October 30, 2020

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Corona digests brickin in stomach: almost a quarter less …

Corona digests brickin in stomach: almost a quarter less ...

The Corona crisis has wiped out the Belgian’s demand for a mortgage. In the second quarter, the number of applications for a home loan without refinancing decreased by 23 percent compared to the same period last year. This was announced by the Febelfin banking association on Friday.

However, the amount requested fell less sharply. This represents a decrease of more than 16%. The lower demand is also reflected in the loans granted for purchase, construction, renovation … Excluding refinancing, the banks granted almost 53,500 mortgage loans totalling around €7.5 billion. The number of loans granted fell by around 23.5 percent, or 19 percent.

The number of external refinancings, i.e. from another bank, decreased in applications (-6.5 pcs), but the number of loans granted (+11.7pc).

For the second quarter, the main culprit of these times is the new coronavirus. The restrictive measures “largely” explain the sharp decline in the application and allocation of funds. For example, since non-essential movements were not allowed for a certain period of time, the use of notarial deeds was kept to a minimum.

In April, credit production was almost half as low. In the following two months there was a recovery, although it was still a decrease compared to 2019. The increase over the course of June will give the industry hope for the coming months.

There was also a decline in the first quarter, but this was mainly due to the abolition of housing benefit in Flanders at the beginning of this year. As a result, many loans were taken out at the end of 2019 to benefit from the tax advantage.

The Febelfin figures come from the 58 members of the Credit and Professional Association (BVK). They account for around 90 percent of credit production. At the end of June, a total of around €238 billion was outstanding.