Changes in the Mortgage Program Impacted Lending Volumes in Ukraine
In February 2025, Ukrainian banks issued 516 mortgage loans totaling 926 million hryvnias, which is 7% more compared to January, but still a third less than in February of last year. Data from the National Bank of Ukraine indicates that despite the increase compared to the beginning of the year, the overall volume of mortgage lending remains significantly lower.
This is reported by AgroReview
The main reason for the decrease in mortgage loan issuance was the changes to the affordable housing loan program “eOselya,” which were implemented in the fall of 2024. According to these new regulations, most categories of borrowers were prohibited from taking loans to purchase properties in buildings older than three years, which significantly affected the market.
Impact of Program Changes on the Mortgage Market
According to representatives from the Ministry of Economy, such restrictions contribute to the development of the construction industry by encouraging the purchase of more modern housing. As reported by the National Bank of Ukraine, since the new rules came into effect, the share of mortgages for ready housing from developers has increased to 38%, as well as for housing under construction, which rose to 13.6%. This indicates a shift in demand towards new and under-construction properties.
“The redesign of the program is reflected in mortgage lending indicators: lending volumes have decreased by a third year-on-year, primarily due to loans for purchasing housing in the secondary market. In contrast, the share of mortgages for ready housing from developers has increased to 38%, as well as for housing under construction, which rose to 13.6%.”
The changes in the program aim to stimulate the development of new housing projects and improve the quality of housing available to Ukrainians, while also limiting the purchase of properties in older buildings, which may contribute to structural changes in the market and enhance the investment attractiveness of the sector.