Kyiv, January 20, 2022 - PRAVEX BANK reduced the interest rate on mortgages for clients up to 5.99% under the state program "Affordable Mortgage 7%".
In April 2021, the Bank signed an agreement with the Entrepreneurship Development Fund on a partnership in the state program "Affordable Mortgage 7%", which is implemented with the support of the President and the Government of Ukraine via Ministry of Finance of Ukraine.
The Bank in cooperation with the Entrepreneurship Development Fund carefully analyzed the program terms and concluded that this program sets maximum lending terms, which does not prevent authorized banks from reducing interest rates for their customers.
Given that PRAVEX BANK provides one of the best conditions for lending in the retail lending market, namely mortgages and personal loans, credit cards, the Bank decided to continue its activities in this direction and make its mortgage program more affordable.
“Our Bank is launching a unique product for the market: within the state program “Affordable Mortgage 7% ”we provide a mortgage loan with the interest rate of only 5.99%. We decided to create attractive conditions for our clients and help them buy their own homes at a lower interest rate. Reducing the cost of mortgages will provide more opportunities for clients to realize their dream of owning an apartment. After all, a loan has become more affordable than a rent, and mortgage lending has become closer to the European standards”, - Semen Babaiev, Deputy Chairman of the Management Board, Head of Retail Division of PRAVEX BANK, comments.
This initiative of the Bank was supported by the Ministry of Finance of Ukraine and the Fund, as it contributes to further reduction of interest rates on mortgage loans and gives the right signal to other participants in the State Program "Affordable Mortgage 7%" to take similar steps.
The advantages of the program "Affordable Mortgage 7%" are the best terms of purchase, low interest rate, affordability of monthly payment for the client, transparency.
Basic conditions of the program:
- Loan term - from 1 to 20 years - for houses with land / townhouses - 1 to 15 years.
- The maximum loan amount is UAH 2,000,000, and may not exceed 80% of the value of the standard area of the mortgage subject determined by the program.
- The maximum value of the subject of the mortgage is UAH 2,500,000.
- Own contribution - from 20% of the value of the mortgage.
- Interest rate paid by the Borrower - 5.99% subject to compliance with all terms of the loan agreement and the program "Affordable Mortgage 7%".
- Base rate on mortgage loan - UIRD * 12M + 4.5%.
- Real interest rate (total loan costs for the client) - from 7.77%**.
- Repayment method - standard scheme and annuity.
- One-time loan issuing fee - 0.5% of the loan amount.
- Mortgage insurance (annually) - 0.30% of the market value of real estate.
- Borrower's life insurance (annually) - 0.50% of the loan amount.
* UIRD 12M UAH – taken rate is UIRD 12M UAH, published by the NBU, effective on the first banking day of the calendar month preceding the month of review / setting the interest rate.
** UIRD value 12M = 8.70% was used to calculate the rate.
The terms of the program apply to the purchase of:
- ready apartments in apartment-type residential buildings (apartment building), and
- individual houses together with the land plot on which it is located.
(without limitations, except those that are located in the regional centers with population more than 1 million, according to the official data of the State Statistics Service, which must be put into operation or reconstructed not earlier than within ten years preceding the current one (in 2022 - from 01.01. 2012)).
For affordable mortgage loan you can already apply to any branch of PRAVEX BANK or leave an application following the link: https://www.pravex.com.ua/chastnym-licam/krediti/ipoteka-7?show=1.
PRAVEX BANK, part of Intesa Sanpaolo Group since 2008, has been in the market since 1992 serving Ukrainian customers for over 25 years. The Bank has a national coverage and provides the entire range of banking services to Retail, Corporate and Institutional clients. Using the best practices and international presence of Intesa Sanpaolo Group, PRAVEX BANK offers innovative solutions for corporate clients in working capital and investment financing, deposits, international payments and funds transfers, and special conditions on trade finance. Among PRAVEX BANK’s main retail products are mortgages, the European Personal Loan and the Famiglia Service Package.
About Intesa Sanpaolo
Intesa Sanpaolo is a wealth management & protection company, Italy’s leading bank and one of the most solid and profitable bank groups in Europe. It offers commercial, corporate investment banking, private banking, asset management and insurance services. The Intesa Sanpaolo Group has approximately 13.5 million customers in Italy and 7.1 million customers abroad through commercial banking subsidiaries in 12 countries in Central-Eastern Europe and Middle East and North Africa as well an international network to support corporate customers across 25 countries. Intesa Sanpaolo is recognized as one of the most sustainable banks in the world and is committed to becoming a reference model in terms of sustainability and social and cultural responsibility. Intesa Sanpaolo supports major economic inclusion and poverty reduction projects, including a €1.5 billion impact fund for loans to social groups who struggle to access credit. The Group has a €6 billion fund dedicated to the circular economy. The Group is also deeply involved in cultural initiatives in Italy and further afield, with the aim of preserving, promoting and sharing Italy’s historical and artistic heritage, also thanks to permanent and temporary exhibitions hosted at the Gallerie d’Italia, Intesa Sanpaolo’s museums located in Milan, Naples, Vicenza and, soon, Turin.
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PRAVEX BANK press-center:
phone: +38 044 521 02 20
e-mail: press@pravex.ua
