Financial sector news

The financial system is gradually restoring the mortgage segment — cheaper, more reliable, and with a higher-quality portfolio. Despite the war and economic risks, Ukrainians are actively buying housing — in August alone, banks issued 789 mortgages worth over UAH 1.4 billion, and the average rate on the primary market fell to 8.13% per annum. This is the lowest level in the last year.

According to a survey by the National Bank, the mortgage market continues to gradually revive. The primary market is the most active: 480 loans worth UAH 890 million, of which 136 agreements were concluded against the collateral of property rights to real estate that has not yet been built. The secondary market is not far behind, with 309 loans worth UAH 543.6 million.

It is particularly noteworthy that banks are lowering their rates: 8.13% per annum in the primary market and 8.99% in the secondary market. The quality of the mortgage portfolio is also improving: the share of problem loans has decreased to 12%.

The leaders in mortgage lending remain the Kyiv region (UAH 457 million) and the capital (UAH 281 million), followed by Lviv, Ivano-Frankivsk, and Vinnytsia regions.

A total of 39 banks covering more than 95% of the mortgage market participated in the survey, 13 of which are actively issuing new loans.

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The Financial Stability Council recently approved a Mortgage Lending Development Strategy, which aims to make housing more affordable through market mechanisms, not just government programs.