The first half of 2026 was characterised by an overall decline in the number of mortgage loan applications compared with the same period in 2025. However, an increase was recorded in applications for two specific purposes: the construction of a new home and the purchase of a property combined with renovation works.

The decline in applications was also reflected in a reduction in the number of mortgage loans granted during the first six months of 2026 compared with the first half of last year.

Mortgage interest rates increased again during the second quarter of 2026. According to figures from the National Bank of Belgium, average interest rates in May ranged from 3.41% (for loans with an initial fixed-rate period of more than ten years) to 4.40% (for loans with an initial fixed-rate period of up to one year).

In the second quarter of 2026, the number of mortgage loan applications, excluding external refinancing, fell by approximately 5.7% compared with the same period last year. The corresponding amount of these applications also declined by 2.7%.

During the second quarter of 2026, the number of mortgage loans granted, excluding external refinancing, declined by almost 9% compared with the second quarter of 2025. This decrease confirms the slowdown observed since the beginning of the year and was also reflected in the figures for the first half of 2026. The volume of lending likewise fell by approximately 5.2% year on year.

To analyse developments on a comparable basis, however, a comparison between 2026 and 2024 is more relevant, as 2025 was an exceptional year. It is important to note that 2025 was marked by a slight decline in interest rates and a substantial reduction in registration duties in the Walloon Region. This created a more favourable environment and supported demand for mortgage credit.

On that basis, the second quarter of 2026 recorded growth of 24.2% in lending volume and 6.5% in the number of files. This places the quarter among the four strongest second quarters of the past decade and confirms that mortgage lending activity remains at an exceptionally high level.

Although 2026 shows a decline compared with 2025, this development must be viewed in context. Mortgage lending activity in 2026 remains clearly above the level recorded in 2024.

In the second quarter of 2026, excluding external refinancing, just under 50,000 new mortgage loans were granted for a total amount of more than EUR 9.5 billion.

Most lending purposes showed a negative trend. Overall, the number of mortgage loans granted, excluding external refinancing, fell by approximately 8.6% compared with the second quarter of 2025. This trend affected the majority of lending purposes, with the exception of loans for house construction and loans for the purchase of a home combined with renovation works, both of which recorded growth.

Compared with the second quarter of 2025, the number of loans granted for the purchase of a home declined by 7.8% (-2,491). Renovation loans recorded the sharpest fall, decreasing by 17.9% (-1,996). The number of loans for other purposes also declined by 13.3% (-397).

By contrast, loans for the purchase of a home combined with renovation works recorded the strongest growth, increasing by 5.6% (+194). Loans for house construction also increased, albeit more modestly, by 0.4% (+21).

Meanwhile, the number of external refinancing transactions continued to decrease during the second quarter of 2026. With 936 fewer contracts than in the same period of 2025, the decline amounted to 28.5%. In total, around 2,400 external refinancing loans were granted, representing an overall amount of approximately EUR 370 million.

In the second quarter of 2026, the average amount of loans granted increased slightly for most lending purposes, with the exception of construction loans.

The average amount of a loan for the purchase of a home rose slightly to around EUR 215,000.

The average amount of a loan for the purchase of a home combined with renovation also increased, reaching approximately EUR 232,000.

The average amount of a construction loan declined to around EUR 251,000.

The sharpest increases were recorded in the average amounts of renovation loans and loans for other purposes, which rose to approximately EUR 81,400 and EUR 122,300 respectively.

During the second quarter of 2026, fewer than eight in ten borrowers, namely 78.8%, chose either a fixed interest rate or a variable-rate loan with an initial fixed-rate period of at least ten years. This represents a decline of 15% compared with the same period in 2025.

Approximately 5.5% of borrowers opted for a variable-rate formula that can only decrease. Around 15.5% preferred a variable-rate loan with an initial fixed-rate period of between three and ten years. Just over 1% chose an annually variable interest rate.

As a result of rising interest rates, Belgian consumers continue to show a strong preference for certainty. However, there has been an increase in the number of borrowers opting for variable-rate products that can only move downwards. The number choosing an annually variable interest rate remains limited.

The credit sector remains fully aware that mortgage lending must be carried out with the utmost care and that responsible lending must remain the overriding principle.

In this respect, the sector shares the same view as the supervisory authorities: lenders must act prudently in order to avoid borrowers taking on excessive debt while safeguarding financial stability in the longer term.