Evolution of mortgage credit in January 2021
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The number of credit applications in January 2021 increased by approximately 32% compared to January 2020. The corresponding total amount of these applications was even more than 44% higher.
In January 2021, the number of granted loans increased by about 15%. In terms of amount, more than 29% more credit was granted than in January 2020.
However, it should not be forgotten that the figures for January 2020 were very low due to the abolition of the Flemish housing bonus on January 1, 2020, and the fact that many consumers had finalized their loans before the end of 2019 as a result.
These findings are based on the mortgage credit barometer data from the Professional Association of Credit (BVK)
To track the evolution of mortgage credit more quickly, the Professional Association of Credit (BVK) has been compiling a mortgage credit barometer since the beginning of 2009. This barometer provides a monthly overview of the evolution of the number and volume of newly granted and requested mortgage credits for the past month, in comparison to the same month of the previous year. The mentioned percentages pertain to nearly the entirety of the BVK market of mortgage credits. The underlying absolute figures are released on a quarterly basis through a press release by Febelfin.
Credit Applications
The following chart shows the evolution of credit applications, in amount and number, for the past twelve months. The monthly figures are compared to those of the same month in the previous year.
In January 2021, the number of applications for a mortgage loan increased by approximately 32% compared to January 2020. In terms of amount, there was even a growth of more than 44% compared to the previous year.
The increase in the number of credit applications occurred in all areas: loans for the purchase of a home (+22%), for the construction of a home (+42%), and for home renovations (+41%). The number of applications for loans for purchases with renovation (+40%) as well as the number of external refinancing applications (+43%) also saw an increase.
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 January 2021, the number of granted mortgage credit agreements was approximately 15% higher than in January 2020. The corresponding loan amount also increased by just over 29%.
The increase in the number of granted loans occurred in almost all areas: loans for the purchase of a home (+20.5%), for the construction of a home (+6.5%), and for purchases with renovation (+31.5%). External refinancings (+29%) also saw an increase. Only the number of loans for home renovations (-4%) experienced a decrease.