28.12.2022 | Estonia
Mortgage applications down by 50%
Text Mark Taylor
Photo Matheus Frade / Unsplash
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.
To learn more about this and similar topicsEstonia
26.11.2023 | Estonia
The average monthly gross salary in Estonia rises to 1812 euros
According to data released by Statistics Estonia, in the third quarter of 2023 (July, August, September), the average monthly … Read more
23.11.2023 | Estonia
World Usability Day comes to Tallinn
World Usability Day Estonia (WUD) 2023, the largest UX and design conference in the Baltics, will reach its pinnacle … Read more
18.11.2023 | Estonia
Estonia’s gender pay gap widens
According to preliminary data released by Statistics Estonia, in 2022, the gross hourly earnings of female employees was 17.7 … Read more
14.11.2023 | Estonia
At the Jõhvi Ballet Festival you can enjoy ballet, opera, and folk dancing
This year, the Jõhvi International Ballet Festival welcomes the Kharkiv State Academic Opera and Ballet Theatre and the Ukrainian … Read more
10.11.2023 | Estonia
Number of people living in absolute poverty rose by two and a half times
According to data released by Statistics Estonia, 22.5 per cent of Estonia’s population lived at risk of poverty and … Read more
9.11.2023 | Estonia
In September, there was a significant rise in the number of tourists from Asia
According to Statistics Estonia, nearly 274,000 tourists stayed in accommodation establishments in the country in September 2023, which was … Read more
7.11.2023 | Estonia
Inflation in Estonia just below 5% on October
According to data released by Statistics Estonia, in October, the Consumer Price Index (which is the key indicator of … Read more
6.11.2023 | Estonia
Exciting events in Estonia this week
02.09–25.11,Musica Sacra, Pärnu 01–07.11,Tallinn Restaurant Week, Tallinn 01.11–31.12,Gingerbread Kingdom, Atla 03–19.11,Tallinn Black Nights Film Festival, Tallinn, Tartu, Jõhvi, Narva, … Read more