Banks almost always offer an annuity - the same payment every month. The classic schedule has to be asked for, and it can save tens of thousands. Here is how much, and who it suits.
Two schedules on one loan
A 500 000 ₴ loan over 5 years at 20 % a year.
| Figure | Annuity | Classic |
|---|---|---|
| First payment | 13 247 ₴ | 16 667 ₴ |
| Last payment | 13 247 ₴ | 8 472 ₴ |
| Overpayment | 294 817 ₴ | 254 167 ₴ |
The classic schedule is 40 650 ₴ cheaper - 8 % of the principal. The contract rate is identical.
The difference is how the principal is repaid. The classic schedule returns it in equal parts from month one, so the debt shrinks faster and interest is charged on a smaller balance.
Where the money goes in an annuity
The payment is constant, but what it consists of changes every month:
| Payment | To principal | To interest |
|---|---|---|
| 1st | 4 914 ₴ | 8 333 ₴ |
| 30th | 7 936 ₴ | 5 311 ₴ |
| 60th | 13 030 ₴ | 217 ₴ |
For the first two years you are mostly paying for the use of the money rather than returning it. That is why, a year in, the remaining debt is much higher than the number of payments made would suggest.
It also explains why early repayment pays off most at the start of the term: you remove the part of the debt that would have carried the most interest.
Why the classic schedule is offered less often
It demands a higher income up front: a first payment of 16 667 ₴ against 13 247 ₴, a quarter more. Banks assess affordability on that first payment, so the classic schedule gets you approved for less.
An annuity is also easier to budget around: the same figure five years running.
The true rate matters more than the contract rate
A 20 % rate is not the cost of the loan. Add typical fees: 2 % at issue and 0.3 % a month.
The total goes from 794 817 ₴ to 894 817 ₴, of which 100 000 ₴ is fees alone. The true rate (APR) jumps from 21.94 % to 29.67 %.
Note that even with no fees the APR sits above 20 %. Interest accrues monthly and those accruals compound over the year. APR is what offers should be compared on - 20 % with a 0.3 % monthly fee costs more than an honest 25 % with none.
Mortgages: the term costs more than the rate
A 2 000 000 ₴ property, 400 000 ₴ down, at 11.29 % - the average on new house-purchase loans, NBU data for August 2026, state programmes such as «єОселя» included.
- 20 years: payment 16 832 ₴, overpayment 2 439 667 ₴
- 10 years: payment 22 303 ₴, overpayment 1 076 416 ₴
The payment is 5 471 ₴ a month higher and the overpayment 1 363 251 ₴ lower. For comparison, even a rate five points lower, 6.29 % over 20 years, leaves an overpayment of 1 215 724 ₴ - more than 10 years at 11.29 %. Shortening the term is the strongest lever in a mortgage - stronger than haggling over the rate.
The short version
- The classic schedule is cheaper but needs a higher income early on.
- In an annuity the first payments are almost entirely interest.
- Even moderate fees add nearly eight percentage points to the true rate.
- Over long terms, cutting the term saves more than cutting the rate.
Compare both schedules on your own terms in the loan calculator - it shows the APR with fees and the full amortization schedule.