The government of Ukraine amended the procedure of mortgage cost cheapening in order to provide larger group of population with affordable housing. The relevant decision was approved at the Cabinet’s meeting on July 4, 2012, ForUm learned from the Cabinet’s press office.

The amendments stipulate that the partial interest rate compensation can be received by the borrowers, if the monthly installment does not exceed 50 percent of the total monthly family income. The amount of the partial compensation is not included in the monthly installment.  In addition, the sum remaining after the monthly payments under the loan agreement shall not be less than a minimum wage of the borrower and each member of his family, subject to the partial interest rate compensation.

In addition, the government’s decree abolished the requirements to the upper bound of the borrower's and his family members’ income to obtain partial interest rate compensation. The requirement of the annual submission of the declaration of the family income to the tax authorities was also abolished.

The purpose the decree’s adoption is improving the ways of solving the housing problems of the population under the state mortgage lending for housing construction and implementation of the social initiatives of the President of Ukraine on the cheapening the mortgage cost.

The amendments are expected to involve a broad range of citizens into making use of the program and to expand the list of apartments, which can be purchased under this program.


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