SEB: volume of home loans in Latvia on a rise
The volume of home loans issued in Q1 2017 has grown by 30%, according to data from SEB Bank.
In the first quarter of 2017, SEB Bank issued 16% more home loans in comparison with the same period of 2016. The total size of the issued funding has grown 30% – to nearly EUR 28.2 million.
The average loan amount this year is EUR 46,000 (EUR 42,000 in 2016). The average term is 19 years (17 years in 2016). Most often residents pick apartments. Purchase of a private home or its construction applies to around 10% of deals.
SEB Bank’s data shows that the most active borrowers are men aged 33-35. They usually take on the largest loans – the average home loan size among men was EUR 53,600 in Q1. Among women, the average loan size is EUR 41,600.
«We had noticed in 2016 that overall activity of private persons has increased. The same can be said of demand for funding. We predict this trend will continue this year. Residents’ demand for funding – home loans and other loan types – can be explained with economic growth, wage rise, more confidence about the future, improvement of purchasing power and the desire to improve one’s living conditions,» SEB Bank’s board member Arnis Skapars explains the situation. Read more on bnn-news.com