Bigbank: Summer Surprised with Strong Growth, August the Year's Most Active Home Loan Month

In August, home loan contracts were concluded 8% more than in July, but the average loan amount was unusually modest at 87,000 euros, according to Bigbank's analysis of its home loan portfolio.

"Throughout the entire summer, the number of home loan contracts has clearly grown, which is certainly not typical, and specifically in August, contracts were concluded even more than twice as many as in January," commented Jonna Pechter, head of Bigbank Estonia, who noted that the number of new loan applications has also been continuously growing in recent months.

According to Pechter, the drop in average loan amount below the 100,000 euro threshold stems from the fact that the majority of transactions involve smaller secondary market apartments. "In light of current interest rates, people have reconsidered their options and when purchasing a new home, they are comparatively more so-called keeping their feet on the ground, meaning they are considerably more rational in their choices," explained Bigbank's head of Estonia.

"By now it is clear that home buyers have overcome the anxiety and confusion from last fall and winter. The noticeable growth trend that has continued throughout the summer allows us to predict quite an active autumn," added Pechter.