Draw-downs of housing loans drop by €140m in October

Finnish households’ drawdowns of new housing loans amounted to EUR 1.1 billion in October 2023, a decline of EUR 140 million from October a year earlier, said the Bank of Finland on Thursday.

Of the total, investment property loans accounted for EUR 100 million.

The average interest rate on new housing loans rose from September, to 4.73%.

At the end of October 2023, the stock of housing loans stood at EUR 106.5 billion, and the annual growth rate of the loan stock was minus 1.9%.

Investment property loans accounted for EUR 8.6 billion of the housing loan stock.

Of the total stock Finnish households’ loans at the end of October 2023, consumer credit amounted to EUR 17.1 billion and other loans, EUR 17.7 billion.

Drawdowns of new loans by Finnish housing corporations amounted to EUR 560 million in October 2023.

The average interest rate on these rose from September and stood at 5.38%.

At the end of October, the stock of loans to Finnish housing corporations totalled EUR 43.8 billion.