Statistics 29 August 2024 10:00 AM

Volume of housing loan drawdowns in July slightly higher than in corresponding period last year

In July 2024, the volume of new housing loans drawn down by Finnish households was moderate at EUR 1.0 billion, which was 4.3% more than in last year’s July and 27.8% less than on average in July 2011–2023. The average interest rate on the new housing loan drawdowns in July was 4.22%.

In July 2024, the volume of new housing loans drawn down by Finnish households was moderate at EUR 1.0 billion, which was 4.3% more than in last year’s July and 27.8% less than on average in July 2011–2023. July is typically a quiet month in terms of housing loan drawdowns.

Drawdowns of new buy-to-let housing loans in July 2024 totalled EUR 96 million, representing an increase of 12% on the corresponding period last year. Drawdowns of owner-occupied housing loans amounted to EUR 952 million, that is, 4% more than in July last year.

The average interest rate on the new housing loan drawdowns in July was 4.22%. The average interest rate on new owner-occupied housing loans declined from June to stand at 4.20% in July. The average interest rate on new owner-occupied housing loans has declined by over 0.5 percentage points from their peak in October 2023. In July, the average interest rate on new buy-to-let housing loans stood at 4.36%, showing a decline from the October 2023 peak equal to the decline in the average interest rate on owner-occupied housing loans. The majority of housing loans are linked to Euribor rates, which have been declining lately. In July 2024, the most common reference rate for housing loans, the 12-month Euribor, stood at 3.53% on average, as opposed to 4.15% in July 2023. On 1–26 August, the 12-month Euribor was just 3.18% on average.

Due to the low volume of drawdowns, the stock of housing loans contracted by 0.9% year-on-year in July 2024. The stock of owner-occupied housing loans was reduced by 1.0% while the stock of buy-to-let mortgages grew by 0.7% year-on-year. At the end of July 2024, the stock of owner-occupied housing loans amounted to EUR 97.2 billion and the stock of buy-to-let housing loans to EUR 8.7 billion. The average interest rate on the stock of housing loans (EUR 105.9 billion) was 4.01% in July.

Loans

At the end of July, the household loan stock included EUR 17.9 billion of consumer credit and EUR 17.4 billion of other loans (excl. housing loans).

In July, drawdowns of new loans by Finnish non-financial corporations amounted to EUR 2.1 billion, with loans to housing corporations accounting for EUR 480 million. The average interest on new corporate loan drawdowns rose from June to stand at 5.26% in July. At the end of July, the stock of loans granted to Finnish non-financial corporations stood at EUR 107.5 billion, whereof loans to housing corporations accounted for EUR 44.6 billion.

Deposits

At the end of July 2024, the aggregate stock of Finnish households’ deposits was EUR 110.0 billion, and the average interest rate on these deposits was 1.36%. Overnight deposits accounted for EUR 66.7 billion and deposits with agreed maturity for EUR 14.4 billion of the total deposit stock. In July, Finnish households made new agreements on deposits with agreed maturity in the amount of EUR 1,180 million. In July, the average interest rate on new deposits with an agreed maturity was 3.52%.

Loans and deposits to Finland, preliminary data*
	May, EUR million	June, EUR million	July, EUR million	July, 12-month change¹, %	Average interest rate, %
Loans to households, stock	141,313	141,421	141,223	-0.6	4.59
- of which housing loans	105,965	106,032	105,861	-0.9	4.01
- of which buy-to-let mortgages	8,674	8,682	8,680		4.21
Loans to non-financial corporations², stock	108,077	108,10	107,497	1.0	4.66
Deposits by households, stock	109,104	110,784	109,951	0.1	1.36

Households' new drawdowns of housing loans	1,134	1,096	1,049		4.22
- of which buy-to-let mortgages	100	96	96		4.36

* Includes loans and deposits in all currencies to residents in Finland. The statistical releases of the Bank of Finland up to January 2021, as well as those of the ECB, present loans and deposits in euro to euro area residents and also include non-profit institutions serving households. For these reasons, the figures in this table differ from those in the aforementioned releases.
1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes.
2 Non-financial corporations also include housing corporations.