In the first quarter of 2025, credit demand returned to the level of the COVID-19 years. Namely, more than 85,000 credit applications were submitted in the first quarter of 2025, totaling just under 17 billion euros (excluding refinancing).

The first quarter of 2025 was marked by a decline in mortgage rates. Based on figures published by the National Bank of Belgium, in February 2025 these rates fluctuated between an average of 2.87% (for loans with an initial fixed rate period of more than 10 years) and an average of 4.40% (for loans with an initial fixed rate period of 1 year).

"The number of credit applications continues the positive trend of recent quarters and confirms a renewed confidence in the real estate market thanks to the slight decrease in interest rates and the reduction of registration fees in Wallonia," said Ivo Van Bulck, director of the Retail Credit Committee at Febelfin.

These are the key findings (excluding refinancings) for the first quarter of 2025 compared to the first quarter of 2024:

The number of credit applications, excluding the ones involving external refinancing, increased sharply by just under 17% in the first quarter of 2025 compared to the same quarter last year. The underlying amount of credit applications also increased by about 27.6%.

The increase in the number of credit applications was observed for all purposes. The number of credit applications for the purchase of a home (+6,919) increased by +15.4%, the number of applications for the purchase + renovation of a home (+673) by +15.5% and the number of applications for the renovation of a home (+1,608, or +12%). The number of credit applications for other purposes (garage, building land, etc.) experienced the largest increase at +65.5% (+2,070). Building a home remains attractive: the number of credit applications is still on the rise (+857, or +12.6%). In addition, quarterly external refinance applications continued to grow in the first quarter of 2025, up +90.5%. The current level of rates again makes this target attractive.

In the first quarter of 2025, the number of credits granted, excluding external refinances, increased by about 32.5% compared to the first quarter of 2024. The corresponding amount also increased by just over 51%

Rising credit production reflects a decline in interest rates in recent months, the revival of consumer confidence in the real estate market and the reduction of registration fees in Wallonia to 3% instead of 12.5%.

In the first quarter of 2025, just over 52,300 new loans were granted totaling over EUR 9.6 billion - excluding external refinancing. This number is similar to that of 2020. In terms of amount granted in a first quarter, the level is similar to that of 2021.

Overall, the number of credits granted, excluding refinances, increased by 32.5% (in number) and 51.2% (in amount) compared to the first quarter of 2024. The number of loans for the purchase of a home and other purposes (garage, building land, etc.) showed the largest increases.

Compared to the first quarter of 2024, the number of credits for the purchase of a home increased (+8,883, or +38.5%), as well as the number of construction credits (+604, or +17.2%). The same is true for the purchase + renovation of a home, with an increase of +27.5%, or 638 more credits than in the first quarter of 2024. The number of credits for renovating a home continued to rise (+1,753, or +20.2%). The number of credits issued for other purposes (+952) shows the largest increase compared to 2024, at +49.7%.

The number of external refinances continued to increase by +125.3%. As a result, more than 2,900 external refinances were granted for a total amount of approximately EUR 424 million.

In the first quarter, the average amount of credit extended for most purposes rose sharply.

The average amount of a credit for the purchase of a home increased to about EUR 214,000 in the first quarter of 2025.

The average amount of a credit for the purchase of a home + renovation also increased, to about EUR 248,000.

The average amount of a construction credit increased slightly to just over EUR 240,000 in the first quarter of 2025 compared to the first quarter of 2024.

In the first quarter of 2024, more than 9 in 10 borrowers (94.3%) again chose a fixed rate or a variable rate with an initial period of interest rate fixation of at least 10 years. About 3.7% of borrowers preferred a variable rate with an initial period of interest rate fixation between 3 and 10 years. About 2% of borrowers opted for an annually variable interest rate.

Thus, although interest rates are falling, Belgian consumers overwhelmingly continue to opt for security. The number of people opting for a variable interest rate remains low. But even in the case of a floating rate, the consumer is highly protected by the legislation. Thus, the variable interest rate can never be more than twice the initial interest rate after adjustment to the evolution of the applicable reference indices.

The credit sector is and remains aware that mortgage lending must be done with great care and that responsible lending must remain the absolute starting point. On this point, the industry is on the same line as the regulator: lenders must exercise the necessary caution in order, on the one hand, to avoid, as far as possible, individual borrowers taking out loans that are too large and, on the other, to safeguard financial stability over time.

All statistics on mortgage lending (2000 - 2025Q1), broken down by purpose of loan and type of interest rate, are available on the UPC website (www.upc-bvk.be) under “Press and Figures” (only in Dutch/French).