"eOselya" preferential mortgage lending program
Since October 1, 2022 the Government launched the "eOselya" program, thanks to which Ukrainians finally have the opportunity to buy housing on favorable terms. Preferential lending for the purchase of residential real estate is available for many categories of people. Let's take a closer look at what "eOselya" is, what are the conditions of the state program, who can take part in it and other important information.
What is "eOselya"?
"eOselya" is a program of affordable housing loans initiated by the President of Ukraine. Its main advantage is the possibility to buy an apartment on mortgage at 3% or 7% depending on the category, while banks offer mortgage rates of 15-25%. In addition, under the program you can make only 20% down payment. If you make a mortgage not through "eOselya", you will have to immediately give the bank at least 30% of the cost of housing.
The program of affordable housing loans "eOselya" provides that Ukrainians will make a mortgage in the bank, and the state will compensate the institution of the reduced interest rate. In fact, this program finances banks that provide loans for privileged and not only categories of the population.
What are the conditions of "eOselya"?
The terms of lending under the state program "eOselya" are quite loyal, so it has already attracted thousands of people who want to apply for an affordable loan.
The main terms of lending through "eOselya":
rate for the term of the loan - 3% for privileged categories and 7% for all others;
maximum loan term - 20 years;
minimum down payment - 20% of the cost of housing;
the mortgage can be issued only in a bank participating in the program;
the rate is fixed in the national currency (hryvnia).
The conditions under which mortgage lending is carried out are approved by the Resolution of the Cabinet of Ministers No. 856 dated August 2, 2022. The conditions of the "eOselya" program are guaranteed by the state and will not be changed under any circumstances.
Who can take part in the "eOselya" program?
Not everyone can take part in the affordable loan program, as there are clear requirements for participants. Here are the main requirements:
Ukrainian citizens;
Not younger than 18 years of age at the time of loan processing;
Not older than 70 years of age at the date of repayment;
solvent;
there is no housing in ownership or it is less than 52.5 m² + 21 m² for each next family member (spouse, minor child/children living with the applicant), or it is located in an area of hostilities/temporarily occupied territory;
not be on the sanctions list;
not participate in other existing state housing programs.
In the program "eOselya" can take part privileged categories of the population, for which the mortgage will be issued at 3%. The reduced rate is valid:
for contract servicemen - defenders of Ukraine, law enforcers and members of their families;
for medical workers - specialists and professionals of health care institutions of state and communal form of ownership;
for pedagogical workers - educational institutions of state and communal form of ownership;
for scientific and scientific-pedagogical workers - educational and scientific institutions of state or communal ownership.
The applicant's belonging to the privileged category should be confirmed by a certificate from the main place of work with the indication of the position. If a home buyer leaves his job after some time and does not hold a position included in the list of professions for preferential lending, the terms of the mortgage will change. He will continue to repay the loan at the normal interest rate of 7% per annum.
Since August 1, 2023 the Government has expanded the program of preferential mortgage lending "eOselya". Now more Ukrainians can take advantage of favorable conditions for the purchase of housing. For them the rate is set at 7%.
The 7% rate applies to the following categories:
For war veterans and members of their families;
for participants of combat operations;
for persons with disabilities as a result of the war;
for families of deceased (deceased) war veterans, defenders and defenders of Ukraine;
for other citizens of Ukraine who do not own housing or it is less than 52.5 m² + 21 m² for each next family member (spouse, minor child/children living with the applicant), or it is located in the area of hostilities/temporarily occupied territory.
If there are doubts whether the applicant falls into one of the categories for purchasing housing under the "eOselya" mortgage program, you can simply try to apply to Diya.
What are the requirements for housing?
To the housing that can be bought on a preferential mortgage at 3% or 7%, there are also certain requirements. It must be an apartment in an apartment building (except for state or communal forms of ownership), i.e. it is not possible to buy a townhouse, cottage or other private house under the program "eOselya". It is also allowed to purchase property rights to an apartment under construction.
Residential real estate must be located on the territory of Ukraine, except for temporarily occupied territory and areas of hostilities. You can buy housing in Kyiv and Kyiv region, as well as in Lviv, Odessa, Kharkiv, small towns and villages.
The area of housing must not exceed the allowable norms. The applicant is entitled to 52.5 m² per applicant, with an additional 21 m² for each additional family member (spouse and children under the age of 18 if they live together).
For example, if an applicant has no children and no spouse, he or she can claim a maximum of 52.5 square meters of housing. If a couple has one child, the maximum allowable area will be 52.5 + 21 + 21 = 94.5 m². Spouses with two minor children can buy an apartment with a mortgage of up to 115.5 m². A larger apartment can also be chosen, but the mortgage will only be granted for the authorized size. The rest of the amount will have to be covered by yourself together with the down payment.
Another important requirement for housing - apartments in regional centers must be in new ready-made or under construction houses, or in houses commissioned not more than 10 years ago. If the mortgage is issued at 7%, the apartment must be in a house that is under construction or commissioned not more than 3 years ago. In this case, the service of state mortgage lending applies to both primary and secondary market.
How much can an apartment under the "eOselya" mortgage program cost?
The cost of residential real estate that can be bought under the "eOselya" program should not be higher than the average cost of housing construction in the regions of Ukraine, determined by the Ministry of Regional Development and multiplied by the following coefficients:
x 2.5 - Kyiv, Dnipro, Lviv, Odessa, Kharkiv;
x 2.0 - oblast centers, settlements located at a distance of up to 15 km from oblast centers, cities with a population of more than 300,000 people;
x 1.75 - cities with populations from 100,000 to 300,000 people;
x 1.0 - for other settlements.
If it was possible to find suitable housing, but its cost is higher than the coefficient allows, the applicant can buy it under a preferential mortgage program. But the buyer will have to cover the difference at the expense of the down payment.
Which banks participate in the "eOselya" program?
As of December 2023, seven Ukrainian banks participate in the program of preferential mortgage "eOselya". These are "Oschadbank", "PrivatBank", Commercial Bank "Globus", JSB "Ukrgasbank", JSC "SKY BANK", JSC "Ukreximbank", JSC "SENS BANK". The list may expand with time.
The banks participating in the program can offer different conditions that do not contradict the terms of the program "eOselya": a larger or smaller mortgage amount, etc. In turn, the potential mortgage user can choose the most favorable offer among the available ones. It is best to send an application to all banks at once to be able to compare the conditions offered.
Under the program "eOselya" banks can offer a choice of two schedules of repayment of the mortgage loan:
annuity - the debt is repaid in equal amounts every month, with the borrower first paying the interest on the loan and only then the loan body;
classic - in this case the amount of monthly payment gradually decreases, and it includes the unchanging payment of the loan body and decreasing interest on the outstanding balance.
When buying an apartment under the mortgage program "eOselya" borrower will have to pay mandatory additional payments:
one-time fee for granting a loan - minimum 0.5% of the loan amount (depends on the bank);
one-time fee for mandatory state pension insurance - 1% of the real estate value;
annual home insurance - depends on the value of the apartment and other factors;
notary services - about 10,000-12,000 UAH;
real estate appraisal - approximately UAH 1500;
commission fee for opening a current account, including for loan servicing - UAH 100;
administrative fee for re-registration of title in the State Register of Rights to Immovable Property - UAH 286.
How to apply for "eOselya"?
Thanks to the Diya application, the process of applying and applying for a mortgage to buy an apartment on favorable terms is greatly simplified. At the initial stage, a smartphone with internet access is enough.
Step-by-step instructions on how to participate in the "eOselya" program:
Apply in the Diya application. Download or update the application, authorize in it, go to the "Services" section, then -"eOselya". Select your benefit category and indicate marital status (spouse should confirm the application and data through their Diya app). Enter basic information and data about the property being considered for purchase (cost, location, amount of down payment). Select the bank you would like to cooperate with or all available banks. When the application is formed, sign it using Diya.Pidpis.
Receive offers from banks and choose a suitable option. Answers from the selected banks can come to Diya in just a few minutes. The maximum waiting time is 24 hours. The bank's offer is valid for 30 calendar days. You can submit a new application at any time, canceling the previous ones.
Submit documents to the selected bank. After preliminary approval of the application in Diya, it is necessary to visit the bank in person and submit the documents of the borrower and his family members for verification and final decision. At this stage, birth certificates of children, documents confirming the ownership of real estate (if any), certificates of income for the last 3 months may be required. The full list of documents is provided by the selected bank.
Select the housing to be purchased with a mortgage. The borrower looks for an apartment that fits the conditions of the program, conducts its evaluation and prepares the necessary documents for the purchase. After that it is necessary to visit the bank again.
Conclude an agreement with the bank and a contract of sale and purchase of housing. The real estate is registered in the ownership of the borrower. The bank transfers the loan funds to the account of the developer or private seller of the apartment.
If you are planning to buy an apartment in Kyiv or Kyiv region with the help of "eOselya" program, the specialists of real estate agency "Mayak" will help you to find a suitable housing, check the seller's documents and will accompany the buyer at every stage of the transaction. In the team of real estate agency "Mayak" there are not only realtors, but also lawyers and a notary. Contact professionals to quickly and easily become the owner of a new apartment on favorable terms.
