Housing loan stock exceeds EUR 98 bn, interest rates on new housing loans down
In March 2019, the stock of euro-denominated housing loans granted by Finnish credit institutions was over EUR 98 bn. At the end of 2018, the growth rate of the housing loan stock moderated and was the same in December as at the beginning of 2015 (1.7%). In the first quarter of 2019, the pace of growth has not abated further. In March, the annual growth rate of the housing loan stock was 1.9%.
The interest rate on new housing-loan drawdowns declined slightly in the first quarter of 2019. In May–November 2018, the average interest rate on new housing loan drawdowns varied between 0.87% and 0.88%. In December 2018, the interest rates on new housing loans begun to edge down again. In March 2019, the average interest rate on new housing-loan drawdowns was 0.81%. The imputed margin1 declined, too, from 0.85% in December 2018 to 0.79% in March 2019.
The repayment periods of housing loans drawn down by households have lengthened uninterruptedly since 2014. The average repayment period of new housing loans surpassed the level of 20 years many times in 2018. In March 2019, the 12-month moving average, which reflects longer-term developments in housing loan repayment periods, was 19 years 11 months. Loan repayment periods can be analysed using the bank dashboard (in Finnish).
Loans
Households’ new drawdowns of housing loans in March 2019 amounted to EUR 1.5 bn, roughly the same as in the corresponding period a year earlier. At the end of March, household credit comprised EUR 15.8 bn in consumer credit and EUR 17.4 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted in March to EUR 2.1 bn. The average interest rate on new corporate-loan drawdowns rose from February, to 2.23%. At end-March, the stock of euro-denominated loans to non-financial corporations was EUR 86.6 bn, of which loans to housing corporations accounted for EUR 32.7 bn.
Deposits
The stock of household deposits at end-March totalled EUR 91.2 bn and the average interest rate on the deposits was 0.11%. Overnight deposits accounted for EUR 78.4 bn and deposits with agreed maturity for EUR 4.9 bn of the deposit stock. In March, households concluded EUR 0.3 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.24%.
1 Data on imputed margin has not been deducted by costs from interest rate hedges which affect the annualised agreed rate. According to the Bank of Finland estimate, costs from interest rate hedges for housing loans currently raise the imputed margin by 0.1–0.2 percentage point.
Key figures of Finnish MFIs' loans and deposits, preliminary data
| January, EUR million | February, EUR million | March, EUR million | March, 12-month change1, % | Average interest rate, % | |
| Loans to households2, stock | 130,912 | 131,006 | 131,289 | 2,4 | 1,47 |
| - of which housing loans | 97,782 | 97,852 | 98,067 | 1,9 | 0,97 |
| Loans to non-financial corporations2, stock | 85,390 | 85,883 | 86,591 | 7,5 | 1,36 |
| Deposits by households2, stock | 93,478 | 93,505 | 95,345 | 7,7 | 0,11 |
| Households' new drawdowns of housing loans | 1,303 | 1,363 | 1,458 | 0,81 |
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:
Ville Tolkki, tel. +358 9 183 2420, email: ville.tolkki(at)bof.fi,
Olli Tuomikoski, tel. +358 9 183 2146, email: olli.tuomikoski(at)bof.fi.
The next news release will be published at 1 pm on 31 May 2019.
Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.