Evolution of mortgage credit in July 2021
1 September 2021 - 4 min Reading time
The number of loan applications decreased in July 2021 by approximately 22% compared to July 2020. The corresponding total amount of these applications was nearly 17% lower.
In July 2021, however, the number of granted credits increased by approximately 22.5%. In terms of amount, more than 37% more credit was granted than in July 2020.
These growth figures can be explained by the fact that the figures for granted credits in July 2020 were still low due to the COVID-19 pandemic and the associated spring lockdown. Compared to July 2019, there was a status quo in the number of granted credits, with a decrease of -0.5% (but an increase of +16% in the corresponding amount).
The applications saw a strong increase in July 2020 because after the lockdown, property visits became possible again, leading to an increased number of credit applications.
These figures are based on the mortgage credit barometer data from the Professional Association of Credit (BVK).
To better track the evolution of mortgage credit, 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 for the previous month compared to the same month in the previous year. The percentages mentioned cover almost the entire BVK mortgage credit market. The underlying absolute figures are released on a quarterly basis through a press release by Febelfin.
Loan applications
The following chart illustrates the evolution of loan applications, both in terms of amount and number, for the past twelve months. The monthly figures are always compared to those of the same month in the previous year.
In July 2021, the number of applications for a mortgage loan decreased by more than 22% compared to July 2020. In terms of amount, there was a decrease of approximately 17% compared to the previous year.
The decline in the number of loan applications occurred across all categories: loans for home purchases (-22.5%), loans for home construction (-9%), and loans for home renovations (-19%). The number of applications for loans for home purchase with renovation (-13.5%) as well as external refinancing applications (-38%) also experienced a decrease.
Granted mortgage loans
The following chart illustrates the evolution of granted mortgage loans, both in terms of number and amount, for the past twelve months. The monthly figures are always compared to those of the same month in the previous year.
In July 2021, the number of granted mortgage credit agreements was approximately 22.5% higher than in July 2020. The corresponding credit amount also increased by just over 37%.
The increase in the number of granted loans occurred across all categories: loans for home purchases (+34.5%), loans for home construction (+34%), loans for home renovations (+7%), and loans for home purchase with renovations (+36.5%). External refinancing loans (+13%) also experienced an increase.
