Swedbank: Around 30% More Home Loan Agreements Concluded This Year

According to Swedbank data, the home loan market continued to show strong growth during the first nine months of the year. The average home loan amount in Estonia reached 154,000 euros, which is 8% more than a year ago. Over three quarters, home loan agreements were concluded nearly 30% more compared to last year.

The largest home loans are still taken by 31–35-year-olds, whose average loan amount reaches 179,000 euros. They are followed by 36–40-year-olds, whose average loan amount is 176,000 euros, and 26–30-year-olds with 162,000 euros. In all three age groups, the average loan amount has grown by 7–9% year-over-year.

At the same time, the share of younger borrowers has increased. 26–30-year-olds account for more than 20% of borrowers and those up to 25 years old account for 10%. Meanwhile, the share of home loan clients up to 30 years old has grown the most year-over-year.

„From time to time, there are discussions about how to make home buying easier for young people. Our data shows that they are already very active in the real estate market. It is precisely the share of young people among borrowers that has grown the most, and their average loan amounts have also increased," said Anne Pärgma, Head of Home Loans at Swedbank.

„The largest loans are still taken by people in their thirties. By that age, the family has often grown, the current home becomes too small and they start looking for a larger one. It is good to see that young people also want to buy their own home and increasingly have the opportunity to do so," she added.

Home purchases are most often made with down payments of up to 15%. The average down payment this year has been 37,000 euros. At Swedbank, home loans are taken on average for 26 years.

The home loan market was also active in Latvia and Lithuania, although average home loan amounts there fall short of Estonia's figures. In Latvia, the average home loan amount reached 100,000 euros and in Lithuania 132,000 euros. Year-over-year, the average loan amount has grown by 12% in Latvia and 11% in Lithuania.