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A proper system of mortgage lending will mean accessible housing for people

16:45 16.07.2019

Batkivschyna Party Leader Yulia Tymoshenko says the introduction of a proper system of mortgage lending in Ukraine would allow Ukrainian to families to purchase high-quality and affordable housing.

“The large-scale construction of new housing stock in Ukraine is possible if there is proper mortgage lending, where every family in the country will be able to acquire high-quality and affordable mortgage housing,” Yulia Tymoshenko said at a meeting with heads of associations of co-owners of multi-apartment buildings in Zhytomyr.

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The politician noted that 80% of the housing stock in Ukraine is extremely outdated; therefore, a strategic plan for replacing old housing should be created, because “if we repair Khrushchyovky it’s wasted money and a temporary patch.”

“An in-depth audit of the housing stock should determine which facilities are suitable for capital repairs, and where it will be necessary to build new residential facilities with the introduction of proper mortgage lending,” she said.

Yulia Tymoshenko emphasized that today the system of mortgage lending is, first of all, unsustainable due to the large initial contribution of 25-30%, which makes new and quality housing inaccessible to most families in Ukraine. The second problem is that housing loans are too short (for 3-5 years).

“Worldwide, mortgage lending is granted from 10 years, or even 15, 20 or even 25 years. And the family can pay monthly mortgage loans, and not feel the burden on the family budget,” she said.

The third problem that needs to be addressed is the cost of the loan itself, since mortgage lending should not be 20-30% per annum.

“Mortgage loans, like other business loans, should cost 2-3% per annum. Therefore, the monetary policy of the state should be changed,” she said, adding that the Batkivshchyna team will lobby for the introduction of a new system of mortgage lending in Ukraine.