In June 2023, Finnish households drew down new housing loans for the purchase of holiday homes (holiday cottage loans) to the value of EUR 88 million, which is 30% less than a year earlier in June. Compared to the period before the pandemic, i.e. June 2019, drawdowns of holiday cottage loans were 6% lower in June 2023. The volume of holiday cottage loans drawn down in 202o and 2021 was exceptionally high. The majority of holiday cottage loans are drawn down during the summer months.
The average interest rate on new holiday cottage loan drawdowns rose in June to 4.59%. This marks a rise of 0.17 percentage points from May and 2.88 percentage points in comparison with June 2022. The higher average interest rate on new loans for holiday cottages is mainly explained by the rise in Euribor rates. The majority (96%) of new drawdowns of holiday cottage loans are linked to Euribor rates.
The average repayment period of new drawdowns of holiday cottage loans was 18 years and 11 months, which is in the same magnitude as a year earlier in June, when the average repayment period stood at 19 years and one month.
At the end of June, the stock of holiday cottage loans stood at EUR 4.5 billion. In June, the stock of households’ holiday cottage loans saw an exceptional year-on-year contraction of 1.4%, in contrast to an annual growth of 6.7% a year earlier. The average interest on the stock of holiday cottage loans rose from May to stand at 3.57%.
Loans
In June 2023, Finnish households drew down EUR 1.3 billion of new housing loans, which is EUR 610 million less than in the same period a year earlier. Buy-to-let mortgages accounted for EUR 110 million of the new housing loan drawdowns. The average interest rate on new housing loans rose from May to stand at 4.39% in June. At the end of June 2023, the housing loan stock totalled EUR 107.1 billion, and its year-on-year growth rate was -1.2%. Buy-to-let mortgage loans accounted for EUR 8.6 billion of the housing loan stock. At the end of June, the household loan stock included EUR 17.1 billion of consumer credit and EUR 17.8 billion of other loans.
Drawdowns of new loans[1] by Finnish non-financial corporations in June totalled EUR 3.3 billion, including EUR 690 million of loans to housing corporations. The average interest rate on drawdowns of new corporate loans declined from May and was 5.01%. At the end of June, the stock of loans granted to Finnish non-financial corporations was EUR 105.7 billion, of which loans to housing corporations accounted for EUR 43.2 billion.
Deposits
At the end of June 2023, the stock of Finnish households’ deposits totalled EUR 110.9 billion, and the average interest rate on these deposits was 0.73%. Overnight deposits accounted for EUR 81.8 billion and deposits with an agreed maturity for EUR 7.3 billion of the total deposit stock.[2] In June, Finnish households made new agreements on deposits with an agreed maturity in the amount of EUR 480 million, at an average interest rate of 2.90%.
| Loans and deposits to Finland, preliminary data* | |||||
| April, EUR million | May, EUR million | June, EUR million | June, 12-month change1, % | Average interest rate, % | |
| Loans to households, stock | 142,344 | 142,001 | 141,896 | -0.9 | 3.93 |
| - of which housing loans | 107,423 | 107,168 | 107,092 | -1.2 | 3.38 |
| - of which buy-to-let mortgages | 8,676 | 8,646 | 8,638 | 3.53 | |
| Loans to non-financial corporations2, stock | 105,258 | 105,353 | 105,688 | 2.9 | 4.18 |
| Deposits by households, stock | 111,317 | 110,182 | 110,877 | -1.9 | 0.73 |
| Households' new drawdowns of housing loans | 1,039 | 1,243 | 1,313 | 4.39 | |
| - of which buy-to-let mortgages | 89 | 89 | 106 | 4.56 | |
* 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:
Usva Topo, tel. +358 9 183 2056, email: usva.topo(at)bof.fi,
Tuomas Nummelin, tel. +358 9 183 2373, email: tuomas.nummelin(at)bof.fi.
The next news release on money and banking statistics will be published at 10:00 on 31 August 2023.
Related statistical data and graphs are also available on the Bank of Finland website at https://www.suomenpankki.fi/en/statistics2/.
[1] Excl. overdrafts and credit card credit.
[2]Deposits were subject to reclassifications in June, further information: https://www.suomenpankki.fi/en/statistics2/statistics-info/whats_new/2023/classification-change-in-mfi-data-collection-rati/