Rate down but the number of loans does not increase

By | February 12, 2019

For many months, financial analysts have noticed that the loan rates proposed by specialized organizations are constantly decreasing. Yet, if historically low rates are currently achieved, the number of mortgages applied for and granted continues to decline.

 

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It was the Professional loan Union (UPC) that reported in a press release last week that mortgage demand was down in the first quarter of this year compared to the same period last year. in 2015. More specifically, the UPC indicates that the demand for loan fell by 9% over this period and that the overall amount, meanwhile, dropped by 5.6%.

Fewer applications, fewer loans

While the number of loans granted has decreased compared to last year, the number of loans granted has also fallen quite sharply. With some 50,000 new mortgages granted during the first quarter of the year, this represents a drop of 8% compared to the same period in 2015 (but an increase of 17% compared to the previous quarter).

The average loan: between 137,000 and 140,000

According to the statistics unveiled by the Professional loan Union, Belgians would have borrowed less in the second quarter of the year but the average amount borrowed would increase slightly since it would reach 137,000 euros for the purchase of real estate and 140,000 euros for a new construction.

Among the different types of loans borrowed, there is a large consumer preference for fixed rate mortgages. The latter actually represent about 70% of the borrowers while 19% opted for a variable interest rate loan with an initial fix period of 3 to 10 years.