Should a person pay a mortgage loan if the property is damaged / destroyed?

The law provides for two options for exemption from repayment of a mortgage loan:

1. Suspension of loan payment

Possible under the following conditions:

• The property was damaged as a result of hostilities.
• The property has been destroyed but is not the borrower's sole place of residence.
• The property remains on the territory not controlled by the Government of Ukraine.

2. Cancellation of the loan (full loan repayment exemption)

Possible under the following conditions:

• The property was destroyed and was the only place of residence of the borrower's family.
• As at 23 February 2022, the loan was not overdue for more than 7 days.
• The purpose of the loan under the agreement was to purchase, reconstruct or construct housing that was subsequently destroyed.

3. Dismissal procedure:

To suspend or cancel a loan, you must:

• Submit an application to the bank or other lender.
• Provide documents confirming the relevant circumstances (for example, certificates of damage or destruction of property, real estate documents).