The government has updated the terms of the “eOselya” preferential mortgage program: what will change and when
19 June 07:34
The Cabinet of Ministers has updated the terms of the “eOselya” state program for affordable mortgage lending. Veterans and family members of fallen defenders will be able to apply for housing loans at a preferential interest rate of 3% per year. This was announced by Prime Minister Yulia Svyrydenko, according to "Komersant Ukrainian"
The government has also revised the standard floor area requirements for apartments and residential buildings for all program participants. The new rules are set to take effect in one month.
Who Is Eligible for a 3% Mortgage?
The following individuals will be eligible for preferential loans at an annual interest rate of 3%:
- veterans;
- veterans with war-related disabilities;
- war participants;
- family members of fallen or deceased veterans;
- family members of fallen or deceased Defenders of Ukraine.
The government has made the corresponding amendments to Cabinet of Ministers Resolution No. 856 of August 2, 2022, which regulates the implementation of the “eOselya” program.
What will the interest rate be?
Borrowers in eligible categories will effectively pay:
- 3% per annum for the first 10 years of the loan;
- 6% per annum starting from the 11th year.
The government will compensate for the difference between the base rate and the preferential rate.
Previously, standard terms applied to veterans under the program: 7% per annum for the first ten years and 10% starting in the eleventh year.
Thus, this update should significantly reduce the financial burden on veterans and the families of fallen servicemembers.
When will the new rules take effect?
Prime Minister Yulia Svyrydenko announced that the changes will take effect in one month.
The exact start date for the updated terms will be announced separately by the government, the “Ukrfinzhytlo” program operator, and partner banks.
Until the changes take effect, applications may be reviewed according to the rules in effect at the time of submission; therefore, potential borrowers should check the current terms directly in the “Diya” app or at their bank.
New Apartment Size Requirements
The government has also established new housing size standards for all borrowers in the program.
For apartments, the standards are as follows:
- 52.5 m² — for a single person;
- 73.5 m² — for a family of two or three people;
- an additional 21 m² for each subsequent family member, starting with the fourth;
- maximum standard area — 115.5 m².
Therefore, the same base standard—73.5 m²—will apply to families of two and three people.
New Housing Area Standards
For single-family homes, the government has established the following standards:
- 62.5 m² — for one person;
- 83.5 m² — for a family of two or three people;
- an additional 21 m² for each subsequent family member;
- maximum standard area — 125.5 m².
These standards will be applied when determining the size of housing whose cost may be financed under the program.
What happens if the area exceeds the standard
Under the “eOselya” program, the standard area affects the amount that can be financed on preferential terms.
If the selected housing exceeds the established standard, the borrower may need to pay for the additional square meters out of pocket. The specific calculation depends on the price of the housing, the regional cost per square meter, and the bank’s terms.
Before signing the loan agreement, you should ask the bank to separately specify:
- the loan amount;
- the down payment;
- the cost of the area exceeding the standard;
- the monthly payment;
- additional costs for insurance and processing.
How to Apply for “eOselya”
You can apply to participate in the program through the “Diya” app.
The procedure typically involves:
- Submitting an application in “Diya.”
- Receiving preliminary offers from banks.
- Selecting a bank and a home.
- Verification of documents and creditworthiness.
- Property appraisal.
- Signing the loan agreement and the purchase and sale agreement.
The bank makes the final decision on granting the loan after verifying income, documents, credit history, and the selected property.
Why the government changed the program’s terms
Extending the preferential interest rate is intended to make home ownership more affordable for those who defended Ukraine, as well as for the families of fallen servicemembers.
Reducing the interest rate from 7% to 3% for the first ten years can significantly lower the monthly payment and the total amount overpaid on the loan.
Updating the area standards should also take into account the needs of families of various sizes and establish clear maximum limits for apartments and houses.
What to Check Before Applying for a Loan
A preferential interest rate does not mean that the bank will automatically approve a loan for every applicant.
Before submitting an application, you should assess:
- the amount of your official income;
- possible down payment;
- monthly loan payments;
- the borrower’s age at the end of the loan term;
- requirements for the selected property;
- costs for insurance, appraisal, and notary services.
You’ll also need to clarify which documents are required to prove eligibility for the preferential category.
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