“eOseliia”: Possibility of obtaining preferential government mortgage at 3% per annum

The following categories of citizens can purchase housing on preferential terms under the “eOseliia” program:

• Military and law enforcement officials;
• Medical workers;
• Teachers and scientists.

The program is as digital as possible, which makes it possible to submit applications online – through “Diia” portal, so the process of obtaining a preferential mortgage is convenient and accessible.

Conditions and requirements of “eOseliia” program

The “eOseliia” program in Ukraine opens up the opportunity to obtain affordable loans for the purchase of housing at a rate of 3%. To experience the full benefits of the program, it is important to understand its terms and requirements.

Requirements for the borrower

Citizens who are allowed to participate in “eOseliia” program:

• Have Ukrainian citizenship and are of legal age at the time of registration of the mortgage.
• Have not reached 70 years of age at the end of loan repayment.
• Are not on sanctions lists and do not participate in other government housing programs.

Real estate requirements

Except for the requirements for borrowers, “eOseliia” program also sets conditions regarding real estate:

• The housing area must be less than 52.5 sq. m., plus 21 sq. m. for each subsequent family member. Family members mean the spouse and minor children living together.
• The property should not be located in a territory where hostilities are ongoing or in temporarily occupied territory.

Compliance with these requirements is mandatory for obtaining a mortgage at 3 percent for a maximum period of 20 years with a minimum down payment of 20% of the loan amount.

Who can use “eOseliia” program?

A housing loan at 3 percent per annum under “eOseliia” program is aimed at supporting various social categories of citizens, providing them with the opportunity to get a preferential mortgage.

Mortgage for military personnel

The “eOseliia” program allows contract military personnel, defenders of Ukraine, law enforcement officers and members of their families to take advantage of preferential mortgages at 3% per annum.

Mortgage for teachers and scientists

Teaching staff and scientists of educational institutions of state and municipal ownership also have the opportunity to obtain a mortgage on beneficial terms.

Mortgage for medical workers

Medical workers and specialists from health care institutions of state and municipal ownership can also take advantage of preferential mortgages under “eOseliia” program.

To participate in the “eOseliia” program, you don’t even need to visit the bank to submit an application. The process can be started using the web portal or “Diia” mobile application. After filing an application, a representative of the selected bank will contact you to request the necessary documents and provide detailed information about lending.

Having chosen the housing, you plan to purchase under preferential mortgage, you enter into an agreement with the bank and an apartment purchase and sale agreement.

How is an apartment value measured?

When applying for a mortgage, it is important to have a clear idea about the cost of the apartment you are planning to purchase, because this affects the terms of the loan and the mandatory appraisal of the property serving as collateral. Appraisal of an apartment is an important stage; it affects various aspects of lending.

The bank appraises an apartment to measure its value and establish a mandatory deposit. This is necessary so that the bank has detailed information about the property value in the event of its sale due to non-payment of the loan. The appraisal is also required by the insurance company to conclude a property insurance contract.

As a result of the appraisal, the apartment value may vary and depends on several factors:

• Region where the apartment is located. The cost of housing may vary depending on the region.
• Location in a populated area. Apartments in different parts of a city or town may have different prices.
• Special characteristics of the apartment. Factors such as floor, number of rooms, renovation and other features of the housing also influence the appraisal conclusions.
• Additional specialist services. If you use the additional services of a qualified appraiser, this may also affect the price.

Appraisal of an apartment is an important stage that determines the volume of the loan and the terms of the mortgage. Before choosing an appraisal company, it is recommended to consult with specialists to understand the cost and all the subtle aspects of the process.

Submitting an application for the “eOseliia” state mortgage

The process of applying for a state mortgage “eOseliia” is fast, convenient and automated. This program makes it possible to apply directly from home using “Diia” application. Next, the application is automatically sent to banks participating in the program, which already own the applicant data obtained from the registers. Banks provide their proposals within 24 hours from the date of application.

The whole process can be divided into several steps:

1. The applicant submits a mortgage application via “Diia” application directly from home. This procedure is simplified as much as possible making it possible to effectively register your interest.
2. Banks participating in the program receive information from the application and assess the applicant’s credit scoring and underwriting. The main information is obtained from registers.
3. After the scoring, banks provide the applicant with their proposals, which may contain the credit volume, interest rate, loan terms and other conditions. The applicant has the right to choose the best offer for himself.
4. The applicant is invited to the selected bank to receive detailed advice and clarify all loan conditions.
5. Based on the information received from the bank, the applicant independently selects the housing and prepares the necessary documents to submit to the bank.
6. If the previous steps are completed correctly, both parties – the applicant and the bank – enter into a housing purchase agreement and a mortgage agreement.

With the help of this automated process, the government program “eOseliia” makes it possible to get a preferential mortgage and realize your dream of owning your own home without complications and wasting time.

Tax rebate: what is it and how to get it

In Ukraine, individuals have the opportunity to receive a partial income tax rebate. This is possible if during the previous year the person had certain types of expenses such as a mortgage loan, tuition fees, charitable contributions, etc. There are a total of ten cases in which you can receive a tax rebate.

To receive a tax rebate, an individual must file an annual tax return by December 31 of the year following the year in which the expenses eligible for the rebate occurred. For example, a tax return for 2022 can be submitted until the end of 2023. The procedure for filing a tax return is quite simple and can be done online.

Individuals who work officially and have taxable earning from wages can receive a tax rebate. Individual entrepreneurs who do not pay personal income tax (PIT) are not entitled to such a rebate.

It is important to remember that expenses must be confirmed by relevant documents, such as fiscal receipts, cash orders, contracts and others. Copies of these documents are submitted along with the tax return and the originals must be retained.

An individual cannot receive a rebate that exceeds the amount of their annual taxable earned income, with the exception of insurance contributions to the Pension Fund of Ukraine.

If an individual does not exercise the right to receive a discount before the end of the tax year, this right does not carry over to subsequent tax years.