In recent years, housing loans have been amortised more than previously, both in absolute terms and relative to the stock of housing loans. In 2016, housing loans were amortised by EUR 15.6 bn, which is the largest amount relative to the stock of housing loans over the last four years. In 2017, amortisations have increased further, and in January–February, housing loans were amortised by more than EUR 2.5 bn. Over the same period, new housing loan drawdowns totalled the same amount, EUR 2.5 bn.
The low level of interest rates has enabled larger amortisations of housing loans than previously. Housing loans amortised by constant payment have been amortised faster, as the loan principal has accounted for a higher proportion of the instalment than previously. Approximately 40% of Finnish households' housing loans are estimated to have a constant payment amortisation plan.
Partly reflecting the higher amortisation volume, the stock of housing loans contracted in January 2017 for the first time since December 2014. However, the stock of housing loans resumed its growth path in February with a year-on-year growth of 2.3%.
Loans
Households' new drawdowns of housing loans amounted to EUR 1.3 bn in February 2017, which is almost the same amount as a year earlier in February. The average interest rate on new housing-loan drawdowns was 1.14% and the imputed margin 1.11%. At end-February, the stock of euro-denominated housing loans was EUR 94,1 bn. At end-February, household credit comprised EUR 14.6 bn in consumer credit and EUR 16.4 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 1.3 bn in February. The average interest rate on new corporate-loan drawdowns rose from January, to 2.27%. At end-February, the stock of euro-denominated loans to non-financial corporations was EUR 76.6 bn, of which loans to housing corporations accounted for EUR 26.1 bn.
Deposits
At the end of February, the stock of household deposits totalled EUR 84.4 bn, and the average interest rate on the deposits was 0.17%. Overnight deposits accounted for EUR 61.5 bn and deposits with agreed maturity for EUR 8.4 bn of the total deposit stock. In February, households concluded EUR 0.8 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.40%.
Key figures of Finnish MFIs' loans and deposits, preliminary data
| December, EUR million | January, EUR million | February, EUR million | February, 12-month change1, % | Average interest rate, % | |
| Loans to households2, stock | 124,931 | 124,963 | 125,014 | 2,5 | 1,55 |
| - of which housing loans | 94,056 | 93,998 | 94,075 | 2,2 | 1,06 |
| Loans to non-financial corporations2, stock | 76,026 | 76,114 | 76,584 | 4,9 | 1,44 |
| Deposits by households2, stock | 85,092 | 84,477 | 84,432 | 3,6 | 0,17 |
| Households' new drawdowns of housing loans | 1,364 | 1,212 | 1,325 | 1,14 |
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
For further information, please contact
Johanna Honkanen, tel. +358 10 831 2992, email: johanna.honkanen(at)bof.fi,
Olli Tuomikoski, tel. +358 10 831 2146, email: olli.tuomikoski(at)bof.fi.
The next news release will be published at 1 pm on 2 May 2017.