About 5,000 families can take advantage of affordable mortgage program in 2021 – Finance Ministry

Ukrainian Finance Minister Serhiy Marchenko says about 5,000 Ukrainian families will be able to take advantage of the "Affordable Mortgage at 7%" state program in 2021.

"The Affordable Mortgage at 7% program will unblock mortgage lending in the country, revive the mortgage and housing construction markets, and give an impetus to economic development. It has been calculated that about 5,000 families will be able to benefit off the program in 2021," he said in an interview with a Ukrainian TV channel on March 9, the ministry's press service reports.

This year's target mortgage loan portfolio is estimated at UAH 5 billion, or US$180.4 million.

Read alsoFinance minister announces date for launch of affordable mortgage program"The program will continue operating. Today we are considering a three-year period of medium-term budget planning, and counting funds for subsequent periods so that the Affordable Mortgage at 7% program could develop," the minister said.

Background

On January 27, 2021, the Cabinet of Ministers passed a resolution to reduce the cost of mortgage loans. The document stipulates that the Entrepreneurship Development Fund compensate the interest rate up to 7% per annum on mortgage loans provided to borrowers for purchases of housing to reduce their cost. The Fund provides compensation for interest chargers to borrowers who have been granted a mortgage loan in national currency from an authorized bank.

Both Ukrainian citizens who wish to buy an apartment and those who build a house will be able to take advantage of said compensation. It will be impossible to use such loans to buy houses and apartments built before 2015.

On February 26, the Entrepreneurship Development Fund and seven authorized banks signed agreements under the Affordable Mortgage at 7% program.

On March 1, the first two Ukrainians took advantage of the state program.