The Bank of Finland said on Monday that the total value of new home loans drawn on lending institutions was € 1.9 billion, an increase of around 3% from the previous year. Almost 10%, or 180 million euros, of the new loans were rental loans.
The stock of home loans amounted to nearly 107 billion euros, including about 8.5 billion euros in rental loans. The loans carried an average interest rate of 0.76% in November. The average rental loan rate was 0.91%. The Bank of Finland pointed out that the average interest rate has risen slightly in recent months after stagnating for several years. The value of loans taken by households in the first 11 months of last year was 12% higher than in the corresponding period a year earlier. The Bank of Finland reported that the share of loans with longer repayment periods has increased, with loans with a repayment period of over 25 years accounting for over 40% of loans taken in November. The share has increased by 10% since the start of the pandemic in February 2020. Rental loans had a significantly shorter repayment term than property loans, over 18 years versus over 21 years.
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