A new programme being developed by Ukraine's state mortgage agency Ukrfinzhytlo and the World Bank could help revive the country's underdeveloped mortgage market, supporting up to 30,000 new home loans over the next three years, reported Ukraine Business News.

Ukraine's outstanding mortgage portfolio reached UAH50bn ($1.11bn) as of June 1, rising by 35% over the previous 12 months. By comparison, the banking sector's overall loan portfolio expanded by only around 10% during the same period.

Despite the rapid growth, mortgage lending remains limited. Home loans account for only about 3% of residential property transactions, while around 42,000 Ukrainian families currently hold mortgages, representing just 0.4% of households.

The market continues to be driven overwhelmingly by the state-backed eOselia programme, which has become the principal source of housing finance in the country.

Since its launch, eOselia has issued approximately 28,000 mortgage loans worth a combined UAH49bn ($1.09bn). The programme now accounts for 93% of all new mortgages granted in Ukraine.

Lending under the scheme has continued to accelerate. During the first half of 2026, participating banks issued UAH8.4bn ($187mn) in mortgages, compared with UAH5.5bn ($122mn) during the same period a year earlier.

Ukraine's mortgage market remains highly concentrated. Only 12 of the country's 59 banks currently offer mortgage loans, while 10 participate in the eOselia programme. State-owned lenders provide around 80% of all mortgages, and five institutions control 93% of the market. Banks with foreign ownership have largely remained on the sidelines.

A proposed programme being prepared by Ukrfinzhytlo in cooperation with the World Bank aims to broaden access to housing finance by reducing borrowing costs. Under the planned model, borrowers could receive compensation covering up to 20% of the loan principal, partial reimbursement of interest payments during the first four years and a minimum down payment requirement of between 5% and 10%.

The programme's total budget is estimated at $390mn and could finance between 20,000 and 30,000 additional mortgages over three years, effectively doubling the size of Ukraine's current mortgage market and providing a significant boost to the country's housing sector.