Since the beginning of the war, the state loan programme ‘eOselia’ has become popular among Ukrainians. However, now some changes have been made there. Find out for whom and what exactly has changed in the programme

Legal advice on buying and registering real estate in Ukraine

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The Cabinet of Ministers of Ukraine from 16 August changed the terms of the programme of affordable mortgage lending ‘eOselia’, in particular, reducing to 10% the minimum contribution for citizens under 25 years and increasing payment rates after 10 years.

How did the rate change?

According to the text of the decree, for borrowers under 25 years of age, the minimum first (initial) instalment was reduced to 10%, for citizens over 26 years of age remained unchanged - not less than 20%.

For contract servicemen of the Armed Forces, security and defence sector workers, medical workers, teachers, researchers, who took a loan for 20 years, the discounted mortgage rate of 3% is applied for the first 10 years, then - 6%.

For war veterans, combatants, internally displaced persons (IDPs) and citizens who do not have their own housing larger than the normative area - up to 10 years the rate of 7% is applied, further - 10%.

Insurance terms

The insurance terms have also changed from 1% to 1.25% of the mortgage value, taking into account the insurance of additional risks of damage to housing due to military operations.

Earlier we told you about the growing demand for property in Ukraine. During the martial law Ukrainians began to sell and buy land more actively - details in the material.

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Subjects of the mortgage

The requirements for the subject of the mortgage have changed. Now it can be property rights to the house under construction (that is, new buildings, registered under the new legislation, automatically included in the programme). 

At the same time, on a preferential mortgage can not buy housing in a building that is a monument of architecture and entered in the State Register of Immovable Monuments of Ukraine.

Conditions for participation in the eOselia programme

Previously, citizens could only buy a flat in the houses under construction, these amendments to the decree provide for the possibility of buying property rights to private houses at the construction stage. 

Now a condition concerning the purchase and sale of real estate within a year is introduced:

A candidate may participate in the programme if he or she and his or her family members have not sold or donated real estate during the 12 months prior to the date of application for housing, the total area of which, together with the area of housing owned by the family on the date of application, exceeds the conditions of the ‘eOsela’ programme.

The Government has also excluded the possibility for ‘eOselia’ programme funds to buy residential real estate, which belongs to the monuments of architecture.

In addition, the conditions for citizens' participation in various other state programmes have been changed. Now it will be possible to participate in ‘eOselia’ even if the candidate received compensation for destroyed or damaged housing.

Read more about changes in mortgages in Ukraine during the war period

Also earlier amendments were made to the Law of Ukraine ‘On Mortgage’, on the basis of which the following changes are implemented:

- the creditor cannot acquire ownership of the subject of the mortgage;

- the creditor cannot sell the subject of the mortgage

- the creditor cannot evict tenants who are subject to a court decision on foreclosure;

- the creditor is not entitled to realise the subject of mortgage at electronic auction.

If you are interested in the real estate market in Ukraine, you should know that there is currently an upward trend in housing prices. You can find the latest information in the article.