A buyer who has assembled exactly the down payment and not a hryvnia more will not complete the purchase. Transaction costs in Ukraine add roughly 5% to 8% on top of the price, and most of them fall due at the notary's office on the day of signing — after the mortgage is approved and before the keys change hands.
What is payable and by whom
| Item | Typical amount | Usually paid by |
|---|---|---|
| Pension fund levy | 1% of the price | Buyer |
| State duty | 1% of the price | Split, by agreement |
| Notary services | from 5,000 hryvnia in large cities | Split, by agreement |
| Registration of title | 302 hryvnia for five working days | Buyer |
| Property valuation | market rate | Buyer |
| Estate agent commission | market rate | By agreement |
| Mortgage insurance | annual, on the loan | Borrower |
The conventional split is that the seller carries the taxes on the sale, the buyer carries the pension fund contribution, and notary and duty are divided equally. None of that is fixed by law — it is custom, and it is negotiable.
The exemption most buyers do not claim
The 1% pension fund levy does not apply to citizens purchasing residential property for the first time. On a 2 million hryvnia apartment that exemption is worth 20,000 hryvnia.
It is not applied automatically in every transaction. A first-time buyer should raise it with the notary before the payment is calculated, not after.
Why notary cost varies so much
Notary fees are not fixed. They are set individually by region and by transaction complexity, starting from around 5,000 hryvnia in large cities and running lower in smaller settlements. A mortgage transaction is more complex than a cash one — there is a mortgage agreement to certify alongside the purchase contract — and it is priced accordingly.
This is a line worth obtaining quotes on. The variation between notaries on an identical transaction is larger than most buyers expect, and the service is legally identical.
The costs that recur
Everything above is one-off. Two items are not.
Mortgage insurance is charged annually against the property and, in most structures, the borrower's life. It is a condition of the loan, and over a twenty-year term it is a meaningful addition to the true cost of borrowing that appears nowhere in the advertised rate.
Property tax and utilities begin the month ownership transfers. For buyers moving from rented accommodation, utilities on an owned property in a new development are frequently higher than expected, particularly where a management company charges a service fee per square metre.
What this does to a subsidised purchase
The distortion is worst for programme borrowers, because closing costs are calculated on the full price while the borrower has budgeted around a subsidised payment.
On an average єОселя loan of about 1.8 million hryvnia against a property of roughly 55 square metres, closing costs of 5% to 8% on the purchase price represent a sum comparable to a year of mortgage payments — required in cash, at signing, on top of the down payment.
For the veteran category, where the down payment is compensated up to 420,000 hryvnia against a property ceiling of 2 million, this matters especially. The compensation covers the down payment. It does not cover the notary, the duty, the valuation or the first insurance premium.
The practical rule
Budget the down payment, then add 8% of the purchase price in cash, then confirm the first-purchase pension fund exemption, then obtain a written notary quote before selecting the notary.
Buyers who treat the down payment as the full cash requirement discover the gap two weeks before signing, which is the worst possible moment to discover it — the mortgage approval has a validity period, and losing it means restarting the underwriting.
Bottom line: 5% to 8% above the listing price, payable in cash at closing. The 1% pension fund exemption for first-time buyers is the single largest saving available, and it has to be claimed rather than granted.
This is analysis, not investment advice.