The Bank of Finland published banking statistics showing that Finnish housing corporations drew EUR 304 million in new loans in September 2026, nearly 39% less than a year earlier and the lowest monthly volume since July 2022. Outstanding housing corporation debt nevertheless continued to grow, while its average interest rate was higher than a year earlier. New loan drawdowns totalled EUR 4.3 billion in January–September 2026, down nearly 17% from the corresponding period in 2025. The decline partly reflected weaker construction activity, with starts of blocks of flats falling 18% in January–August from a year earlier. Reduced government authorisation for interest subsidies also contributed to fewer starts in subsidised housing construction. July was an exception to the borrowing slowdown, with unusually high drawdowns of nearly EUR 800 million reflecting the pension reform that took effect that month. The stock of loans to housing corporations reached EUR 47.0 billion in September, growing 2.7% annually. Growth was slightly faster than a year earlier but remained below the 5% rate recorded three years previously. The average interest rate on outstanding loans rose to 3.35% from 2.97% in September 2025, with 84% of loans linked to Euribor rates at the end of September 2026.
Bank of Finland reports nearly 39% annual fall in housing corporation loan drawdowns in September
Bank of Finland statistics show that Finnish housing corporations drew EUR 304 million in new loans in September 2026, down nearly 39% annually and the lowest monthly amount since July 2022. Drawdowns fell nearly 17% in January–September, partly reflecting weaker construction activity. Outstanding loans still grew 2.7% annually to EUR 47.0 billion, while their average interest rate increased to 3.35% from 2.97% a year earlier.