We know Estonia
28.12.2022 | Estonia

Mortgage applications down by 50%

Text Mark Taylor
Photo Matheus Frade / Unsplash

Mortgage applications down by 50%

 

As a result of uncertainty in the housing market caused by inflation and rising interest rates. The number of applications for home loans has fallen by as much as 50 per cent compared to the beginning of 2022. 

Anne Pärgma, Home loans area manager at Swedbank, stated that the number of mortgage applications has fallen by 50 per cent compared to the start of the year. However, “in terms of contracts, the decline is much smaller, and is close to 15 per cent,” she added.

Pärgma also added that there has been an interesting change in people’s mentality when it comes to applying for a mortgage which has made this change seem larger than in reality. In the past, people applied for a home loan before even starting their search for a new home. Today, people have already found the desired property before applying. 

Estonian bank LHV, has also seen a decline in mortgage applications compared to the beginning of the year, down by 45 per cent. 

As a result of inflation and rising interest rates, “it is more and more the case that customers will not get as large a loan sum as they had wanted,” explained Catlin Vatsel, head of private financing at LHV.

The implication being that some people either need to make a larger deposit or choose a cheaper home than originally hoped for.

 

Source ERR  

 

To learn more about this and similar topics
Estonia Home Loan Housing Market LHV Loan Mortgage Swedbank

31.1.2023 | Estonia

Tallink and John Nurminen Foundation launch cooperation project for Baltic Sea protection

Tallink and John Nurminen Foundation launch cooperation project for Baltic Sea protection

The Tallink Group and the John Nurminen Foundation have announced an agreement to cooperate in 2023. The aim is … Read more

30.1.2023 | Estonia

Turnover of retail businesses increased by 2% in 2022

Turnover of retail businesses increased by 2% in 2022

According to preliminary data published by Statistics Estonia, the total turnover of retail trade enterprises in2022 was 10.5 billion … Read more

27.1.2023 | Estonia

Would you give 12-year-old dog Kati her forever home?

Would you give 12-year-old dog Kati her forever home?

There are many stories similar to Kati’s, but at the centre of all these stories is one little unfortunate … Read more

26.1.2023 | Estonia

Saaremaa crowned the sunniest place in Estonia

Saaremaa crowned the sunniest place in Estonia

The Estonian Environment Agency has released a new map showing how much sunshine different areas of Estonia received in … Read more

25.1.2023 | Estonia

Estonian Rescue Board launches online map of emergency shelters

Estonian Rescue Board launches online map of emergency shelters

The Estonian Rescue Board (Päästeamet) in collaboration with the Land Board (Maa-amet) has launched an online map of public … Read more

23.1.2023 | Estonia

Construction prices grew by 17.8% last year

Construction prices grew by 17.8% last year

According to data released by Statistics Estonia, in 2022, the construction price index increased by 17.8 per cent compared … Read more

22.1.2023 | Estonia

Research: more than half of consumers have to be very selective about their purchases

Research: more than half of consumers have to be very selective about their purchases

A survey initiated by the supermarket chain Prisma has revealed that 64 per cent of shoppers surveyed are forced … Read more

19.1.2023 | Estonia

Estonia’s military support to Ukraine will increase to more than 1% of GDP

Estonia’s military support to Ukraine will increase to more than 1% of GDP

Today, the Estonian Government supported a proposal of Minister of Defence Hanno Pevkur to provide Ukraine with the largest … Read more