• Tue. Nov 29th, 2022

Banks issued nearly UAH 8 billion in mortgage loans in the 11 months of 2021

ByElla E. Kidwell

Jan 13, 2022

Ukrainian banks issued 9,700 mortgage loans worth UAH 7.9 billion in January-November 2021, according to another survey of banks on the volume of mortgage loans issued to the population.

“In total, in the first 11 months of 2021, banks issued 9,700 mortgage loans for a total of UAH 7.9 billion. Compared to the same period last year, new mortgage loans doubled in terms of the number of contracts and increased by 2.4 times in monetary terms,” ​​said the press service of the National Bank of Ukraine.

Ukrainian banks reported that in November 2021 they issued 1,025 mortgage loans totaling UAH 845 million. Twenty-two banks said they issued new mortgages in November.

New loans for the purchase of homes on the secondary real estate market remain the main driver of the market, their share accounting for around 90% of all mortgage loans granted in November 2021.

The mortgage market remains concentrated, with the five most active banks taking out 90% of new contracts.

The average contract amount in November increased to 824,800 UAH from 803,900 UAH in October.

The average effective mortgage rate during the reference month was 15.5% in the primary market and 13.5% in the secondary market. Despite the fact that in November compared to October the rates increased slightly, since the beginning of the year they have decreased by 1.4% and 0.4% respectively.

As previously reported, the Affordable Mortgage 7% program was launched in Ukraine on March 1, 2021 on the initiative of President Volodymyr Zelensky.