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By the end of the year, the share of housing under construction purchased under the eOselya program may reach 12-15% of the total number of mortgage loans issued.

This opinion was expressed by Olena Dmitrieva, First Deputy Chairman of the Board of GLOBUS BANK, based on the data of Ukrainian Financial Housing Company (Ukrfinzhytlo).

According to the expert, the number of mortgages issued for housing under construction has increased significantly over the past few months: at the beginning of the year, the share of the primary market in the total number of loans issued did not exceed 2.6%, and by mid-August it was over 8.1%.
She predicts that by the end of 2024, the total number of loans issued for the purchase of housing in the primary market under the eHouse program may exceed 1 thousand, which will indicate a significant increase in the role of the primary market in the state mortgage program.

This result, in her opinion, is explained by several factors:

• the activity of developers, for whom the expediency of participation in the state mortgage program is due to the expected growth in sales and strengthening of their own positive image - currently, more than 70 development companies and more than 200 residential facilities are accredited to participate in the program;
• an increase in the number of banking institutions that joined the program (at the beginning of the program, 5 commercial banks participated in it, and as of the end of August, 11);
• Gradual liberalization of the terms and conditions for granting soft loans.

In addition, according to Olena Dmitrieva, the participation of a developer and its projects in eHouse is subject to a number of strict requirements, including

• strict adherence to the terms of construction of the facility
• Continuity of construction;
• compliance with the declared quality of the residential complex, etc.

At the same time, participation in eOselya is a “sign of reliability” of the developer, which, in the context of the current military and economic risks, is a significant advantage for potential buyers who carefully study the offers of new buildings on the market.

“We are moving to the point where the eOselya program can completely reorient itself to the primary market. Of course, this will happen gradually, but this direction is strategic and important in the context of stimulating the development of the construction industry, because mortgage funds are directed to the real sector of the economy, which means jobs, salaries and taxes paid, which is extremely important for the country's economy,” the banker said.

The expert also spoke in detail about the 5 main changes in the eHouse program that came into force on August 16, 2024. She highlighted:

• Softened conditions for participation in the program for young people under the age of 25: the down payment on the loan has been halved from 20% to 10%.
• Certificates of “eRestoration”, which compensate citizens for damaged and destroyed property, can be used as a down payment on a mortgage loan in the “eHouse” program.
• The terms of participation in the program apply to IDPs and their immediate relatives of the first degree of kinship.
• A candidate for participation in the program can potentially receive a loan if he or she has not alienated property within 12 months prior to applying for a loan, the total area of which, together with the area of the family-owned housing, does not exceed 52.5 m2 for a family of one and an additional 21 m2 for each subsequent family member. This does not take into account residential real estate that has been significantly damaged or destroyed as a result of hostilities or is located in the temporarily occupied territories.
• Changes in mortgage rates: the general rate of 7% will be effective for the first 10 years, and will increase to 10% thereafter. A 3% rate for certain categories of citizens (military personnel, teachers, healthcare workers, etc.) will be given for the first 10 years of loan repayment, and will increase to 6% thereafter.

Olena Dmitrieva
First Deputy Chairman of the Board of GLOBUS BANK.

““The conditions for attracting citizens to the eHouse program have been significantly expanded: in particular, this concerns the reduction of the down payment for young people and the immediate family members of temporarily displaced persons. However, given the economic circumstances (in particular, rising inflation), the interest burden will theoretically increase, which may encourage borrowers to “repay” the loan early,” emphasized Olena Dmitrieva.
She reminded that no commercial bank can currently offer citizens more favorable or competitive mortgage terms than eBank. The banker said that mortgage rates remained almost unchanged in 2024. Depending on the down payment and mortgage maturity, the average rates are 7% to 12% per annum (3-year mortgage), 11% to 14% per annum (5-year mortgage), 4% for the first year and 19% for the following years (20-year mortgage).
“Currently, eOselya covers up to 98% of all mortgage loans in the primary housing market. Joint programs of banks and developers account for only up to 2% of loans. That is, even the increased rates under eHouse are unlikely to deter potential buyers from the state mortgage, the terms of which are the most financially acceptable,” the banker emphasized.

The expert focused on the main promising areas for further development of mortgage lending in Ukraine:

1. Expanding the number of program participants (domestic and foreign financial institutions and developers).
2. Developing an effective accreditation mechanism for objects in the program at the initial stages of construction, but with significant reliability guarantees for buyers (eliminating the risks of “long construction” and fraud).
3. Further easing of conditions for borrowers, including a potential reduction in mortgage rates (depending on economic and military factors).

“The ability of the economy to cover budget expenditures while gradually reducing dependence on macro-financial assistance from foreign partners is a challenging task, which largely depends on an effective economic strategy of the state, multiplied by the success of the Armed Forces and the protection of infrastructure from damage and destruction. That is why the further fate of the Ukrainian mortgage will be linked to both economic and military factors,” summarized Olena Dmitrieva.

Reference:

JOINT STOCK COMPANY COMMERCIAL BANK GLOBUS (GLOBUS BANK) was founded in 2007.
As of July 2024, the regional network includes 31 branches. All branches of the bank are part of the unified Power Banking network, which allows them to operate in the absence of electricity.
GLOBUS BANK's credit rating on the national scale at uaAAA has been confirmed, as well as the deposit rating at ua2+ according to the scale of the Expert Rating Agency.
The bank's priority areas of activity are lending to energy-efficient projects, mortgage lending in the primary market, car loans, and lending to small and medium-sized businesses.
GLOBUS BANK is an accredited partner of a number of government programs: the state mortgage program “eOselya”, the program of preferential lending to small and medium-sized businesses “5-7-9”, “Affordable Factoring”, “Affordable Financial Leasing 5-7-9”, “Energy Independence of Individuals - Household Owners”.

The Bank is a partner of the State Institution “Energy Efficiency Fund” in the programs of lending to condominiums and housing cooperatives “Energodom” and “Grindim”.
The Bank is a participant of the state program “National Cashback”.
On June 25, 2024, GLOBUS BANK became one of the 17 largest Ukrainian banks that signed a Memorandum on lending to energy infrastructure restoration projects.

Chairman of the Board of GLOBUS BANK Serhiy Mamedov is Deputy Chairman of the Board of Directors of the Confederation of Builders of Ukraine and Vice President of the Association of Ukrainian Banks.