New Changes to the “eOselya” Program

The government has made changes to the conditions for receiving subsidized loans under the “eOselya” program. Now, young borrowers up to 25 years old can obtain a mortgage with a 10% down payment instead of 20%. Family members of IDPs (internally displaced persons) in the first degree of kinship are eligible for subsidized loans at 7%. Additionally, citizens can use the “eVidnovlennia” housing certificate for the down payment when purchasing a home. The decision was made at a government meeting on August 16, 2024.

New Participation Conditions

Previously, citizens could only purchase apartments in newly built buildings; the changes to the decree now allow the purchase of property rights for private houses under construction.

A new condition concerning property transactions within the year is introduced:

• A candidate can participate in the program if neither they nor their family members have sold or donated property within 12 months before the application date, with the total area of the property they own, combined with the area of the property they are applying for, exceeding the program’s limits.

The government has also excluded the possibility of using eOselya funds to purchase residential properties that are designated as architectural landmarks.

Participation in Other Government Programs

In response to requests from citizens in temporarily occupied territories, the government has modified the requirements regarding participation in various state programs:

• It will now be possible to participate in eOselya even if the candidate or their adult family members have received monetary compensation for residential premises or have active or terminated contracts (settled loans) for properties located in active conflict zones or occupied territories, or properties that were destroyed or damaged.

Conditions for IDPs

Additionally, family members of internally displaced persons (IDPs) in the first degree of kinship (spouse, parents, and children) will also be able to purchase housing for IDPs.

Interest Rate Changes

The government is also making changes to expedite the repayment of old loans and redirect these funds to issue new subsidized mortgages. The subsidized interest rate for the eOselya program will remain 7% per annum for the first 10 years of the loan agreement. Starting from the first calendar day of the 11th year of the loan agreement, the interest rate will increase to 10% per annum.

For those categories receiving compensation up to 3% per annum, starting from the first calendar day of the 11th year, compensation will be provided up to 6% per annum. The increase in the interest rate from the 11th year will not significantly increase the financial burden on the borrower, as the amount of accrued interest decreases by half due to the repayment of the principal loan amount.

Implementation Timeline

Most of these changes will take effect 30 days after their publication. The possibility for borrowers up to 25 years old to make a 10% down payment will be effective 60 days from the publication of this decree, and the changes for IDP families will take effect in 120 days. Existing loan agreements signed before the adoption of these changes will remain under the old conditions.

We have already reported that a personal composition of the Council for the Reconstruction of the NDSL Okhmatdyt has been formed.