In October 2022, drawdowns of new housing loans totalled EUR 1.3 billion, a decline of one-third year-on-year. The last time the level of housing loan drawdowns was equally low in October was in 2004. Of the new drawdowns, owner-occupied housing loans accounted for 92.8% and investment property loans for 7.2%. The average interest rate on new housing loans rose notably in October 2022, to 3.09%. The average interest rate on investment property loans (3.34%) was higher than that on owner-occupied housing loans (3.07%).
The annualised agreed rate (AAR) on the stock of housing loans (EUR 107.7 billion) reflects households’ interest payments on all housing loans. In October 2022, the AAR rose to 1.55%. The last time the AAR on the housing loan stock stock exceeded this level was in February 2013. The interest rate on the housing loan stock follows the interest rate on new drawdowns with a lag, as the rate on the housing loan stock is adjusted when the rate on housing loans is reset. Interest rate hedges bought by households also contribute to slowing the rise in the rate on the housing loan stock.
Despite the pandemic, the energy crisis and rising interest rates, the problems for banks from housing loans have remained moderate. At the end of October, the stock of non-performing housing loans accounted for 1.4% of the aggregate housing loan stock. Relative to the housing loan stock, the share of non-performing investment property loans was smaller (0.9%) than that of owner-occupied housing loans (1.4%).
Loans
At the end of October 2022, the stock of loans to Finnish households comprised EUR 17.0 billion in consumer credit and EUR 18.2 billion in other loans.
Finnish non-financial corporations drew down new loans[1] in October in the amount of EUR 3.0 billion, of which loans to housing corporations totalled EUR 640 million. The average interest rate on the new loans rose from September, to 3.02%. At the end of October, the stock of loans granted to Finnish non-financial corporations stood at EUR 106.7 billion. Of this, loans to housing corporations amounted to EUR 42.0 billion.
Deposits
The aggregate stock of Finnish households’ deposits at end-October 2022 totalled EUR 112.8 billion. The average interest rate on the deposits was 0.08%. Overnight deposits accounted for EUR 103.5 billion and deposits with an agreed maturity for EUR 2.6 billion of the deposit stock. In October, households made EUR 470 million of new agreements on deposits with an agreed maturity, at an average interest rate of 1.44%.
| Loans and deposits to Finland, preliminary data | |||||
| August, EUR million | September, EUR million | October, EUR million | October, 12-month change1, % | Average interest rate, % | |
| Loans to households, stock | 143,246 | 142,969 | 142,875 | 1,5 | 2,10 |
| - of which housing loans | 107,916 | 107,671 | 107,663 | 1,3 | 1,55 |
| - of which buy-to-let mortgages | 8,804 | 8,810 | 8,791 | 1,64 | |
| Loans to non-financial corporations2, stock | 105,752 | 106,001 | 106,653 | 10,9 | 1,99 |
| Deposits by households, stock | 113,118 | 113,558 | 112,789 | 2,3 | 0,08 |
| Households' new drawdowns of housing loans | 1,474 | 1,582 | 1,265 | 3,09 | |
| - of which buy-to-let mortgages | 127 | 127 | 91 | 3,34 | |
* 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.
- 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,
Markus Aaltonen, tel. +358 9 183 2395, email: markus.aaltonen(at)bof.fi.
The next news release on money and banking statistics will be published at 10:00 on 03 January 2023.
Related statistical data and graphs are also available on the Bank of Finland website: https://www.suomenpankki.fi/en/Statistics/mfi-balance-sheet/.
[1] Excl. overdrafts and credit card credit.