New mortgage-borrowers have an increasing amount of debt relative to income

Abstract

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.