Bigbank: Interest in Home Loans Growing, No One Wants to Miss the Right Moment

Interest in home purchases has grown and in November the number of loan applications increased by 13% compared to the previous month and by nearly a tenth compared to the same period last year, while the average loan amount rose to 108,000 euros, according to Bigbank's analysis of its home loan portfolio.

According to Jonna Pechter, Head of Bigbank Estonia, no major breakthrough has yet occurred, but the positive Euribor news in recent weeks has been very well received. "Whereas previously news about interest rate increases stopping reassured existing home loan clients, fresh messages about interest rate decreases are also giving new loan seekers considerable courage," Pechter highlighted one reason that favors the growth trend in loan applications.

"In small but steady steps, the average loan amount has also grown in recent months. If we consider that real estate prices have not risen in the same period, this is rather a sign of increasing household incomes and strengthening purchasing confidence," Pechter explained why the average loan amount, which a few months ago remained below the hundred thousand euro mark, reached 108,000 euros in November.

According to Jonna Pechter, in today's home search, all steps are taken so that when suitable property is found, one can proceed to the transaction without delay. "Home seekers want to prevent the moment when the selection gradually decreases and prices start to rise. Today, buyers and sellers are increasingly moving closer to a point that satisfies both, because prices have remained stable on the secondary market and in many new developments they have also been adjusted downwards," said the Bigbank head.