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NBU–Government Mortgage Development Strategy

by Roman Cheplyk
Friday, July 18, 2025
2 MIN
NBU–Government Mortgage Development Strategy

Mass war‑risk insurance, stronger construction rules, and securitisation tools aim to unlock affordable home loans for millions of Ukrainians

1. Why the Strategy Matters

“Banks are ready to lend—our task is to build the conditions.”
Andriy Pyshnyi, Governor, National Bank of Ukraine

  • War has frozen mortgage markets: high risks, damaged housing stock, and legal gaps.

  • New framework seeks to revive lending: by capping risks, aligning with EU standards, and opening capital‑market funding channels.


2. Pillars of the Strategy

A. Risk Reduction

  • Mass war‑risk insurance program to cover property damage and default exposure.

  • Updated construction‑site oversight and escrow models to protect buyers.

B. Accessible & Transparent Lending

  • Re‑tool state support schemes (e.g., concessional‑rate mortgages) to target first‑time buyers and veterans.

  • EU‑style disclosure templates so borrowers compare offers easily.

C. Creditor‑Rights Protection

  • Streamlined foreclosure and debt‑workout procedures to shrink non‑performing loans.

  • Digital registry link between courts, banks, and credit bureaus.

D. Capital‑Market Funding

  • Securitisation laws to let banks package and sell mortgage pools.

  • Covered bonds framework for long‑term, low‑cost refinancing.


3. Implementation Roadmap

Timeline Lead Actors Key Tasks
2025 NBU · Ministry of Finance Finalise war‑risk insurance design; draft covered‑bond bill
H1 2026 Verkhovna Rada Pass construction‑escrow and securitisation legislation
H2 2026 NBU · banks Pilot affordable‑mortgage programme with insured loans
2027+ NSSMC · NBU Launch covered‑bond market; scale securitisation

4. Expected Outcomes

  • Loan affordability: mortgage rates cut by 3–4 pp via risk sharing and market funding.

  • Market depth: annual issuance could reach ₴150 billion by 2030—triple pre‑war levels.

  • Housing supply: safer pre‑sale financing boosts new‑build volumes, easing price pressure.

  • Investor confidence: structured finance and covered bonds attract pension funds and IFIs.


5. Next Steps for Stakeholders

  • Lawmakers: fast‑track bills on securitisation, covered bonds, and construction warranties.

  • Banks: upgrade risk‑management IT to integrate war‑risk coverage and EU disclosure templates.

  • Developers: adopt escrow and warranty standards to qualify for insured mortgages.

  • Donors & IFIs: co‑finance war‑risk pool and provide technical assistance.


Bottom Line: The Mortgage Development Strategy aims to reboot Ukraine’s housing finance by pairing war‑risk insurance with EU‑grade lending rules and capital‑market funding—laying the groundwork for widespread, affordable mortgages despite post‑war challenges.

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