Yuriy Draganchuk: Under the Government's Decision "Affordable Mortgage" at 7% Becomes even more Affordable

On February 15, the Cabinet of Ministers adopted the amendments proposed by the Ministry of Finance to the Procedure for reducing the cost of mortgage loans for citizens, which, in particular, significantly simplifies the criteria for borrowers.

First of all, the adopted resolution provides for the exclusion of the defined categories of persons who can be borrowers. Namely, now to become a participant of the program "Affordable Mortgage" at an interest rate of 7%, it is not necessary to be on the housing register, to be a young family, an internally displaced person, pedagogical and medical workers or public sector workers.

The requirement not to exceed the provision of housing at the level of 13.65 square meters per family member or living in a dormitory by residents of emergency and dilapidated buildings has been abolished.

"Under the Government's decision, the criteria for potential borrowers of the new mortgage program significantly simplify. Thus, "Affordable Mortgage at 7%" becomes even more affordable, and a wide range of citizens will be able to take advantage of state support in the field of mortgage lending. The Resolution also contains a number of technical amendments proposed by the banking community. This is a continuation of a constructive dialogue on the rapid and effective launch of affordable mortgages," said Deputy Minister of Finance for European Integration Yuriy Draganchuk.

According to the amendments approved by the Cabinet of Ministers, any citizen who does not have in the ownership or family ownership residential real estate and / or existing agreements on financing (investing) the construction of residential real estate and / or property rights to unfinished construction of residential real estate, if their total area exceeds 50 square meters of total living space for a single citizen or a family of two and 20 square meters for each subsequent family member, will be able to count on receiving state support in the field of mortgage lending.

In addition, the maximum allowable amount of the average monthly net income of the borrower and his family members increases from 5 to 10 times the average monthly wage in the relevant region of Ukraine, where the subject of the mortgage is located.

"The program "Affordable Mortgage" at an interest rate of 7% per annum in addition to the main task - reducing the cost of mortgage loans for citizens, should also become a powerful impetus to revive the housing mortgage market. We hope that most banks in the near future will restore or form their own new mortgage lending products to participate in the program," said Yuriy Draganchuk.

It should be noted, that the program "Affordable Mortgage" at an interest rate of 7% per annum initiated by the President of Ukraine, was developed by the Ministry of Finance. Control over the implementation and administration of the program is entrusted to the Entrepreneurship Development Fund.