The primary market received more than half of the mortgage financing

Banks were issued in August 393 mortgage loans in the primary market for the total amount of UAH 839 million. Of these, 156 loans for UAH 310 million were secured by property rights for future real estate.

On the secondary housing market, Ukrainians received 329 loans for a total amount of UAH 702 million. Thus, the primary market surpassed the secondary market both in terms of the number of issued loans and the volume of financing.

What interest rates did the banks offer?

The weighted average effective interest rate for mortgages in the primary market was 7.7% per annum, while on the secondary — 10% per annum. The difference between the indicators reached 2.3 percentage points.

At the same time, average rates do not mean that exactly such conditions are available to every borrower. The actual cost of the loan depends on the bank, the financing program and the characteristics of the borrower.

Kyiv region topped the rating of mortgage lending

The largest number of mortgage contracts in August was concluded in Kyiv region — 264 loans for UAH 589 million. This accounted for about 38% of the total volume of loans issued.

In Kyiv, banks signed 84 contracts worth UAH 204 million. The top five regions also included Lviv region with 61 loans for UAH 141 million, Ivano-Frankivsk region with 35 loans for UAH 67 million, and Rivne region with 25 loans for UAH 56 million.

What remains the quality of the mortgage portfolio

According to the NBU, the share of non-performing mortgage loans was 11%. This indicates that the majority of the loan portfolio remains serviced, although this indicator by itself does not reflect all the risks of the mortgage market.

How the conditions of the "eOselya" state program are changing

The government also updated the conditions of the state affordable mortgage program "eOselya". The changes provide for a new lending model for young families with reduced interest rates and the opportunity to purchase a larger home.

According to previous reports, within one week, Ukrainians issued 178 new loans for a total amount of UAH 390.4 million within the program. The government program remains one of the mechanisms for supporting housing demand, while the overall volume of mortgage lending depends on the availability of financing and the solvency of buyers.