Housing loan stock growing more moderately, loan repayment periods longer
Growth in the stock of housing loans has moderated since June 2018. In November, the growth rate was 1.8%, i.e. 0.3 percentage point lower than in June. The more moderate growth in the stock of housing loans is particularly due to faster amortisation of housing loans compared with the previous years. Growth in the housing loan stock has last been as low in April 2015.
The average repayment periods of new housing loans have lengthened in Finland in recent years. In January–November 2018, the average repayment period of new housing loans was 19 years 11 months, compared with 19 years 6 months in 2017. In 2016, the average repayment period was 19 years. The most typical repayment period for housing loans in Finland is 20–25 years. These loans account for almost 50% of all housing loans in Finland. Housing loans with the longest repayment periods – i.e. loans exceeding over 30 years – are still relatively rare. However, their share has increased.
Loans
Households’ new drawdowns of housing loans in November 2018 amounted to EUR 1.6 bn, which is EUR 25 million more than in the corresponding period a year earlier. The average interest rate on new housing-loan drawdowns was 0.88% and the imputed margin was 0.85%. At the end of November, the stock of euro-denominated housing loans totalled EUR 97.8 bn and the annual growth rate of the stock was 1.8%. Household credit at end-November comprised EUR 15.9 bn in consumer credit and EUR 17.2 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 2.2 bn in November. The average interest rate on new corporate-loan drawdowns rose from October, to 2.14%. At the end of November, the stock of euro-denominated loans to non-financial corporations was EUR 85.5 bn, of which loans to housing corporations accounted for EUR 31.5 bn.
Deposits
The stock of household deposits at end-November totalled EUR 87.3 bn and the average interest rate on the deposits was 0.12%. Overnight deposits accounted for EUR 74.2 bn and deposits with agreed maturity for EUR 5.4 bn of the deposit stock. In November, households concluded EUR 0.3 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.25%.
| Key figures of Finnish MFIs' loans and deposits, preliminary data | |||||
| September, EUR million | October, EUR million | November, EUR million | November, 12-month change¹, % | Average interest rate, % | |
| Loans to households2, stock | 130,502 | 130,645 | 130,855 | 2,3 | 1,48 |
| - of which housing loans | 97,444 | 97,575 | 97,759 | 1,8 | 0,98 |
| Loans to non-financial corporations2, stock | 84,015 | 84,669 | 85,496 | 8,5 | 1,37 |
| Deposits by households2, stock | 91,547 | 90,875 | 91,172 | 6,2 | 0,12 |
| Households' new drawdowns of housing loans | 1,497 | 1,749 | 1,613 | 0,88 | |
1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes.
2 Households also include non-profit institutions serving households; non-financial corporations also include housing corporations
- Euro-denominated deposits and loans of euro area residents: stock, 12 month rate of change and average interest rate
- Euro-denominated loans and deposits of Finnish households
- New business on loans and new drawdowns of household loans
- Finnish contribution to the euro area monetary aggregates and their main counterparts
- Imputed interest rate margins on loans from MFIs
For further information, please contact:
Johanna Honkanen, tel. +358 9 183 2992, email: johanna.honkanen(at)bof.fi,
Ville Tolkki, tel. +358 9 183 2420, email: ville.tolkki(at)bof.fi.
The next news release will be published at 1 pm on 31 January 2019.
Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.