• Banks signed nearly $ 564 billion in housing loans over eight months, a 36 percent year-over-year increase.
  • The increase was more than double for safer mortgages for 1-5 years and for 5-10 years.

Low-risk mortgage loans with a fixed repayment term of at least 10 years achieved a 28 percent increase.

mortgage loan

The housing loan market is developing favorably. On the one hand, the expansion continues and more and more people are turning to secure constructions, according to Banka’s official central bank and personal data processing compilation. In the first eight months of the year, banks concluded home loan agreements worth nearly USD 564 billion. This represents a 36 percent year-on-year increase. Ana Malding, an expert at Banka , said that the growth of household income and the strong demand in the housing market also contributed to the expansion. He added that, according to the latest market data, home borrowers are increasingly looking for security , that is, they are looking for multi-year fixed repayment schemes rather than floating rate loans, where the installment can change within a short time, even within 3-6 months.

Variable-rate mortgages dropped by more than 30 percent.

Variable-rate mortgages dropped by more than 30 percent.

In the first eight months of the year, the amount of floating rate mortgage contracts decreased by 34 percent to USD 110 billion. At the same time, fixed-rate home loans for 1-5 years and 5-10 years showed nearly double growth , with 86% for the former and 93% for the latter.

The amount of home loans, which are considered the safest and have a fixed installment for more than 10 years, increased by 28 per cent to nearly USD 35 billion. Ana Malding said Banka’s customers are increasingly looking for fixed-term repayment plans, as they are predictable .

There is a lower interest rate, you just have to find it

Banka’s expert pointed out that due to the growth of the mortgage market, competition between banks is increasing . And for home borrowers, it’s a good idea to carefully review your offers, as they can be very different . As an example, Ana Malding said that in August the average market interest rate on fixed-term mortgages for at least one year was 5.15 percent. By contrast, the cheapest 5 or 10 year fixed mortgage loans are available with a full APR of less than 4 percent , which could mean millions in total repayments to the bank. According to the expert, therefore, it is necessary to look not only at the offers of the account holding bank but also at the constructions of other banks . The best home loans can now be compared to the Internet in minutes , saving you millions .