Finns had almost 98 billion euros in outstanding housing loans at the end of last November, according to Finance Finland. (Credit: Martti Kainulainen – Lehtikuva)

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FINNS made almost 17 billion euros worth of housing loan repayments in 2018, according to Finance Finland.

Elina Erkkilä, a senior expert at the representative of the Finnish financial sector, on Friday stated that although the amount of housing loan repayments was higher than ever before in history, it is not an indication of a sudden eagerness to pay back housing loans.

She explained that as interest rates on housing loans continued to fall last year, housing loan repayments accounted for a larger share of total payments for borrowers with variable payment plans.

“Interest rates on new housing loans have decreased month after month, and also the average interest rate on housing loan decreased in 2018. It seems the decrease is now about to be over, however,” said Erkkilä.

Finnish households had a total of nearly 98 billion euros in outstanding housing loans at the end of last November.

Finance Finland also reported that the amount of loans granted by banks to businesses and households has continued to grow moderately – at an annual clip of roughly three per cent. Yet, it highlighted, most of the statutory instruments to promote macroeconomic stability are currently in use in Finland.

“Before considering additional regulatory measures, it is important to carefully examine the combined effect of earlier decisions on mortgage borrowing to avoid any unpleasant surprises. Businesses may find hiring more difficult, if households are no longer able to relocate for employment,” explained Erkkilä.

Aleksi Teivainen – HT
Source: Uusi Suomi