Hypostat 2015

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EU 28 Country Reports Estonia 2013 Estonia 2014 EU 28 2014 Real GDP growth (%) (1) 1.6 2.1 1.3 Unemployment Rate (LSF), annual average (%) (1) 8.6 7.4 10.2 HICP inflation (%) (1) 3.2 0.5 0.6 Outstanding Residential Loans (mn EUR) (2) 5,896 6,064 6,909,057 Outstanding Residential Loans per capita over 18 (EUR) (2) 5,477 5,656 16,787 Outstanding Residential Loans to disposable income ratio (%) (2) 57.1 54.1 n/a Gross residential lending, annual growth (%) (2) 21.1 19.5 n/a Typical interest rate on new residential loans, annual average (%) (2) 2.7 2.6 3.4* Owner occupation rate (%) (2) 81.1 n/a n/a Nominal house price growth (%) (1) 15.6 6.0 2.2 * Please note that this value is the simple average of the typical interest rate of the EU 28 countries. Sources: (1) Eurostat (2) European Mortgage Federation – Hypostat 2015, Statistical Tables. Estonia Fact Table Entities which can issue mortgage loans: The market share of the mortgage issuances: Proportion of outstanding mortgage loans of the mortgage issuances: Typical LTV ratio on residential mortgage loans: Any distinction made between residential and non‐residential loans: Most common mortgage product(s): Typical maturity of a mortgage: Most common way to fund mortgage lending: Level of costs associated with a house purchase: The level (if any) of government subsidies for house purchases: No limitation on issuers. Mortgage market consists mainly of commercial banks. Commercial banks hold the majority of outstanding mortgage loans. Eesti Pank has set a LTV limit of 85%. Not available 30 year mortgage loan with floating interest rate. Eesti Pank has set maximum mortgage maturity of 30 years. Commercial banks lending activities are covered mainly with domestic deposits. Not available KredEx offers loan guarantees with state guarantee for purchasing homes. Additionally loan payments can be partly subtracted from income tax payment. 38 | 2015 EMF HYPOSTAT
EU 28 Country Reports Finland By Elina Salminen, Federation of Finnish Financial Services Macroeconomic Overview In 2014, economic growth in Finland remained slightly negative. During this period, GDP contracted by -0.4% compared to a relatively sharp decline of 1.1% in 2013. The deterioration was mainly driven by a slump in private fixed capital formation, which decreased by 6.5% in 2014, as well as a 0.4% decline in exports. Finnish exports are suffering from the global economic slowdown, since the majority of the exports are industrial products. The most important countries for Finnish exports are Sweden, Germany and Russia. In addition, private consumption decreased by 0.2% in 2014. Imports decreased by 1.4% in 2014. Economic uncertainty remained strong and consumer expectations weakened compared to 2013. The challenging economic environment has put increasing pressure on Finnish public finances. Due to the GDP contraction, public finances deteriorated further in 2014. Public deficit increased to 3.4% of GDP in 2014. Lower employment and weaker private consumption is still reducing the government’s tax revenues. As a result, the government’s need for borrowing will continue to be substantial. The general government debt-to-GDP ratio climbed to 59.3% in 2014 from 56.9% in 2013. According to economic forecasts, general government debt will continue to grow in the near future. The unemployment rate has continued to grow in 2014 and was 8.8% in December. However, the annual average unemployment rate was 8.7%, having been 8.2% in 2013. One factor helping to hold back an increase in unemployment is that the labour force continues to shrink due to the ageing of the population. However, the rapid ageing of the population is also one of the main challenges facing the Finnish economy in the future. In 2014, inflation slowed down in Finland as it did in the euro area as a whole. The Harmonised Index of Consumer Prices went down by 1.0% during this period. Households’ adjusted real income contracted by -0.7% in 2014 due to the rather flat improvement in wages. Decreased purchasing power of households will put pressure on private consumption in the future. Housing and Mortgage Markets The decline in housing construction continued also in 2014 with an 8.4% decrease in housing starts, which reached 25,699 units in total. Housing completions increased by little more than 1%. In addition, renovation investments continued to grow. House prices decreased in nominal terms. Compared to 2013, prices slumped by 0.6% in the whole country. The housing market suffered as a result of weak consumer confidence during the year. The price per square metre of an old dwelling was EUR 2,179 in December 2014 in the whole country, EUR 3,455 in Greater Helsinki and EUR 1,678 elsewhere in the country. Around 75% of Finnish households live in owner-occupied housing. The typical repayment period for a new housing loan is 20 years. At the end of 2014, the total denominated housing loan portfolio stood at EUR 90 billion (44% of GDP), and the annual growth rate in 2014 slowed to 1.7%, which means a slight decline in the trend of annual growth. The housing loan stock grew steadily in the early part of the year, but towards the end of the year the growth rate moderated. The decline in the growth of household borrowing reflects an increase in economic uncertainty as well as an upswing in unemployment. The annual growth rate was still higher in Finland than in the euro area as a whole. In 2014, Finnish households drew down new housing loans amounting to EUR 15 billion in total, which translates into a monthly average of EUR 1.25 billion. The monthly average figure was approximately the same as in 2013. The value of new housing loan agreements amounted to EUR 17 billion, almost as much as in 2013. Banks are estimating the demand for new household credit to remain low in the near future. Housing loans in Finland are most often linked to Euribor rates as they covered 94% of all housing loan agreements concluded in 2014. In December 2014, 53% of Euribor-linked housing loans were fixed for 12 months. The second most common rate fixation period was 6 months, which was adopted for 23% of new loans. In addition, since the Euribor rates were close to zero in December 2014, the average interest rate on new housing loans in Finland stood at 1.8%, which is approximately the all-time-low rate. Due to the low level of Euribor rates, interest rates on housing loans in Finland on average are still considerably lower than in the euro area on average. In Finland, a rather high share of housing loans are linked to floating interest rates with short fixation periods, while in many other euro countries housing loans are linked to fixed rates where the interest rate is agreed beforehand for several years. Mortgage Funding Deposits are the main source of mortgage funding for Finnish banks. At the end of December 2014, credit institutions’ deposit stock amounted to EUR 145 billion. The stock of household deposits, which accounts for over half of the total deposits, contracted by EUR 1 billion to EUR 81 billion. By contrast, deposits by non-financial corporations increased by approximately EUR 2 billion. Deposits continued to increase slightly in 2014: the total deposit stock increased by approximately 2.0% on average from the previous year. Household deposits contracted slightly in 2014 despite the small increase in deposits with an agreed maturity. The interest rate on the stock of deposits with an agreed maturity declined during the year to 1.15% in December 2014. In Finland, households seem to want to shift from fixed-term commitments to deposits that are easier to convert. The share of debt securities as a source of funding continued to increase rapidly in 2014. At the end of the year, the stock of total outstanding debt securities issued by credit institutions stood at EUR 97 billion. The stock grew by approximately 9% during the year, reflecting a strong increase in long-term bonds. The stock of debt securities has increased by almost 50% during the last five years. The stock of covered bonds stood at EUR 29 billion at the end of 2014. Finland 2013 Finland 2014 EU 28 2014 Real GDP growth (%) (1) -1.1 -0.4 1.3 Unemployment Rate (LSF), annual average (%) (1) 8.2 8.7 10.2 HICP inflation (%) (1) 2.2 1.2 0.6 Outstanding Residential Loans (mn EUR) (2) 88,313 89,762 6,909,057 Outstanding Residential Loans per capita over 18 (EUR) (2) 20,311 20,519 16,787 Outstanding Residential Loans to disposable income ratio (%) (2) 72.8 73.7 n/a Gross residential lending, annual growth (%) (2) -18.2 0.1 n/a Typical interest rate on new residential loans, annual average (%) (2) 2.0 1.8 3.4* Owner occupation rate (%) (2) 73.6 73.2 n/a Nominal house price growth (%) (1) 1.6 -0.6 2.2 * Please note that this value is the simple average of the typical interest rate of the EU 28 countries. Sources: (1) Eurostat (2) European Mortgage Federation – Hypostat 2015, Statistical Tables. 2015 EMF HYPOSTAT | 39
Page 1 and 2: EMF Hypostat 2015 September 2015 HY
Page 3 and 4: Contents Foreword..................
Page 5: Foreword Finally, in the spirit of
Page 8 and 9: Housing and Mortgage Markets in 201
Page 17 and 18: Mortgage Lending in Foreign Currenc
Page 24 and 25: EU 28 Country Reports Austria By Wo
Page 26 and 27: EU 28 Country Reports Belgium By Fr
Page 28 and 29: EU 28 Country Reports Bulgaria By M
Page 30 and 31: EU 28 Country Reports Croatia By Al
Page 32 and 33: EU 28 Country Reports Cyprus By Ioa
Page 34 and 35: EU 28 Country Reports Czech Republi
Page 36 and 37: EU 28 Country Reports Mortgage Fund
Page 40 and 41: EU 28 Country Reports Finland Fact
Page 42 and 43: EU 28 Country Reports Mortgage Fund
Page 44 and 45: EU 28 Country Reports Germany By Th
Page 46 and 47: EU 28 Country Reports Greece By Cal
Page 48 and 49: EU 28 Country Reports Greece Fact T
Page 50 and 51: EU 28 Country Reports years will be
Page 52 and 53: EU 28 Country Reports Ireland By An
Page 54 and 55: EU 28 Country Reports Ireland 2013
Page 56 and 57: EU 28 Country Reports At the end of
Page 58 and 59: EU 28 Country Reports Latvia Fact T
Page 60 and 61: EU 28 Country Reports Lithuania Fac
Page 62 and 63: EU 28 Country Reports Luxembourg Fa
Page 64 and 65: EU 28 Country Reports Malta Fact Ta
Page 66 and 67: EU 28 Country Reports Netherlands F
Page 68 and 69: EU 28 Country Reports Poland 2013 P
Page 70 and 71: EU 28 Country Reports Portugal Fact
Page 72 and 73: EU 28 Country Reports Romania 2013
Page 74 and 75: EU 28 Country Reports Slovakia By P
Page 76 and 77: EU 28 Country Reports Slovenia By A
Page 78 and 79: EU 28 Country Reports Spain By Iren
Page 80 and 81: EU 28 Country Reports Sweden By Chr
Page 82 and 83: EU 28 Country Reports United Kingdo
Page 85 and 86: Statistical Tables A. The Mortgage
Page 87 and 88: Statistical Tables - The Mortgage M
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Statistical Tables - The Mortgage M
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Statistical Tables - The Mortgage M
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Statistical Tables - The Housing Ma
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Statistical Tables - Funding of the
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Statistical Tables - Funding of the
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Statistical Tables - Macroeconomic
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Statistical Tables - Macroeconomic
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Annex: Explanatory Note on Data A.
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Annex: Explanatory Note on Data Cro
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