The Central Bank of Estonia published a statistical release on banks and lease companies showing strong household activity in March, with the banking sector’s housing loan portfolio more than 10% larger than a year earlier and new housing lending materially higher. Banks issued EUR 231 million of housing loans in March, around 25% more than in the same month last year, while the car lease market continued to recover, with households leasing EUR 27 million of cars. Real estate transaction activity increased and purchases were financed to a larger extent with loans than previously, with housing loans typically covering around 40% of transaction value but exceeding 60% in the first quarter of this year. The average housing loan interest margin in March was 1.4%, the smallest of the past decade. While the value of car leasing was around the level seen before the vehicle tax began affecting leasing demand, the number of household lease contracts in March (around 1,300) remained below the 2019–2023 monthly average of 1,500, and used-car lease contracts have exceeded new-car contracts for several years.
Central Bank of Estonia 2026-04-27
Central Bank of Estonia reports housing loan portfolio up over 10% year on year and car leasing recovering in March
The Central Bank of Estonia reported strong household credit activity in March, with banks’ housing loan portfolios more than 10% larger year-on-year and new housing lending up around 25% to EUR 231 million, alongside a recovering car lease market at EUR 27 million. Housing loans financed a higher share of real estate transactions, exceeding 60% of transaction value in the first quarter compared with a typical 40%, while the average housing loan interest margin fell to a decade low of 1.4%.