Volume of mortgage loans up 17.4% to UAH 1.4 billion in October

Ukrainian banks in October 2024 issued 829 mortgages totaling UAH 1.4 billion.

This follows from the data of the monthly survey of banks on mortgage loans, the Ukrainian News agency reports.

Key findings of the survey:

- the volume of mortgage loans granted to the population in October 2024 increased by 17.4% compared to the previous month (September 2024);

- the weighted average effective rate on mortgage loans in October increased to 8.4% per annum from 8.3% in September.

In terms of regions, the largest number of mortgage loans in October was issued:

- in Kyiv and the Kyiv Region (435 agreements for a total amount of UAH 819.6 million, which is 57.9% of the total);

- in the Lviv Region (45 agreements for UAH 80.5 million);

- in the Odesa Region (42 agreements for UAH 60.1 million).

During the survey, 39 banks responded with a share of 98.9% of the total gross mortgage portfolio as of the end of 2021, however, only 13 banks reported on the issuance of new mortgages.

More than 90% of issuances under the eOselia (eHousing) program are concentrated in three state-owned banks, according to the December Financial Stability Report, while there are only a few loans outside the program on the market.

In March-April 2024, the volume of lending under the program was record high, but in the second half of the year, lending under the program slowed down, and on average, a third fewer loans were issued per month.

Restraining factors for the program:

- change by the operator (Ukrfinzhytlo) of the terms of lending in order to increase the share of the primary market;

- lack of funds in Ukrfinzhytlo, which the company is facing not for the first time in conditions of limited state resources.

Due to these factors, the role of the program for the real estate market is unlikely to increase in the near future, NBU experts believe, therefore, the development of more mass products from banks on market terms is necessary.

As the Ukrainian News agency earlier reported, in 2023, the volume of mortgage loans increased 5 times to UAH 9.1 billion, and the number - 3 times to 6,100 loans.

In 2022, the number of mortgage loans decreased 5.3 times to 2,009, with 2/3 of the loans being issued before the war.

In 2022, banks issued mortgage loans for a total amount of UAH 1.96 billion.