In 2020, the volume of mortgage lending in Ukraine increased by one third - NBU
The National Bank of Ukraine (NBU) has published the results of bank surveys on the volume of mortgage loans issued to the population in November and December 2020. According to the results of the latest survey, banks reported that in December 2020 they issued 743 loans for a total of 521 million hryvnia. At the end of 2020, banks issued mortgage loans in the amount of UAH 3.8 billion. This is 36% more compared to 2019.
Bank surveys show that the mortgage market was very concentrated. Almost 88% of new transactions (3.3 billion hryvnia) in 2020 were concluded by five banks.
Also in the past year, the average size of a home loan increased. If in 2019 it was about 516 thousand hryvnia, then in 2020 it was 663 thousand hryvnia. The average size of a mortgage loan for the purchase of primary real estate in 2020 amounted to 682 thousand hryvnia, secondary - 660 thousand hryvnia.
The results of the polls showed that the secondary market continues to dominate significantly in terms of the number and volume of lending. The share of concluded mortgage agreements for the purchase of housing in the secondary market in 2020 amounted to about 85% by volume of all new issues.
During 2020, the weighted average effective interest rate on new mortgages decreased. According to banks' data, in December 2020, the average mortgage rate in the secondary market was 14% (in December 2019 - 20.6%), in the primary market - 16.9% (in December 2019 - 21.5%). At the same time, in 2020, about 38% of mortgages by amount were concluded with a fixed interest rate (in 2019 - more than 70% of new mortgages).