Drawdowns of holiday cottage loans record high in June
Drawdowns of new loans for holiday residences (holiday cottage loans) were record high in June 2020, amounting to EUR 154 million - an increase of as much as 64% on June 2019. The annualised agreed rate on new holiday residence loans in June was 0.96%.
Reflecting the high level of drawdowns, the stock of loans for holiday residences increased to EUR 3.9 bn, and the growth rate of the stock (6%) in June was highest since August 2013. In June, the stock of holiday residence loans accounted for approximately 3% of the total stock of household credit.
The repayment periods of holiday residence loans have lengthened in recent years, as have those of housing loans. The average repayment period of new holiday residence loans drawn down in June 2020 was 17 years 11 months, i.e. ten months longer than in June 2019.
June was also a busy month for drawdowns of housing loans, following an exceptionally slow May. Drawdowns of new housing loans totalled EUR 1.8 bn in June, an increase of EUR 40 million on June a year earlier. Housing loan drawdowns in June have last been higher in 2016. The annualised agreed rate on new housing loans was in June 0.73%.
In the second quarter of 2020, housing loan drawdowns declined by 10% on the period April-June 2019. For the first half of the year as a whole, drawdowns of new housing loans were only slightly lower (0.4%) than in the corresponding period a year earlier.
At the end of June 2020, the stock of euro-denominated housing loans totalled EUR 101.5 bn and the annual growth rate of the stock was 2.6%. Household credit at end-June comprised EUR 16.7 bn in consumer credit and EUR 17.9 bn in other loans.
New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted in June to EUR 1.9 bn. The average interest rate on new corporate-loan drawdowns declined from May 2020, to 1.84 %. At the end of June, the stock of euro-denominated loans to non-financial corporations was EUR 96.9 bn, of which loans to housing corporations accounted for EUR 36.3 bn.
The stock of Finnish households’ deposits at end-June 2020 totalled EUR 100.5 bn and the average interest rate on the deposits was 0.07%. Overnight deposits accounted for EUR 87.8 bn and deposits with agreed maturity for EUR 4.4 bn of the deposit stock. In June, households concluded EUR 0.2 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.15%.
For further information, please contact:
Olli Tuomikoski, tel. +358 9 183 2146, email: olli.tuomikoski(at)bof.fi,
Markus Aaltonen, tel. +358 9 183 2395, email: markus.aaltonen(at)bof.fi.
The next news release will be published at 1 pm on 31 August 2020.
About Suomen Pankki
The Bank of Finland is the national monetary authority and central bank of Finland. At the same time, it is also a part of the Eurosystem, which is responsible for monetary policy and other central bank tasks in the euro area and administers use of the world’s second largest currency – the euro.
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