Belgium citizens are borrowing more than previously to build their own homes, despite a looming recession. In the second quarter of 2022, the average amount that Belgians borrowed to build a home rose to €218,000, almost €50,000 more than at the beginning of 2019.
During the earlier quarter of 2022, construction loans averaged €210,000, according to statistics on mortgage credit from the Credit Professional Association (BVK).
Whereas in the second quarter of 2022, almost 70,000 loans were granted, amounting to €11.5 billion. Extended loans decreased 5% compared to the second quarter of 2021. However, corresponding loans increased by more than 5%, which BVK states is the most mortgage credit ever granted in a second quarter.
Loans for buying property remain more or less stable, while loans for construction increased by 5.3%. Loans for purchasing a house with renovation increased 8.5% compared to the second quarter of 2021. Loans for other purposes, such as garages or building plots, as well as renovating houses declined by 25.5% and 17% respectively.
Figures show that Belgians are borrowing higher amounts to build or buy a home. The average amount that Belgians borrowed to buy a home stabilized at around €196,000 in the second quarter of 2022. This represents a 23.1% increase (€37,00) on 2019.
A loan to either buy or renovate a home was on average €205,000, an amount €10,000 higher than at the start of 2019, but lower than the previous four quarters.
In the past quarter, nine in ten borrowers went for a fixed interest rate or a variable interest rate with an initial fixed-rate period for a minimum of ten years.