Over the recent years, the average housing loan repayment periods have lengthened slightly in Finland. In 2013, the average repayment period for new housing-loan drawdowns in Finland was 17 years, 11 months, compared to 18 years, 2 months in 2014. In 2015, the average repayment period lengthened further, to about 18 years, 7 months. Finnish banks have traditionally not granted interest-only housing loans, and the longest repayment periods are approximately 25–30 years.
The low level of interest rates and narrower housing loan margins have slightly boosted new housing-loan drawdowns: in January–September 2015, new drawdowns of housing loans were almost EUR 1 bn up on the year-earlier period.
In September 2015, households’ new drawdowns of housing loans amounted to EUR 1.4 bn, which is slightly more than a year earlier in September. The stock of euro-denominated housing loans totalled EUR 91.4 bn at the end of September, and the annual growth rate of the housing-loan stock was 2.2%. At the end of September, household credit comprised EUR 14.0 bn in consumer credit and EUR 15.9 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted in September to EUR 2.4 bn. The average interest rate on new corporate-loan drawdowns declined from August, to 1.92%. The stock of euro-denominated loans to non-financial corporations at the end of September was EUR 71.6 bn, of which loans to housing corporations accounted for EUR 22.8 bn.
At the end of September, the stock of household deposits totalled EUR 81.0 bn, and the average interest rate on the deposits was 0.32%. Overnight deposits accounted for EUR 55.3 bn and deposits with agreed maturity for EUR 11.2 bn of the total deposit stock. In September, households concluded EUR 0.9 bn of new agreements on deposits with agreed maturity. The average interest rate on these declined from August, to 0.95% in September.
Key figures of Finnish MFIs' loans and deposits, preliminary data
1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes.
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