It will be possible to take out a mortgage at 5-7% next year: the Ministry of Finance announced the conditions

The website reports that starting next year, Ukrainians will be able to take out a housing loan at 5-7% per annum. Low rates will be fixed throughout the term of the loan agreement. The Minister of Finance of Ukraine Serhii Marchenko stated this in an interview for Minfin.

According to the Minister, this is a completely new story which will make the purchase of housing affordable for citizens.

“We are creating a special company which will be recapitalized by the government and will be able to provide for the creation of financial and credit mechanisms, namely to launch mortgage lending and financial leasing for housing on acceptable terms,” said Serhii Marchenko.

About the new program

According to the Minister, the program includes  two directions. The first one covers mortgage loans provided in the amount of up to UAH 2 million at low interest rates from about 5 to 7% per annum for a period of 60 to 240 months.

The down payment is no less than 20%.

The second direction is financial leasing for up to 20 years with an interest rate of about 5% per annum and without the down payment. The military, police and other officials will be able to use it.

How many loans will be given

“In total, it is planned to provide 12.5k mortgage loans and purchase 18.8k apartments under financial leasing at the first stage,” the Minister informed.

In the future, the government will develop and seek additional sources of funding to expand the programs.