Evolution of mortgage credit in August 2021
29 September 2021 - 4 min Reading time
The number of loan applications decreased by approximately 17% in August 2021 compared to August 2020. The total amount of these applications was nearly 13% lower.
However, in August 2021, the number of granted loans increased by about 23%. In terms of amount, nearly 38% more credit was granted than in August 2020.
These growth figures can be explained by the fact that the numbers of granted loans in August 2020 were still low due to the COVID-19 pandemic and the associated lockdown in the spring. Compared to August 2019 there was a status quo in the number of granted loans with -0.5% (but +16% in the corresponding amount).
The applications saw a sharp increase in July and August 2020 because after the lockdown, visits to real estate became possible again and resulted in an increased number of loan applications.
This information is based on the data provided by the Mortgage Credit Barometer of the Professional Association of Credit (BVK).
To track the evolution of mortgage credit more swiftly, the Professional Association of Credit (BVK) has been compiling a mortgage credit barometer since early 2009. This barometer provides a monthly overview of the changes in the number and volume of newly granted and requested mortgage credits compared to the same month of the previous year. The percentages mentioned pertain to virtually the entirety of the BVK market for mortgage credits. The underlying absolute figures are released on a quarterly basis through a press release from Febelfin.
Loan applications
The following graph illustrates the evolution of loan applications, in terms of amount and quantity, for the past twelve months. The monthly figures are consistently compared to those of the same month in the previous year.
In August 2021, the number of applications for a mortgage loan decreased by nearly 17% compared to August 2020. In terms of amount, there was a decrease of nearly 13% compared to the previous year.
Applications saw a strong increase in July and August 2020 because, after the lockdown, property visits became possible again, leading to an increased number of credit applications.
The decrease in the number of credit applications occurred in nearly all areas: credits for home purchase (-15.5%), for home renovation (-15%), and purchase with renovation (-5.5%) all declined. The number of external refinancing applications also experienced a decrease of -34.5%. Only the number of credit applications for home construction saw a slight increase (+1%).
Granted mortgage loans
The following chart shows the evolution of granted mortgage loans, in number and amount, for the past twelve months. The monthly figures are compared to those of the same month in the previous year.
In August 2021, the number of granted mortgage credit agreements was approximately 23% higher than in August 2020. The corresponding credit amount also increased by nearly 38%.
The increase in the number of granted credits occurred across all categories: credits for home purchase (+30%), for home construction (+59%), for home renovation (+12%), and for purchase with renovation (+30.5%). External refinancings (+4%) also experienced an increase.
