On 16 August, the Cabinet of Ministers of Ukraine adopted Resolution № 939 “On Amendments to the Terms and Conditions for Providing Affordable Mortgage Lending to Ukrainian Citizens by the Private Joint Stock Company Ukrainian Financial Housing Company”.
The main changes relate to the down payment for young people under the age of 25, improved conditions for IDPs, requirements for housing that can be purchased under the program, the possibility of using the program for those who have previously participated in other government programs for real estate currently located in the temporarily occupied territory etc.
Expanded opportunities for young people
Borrowers under the age of 25 will be able to participate in ‘yeOselia’ with a minimum down payment of at least 10% of the value of the mortgaged property. This change will come into force 60 days after the date of publication of this resolution.
‘yeVidnovlennia’
From now on, citizens will be able to make a down payment for the purchase of housing under the ‘yeOselia’ program by crediting funds from the ‘yeVidnovlennia’ housing certificate (in accordance with the Procedure for Providing Compensation for Destroyed Real Estate).
Housing requirements
Previously, citizens could only purchase an apartment in houses under construction; the amendments to the resolution provide the possibility of purchasing property rights to private houses under construction.
An amendment that requires the sale of real estate within a year prior to the date of application for a loan is being implemented:
a candidate may participate in the program if he or she and his or her family members have not alienated residential real estate within 12 months prior to the date of application for ‘yeOselia’, the total area of which, together with the area of the housing owned by the family as of the date of application, exceeds the standard housing area under the ‘yeOselia’ program.
The government also amended the requirements for real estate, namely, excluding the possibility of purchasing residential real estate that is an architectural monument.
Interest rate
For 10 years from the date of the loan agreement, the base interest rate will be 7% per year, as before. However, starting from the first calendar day of the 11th year of the loan agreement, the interest rate will be 10% per year.
For those categories of citizens who receive compensation up to the level of 3% per year: starting from the first calendar day of the 11th year of the loan agreement, compensation will be provided up to the level of 6% per year.
Special conditions for IDPs
A family member of an internally displaced person of the first degree of kinship (parents, spouses, and their children) will be able to buy housing for such an internally displaced person. This change will come into force 120 days after the date of publication of this resolution.
Participation in other state programs
Taking into account the request from citizens from the temporarily occupied territories, it was decided to amend the requirements for receiving compensation or participation in various state programs earlier, so
it will be possible to participate in ‘yeOselia’ even if the candidate and/or adult members of his/her family received monetary compensation for housing or have valid and/or terminated contracts (repaid loans) for the purchase of housing located in the territories of active hostilities or occupied territories, or such housing is destroyed or damaged.
Please note that most of the amendments will come into force 30 days after the date of publication of this resolution, except for the possibility for borrowers under the age of 25 to pay a down payment of 10% of the cost of housing and the possibility for IDPs to purchase housing for their first-degree family members.
At the same time, the loan agreements concluded prior to the date of adoption of the above amendments will continue to operate under the old terms and conditions.
The text of the Resolution and the full list of amendments can be found at the LINK:
