This is an archived release.
High growth in housing loans
The 12-month growth in loans secured on dwellings from Norwegian banks and mortgage companies to households was 7.1 per cent at the end of August 2011.
Total loans from Norwegian banks and mortgage companies to Norwegian households amounted to NOK 1 927 billion at the end of August 2011. Loans secured on dwellings represent 85.7 per cent of these total loans. At end-August, loans secured on dwellings amounted to NOK 1 651 billion; an increase of 7.1 per cent from the corresponding period last year.
Growing share of credit lines
Loans secured on dwellings can be divided into repayment loans and credit lines. Repayment loans account for most of the loans secured on dwellings, but credit lines have increased in importance relative to repayment loans since their introduction in January 2006. At end-August this year, credit lines accounted for 26.8 per cent of total loans secured on dwellings.
Highest growth rate in credit lines
At end-August, credit lines secured on dwellings to households amounted to NOK 442 billion.
This is an increase of NOK 51 billion, or 12.9 per cent, compared to the corresponding period last year. Repayment loans secured on dwellings have increased from NOK 1 150 billion in August 2010 to NOK 1 209 billion in August this year. The 12-month growth of 5.1 per cent is the highest growth rate observed since January 2010.
Increasing loans from the mortgage companies
Loans secured on dwellings are offered by both banks and mortgage companies. During the last years, loans secured on dwellings from mortgage companies to households have gradually increased compared to loans from banks. At end-August, loans from mortgage companies were NOK 805 billion, which is 48.8 per cent of the total loans secured on dwellings to households. Loans from banks, however, were NOK 846 billion. During the last 12 months, mortgage companies have increased their loans secured on dwellings by nearly NOK 128 billion, while the equivalent loans from banks have decreased by NOK 18 billion. Portfolio movements from banks to mortgage companies, which are a result of the introduction of covered bonds, may be a major reason for the rise of loans from mortgage companies and the decrease of such housing loans from banks.
At end-August this year, loans secured on dwellings from mortgage companies constituted 54.9 per cent of total loans secured on dwellings. In February 2011, mortgage companies’ share of credit lines exceeded the banks’ share of credit lines. For repayment loans to households however, banks constituted the largest part of the loans; a share of 53.5 per cent in August this year.
|Credit lines secured on dwellings to households. NOK billion||12-month growth. Credit lines secured on dwellings to households. Per cent||Repayment loans secured on dwellings to households. NOK billion||12-month growth. Crepayment loans secured on dwellings to households. Per cent||Total loans secured on dwellings to households. NOK billion||12-month growth. Total loans secured on dwellings to households. Per cent|
|August||391||14.4||1 150||3.8||1 542||6.3|
|September||397||14.2||1 154||3.9||1 551||6.4|
|October||419||18.9||1 143||2.4||1 562||6.3|
|November||407||14.1||1 165||3.9||1 572||6.4|
|Desember||411||14.1||1 167||4.2||1 578||6.6|
|January||413||14.1||1 169||4.2||1 583||6.6|
|February||416||13.8||1 174||4.4||1 590||6.7|
|March||421||13.8||1 177||4.4||1 598||6.7|
|April||426||13.8||1 175||4.0||1 600||6.4|
|May||433||14.1||1 184||4.4||1 618||6.9|
|June||436||13.6||1 198||4.8||1 635||7.0|
|July||440||13.4||1 202||4.7||1 641||6.9|
|August||442||12.9||1 209||5.1||1 651||7.1|
Credit lines secured on dwellings are loans secured on dwellings where a certain credit ceiling is issued, usually within 60-80 per cent of the value of the dwelling in which the loan is secured. There are no restrictions on how or what the credit is used for. Interest is only paid for the amount of credit the customer has used at the given time.
Households are defined as quasi-corporate private enterprises (e.g. partnerships), private non-profit institutions serving households, unincorporated private enterprises, employees, pensioners, social security recipients, students etc.
Covered bonds are bonds conferring a preferential claim over a cover pool consisting of public sector loans and loans secured on residential property or other real property. Only mortgage companies with special authorisation are allowed to issue covered bonds in Norway.
The statistics is now published as Banks and mortgage companies.