Evolution of mortgage credit in July 2019
28 September 2019 - 3 min Reading time
The number of credit applications increased by almost 20% in July 2019 compared to July 2018. The total amount corresponding to these applications was also 21% higher. In July 2019, the number of granted credits increased by 14.5%. The amount of credit granted was also approximately 14.5% higher than in July 2018.
These findings are based on the data from the mortgage credit barometer of the Professional Association of Credit (BVK).
To track the evolution of mortgage credit more quickly, the Professional Association of Credit (BVK) has been publishing a mortgage credit barometer since early 2009. This barometer provides a monthly overview of the evolution of the number and volume of newly granted and requested mortgage credits from the past month, compared to the same month of the previous year. The percentages mentioned relate to virtually the entirety of the BVK mortgage credit market. The underlying absolute figures are released on a quarterly basis through a press release from Febelfin.
Credit Applications
The following chart illustrates the evolution of credit applications in terms of amount and number over the past twelve months. Monthly figures are compared to those of the same month in the previous year..
In July 2019, the number of applications for a mortgage loan increased by almost 20% compared to July 2018. In terms of amount, there was also a 21% increase compared to the previous year.
The increase in the number of credit applications occurred in all areas: loans for the purchase of a home (+13.5%), for home construction (+20%), for home renovations (+30%), for purchases with renovations (+29.3%), and for other real estate purposes (+20.3%). The number of external refinancing applications also increased by 33%.
Granted mortgage credits
The following chart illustrates the evolution of granted mortgage credits in terms of number and amount over the past twelve months. Monthly figures are compared to those of the same month in the previous year.
In July 2019, the number of granted mortgage credit agreements was 14.5% higher than in July 2018. The corresponding credit amount also increased by approximately 14.5%.
The increase in the number of granted credits was also observed in all areas: credits for home purchases (+11%), for home construction (+7%), for home renovations (+18%), for purchases with renovations (+17%), and for external refinancing (+23%).