales and margins to developers. All market players expect from the NBU and banks when an affordable mortgage starts operating in 2020.

The portal “Capital Real Estate” 100realty.ua estimated how realistic it is to reduce mortgage rates in Ukraine in 2020.

The market is waiting for lower rates
At the end of 2019 – the first days of 2020, positive signals were received from the leadership of the National Bank of Ukraine.If their intentions come true, mortgage lending will revive the market for new buildings in Kiev and throughout the country.

Related article: What will change from January 1, 2020 in Ukraine – an increase in taxes, salaries, a living wage and fines

“2020 should be a year of full restoration of mortgage lending. Today, the hryvnia price of resources in banks is 8-9%, that is, we can already talk about a mortgage of 14-15%. And this is our task for the year, because it will give impetus to the further development of the economy, ”said Yekaterina Rozhkova, first deputy head of the NBU.

Later, the head of the National Bank, Yakov Smoly, predicted a reduction in the discount rate, which would inevitably lead to cheaper bank loans: “We have all the prerequisites to lower the discount rate at a faster pace. An 8% discount rate should be expected in the next (2020th – ed.) Year, ”he said in an interview.

Now the discount rate in Ukraine is lowered to a two-year low: 13.5% is the lowest figure since the end of 2017.

Olga Solovey, founder of URE CLUB, is sure that a set of measures is needed to make the mortgage affordable and work. “First of all, this is a decrease in requirements for the reservation of funds by banks. And here, in order to avoid the risks of non-repayment of funds and the emergence of problem loans, it is necessary to protect the rights of the creditor at the legislative level. That is, you cannot be the owner of the apartment until you fully pay the mortgage. Of course, a stable political situation is also an essential condition. What we have today inspires confidence that with a systematic approach next year it is possible to actually reduce interest rates on mortgages and get closer to European standards, ”she said in a comment to Property Times.

Mortgage Rates at the Beginning of 2020
Mortgage in Ukraine in 2020
Despite the optimism of the NBU leadership, at the beginning of 2020, mortgage rates remained high, especially given the strengthening of the hryvnia in the 4th quarter of the previous year. The most affordable mortgage in 2020 (as of January) is 17-18%. Such a mortgage rate is possible only if a number of conditions are met by the borrower, and is also available only to certain categories of citizens (see the section “Banking requirements for mortgages” below).

Related article: What will happen to the prices of apartments and new buildings in Kiev in 2020: forecast from market experts

On average, real mortgage rates in Ukraine range from 18% (financing by state banks of individual construction projects) to 25% (micro-mortgage, when the borrower does not have a small amount to buy in the amount of 10-15% of the total cost of real estate).

Mortgages in Ukraine are so expensive that mortgage rates are often equal to rates on micro-loans for small businesses and private entrepreneurs. Large network banks offer FOPs credit programs, including the purchase of real estate, at a real rate of 21% in the range of 500 thousand – 1 million hryvnia.

Hidden Mortgage Payments
Almost all mortgage programs in Ukraine contain hidden mortgage payments:

life and health insurance of the borrower for the entire loan program (0.5-1% of the loan amount);
insurance of purchased property, annually for the duration of the entire loan program;
one-time commission when issuing a loan (0.7-1% of the amount);
at the expense of the borrower, real estate is evaluated, and only by appraisers, which the bank has chosen.
Mortgage Bank Requirements
It is difficult to obtain a mortgage in Ukraine and the stringent requirements of banks to the borrower. First of all, it is necessary to confirm the presence of high official incomes. When obtaining a mortgage loan in the range of 500 thousand – 1 million UAH for a period of 5-7 years, you must have an official income of at least 20-25 thousand UAH per month. The incomes of other family members, especially the spouse, should also be high.

Related article: New rules for assessing real estate in Ukraine – what changes the new law of the Rada

At the end of 2019, after the dollar depreciated, several banks offered updated mortgage programs at reduced rates – from 16.9% to 19%. However, special requirements were put forward to borrowers.

Bank specific requirements for mortgages
Mortgage loan only for FOPs with special activities (

How to use the ads!
Nowadays, you can buy and sell anything on the Internet, including real estate. The most important thing from all this mass is to be able to single out exactly what…


Strengthened protection of property rights to real estate: what has changed
The law strengthened the protection of property rights to real estate The Verkhovna Rada adopted the Law “On Amending Certain Legislative Acts of Ukraine regarding the Improvement of State Registration…


How not to overpay, buying “cheap” housing - Alexander Pikulik
Construction companies are now competing for each buyer, as housing supply has recently exceeded demand. However, experts advise a good look if you are offered too low a price. There…


Living in hotels in Kiev has become more expensive: what will happen next
For the first time in 5 years, a decrease in average market operating indicators was observed in the hotel market of the capital The operational activities of hotels in Kiev…