Ukraine » Mortgages

Besides the volume of new construction, the development of a mortgage market depends on the development of the banking system. Low levels of trust in both banks and the national currency hinder this growth. Memories of the hyperinflation of the early 1990s with the previous currency, the Karbovanets, still affect perceptions of the hryvnia, which has been stable except for one period of rapid depreciation during the Russian default crisis of August 1998, when banks had difficulties meeting dollar obligations.

Cautious Ukrainians seek alternatives to bank liabilities for their savings instruments, and this must change before the supply side of the mortgage market can grow significantly, and that would include a secondary market for Ukrainian mortgages to further decrease mortgage interest rates. There is no legal barrier to foreign participation in residential mortgages and questionable barriers to this participation in loans on agricultural land.

The bank will look to see that there is an adequate income stream on the building, in order to provide finance. You should probably expect to put down about 27% depending on various factors.