Exactly two years ago, the state programmeme for affordable mortgage lending, yeOselya, was launched, which transformed the Ukrainian mortgage market. During this time, over 13,000 Ukrainian families have benefited from the programme, with the total amount of issued loans exceeding UAH 21 billion.
“Two years ago, to support the Ukrainian economy and its people, we launched the yeOselya programme. Today, this programme is one of the most popular among Ukrainians. In addition to supporting the population, the programme has also helped sustain the construction and related industries during challenging times. Thanks to yeOselya, in the first half of 2024, the production of construction products increased by 37.1%, contributing an additional 0.6% to GDP. We are not resting on our laurels and continuously expanding mortgage accessibility, thereby stimulating economic growth” – stated Yuliia Svyrydenko, First Deputy Prime Minister – Minister of Economy of Ukraine.
The programme initially started as a mortgage with favourable terms at a 3% annual rate for specific categories such as military personnel, law enforcement officers, medical workers, teachers and scientists.
“We saw that the demand for the programme began to grow not only among these categories, as thousands of Ukrainians were left homeless due to the actions of the aggressor state. Soon after, we found a solution to launch a mass mortgage at a 7% annual rate when the market rate started at 20%” – noted Ievgen Metsger, Chairman of Management Board at UFHC.
In 2023 alone, the yeOselya credit portfolio nearly reached the record pre-war volume of mortgage lending – 5,855 loans were issued, amounting to UAH 8.85 billion. Thus, the total credit portfolio of the programme in 2023 was only 0.06 billion less than the total amount of mortgages issued by Ukrainian banks in 2021, which was the most successful year.
“In 2024 alone, over 6,700 families have already purchased homes through yeOselya, with the total loan amount exceeding UAH 11 billion. This year, we have focused on new construction, actively collaborating with developers across Ukraine and significantly expanding the range of options in this segment. Since the beginning of the year, 62 developers have joined the programme, and citizens can now choose homes under construction at 174 projects. Today, yeOselya is one of the most successful mortgage programmes in the history of independent Ukraine and is an undisputed leader” – stated Ievgen Metsger.
In January 2024, the programme’s conditions were further expanded – it became possible to obtain yeOselya to purchase private houses or townhouses. So far, 371 Ukrainians have taken advantage of this opportunity.
Overall, over the past two years, the majority of borrowers – more than 56.6% – have been military personnel and law enforcement officers benefiting from the 3% rate. Over 25% of borrowers have used the mass mortgage at a 7% rate. Among them are 277 internally displaced persons and 251 veterans.
The most common region for loans is Kyiv Oblast and the city of Kyiv, with 3,574 and 2,527 loans issued, respectively. Additionally, 781 loans were issued in Lviv Oblast, 634 in Odesa, 611 in Vinnytsia, 561 in Volyn, and 540 in Ivano-Frankivsk Oblast, among others.
According to Ievgen Metsger, the success of yeOselya is due to its unique concept, the coordinated efforts of the team, and its honest and favourable terms. One of the programme’s key features is the digital application through Diia: from the moment of submitting an application to receiving a decision from the bank, it takes just a few minutes, whereas before yeOselya, this process could take several days or even weeks.
“In the future, we plan to focus on new housing that is energy-efficient, comfortable, and safe. Thus, in addition to fulfilling its social role, yeOselya will stimulate construction in the country and contribute to the economy and the state budget through its multiplier effect. This year, we have significantly expanded the geography of yeOselya in the primary market. Today, properties that can be advantageously purchased during the construction phase are available in 17 regions of Ukraine. We are already working with 82 construction companies, accrediting over 100 residential complexes. And this is just the beginning!” – emphasized Chairman of Management Board at UFHC.
Furthermore, on 19 September 2024, a series of changes to the yeOselya programme came into effect – specifically, it became possible to use the eRecovery certificate as a down payment for yeOselya and to participate in the programme for those who had previously taken part in similar state programmes but whose homes are now either in temporarily occupied territories or have been destroyed.
Another change is expected to come into effect soon – borrowers under the age of 25 will be able to participate in the programme with a minimum down payment of 10%. And from 18 December 2024, relatives of internally displaced persons will be able to purchase homes for them.
It is worth noting that yeOselya is implemented by the Ministry of Economy of Ukraine in collaboration with the Ministry of Digital Transformation and UFHC.
Additionally, UFHC has launched a chatbot with answers to questions about the yeOselya programme. To use the chatbot, follow the link: https://bit.ly/3yKZD6T
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