Ukrainians have doubled their interest in mortgages: at what interest rate they took out a loan
New mortgage lending has doubled in number of contracts compared to last year. Interest rates on new mortgages increased over the month – in November 2021 on the secondary market was 13.5%, and on the “primary” – 15.5%. Relevant results of bank surveys published in the NBU .
Ukraine , Ukraingate , 13 , January , 2022 | Economy
Quote:
“Compared to the same period last year (11 months – ed.), New mortgage lending has doubled in number of contracts and increased 2.4 times in monetary terms,” the NBU said.
Details
In total, in the first 11 months of 2021, banks issued 9.7 thousand mortgage loans totaling UAH 7.9 billion. Of these, in November – 1,025 mortgages totaling UAH 845 million. 22 banks informed about the issuance of a new mortgage in the reporting month.
Mortgages on the “secondary” – the main driver of the market: in November, its share was about 90% of all mortgages. The mortgage market remains concentrated: the five most active banks have concluded 90% of new agreements.
The average amount of the contract in November increased to UAH 824.8 thousand compared to UAH 803.9 thousand in October.
“The weighted average effective rate on mortgages in the reporting month was 15.5% in the primary market and 13.5% in the secondary market. 4 percentage points and 0.4 percentage points, respectively, “the National Bank said.
Addition
At a meeting on January 27, 2021, the Cabinet of Ministers approved a decision to reduce the cost of mortgage loans to 7% per annum. The program was launched on March 1, 2021. As of January 13, according to the Ministry of Finance, 1,417 loan agreements worth UAH 1.221 billion were signed within the program in both the primary (22.39%) and secondary (77.61%) markets, respectively.
At the same time the NBU raises the discount rate. Depending on its size, the interest rates at which banks are willing to lend.
But the government says that in Ukraine a mortgage is possible even at 5% per annum. So far, leasing for housing at 5% has been launched.
Experts point out that in the “cheap” mortgage from the government may be pitfalls – “veiled additional interest.”
It should also be noted that according to the NBU, in 2020 the demand for mortgages among the population increased by a record, in particular against the background of lower interest rates on mortgage loans.
The NBU wants to more than double the volume of mortgages by 2024 – from 0.7% to 2% of GDP.
Source: Ukrgate
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