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