Year: 2026
Type: article
Abstract: This article justifies the need to study household investment decisions in the context of mortgage lending under the “eOselya” government program, given the current state of Ukraine’s development. The relevance of the topic stems from the fact that the program currently covers about 95% of the entire mortgage lending market, while the share of mortgages in the total number of residential real estate purchase and sale transactions remains low. The article analyzes current trends in the development of mortgage lending, the implementation mechanism of the “YeOselya” program, as well as lending terms at leading partner banks – Oschadbank, PrivatBank, and Ukrgazbank. Particular attention is paid to calculating the cost of mortgage loans for 1-, 2-, and 3-bedroom apartments at interest rates of 3% and 7% per annum over 240 months. It has been demonstrated that for borrowers with a preferential 3% interest rate, a mortgage is a financially sound way to acquire home ownership, whereas for borrowers under standard terms (7%), savings deposits may yield a better financial outcome. The purpose of this article is to examine households’ investment decisions in the context of mortgage lending under the “eOselya” program. The methodological foundation of this study consists of a set of general scientific and specialized research methods, specifically: the comparative method – to compare the results of mortgage lending under the “eOselya” program with alternative options for investing funds in home purchases; the statistical method – to collect and process quantitative data on mortgage loans; the systems approach – to examine households’ investment decisions as interconnected elements of a unified “housing-loan-alternative investments” system within the context of a wartime economy; abstract-logical method – for the theoretical generalization of the obtained results, formulating conclusions regarding the feasibility of participating in the “eOselya” program for various categories of borrowers, and justifying recommendations. The study demonstrates that bank mortgage lending plays a key role in sustaining effective demand for housing and, with government support, significantly stimulates activity in the real estate market. The study explains the mechanism for applying a compensatory variable (floating) interest rate to interest rate swaps provided by PJSC “Ukrfinzhytlo,” which allows banks to offset interest rates on individual deposits. It is argued that uncertainty regarding the program’s future funding after direct budgetary financing ends in 2026 creates additional risks for households with long-term obligations. The paper demonstrates the feasibility of a differentiated approach to assessing the cost of purchasing residential real estate, taking into account individual financial circumstances. The practical significance of the results lies in their applicability by banking institutions, government agencies, and developers when designing mortgage lending support programs. Future research should focus on an in-depth analysis of the impact of military risks on the investment attractiveness of mortgages and on developing recommendations for improving government support mechanisms, taking into account long-term fiscal implications.
DOI: 10.60022/3(4)-62s
Author: Ігор Іванович Румик
Language: English
Topic: Housing Market and Economics
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7225235013