Government Approved a Resolution on Affordable Mortgages at an Interest Rate of up to 7% per Annum

On January 27, the Government supported the initiative of the Head of the State on affordable mortgages at an interest rate of up to 7% per annum and approved the Procedure for reducing the cost of mortgage loans for citizens, developed by the Ministry of Finance.

The new program "Affordable Mortgage" is implemented through the Entrepreneurship Development Fund by amending the government resolutions No28 and No29 dated January 24, 2020, according to which the state program "Affordable Loans 5-7-9%" is implemented and financed.

"The purpose of the new mortgage initiative is to create an opportunity for the introduction, implementation and financing of the "Affordable Mortgage" program, through an institution that is already successfully functioning. The Entrepreneurship Development Fund is able to implement the program through the authorized banks in the shortest possible time. Citizens of Ukraine who need housing will be able to take advantage of the new program by receiving partial compensation of interest on mortgage loans. The interest rate for them will be 7% annual, the loan maturity is 20 years, the first contribution is 15% of the value of the mortgage, and the loan will be limited to the maximum amount of UAH 2 million", said Minister of Finance Sergii Marchenko.

Also, the new mortgage program provides for simplification of access of the target audience to purchase housing in the primary and secondary market (new construction).

The Procedure states, that residents of dormitories or emergency buildings, internally displaced persons, scientific, pedagogical and medical workers, public sector workers, young families are also persons in need of improved living conditions.

The implementation of the resolution currently does not provide for additional expenditures of the State Budget of Ukraine, except for the already provided in 2021 funding for the program "Ensuring the functioning of the Entrepreneurship Development Fund" in the amount of UAH 2 billion.