New mortgage-borrowers have an increasing amount of debt relative to income
Putkuri, Hanna; Voutilainen, Ville (04.05.2021)
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-202105251249
New mortgage-borrowers’ total debt relative to income has increased in recent years. A higher proportion of new loans for house purchase are granted to highly indebted households relative to income. High debt-to-income ratios are less common in the case of first-home loans than in regard to other new housing loans. High debt-to-income ratios are more common in growth centres than elsewhere in Finland. The proposed debt-to-income cap would curb growth in indebtedness relative to income.
The accessible version: https://www.bofbulletin.fi/en/2021/1/new-mortgage-borrowers-have-an-increasing-amount-of-debt-relative-to-income/