Increasing share for credit lines

Credit lines secured on dwellings accounted for almost a quarter of Norwegian banks’ and mortgage companies’ total loans secured on dwellings to Norwegian households at the end of November 2009. This is the highest share since this loan product was introduced in January 2006.
Total loans secured on dwellings to Norwegian households from Norwegian banks and mortgage companies amounted to NOK 1 478 billion at the end of November 2009. This is an increase of almost NOK 9.5 billion compared to the previous month. Compared to November 2008, loans secured on dwellings have increased by a total of NOK 102 billion, or almost 7.5 per cent. This is the highest yearly growth since March 2009.
Mortgage companies drive the growth
Norwegian mortgage companies’ loans secured on dwellings to households amounted to NOK 518 billion at the end of November 2009. This is an increase of NOK 20.5 billion, or 4.1 per cent, from the previous month. Norwegian banks’ loans secured on dwellings to households amounted to NOK 960 billion at the end of November 2009; a decrease of NOK 11 billion, or 1.1 per cent, from October 2009. Portfolio movements of loans from banks to mortgage companies are a key reason for the growth in mortgage companies’ loans and the decrease in banks’ loans.
Unprecedented share for credit lines
Loans secured on dwellings consist of two different types of loans; 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 ever since the introduction of this loan product in January 2006. At the end of November 2009, repayment loans and credit lines accounted for 75.9 and 24.1 per cent of total loans secured on dwellings respectively. The share for credit lines secured on dwellings was the highest ever recorded.
Credit lines secured on dwellings amounted to NOK 357 billion at the end of November 2009, while repayment loans secured on dwellings amounted to NOK 1 121. Credit lines increased by NOK 4.5 billion compared to the previous month. Repayment loans increased by NOK 5 billion in the same period. The yearly growth in the two loan types was 14.8 and 5.3 per cent respectively.

Credit lines secured on dwellings accounted for almost a quarter of Norwegian banks’ and mortgage companies’ total loans secured on dwellings to Norwegian households at the end of November 2009. This is the highest share since this loan product was introduced in January 2006.

Total loans secured on dwellings to Norwegian households from Norwegian banks and mortgage companies amounted to NOK 1 478 billion at the end of November 2009. This is an increase of almost NOK 9.5 billion compared to the previous month. Compared to November 2008, loans secured on dwellings have increased by a total of NOK 102 billion, or almost 7.5 per cent. This is the highest yearly growth since March 2009.

Mortgage companies drive the growth

Norwegian mortgage companies’ loans secured on dwellings to households amounted to NOK 518 billion at the end of November 2009. This is an increase of NOK 20.5 billion, or 4.1 per cent, from the previous month. Norwegian banks’ loans secured on dwellings to households amounted to NOK 960 billion at the end of November 2009; a decrease of NOK 11 billion, or 1.1 per cent, from October 2009. Portfolio movements of loans from banks to mortgage companies are a key reason for the growth in mortgage companies’ loans and the decrease in banks’ loans.

Unprecedented share for credit lines

Loans secured on dwellings consist of two different types of loans; 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 ever since the introduction of this loan product in January 2006. At the end of November 2009, repayment loans and credit lines accounted for 75.9 and 24.1 per cent of total loans secured on dwellings respectively. The share for credit lines secured on dwellings was the highest ever recorded.

Credit lines secured on dwellings amounted to NOK 357 billion at the end of November 2009, while repayment loans secured on dwellings amounted to NOK 1 121. Credit lines increased by NOK 4.5 billion compared to the previous month. Repayment loans increased by NOK 5 billion in the same period. The yearly growth in the two loan types was 14.8 and 5.3 per cent respectively.

Source: Statistics Norway

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