Mortgages are almost non-existent in Ukraine: Ukrainians will be offered a new lending program

In Ukraine, the mortgage lending system remains inaccessible to a significant part of the population. Existing programs cannot meet society’s needs; even the popular “eHousing” initiative covers only a limited number of citizens.

The Chairman of the Finance Committee of the Verkhovna Rada, Danylo Getmantsev, pointed out that the current mechanisms do not solve the housing problem, noting that the “eHousing” program does not fulfill its main goal, since only about 20 thousand loans have been issued since its implementation, which is a small indicator compared to real needs.

Before the war, more than a million Ukrainian families needed their own housing. The war significantly complicated this problem due to significant losses of real estate and millions of internally displaced persons.

What changes are expected in the new mortgage lending program?

The Government of Ukraine plans to introduce a long-term mortgage lending model that involves more than just public funds. Getmantsev emphasized that financial instruments and support from international partners will be key to implementing this model.

It is assumed that the sources of financing for the program will include:

loans from banks;
assistance from international partners;
financing from the stock market;
partial financing from the state budget.
According to Hetmantsev, the implementation of this system will not only have social significance but also stimulate the development of Ukraine’s stock market. However, to provide housing for the population, more than a trillion hryvnias will be needed, which cannot be collected from the state budget alone.

Who will be eligible for a new mortgage?

The program will provide support to key social groups in the population to improve the housing market situation and stimulate the return of Ukrainians to their homes. The main attention will be paid to:

teachers and medical workers;
persons who lost private housing during the war;
internally displaced persons;
large families.
What is the role of local authorities in housing reform?

The implementation of the new program requires the active participation of local governments responsible for allocating land for construction and ensuring transparency in the processes. Hetmantsev noted that corruption risks in land distribution could become a serious obstacle to the implementation of the reform. It is also important to de-shadow the construction sector.

Currently, financial mechanisms are being prepared, after which the final terms of new mortgage lending will be announced.

According to Danylo Hetmantsev, the launch of this program will be an important step in restoring the housing market and ensuring economic stability in Ukraine.

Earlier, it was reported about the blocking of Oschadbank clients’ accounts, as well as about the situation with electricity amid shelling and frost.