Get a loan for an apartment in Ukraine

For most citizens of Ukraine, a bank loan is almost the only way to purchase their first apartment and is also a good option for expanding housing. To date, the situation has developed in such a way that banks issue loans for an apartment on quite acceptable terms.

It is possible to take out a loan for an apartment in Ukraine for up to 30 years, while the bank sets the interest rate from 17-18% per annum (although in the future it can change), and the down payment in most cases will be from 20% to 50% of the cost of housing. The percentage of down payment for loans for an apartment may depend on the cost of the apartment itself, its area. The higher the down payment, the lower the lending rate will be set by the bank in the framework of the above.

The interest rate may still depend on the method (schedule) of loan repayment. Distinguish between an annuity and a standard loan repayment schedule. An annuity is a schedule in which credit indebtedness is repaid at regular intervals in equal installments, consisting of money to pay interest and a partial loan repayment. Standard is a schedule in which the amount due is payable at the end of the loan term. There may also be an option when at certain equal periods only interest is paid, and the borrower repays the principal amount at the end of the loan term. With an annuity schedule, the commission may be slightly lower than with a standard schedule.

Also, for the most part, banks take a one-time fee for issuing a loan, that is, the percentage that you must give the bank once for receiving a loan from it. Given the amount and duration of the loan, the financial condition of the borrower, the size of the one-time commission may differ slightly and consist either of a fixed amount (less often) or calculated as a percentage. On average, the commission for issuing a loan can be from 0 to 2%.

Taking into account all the factors, you can calculate the loan for the apartment yourself, or use a loan calculator in your calculations. To take a loan more profitably, you need to compare several calculation options.

When issuing a loan to date, the borrower must meet the set of stringent requirements for him by age and marital status. Since the loan term is limited by the date corresponding to the retirement date (60 years), for a loan term of, for example, 15 years, the borrower must not exceed 45 years of age. The minimum age of the borrower should often be 25 years at the time of loan. Also, the bank may require a guarantor of someone close (spouse, relatives) of about the same age, or other persons with incomes not lower than that of the borrower, and with data that will meet the requirements of the bank, which will provide an additional money back guarantee.

To make a positive decision on granting a loan at any bank of Ukraine, the borrower’s income is the main factor. Many banks take into account not only documented income of the borrower, but also indirectly confirmed such as income from rental property, income from dividends and others, as well as the condition of the property of the borrower. The larger the requested loan amount, the greater should be the amount of income.

Also, the borrower must have in the past and at the moment an ideal credit history. Because banks necessarily take this information about your loans and how you repaid them, whether there were any delays in repayments at the credit bureau. This factor plays a large role in deciding whether to grant a new loan. You can check your credit history in several ways, but for free only once a year.

Read more: how to take money on credit for an apartment and other needs