Mortgage Ukraine 2021. Mortgage buyers. Risks and issues.

Today, due to the active growth of real estate prices, the number of mortgage buyers has increased.

In this regard, property owners have many questions regarding the risks and nuances of such transactions with so-called mortgage buyers.

The main nuances of selling real estate to mortgage buyers:

Time: The term of consideration of issuing a loan to the buyer can take a long time. The transaction time can take a whole day.

Transaction: The loan may be issued or not.

Contract price: High cost of transaction execution (often the transaction is executed by a bank notary, as is the property appraisal,

Advice when selling real estate to mortgage buyers:

For sellers:

– provide documents only after concluding a preliminary agreement

– To consider issuing a loan, the bank needs documents for the real estate that will be purchased by mortgage buyers (carefully spell out in the agreement the conditions for preserving the deposit in case the bank refuses to issue a loan)

– stipulate the cost part of the transaction execution

For buyers:

– fix the price of the deposit and the price of the agreement in hryvnia (since the loan will be issued in hryvnia, not a penny more, not a penny less)

– carefully spell out in the agreement the conditions for preserving the deposit in case the bank refuses to issue a loan

– additionally check the property with notary or lawyer (the bank’s consent to issue a loan for a mortgage on an apartment does not guarantee the security of the transaction)

Frequently asked questions:

– are there any risks for a property owner selling their property to mortgage buyers?

No. The main thing is to personally hand over the documents to a bank employee after concluding a preliminary agreement, having legally spelled everything out correctly.

– what payments should the seller and buyer make if selling to mortgage buyers?

Seller: appraisal, new technical passport with registration in the new register from 01.08.2021, 1% duty, 5% tax and 1.5% military duty (if the property has been owned for less than 3 years or from January to the date of the transaction, this is the second sale), half the cost of the notary’s services only for concluding a purchase and sale agreement is about $ 100, Extract on the absence of registered persons 300 UAH, mandatory payments to the Ministry of Justice of Ukraine 500-1500 UAH depending on the number of sellers, married or not, whether the street was renamed or not.

Buyer: 1% pension fee, half the cost of notary services for concluding a purchase and sale agreement is about $ 100, mandatory payments to the Ministry of Justice of Ukraine for a purchase and sale agreement and a mortgage agreement are about UAH 3,000 depending on the number of buyers, married or not, notary fees for drawing up a mortgage agreement, registration of a ban and mortgage (UAH 11,000-12,000), 0.1% state duty.