Finnish households drew down new housing loans for the purchase of holiday homes (holiday cottage loans) to the value of EUR 88 million in June 2023, which is 30% less than the stipulated month of the previous year, said the Bank of Finland in a press release on Monday.
Compared to the period before the pandemic, June 2019, drawdowns of holiday cottage loans were 6% lower in June 2023.
The volume of holiday cottage loans drawn down in 202o and 2021 was exceptionally high. The majority of holiday cottage loans are drawn down during the summer months.
The average interest rate on new holiday cottage loan drawdowns rose in June to 4.59%.
This marks a rise of 0.17 percentage points from May and 2.88 percentage points in comparison with June 2022.
The higher average interest rate on new loans for holiday cottages is mainly explained by the rise in Euribor rates. The majority (96%) of new drawdowns of holiday cottage loans are linked to Euribor rates.
The average repayment period of new drawdowns of holiday cottage loans was 18 years and 11 months, which is in the same magnitude as a year earlier in June, when the average repayment period stood at 19 years and one month.
At the end of June, the stock of holiday cottage loans stood at EUR 4.5 billion. In June, the stock of households' holiday cottage loans saw an exceptional year-on-year contraction of 1.4%, in contrast to an annual growth of 6.7% a year earlier. The average interest on the stock of holiday cottage loans rose from May to stand at 3.57%.
- Holiday cottage
- Loan
Source: www.dailyfinland.fi
