Ukrainians are taking out mortgages again; where do they most often buy homes on credit?
In May, Ukrainian banks issued 776 mortgage loans totaling more than 1.5 billion hryvnias. The largest number of homes were purchased with loans in the Kyiv region and the capital. Most new mortgages were taken out to purchase homes on the primary market, but there is also demand for apartments and houses that already have owners.
In May, Ukrainian banks issued 776 new mortgage loans totaling over 1.5 billion hryvnias. These figures were reported by the National Bank of Ukraine following a survey of 38 banks, which account for over 95% of the country’s mortgage portfolio. The primary real estate market accounted for the largest share of loans. There, banks issued 413 mortgages totaling 827 million hryvnias.
Of these, 206 loans totaling 387 million hryvnias were issued secured by property rights to future housing. This option is used by people who purchase an apartment while it is still under construction. In the secondary market, Ukrainians took out 363 mortgage loans totaling 701 million hryvnias. The average effective mortgage rate in the primary market was 8.15% per annum, while in the secondary market it was 9.4%. At the same time, the share of non-performing mortgage loans remained at 12%. Twelve banks issued new home loans in May.
Where Ukrainians Most Often Took Out Mortgages
The largest number of mortgage agreements was signed in the Kyiv region. There, 278 loans totaling 556 million hryvnias were issued during the month. This accounts for about 36% of the total amount of all mortgage loans issued that month. In Kyiv, banks issued 156 loans totaling 342 million hryvnias. Other leading regions included:
- Lviv Oblast — 46 mortgages totaling 106 million hryvnias;
- Ivano-Frankivsk Oblast — 32 loans totaling 61 million hryvnias;
- Odesa Oblast — 30 loans totaling 47 million hryvnias.
Despite the war and economic risks, mortgage lending in Ukraine continues to operate gradually. The highest demand remains in regions with active construction and a more stable real estate market. This is reported by the NBU.
Ukrainians must use the funds accumulated under the “National Cashback” program during its first phase by the end of July 31. After that, all unused funds will automatically be returned to the state budget.
