Statistics released by the Professional Credit Association on Monday revealed a significant decline in mortgage lending in Belgium during the third quarter, marking the lowest levels for this
period in nearly 20 years.
In the third quarter, approximately 43,500 mortgages were approved, indicating a 29% decrease compared to the previous year. The total value of these mortgages, excluding refinancing of existing loans, stood at just over 7.2 billion euros, marking a 31% drop compared to the third quarter of 2022.
Ivo Van Bulck, the secretary-general of the Professional Credit Association, pointed to the combined impact of rising interest rates, low consumer confidence, and high house prices as the factors behind the diminishing demand and reduction in the number of granted loans.
The steepest decline was observed in loans for house construction, with a drop of around 50% compared to the third quarter of 2022. There were also 23% fewer loans for house purchases, while refinancing saw a significant decrease, with only 1,500 cases compared to 10,000 two years prior.
Moreover, the number of mortgage applications (distinct from approvals) reached its lowest point since 2010 in the third quarter. During this period, slightly over 63,500 loan applications were submitted, with a combined value of 11.5 billion euros.