eOselia: Who Can Get a Preferential Mortgage and What to Check Before Buying Housing
The state program “eOselia” remains one of the few tools that allows Ukrainians to buy housing with a mortgage on preferential terms. For some citizens, the rate is 3% per year during the first ten years, and the loan itself can be issued for a term of up to 20 years. For the Ukrainian market, this is a significant difference. Under standard bank mortgage programs, rates usually range between 14–18%. Therefore, the same apartment can mean a completely different financial burden for a family. If housing worth about 60 thousand dollars under the “eOselia” program may require approximately up to 12 thousand hryvnias in monthly payment, then under a regular bank mortgage the payment may start at least from 25 thousand hryvnias. Time for Action examined who can use the program, how the application is submitted, what requirements banks set and what needs to be checked before signing a mortgage agreement.
1. Who the “eOselia” program was created for
The “eOselia” program is primarily aimed at citizens for whom buying housing at market mortgage rates is too expensive. A special emphasis is placed on representatives of budget-funded and socially important professions. The most favorable lending conditions are provided for the following categories:
• teachers;
• medical workers;
• scientists;
• military personnel;
• law enforcement officers;
• rescuers.
For them, the rate is 3% per year during the first ten years, and from the eleventh year 6% per year. The loan can be issued for a term of up to 20 years. The minimum down payment for most borrowers is from 20% of the cost of housing, and for people under the age of 25 from 10%. This makes the program much more accessible than standard banking products. But the preferential rate does not mean automatic receipt of a loan. The bank still checks income, credit history, the borrower’s documents and the real estate object.
2. Who cannot use the program
The program has clear restrictions. Citizens who belong to certain categories listed in the “Diia” service cannot use “eOselia”. This includes, in particular, people who have already received housing compensation from state or local authorities, as well as those who received assistance as a family of fallen Defenders of Ukraine. Participation in the program is also unavailable to people under sanctions, those who have convictions for crimes against the foundations of Ukraine’s national security, or who are family members or heirs of such people. Another restriction applies to citizens who have active state mortgage agreements, including those that have already been repaid. These requirements are needed so that the program does not duplicate other forms of state housing support and is not used by people who have already received housing assistance or do not meet security criteria.
3. Requirements for the borrower’s housing
A loan under the “eOselia” program is provided on the condition that a person does not own housing or has insufficient living space for their family. The basic calculation is as follows: the borrower’s living space must not exceed 52.5 sq. m plus 21 sq. m for each next family member. This means that the program is aimed primarily at those who truly need better housing conditions. If a person already has sufficient space, obtaining a preferential mortgage will be difficult or impossible. At the same time, the rules allow buying housing of a larger area if the family has additional own funds and is ready to make a larger down payment. In this case, the state and the bank finance the part within the program, and the borrower covers the rest of the cost independently.
4. How to submit an application through “Diia”
Submitting an application begins in the “Diia” application. To do this, one needs to find the “eOselia” service and follow the instructions on the screen. The system will ask to indicate the main information:
• marital status;
• place of work;
• income level;
• availability of guarantors;
• amount of the down payment.
After that, a preliminary decision is formed. If the application passes the initial check, accredited banks send the potential borrower preliminary loan offers. Such offers specify the bank and the approximate loan amount. It is important to understand: a decision in “Diia” is not yet final mortgage approval. This is only a preliminary stage.
“Banks’ decisions appear directly in ‘Diia’. However, this is only preliminary approval. The final decision is made after choosing an apartment and submitting the full package of documents,” explains Kateryna Lychana, head of the partner relations department at Globus Bank.
That is, after a positive decision in the application, the borrower still has to go through the full banking procedure: choose housing, provide documents, confirm income, pass a solvency assessment and agree on the real estate object.
5. How the bank assesses solvency
The bank analyzes not only the fact of employment, but also the borrower’s real ability to regularly pay the loan. For this, official income is taken into account. If the borrower has a family, the bank may take into account the total income of all family members. If the person has not yet created their own family, parents may act as guarantors. In this case, the bank may also take their income into account. This is especially important for young professionals for example, teachers or doctors who have the right to a preferential rate but do not yet earn enough to independently confirm solvency.
“If the total monthly income of a family of two people is from 40 thousand hryvnias and such a family is ready to make the minimum down payment of 20%, then banks accredited in ‘eOselia’ will not refuse the loan, and the amount provided will be sufficient to buy housing priced from 2.1 million hryvnias,” assures Kateryna Lychana, head of the partner relations department at Globus Bank.
The average loan amount under the program is 1.65 million hryvnias. With such an amount, the maximum payment in the first month may be about 11 thousand hryvnias. But even if the monthly payment looks acceptable, the borrower must also take into account other expenses: the down payment, transaction processing, insurance, repairs, furniture, utility bills and housing maintenance.
6. Down payment: the main financial barrier
The preferential rate makes the loan cheaper, but does not remove the need to have own funds at the start. For most program participants, the minimum down payment is 20% of the cost of housing. For borrowers under 25 years old 10%. It is the down payment that often becomes the main obstacle. If an apartment costs 2.1 million hryvnias, then 20% is 420 thousand hryvnias. For a young family or a budget-sector worker, this is a large amount that must be accumulated before applying or before the final loan processing. At the same time, a larger down payment has advantages. It reduces the loan amount and, therefore, the monthly payment. In addition, own savings may allow the purchase of more expensive or more spacious housing.
7. How to choose an apartment after preliminary approval
After preliminary approval, the borrower has 30 days to find housing. This is quite a short period, so it is better to look for options even before submitting an application. Under the program, it is possible to buy an apartment on the primary or secondary market. In some cases, buying a private house is possible. On the secondary market, there are restrictions on the age of the building. Depending on the borrower’s category and the location of the real estate, the building must have been commissioned no more than 3 or 10 years ago. On the primary market, the choice is often simpler because the list of accredited objects can be found on the websites of participating banks and PrJSC “Ukrainian Financial Housing Company”, which is the operator of the “eOselia” program. The borrower can contact the developer and choose an apartment by area, layout, budget and desired floor. If the residential complex is already accredited, the procedure for the bank will be clearer, and the risks for the buyer will be lower.
8. What loan amount can realistically be obtained
Accredited banks, depending on the circumstances, are most often ready to provide a loan of up to 2 million hryvnias. Together with a 20% down payment, this allows one to focus on an apartment in a new building with an area of approximately 40–50 sq. m. According to the program’s conditions, the total area of the apartment for which a loan can be obtained is no more than 52.5 sq. m plus 21 sq. m for each next family member. If a family wants to buy a larger apartment, this is possible through a larger down payment. That is, the program does not necessarily limit the buyer only to minimal housing, but a larger area requires a larger own contribution.
“But if the family of a young teacher or doctor has substantial savings and wants to buy an apartment for a future large family, this can be done through a larger initial payment,” Kateryna Lychana said.
9. Credit history: what can affect the bank’s decision
One of the first factors the bank evaluates is the borrower’s credit discipline. If there were previous delays on loans, microloans, credit cards or other financial obligations, this may affect the bank’s decision. Even if a person formally meets the program requirements, a poor credit history may make it harder to obtain a mortgage. Before applying, it is worth checking whether there are any open debts, delays or disputed credit obligations. All current loans must be serviced without delays. For the bank, a mortgage is a long-term obligation. Therefore, it evaluates not only current income, but also a person’s financial behavior in the past.
10. Income documents: why they need to be prepared in advance
The bank must make sure that the borrower is able to pay the mortgage for many years. Therefore, it is necessary to prepare documents confirming official income in advance. If the income of a husband, wife or guarantors is taken into account, documents regarding their earnings will also be needed. It is not worth hiding official sources of income. On the contrary, a full list of legal revenues may help obtain a larger loan amount or increase the chances of approval. Total family income often becomes a decisive argument for the bank. Especially when the main borrower works in the budget sector and has the right to a preferential rate, but their own income is not enough for the desired loan amount.
11. Developer accreditation: what needs to be checked
If the buyer chooses an apartment in a new building, it is necessary to make sure that the residential complex is accredited by the bank and the operator of the “eOselia” program. This can be checked on the websites of participating banks or PrJSC “Ukrfinzhytlo”. Accreditation means that the bank has already checked the developer and the documents for the object. This simplifies the lending procedure and reduces risks for the buyer. Without accreditation, the process may drag on or not happen at all. Therefore, it is better to choose an apartment among those objects that are already available within the program.
12. Future expenses: a mortgage does not end with the monthly payment
One of the typical mistakes of borrowers is calculating only the monthly loan payment. In reality, after buying housing, expenses only begin. It is necessary to take into account:
• transaction processing;
• possible insurance;
• repairs;
• furnishing;
• appliances;
• utility bills;
• building maintenance;
• unforeseen expenses.
A comfortable level of credit burden can be considered one in which, after paying the mortgage, the family still has money left for daily needs and a financial “safety cushion”. If all income goes to the loan, even a preferential mortgage can become a problem. Therefore, before signing the agreement, it is worth soberly assessing not only today’s income, but also possible changes in the future.
13. The real rate under the program
The nominal rate for preferential categories is 3% per year during the first ten years and 6% from the eleventh year. At the same time, the real annual interest rate under the program for such categories may be 4.34%. This indicator is calculated taking into account the compensation rate, the loan term of 20 years, a 20% own contribution, a loan amount of 1,650,000 hryvnias, as well as additional and related expenses of third parties. The actual rate may differ depending on the cost of a specific real estate object and related expenses. Therefore, before taking out a mortgage, one needs to look not only at the advertised rate, but also at the full cost of the loan. It is this that shows the real financial burden.
14. Why “eOselia” became a breakthrough for the mortgage market
Ukraine’s mortgage market remained expensive for most citizens for many years. In 2006–2021, the weighted average mortgage rate ranged from 11.8% to 20.6%. The average value over this period was 16.2%. The highest level 20.6% was recorded in 2009, when the economic crisis, high inflation and sharp rise in the dollar exchange rate made loans especially expensive. In 2015–2016, the market showed attempts at stabilization: rates fell to 11.8–12.4%. But already in 2017, due to currency restrictions and the conversion of loans into hryvnia, the rate rose again to 17.4%. After the launch of “eOselia”, the situation changed. In 2022, the weighted average mortgage rate fell to 8.6%, in 2023 it was 9.4%, and in 2024 8.8%. This shows that the state program noticeably affected the cost of mortgages in Ukraine. But its effectiveness depends not only on the low rate, but also on the availability of housing, citizens’ incomes, the work of banks and the number of accredited objects.
“eOselia” truly makes mortgages more accessible, but it does not turn the purchase of housing into a simple formality. The program provides a preferential rate, a long lending term and a significantly lower monthly payment compared with a standard mortgage. But the borrower still has to meet the requirements, have official income, a good credit history, a down payment and a realistic understanding of future expenses. For budget-sector workers, military personnel, doctors, teachers, scientists, law enforcement officers and rescuers, this is one of the most favorable available options for buying housing. However, successful processing depends on preparation: it is necessary to check documents, income, credit history, down payment opportunities and apartment options in advance. The main advantage of “eOselia” is not only the low rate, but the opportunity to make a mortgage predictable. But it will become predictable only when the borrower calculates not the minimum payment, but the full financial picture: from the down payment to repairs, utility bills and a reserve for unforeseen expenses.
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