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The Cabinet of Ministers of Ukraine adopted Resolution No. 1136 on October 4, 2024, which amends the Conditions for ensuring accessible mortgage lending for citizens of Ukraine by the Public Joint Stock Company “Ukrainian Financial Housing Company.”
The main provisions of this resolution involve amendments to the previously approved conditions. Let us examine the amended points in detail:
1. Addition of Subparagraph 5 of Paragraph 8
Subparagraph 5 of Paragraph 8 now includes a new paragraph after the tenth paragraph, which states:
“Procedure for preferential mortgage lending to internally displaced persons financed by grants provided by the Reconstruction Credit Institution (KfW), approved by the Resolution of the Cabinet of Ministers of Ukraine dated April 28, 2021, No. 451 (Official Bulletin of Ukraine, 2021, No. 39, p. 2326).”
This addition means that the list of legal acts on the basis of which accessible mortgage lending is carried out now also includes the Procedure approved by Resolution No. 451 dated April 28, 2021. This Procedure pertains to preferential mortgage lending for internally displaced persons financed by grants from the Reconstruction Credit Institution (KfW).
2. Presentation of Subparagraph 3 of Paragraph 9 in a New Edition
Subparagraph 3 of Paragraph 9 is presented in a new edition, which details the types of real estate that cannot be subject to mortgage within the framework of the accessible mortgage lending program. In particular, it is specified:
- General Restrictions: The subject of the mortgage cannot include premises of housing funds intended for temporary residence; summer or garden houses; buildings and apartments that are architectural monuments and listed in the State Register of Immovable Monuments of Ukraine.
- For Candidates of Certain Categories: restrictions are established regarding the age of the building (based on the date of commissioning) and territorial location.
Detailing restrictions by categories of persons:
For Candidates Defined in Subparagraphs 1-5 of Paragraph 3 of the Conditions:
- Apartments:
- If the property is located in Chernihiv, Sumy, Kharkiv, Zaporizhia, Kherson regions – commissioned earlier than 10 years before the date of the contract (i.e., buildings older than 10 years cannot be subject to mortgage).
- If the property is located in other regions or Kyiv – commissioned earlier than 3 years before the date of the contract.
- Residential Houses: similar restrictions regarding the date of commissioning as for apartments.
For Candidates Defined in Subparagraph 6 of Paragraph 3 of the Conditions:
- Apartments and Residential Houses: cannot be subject to mortgage if they were commissioned earlier than 10 years before the date of the mortgage agreement.
For Candidates Defined in Subparagraph 6-1 of Paragraph 3 of the Conditions:
- Apartments and Residential Houses: similar restrictions as for the previous category (older than 10 years are not suitable).
For Candidates Defined in Subparagraph 7 of Paragraph 3 of the Conditions:
- Apartments and Residential Houses: properties commissioned earlier than 3 years before the date of the mortgage agreement cannot be subject to mortgage.
It is also noted that a residential house located on a land plot that does not belong to residential and public development land cannot be subject to mortgage.
3. Amendments to Paragraph 11
In the second, fifth, and sixth paragraphs of Paragraph 11, after the words “initial payment,” the phrase “or its part” has been added.
This means that where it previously referred to “initial payment,” the possibility of making a partial initial payment is now taken into account. Thus, the terms become more flexible regarding the payment of the initial payment or its part.
Entry into Force
The resolution comes into force 30 days after its publication, except for the eleventh and thirteenth paragraphs of Paragraph 2 of the amendments approved by this resolution. These paragraphs will come into force on December 18, 2024.
The specified paragraphs relate to specific provisions in the list of amendments affecting certain categories of candidates and conditions for mortgage lending.
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