Falling interest rates and positive growth in the lending sector encouraged more Belgians to take out a mortgage last year. The number of mortgage loans has increased by around 10% compared to 2023.
In 2024, Belgians took out more than 186,000 mortgages, excluding refinancing, worth a total of over €31 billion, according to figures from the Professional Association of Credit, shared with financial non-profit Febelfin. The association represents approximately 90% of all new mortgages granted in Belgium. The value of these loans increased by 4% from 2023.
After a difficult start to the year, marked with declines in the home market in the first quarter of 2024, the second half of the year was strongly boosted by a significant drop in interest rates. This led to a 11.4% increase in the number of mortgages granted in the second half of the year, compared to the same period in 2023.
Falling interest rates also positively influenced the ability of Belgian consumers to make payments on their loans. A total of 99,500 mortgages led to returns of over €17 billion in the second half of the year.
According to figures from the National Bank of Belgium, interest rates at the end of 2024 stood at between 2.97% for variable rates and initial fixed-rate loans of over ten years to 4.74% for loans with a fixed-rate period of up to one year.
"The drop in interest rates which began in early 2024 has enabled potential borrowers to strengthen their repayment capacity and stimulate mortgage lending after a year of pause," said Ivo Van Bulck, secretary-general of the Professional Association of Credit.
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The strongest growth in the mortgages sector was observed in applications for home renovation credits (up 16.2%) and purchase agreements with renovation plans (10.4%). Belgian consumers are also now increasingly likely to rely on external refinancing, which has increased in popularity. Belgians used these services to borrow just over €1 billion.
At the end of last year, more than nine in ten borrowers opted for a fixed interest rate or a variable rate with an initial fixed-rate period of at least ten years. Only 1.3% of Belgians opted for an annual variable rate.