Drawdowns of new housing loans in July 2023 totalled EUR 1.0 bn, a decline of 27% on the corresponding month last year.[1] The last time housing loan drawdowns were this low in July was in 2002. Buy-to-let mortgages accounted for EUR 86 million of the new housing loans in July, down 22% from the same period a year ago.
In July 2023, the average interest rate on new housing loans stood at 4.55%. The average interest rate on new housing loans has increased markedly (by a percentage point) from the beginning of the year. The average interest rate on new housing loans has not been higher than this since November 2008. Average interest rates on both owner-occupied and buy-to-let mortgages have risen. The average interest rate on new owner-occupied residential mortgages stood at 4.53% in July 2023. At the same time, the interest rate on new buy-to-let mortgages was higher, at 4.72%.
In July, the average repayment period of housing loans was 22 years and 7 months. The proportion of loans with a repayment period of over 30 years declined to 7% of new drawdowns. In 2023 up to July, the proportion ranged from 13% to 15%. As of July 2023, households are required to repay new housing loans in a maximum of 30 years.[2] However, banks may deviate from the maximum maturity in 10% of their lending.
In July 2023, 95% of new drawdowns of housing loans were linked to Euribor rates, with the remaining 5% being linked to other reference rates.[3] The 12-month Euribor was used as the reference rate in 51% of new Euribor-linked housing loans, as opposed to 93% in July last year. Following the rise in the level of interest rates, the shorter 3- or 6-month Euribor rates have been used increasingly as reference rates for housing loans.
Loans
At the end of July 2023, the housing loans stock totalled EUR 106.9 billion, and its year-on-year growth amounted to -1.6%. Buy-to-let mortgages accounted for EUR 8.6 billion of the housing loan stock. At the end of July, the household loan stock included EUR 17.1 billion of consumer credit and EUR 17.7 billion of other loans.
Drawdowns of new loans[4] by Finnish non-financial corporations amounted to EUR 1.6 billion, with loans to housing corporations accounting for EUR 350 million. The average interest on new corporate loan drawdowns rose from June to stand at 5.56%. At the end of July, the stock of loans granted to Finnish non-financial corporations stood at EUR 105.3 billion, whereof loans to housing corporations accounted for EUR 43.3 billion.
Deposits
At the end of July 2023, the stock of Finnish households’ deposits totalled EUR 109.9 billion, and the average interest rate on these deposits was 0.78%. Overnight deposits accounted for EUR 80.5 billion and deposits with an agreed maturity for EUR 7.4 billion of the total deposit stock. In July, Finnish households made new agreements on deposits with an agreed maturity in the amount of EUR 400 million. In July, the average interest rate on deposits with an agreed maturity was 2.91%.
| Loans and deposits to Finland, preliminary data* | |||||
| May, EUR million | June, EUR million | July, EUR million | July, 12-month change1, % | Average interest rate, % | |
| Loans to households, stock | 142,001 | 141,896 | 141,675 | -1.2 | 4.11 |
| - of which housing loans | 107,168 | 107,092 | 106,855 | -1.6 | 3.57 |
| - of which buy-to-let mortgages | 8,646 | 8,638 | 8,622 | 3.73 | |
| Loans to non-financial corporations2, stock | 105,353 | 105,688 | 105,263 | 1.7 | 4.34 |
| Deposits by households, stock | 110,182 | 110,877 | 109,878 | -3.6 | 0.78 |
| Households' new drawdowns of housing loans | 1,243 | 1,313 | 1,005 | 4.55 | |
| - of which buy-to-let mortgages | 89 | 106 | 86 | 4.72 | |
* 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.
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 28 September 2023.
Related statistical data and graphs are also available on the Bank of Finland website: shttps://www.suomenpankki.fi/en/Statistics/saving-and-investing/.
[1] Average drawdowns of new housing loans in the month of July in 2012–2022 amounted to EUR 1.5 billion.
[2] Further information on the Government website: https://valtioneuvosto.fi/en/-//10623/limitations-on-loans-to-households-and-housing-companies-to-be-introduced-at-the-beginning-of-july
[3] Banks’ own reference rates, fixed interest rates or other interest rates.
[4] Excl. overdrafts and credit card credit.