Mortgage Lending in Ukraine Decreased by 25% Due to Changes in the ‘eOselya’ Program

The volume of mortgage lending in Ukraine fell by 25% in the first half of 2025 compared to the second half of 2024. The main reason for this decline was the restrictions of the ‘eOselya’ program and a lack of funding for new loans.

This is reported by AgroReview

Impact of Changes in the ‘eOselya’ Program on the Market

Most mortgage loans in Ukraine are provided through the ‘eOselya’ program, so any changes in its operation significantly affect the entire mortgage market. In 2024, a restriction was introduced whereby the state program only finances the purchase of new housing. This led to a reduction in the number of available properties for purchase and decreased the overall volume of issued mortgage loans. Additionally, ‘Ukrfinzhytlo’ faced a shortage of funds, making it impossible to increase the number of loans issued.

“The issuance of mortgage loans in Ukraine has decreased by 25% compared to the figures from the second half of 2024 due to the restrictions of the ‘eOselya’ program and a lack of funds,” stated the NBU.

Current Market Situation and Proposals for Mortgage Development

Today, the share of mortgage transactions in the real estate market accounts for only 2-3% of the total number of housing purchase transactions, which is significantly lower than in 2021. The Kyiv region remains an exception, where this share reaches 10%.

To restore and develop the mortgage lending market, the regulator proposes a comprehensive strategy that includes a number of important reforms. In particular, this involves implementing European standards for property valuation, creating an open database of housing prices, and ensuring the availability of mortgage insurance against war risks. Furthermore, it has been proposed to change the model of state support: instead of direct funding for banks, it is planned to introduce a compensation for part of the interest for borrowers.