Mortgage lending in March decreased by 14% to UAH 795 million

In March, Ukrainian banks issued 427 mortgage loans for a total amount of UAH 795 million, which is 14% lower than in February.

This is evidenced by the data of the monthly Survey of Banks on Mortgage Lending, the Ukrainian News agency reports.

Key findings of the survey:

- 232 loans for UAH 437 million were provided on the primary real estate market, of which 87 for UAH 168 million were provided on the collateral of property rights to future real estate;

- 195 loans for UAH 358 million were provided on the secondary real estate market;

- the weighted average effective rate was 8% per annum on the primary market and 9.5% on the secondary market;

- the quality of the mortgage portfolio is good: the share of non-performing loans in the first quarter decreased from 18.5% to 15% (largely due to the increase in the volume of new loans, but the volume of NPLs also decreased).

In terms of regions, the largest number of mortgage loans in March were issued:

- in the Kyiv Region (145 agreements for a total amount of UAH 287 million, or 36% of the total);

- in the city of Kyiv (95 agreements for UAH 196 million);

- in the Lviv Region (20 contracts for UAH 42 million);

- in the Ivano-Frankivsk Region (23 contracts for UAH 39 million);

- in the Volyn Region (13 contracts for UAH 24 million).

As before, the vast majority of loans for the purchase of real estate were provided within the framework of the state affordable housing lending program eOselia.

The restructuring of the program is ongoing, so the growth of the mortgage loan portfolio has slowed down somewhat, but this restructuring is necessary for the further development of the market.

During the survey, 39 banks responded with a share of over 95% of the total gross mortgage portfolio, of which 13 banks reported issuing new mortgage loans.

As the Ukrainian News agency earlier reported, Ukrainian banks issued 6,114 mortgage loans in 2023 for a total amount of UAH 9.1 billion.