Land mortgage
Land collateral: value × LTV → maximum loan
Parameters
Farmland collateral: banks take LTV 40–60% of market value (they see land as illiquid). Formalities — mortgage agreement + encumbrance registration in the state registry. 'Affordable loans 5-7-9' programs can subsidize the rate for farms. Risk: on default the land goes to auction below market. Calculation — annuity payment.
Loan
- Max loan
- 250 000 грн
- Payment/mo (annuity)
- 6 348 грн
- Total paid
- 380 901 грн
- Interest
- 130 901 грн