According to a large-scale survey conducted by OLX, only 17.6% of property buyers have taken out mortgages. Meanwhile, 36% of Ukrainians do not plan to buy a mortgage because they will have to overpay for the apartment (interest payments). Also, Ukrainians are concerned about general financial risks and instability of the housing market, unfavourable current lending conditions and general distrust of credit products, Komersant ukrainskyi
reports
How many people used mortgages
According to the study, 17.6% of buyers took advantage of mortgage loans, of which 49% purchased apartments and 46.6% purchased houses.
Reasons for purchasing a mortgage:
- lack of own funds for full payment (65%);
- the ability to pay gradually without financial losses for the family (39.1%);
- desire to invest in property without spending all savings (13%);
- preferential loan under the eHouse programme (13%).
The study notes that among the main advantages of lending, Ukrainians noted the opportunity to get their own housing without accumulating the full amount, gradual payments and favourable interest rates.
Who does not use mortgages and why
The majority of Ukrainians – 36% – still categorically reject the possibility of buying a mortgage, although 8% intend to use a mortgage in the future.
Why they do not use a mortgage:
- the need to pay interest (36%);
- financial risks and market instability (35%);
- the current conditions are too unfavourable (23%);
- distrust of loans (23%);
- had negative lending experience (5.8%);
- waiting for better conditions (5.8%).
In addition, 75.6% of respondents believe that the optimal loan rate should be up to 5% per annum, while another 17.5% could accept 6-8% per annum.
It also turned out that not all Ukrainians are familiar with the eHouse programme at all – only 41% of respondents are well aware of it. Another 39% have a general idea of the programme, 14% have heard of it but do not know the details, and 4% have never heard of it.
12% of Ukrainians plan to use this programme to buy a home, 29% are considering it, and another 29% are thinking about whether they should.
Earlier , Olena Shulyak, Chair of the Committee on the Organisation of State Power, Local Self-Government, Regional Development and Urban Planning , said that over the two years of the eHouse programme’s existence, almost 13,000 Ukrainian families have benefited from its terms. However, the programme requires significant changes, as it has limited accessibility for a wide range of citizens.
Author: Alyona Kaplina