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

16.2.2025 | Estonia

Industrial production in Estonia falls by 4% in 2024

Industrial production in Estonia falls by 4% in 2024

In 2024, industrial production in Estonia decreased by 4 per cent at constant prices, according to data released by … Read more

15.2.2025 | Estonia

Nine positive facts about life in Estonia

Nine positive facts about life in Estonia

Statistics Estonia reveals impressive progress in various sectors over the past decade, including housing, healthcare, transport, and sustainability. … Read more

13.2.2025 | Estonia

Elektrum opens Estonia’s largest EV charging station

Elektrum opens Estonia’s largest EV charging station

Elektrum has opened the largest electric car charging station in Estonia at the T1 Shopping Centre in Tallinn. With … Read more

7.2.2025 | Estonia

Retail trade fell by 3 per cent in 2024

Retail trade fell by 3 per cent in 2024

Retail trade enterprises in Estonia saw a decline last year, with total turnover reaching 10.4 billion euros—down 3 per … Read more

6.2.2025 | Estonia

International School of Tallinn opens in Ülemiste

International School of Tallinn opens in Ülemiste

The newly completed Education Quarter in Ülemiste City has welcomed its first major tenant—the International School of Tallinn. The … Read more

2.2.2025 | Estonia

Construction Prices Rise by 1.6% in 2024

Construction Prices Rise by 1.6% in 2024

In 2024, the Construction Price Index increased by 1.6 per cent compared to the average of 2023, according to … Read more

28.1.2025 | Estonia

Business festival sTARTUp Day kicks off tomorrow 

Business festival sTARTUp Day kicks off tomorrow 

From January 29 to 31, Tartu will host sTARTUp Day 2025, a business festival that brings together startup founders, … Read more

28.1.2025 | Estonia

Tallink Star returns to serve a new route

Tallink Star returns to serve a new route

Tallink Star will return to Estonia and begin operations on the Paldiski-Kapellskär route from February 9. Having been chartered … Read more