High interest rates scare away many Ukrainians who would like to apply for a mortgage and choose housing, so the demand for mortgage lending does not grow even with high interest in such a financial instrument. Now the average market rate on mortgages in Ukraine is 20% per year, experts told the site "Today".
“Paying 22% for a mortgage that lasts five years is an overpayment of two and more times. It turns out that the buyer pays two or three apartments at once, and he owns one formally,” says the main expert of the information and analytical portal about new buildings 3m2 Victoria Bereschak.
She adds that the maximum term of mortgage lending, as a rule, is 20-25 years, but buyers try to repay the loan in 3-7 years. Therefore, a period of up to 10 years is optimal for the borrower.
In turn, the director of City Development Solutions Roman Gerasimchuk calculated that the amount depends on many conditions, but if you take an apartment with an area of about 50 meters, worth 1.3 million UAH, and the first installment in the amount of UAH 390 thousand (30% ) for 15 years, over the entire period the overpayment will amount to UAH 1.4 million, or 150% of the loan amount.
"Mortgage lending is more in demand in the budget segment, these are 2-3 bedroom apartments with prices ranging from 50 to 70 thousand dollars. The loan term is determined by several factors: the first installment, the client's solvency and his willingness to overpay. In most cases, the average buyer tries to make the maximum first a contribution (depending on the means at his disposal), and the remainder stretches for such a period that it remains possible to pay monthly contributions, ”added Gerasimchuk.