SEB: vol­ume of home loans in Latvia on a rise

Baltic News Network - - News -

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

Newspapers in English

Newspapers from Latvia

© PressReader. All rights reserved.