The volume of mortgage lending in January-March 2021 amounted to UAH 1.4 billion, which is two times more than in the same period in 2020, according to the results of a survey of banks conducted by the National Bank of Ukraine (NBU).
According to the report, in the first quarter of this year, 1,811 mortgage agreements were concluded, which is 51% more than in the same period last year.
According to the regulator, in March 2021 banks issued 750 loans for a total of UAH 577.4 million, which is 26% more compared to February 2021 and almost 2.5 times more than in March 2020. The number of new deals for the month increased by 22%, for the year – by 83%, the report says.
Almost 90% of mortgage agreements in the amount of UAH 506 million in March were drawn up with five banks, which indicates the concentration of the mortgage lending market.
The NBU noted that the growth of mortgage lending is mainly due to loans for the purchase of housing in the secondary real estate market. In particular, in March, the volume of loans issued for the purchase of housing in the secondary market compared to February 2021 increased by 28%, or by UAH 109.2 million, in the primary market – by 15%, or by UAH 10.3 million.
According to the survey results, the share of mortgage agreements for the purchase of housing in the secondary market in March amounted to 87% of all loans issued.
According to the banks’ information, the average size of a loan for the purchase of housing continues to grow, in particular, in February it amounted to about UAH 742,000, and in March – UAH 770,000. The average size of a new mortgage loan for the purchase of primary real estate in the reporting month amounted to UAH 837,000, and the secondary one – UAH 760,000.
It is indicated that in March the average effective rate of a mortgage loan remained almost unchanged: in the secondary market it was 14.0% (in February – 13.9%), in the primary market – 17.4% (in February – 17.1%).
As reported, the volume of mortgage lending in 2020 amounted to UAH 3.8 billion, which is 36% more than in 2019.