Today, the problem of housing among young people is one of the most pressing in Ukraine. Unable to buy an apartment, more and more Ukrainian youth are moving abroad. To make real estate purchases more affordable for young families, the government has developed a new mortgage lending program. It was launched on February 1 this year and many people have already applied for a loan. Blago analysts helped to understand the terms of the new mortgage lending program and its benefits for young people.

Who can take advantage of a preferential youth housing loan

According to the State Program for Youth Housing, the following are eligible for a preferential mortgage loan

• young spouses with a minor child or children, if the age of the woman and man is under 35;
• single citizens without a family under the age of 35;
• a family in which one of the spouses is a scientist with a doctoral degree and is under the age of 40.

Conditions for registration

Mortgage lending to young people is carried out by the State Agency for Youth and Housing from the authorized capital. You can expect a positive decision if the following conditions are met:

1. The applicant is registered as a citizen in need of better housing conditions. The condition for obtaining a mortgage is also the absence of housing for each family member. The same applies to single young Ukrainians who decide to take out a mortgage. The exception is internally displaced persons who own real estate in the temporarily occupied territory. Also, a family with each member owning a home of up to 13.65 square meters can get a soft loan.
2. Official employment and confirmed solvency - after paying the loan payment, the amount of the remaining monthly income cannot be less than the subsistence minimum for each family member including children. Starting from the beginning of 2023, the subsistence minimum for minor children is UAH 2,833, and for able-bodied adults - UAH 2,684.
3. Correctly completed application and all necessary documents.

What are the benefits of mortgage lending?

First, the term of a youth mortgage loan is 20 years, and the annual interest rate is only 7%. Second, the down payment is the smallest compared to other housing loan programs - 6%. After the first installment is paid, the balance is divided into equal monthly payments with mandatory interest. This payment system makes buying a home affordable for young people. And you can choose the perfect home among a wide range of offers on the market, including modern new buildings. Third, there is an option to pay the entire amount ahead of schedule and save on interest. Importantly, this type of mortgage is not only available for ready-made housing stock. The government has authorized loans to participate in the construction of new residential complexes. For the applicant, this is another financial advantage with the opportunity to save up to 30% of the final cost of the new building. The lowest prices are always available at the start of construction, and the wait for commissioning is on average 1.5-2 years. In addition, the choice of apartments is significantly expanded by new residential complexes with improved layouts, high quality construction, developed infrastructure and other advantages offered by leading developers. A simple calculation will help you to see the benefits of such lending. Under the terms of the program, the standard area for obtaining a mortgage is 52.5 square meters per person or couple without children. For each subsequent family member, the standard area is 21 square meters. For example, if a family consists of two parents and one child, they can get a loan for an apartment with a total area of 73.5 square meters. Let's calculate the cost of a mortgage for such a family: Normative price of 1 sq. m: UAH 23,000. The cost of the apartment: 23,000 x 73.5 = UAH 1,690,500. Down payment (6% of the apartment price): 1,690,500 x 0.06 = UAH 101,430. Loan amount: UAH 1,690,500 x 0.94 = UAH 1,589,070. To calculate the monthly payment, divide the loan amount by the number of months on the loan. If we divide UAH 1,589,070 by 240 months, we get UAH 6,621.13. The interest is calculated by multiplying the loan principal by 7% per annum minus the monthly payment. If the area or cost of the chosen apartment is higher than the standard, the applicant can choose a smaller layout or pay extra. According to blago analysts, the youth mortgage program will make it much easier to buy an apartment. Many young families will be able to fulfill their dreams and enjoy life in their new homes without expectations. You can learn more about the terms and conditions and choose the apartment you want in the blago sales department: +38 (067) 761-31-15