More people apply for home loan to OP in summer

The number of home loan applications received by OP Financial Group grew this summer, with July being the busiest month since August 2022, said OP in a press release on Friday.

In July, OP Financial Group clearly received more home loan applications than in the previous year. August also seems to be busier than last year.

In July, the number of home loan applications received by OP Financial Group grew by 14 per cent from the previous year and 17 per cent from June.

The number of applications sent in July was greater than in any month in this or the previous year.

“This is without a doubt a positive signal, but it is still too early to talk about an upturn in the housing market. It could also be that the ECB’s interest rate reduction in June has encouraged many people in Finland to finally realise their plans of buying a home. We have waited long for a clear signal of a reduction in interest rates,” said Satu Nurmi, Senior Vice-President, Mortgages and Real Estate Business of OP Financial Group.

The 12-month Euribor is the most popular home loan reference rate for people in Finland, and has fallen sharply in recent weeks.

Nurmi is particularly delighted by the return of first-time home buyers to the market.

At the turn of the year, the transfer tax exemption of first-time home buyers was removed, and OP Financial Group received 16 per cent fewer loan applications from first-time home buyers between January and March than in the previous year.

In July, home loan applications from first-time home buyers increased by 4 per cent.

“First-time home buyers have certainly followed the markets closely and have noticed the long-term fall in home prices. In August, the number of home loans granted by OP grew by 3 per cent in comparison to last year. We do not yet have statistics for August. The end of the year will show whether the trend for home sales will become positive,” said Nurmi.

The number of home sales have also fluctuated quite a bit this year.

In July, the number of homes and property sold through OP Koti increased by 19 per cent in comparison to the same time last year, and sales of used studio apartments increased by as much as 62 per cent.