Understanding the Decrease in Mortgage Credit Contracts in Q3 2023 and its Impact on Loan Processing Fees and Interest Rates

2023-10-23 10:22:00

Around 43,500 mortgage credit contracts were concluded during the third quarter of 2023, for a total amount of around 7.2 billion euros (excluding refinancing). This represents a decrease in the number of contracts of 29% compared to the third quarter of last year. During the same period, the number of credit applications fell by around 15.5% in one year. This is the lowest level observed during a third quarter in almost twenty years.

Mortgage loan processing fees cannot exceed 350 euros

“Still rising interest rates and low consumer confidence combined with property prices continue to weigh on demand and therefore lead to a drop in the number of loans granted,” explained Ivo Van Bulck, secretary general of the Professional Credit Union, by press release.

Still according to the UPC, the average amount of loans granted in the third quarter of 2023 remained stable: 192,000 euros for a loan linked to the purchase of housing, 211,000 euros for a construction loan and 188,000 euros, an amount in slight decrease compared to 2022, for a credit linked to the purchase of housing and renovation.

Given the rising interest rates, mortgage loan takers are choosing security and opting for a 97% fixed interest rate.

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