Evolution of mortgage credit in October 2021
2 December 2021 - 3 min Reading time
The number of loan applications decreased in October 2021 by approximately 14% compared to October 2020. The corresponding total amount of these applications was nearly 11% lower.
In October 2021, the number of granted loans also decreased by about 13%. In terms of amount, slightly more than 6% less credit was granted than in October 2020.
These figures are based on the Mortgage Credit Barometer of the Professional Association of Credit (BVK/UPC)
To track the evolution of mortgage credit more rapidly, 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 loans for the past month, in comparison to the same month of the previous year. The percentages mentioned relate to virtually the entirety of the BVK market for mortgage loans. 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 October 2021, the number of applications for a mortgage loan decreased by nearly 14% compared to October 2020. In terms of amount, there was a decrease of nearly 11% compared to last year.
The decrease in the number of loan applications is observed in almost all areas: loans for home purchases (-11%), loans for home renovations (-17%), and loans for purchase with renovation (-31.5%). The number of applications for external refinancing (-28.5%) also experienced a decline. Only the number of loan applications for new home construction increased (+8%).
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 October 2021, the number of granted mortgage loan agreements was approximately 13% lower than in October 2020. The corresponding loan amount also decreased by slightly more than 6%.
The decrease in the number of granted loans is observed in almost all areas: loans for home purchases (-12%), loans for home renovations (-13%), and loans for purchase with renovation (-31%). External refinancing loans (-20%) also experienced a decline. Only the number of loans for new home construction saw a slight increase (+3%).
