Housing loan drawdowns higher and loan maturities longer
New drawdowns of housing loans amounted to EUR 18.1 bn in 2017, which is EUR 0.2 bn more than in the previous year and EUR 1.5 bn more than in 2015. In the current decade, housing loan drawdowns were at the lowest level in 2014 (EUR 15.1 bn) and at the highest in 2011 (EUR 20.3 bn). In 2017, the average repayment period of new housing-loan drawdowns was 19 years 6 months, i.e. six months longer than in 2016.
In addition to higher drawdowns of housing loans, amortisations also increased in 2017. The simultaneous increase in drawdowns and amortisations reflects activity in the housing market, but on the other hand the low level of interest rates has enabled faster amortisation of housing loans. The stock of housing loans grew in 2017 by 2.2%, to EUR 96.1 bn at the end of December.
The average interest rates on new housing loans fell below 1% in 2017. In December, the average interest rate on new housing-loan drawdowns was 0.96%. The proportion of Euribor-linked housing loans increased further in 2017. At the end of December, Euribor-linked housing loans accounted for 92% of the stock of housing loans.
Loans
In December 2017, households drew down new housing loans to the value of EUR 1.3 bn. The imputed margin on new housing-loan drawdowns was 0.93%. At the end of December, household credit comprised EUR 15.3 bn in consumer credit and EUR 16.7 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 3.2. bn in December. The average interest rate on new corporate-loan drawdowns declined from November, to 1.70%. The stock of euro-denominated loans to non-financial corporations at the end of December was EUR 79.3 bn, of which loans to housing corporations accounted for EUR 28.5 bn.
Deposits
At the end of December, the stock of household deposits totalled EUR 87.9 bn, and the average interest rate on the deposits was 0.14%. Overnight deposits accounted for EUR 66.2 bn and deposits with agreed maturity for EUR 6.7 bn of the deposit stock. In December, households concluded EUR 0.3 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.37%.
Key figures of Finnish MFIs' loans and deposits, preliminary data
| October, EUR million | November, EUR million | December, EUR million | December, 12-month change1, % | Average interest rate, % | |
| Loans to households2, stock | 127,850 | 128,106 | 128,131 | 2,7 | 1,52 |
| - of which housing loans | 95,819 | 96,034 | 96,129 | 2,2 | 1,02 |
| Loans to non-financial corporations2, stock | 79,261 | 78,787 | 79,326 | 5,2 | 1,41 |
| Deposits by households2, stock | 86,437 | 85,892 | 87,886 | 3,3 | 0,14 |
| Households' new drawdowns of housing loans | 1,638 | 1,588 | 1,249 | 0,95 |
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:
Olli Tuomikoski, tel. +358 9 183 2146, email: olli.tuomikoski(at)bof.fi,
Markus Aaltonen, tel. +358 9 183 2395, email: markus.aaltonen(at)bof.fi.
The next news release will be published at 1 pm on 28 February 2018.
Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.