The program of preferential mortgage lending eOselya may be extended to farmers
26 December 2024 11:42
The Minister of Agrarian Policy and Food of Ukraine Vitaliy Koval discussed the possibility of launching the eHouse program for farmers with the Chairman of the Board of Ukrfinzhytlo Yevhen Metzger. This was reported by the Ministry of Agrarian Policy, "Komersant Ukrainian" reports.
As you know, the Ukrainian Financial Housing Company (Ukrfinzhytlo) is the operator of the eOselya preferential mortgage lending program, which provides affordable loans at 3% and 7% for a period of 20 years for the purchase of housing.
“The Ministry of Agrarian Policy is interested in such a social program. Therefore, we will continue to work together to create a roadmap. To begin with, we will define the criteria: categories, regions and the amount of down payment compensation. We plan to focus on farmers from the frontline areas, IDPs and women,” Vitaliy Koval said.
The Minister believes that such a program will not only enable farmers to get their own housing, but will also help develop the agricultural sector and ensure social stability in rural areas.
What is the eHouse program?
This is a government program of preferential mortgage lending aimed at providing affordable housing for certain categories of Ukrainian citizens.
Lending under the eHouse program is carried out at a fixed annual rate of 3% in hryvnia for certain categories of Ukrainian citizens:
– contract servicemen of the Armed Forces, the Security Service of Ukraine, the Foreign Intelligence Service of the Defence Intelligence of Ukraine, the National Guard, the State Border Guard Service, the State Protection Service, the State Special Communications Service, the State Special Transport Service, military prosecutors of the Prosecutor General’s Office, and employees of the State Emergency Service, employees of the Judicial Protection Service, senior officers of the Special Operations Department of the National Anti-Corruption Bureau, detectives and senior detectives of the NABU, rank-and-file and senior officers of the State Bureau of Investigation, detectives and senior officers of the Bureau of Economic Security, police officers and their families;
– medical workers – specialists and professionals of health care institutions of state and municipal ownership;
– teachers of state and municipal educational institutions;
– scientific and scientific-pedagogical employees of educational institutions and scientific institutions of state or municipal ownership.
Mass mortgage is available with a preferential annual rate of 7% in UAH for the following categories of Ukrainian citizens
– war veterans and their families, combatants, persons with war-related disabilities, families of deceased war veterans as defined in Article 10 of the Law of Ukraine “On the Status of War Veterans, Guarantees of Their Social Protection”, as well as families of deceased defenders of Ukraine
– internally displaced persons;
– other citizens who do not own housing or whose area is less than 52.5 m² 21 m² for each additional family member.
The maximum loan term is 20 years.
The minimum down payment is 20% of the property value.
Initially, the program participants were Oschadbank, PrivatBank, Globus Bank, Ukrgasbank, and Sky Bank. Later, the number of eBay lending banks increased to 11.
The Cabinet of Ministers finances the operator of the eHouse program
The Cabinet of Ministers had previously issued a resolution instructing the Ministry of Finance to issue UAH 20 billion of domestic government bonds in 2024 to recapitalize the state-owned Ukrainian Financial Housing Company.
In its December Financial Stability Report, the NBU stated that in the second half of 2024, banks significantly reduced the number of preferential mortgage loans issued under the eHouse program. According to the NBU, this was due, among other things, to a shortage of funds at Ukrfinzhytlo, the state-owned company responsible for the program.
The NBU also drew attention to other changes in the mortgage lending program. First, the number of banks participating in the program has increased to eleven, but some new participants have not yet provided a single loan and more than 90% of loans are concentrated in three state-owned banks.
Secondly, the number of accredited developers has also increased: now you can get a mortgage for an apartment in 201 buildings from 91 developers.
Third, October’s changes to the program’s terms and conditions included limiting the maximum age of housing to three years (except in a few regions and for internally displaced persons), reducing the down payment for young people to 10%, and raising rates after the tenth year of lending.
