REUTERS
All citizens who meet certain criteria and have a business reputation that allows them to get a loan will be able to join this program.
Ukrainian Finance Minister Serhiy Marchenko says that the first loan under the national affordable mortgage program can be issued in early March.
"In pursuance of the Ukrainian president's program, we in January founded a mortgage lending program for compensating the interest rate, the so-called 'Affordable Mortgage at 7%' program. We took advantage of the fact that we have already had a branded tool, 'Program 5-7-9%,'" he said during the Ukraine 30. Infrastructure Forum in Kyiv. "Taking into account the experience and the available infrastructure, we quickly prepared an appropriate government decision, which provides for easier access by citizens to mortgage lending. This will, in turn, stimulate construction and allow citizens to use the program as early as from March. It is real, and I think that the first loan will be issued in early March."
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According to him, all citizens who meet certain criteria and have a business reputation that allows them to get a loan will be able to join this program.
The minister also said that in 2021 the program would be implemented through the funds of the 5-7-9% program and the Entrepreneurship Development Fund.
"The plans – we have quite realistic plans – is to issue UAH 5 billion, or almost US$180 million, in loans, and 5,000 households will potentially be able to take advantage of this program," he said.
The minister announced the types of mortgages available under the program: the primary market, property rights to apartments, houses and plots of land, as well as the secondary market for apartments that were put into operation after 2018. At the same time, the standard area is 50 square meters for one citizen or a household of two people plus 20 square meters for another family member. The maximum area can be increased by 20%, that is, for a family of four people it may be 108 square meters.
"The main requirements for the subject of a mortgage: the maximum cost is not more than UAH 2.5 million [about US$89,500], in case of excess, one can use own funds or bank loans without interest compensation to pay for [mortgage]. Further, a 7% rate is provided, the base interest rate, respectively, we compensate for banks +7% for the primary market and +4.5% for the secondary market," he said.