Mortgages in Finland 2007 (Market Guide)

Mortgage gross advances have grown significantly in Finland over the past five years. In 2006 gross mortgage lending reached €31.0 billion. What are the current issues facing this market? How are housing policies affecting its performance? Who are the big

Report Highlights
Despite typical mortgage rates increasing in the past year, average annual house price growth remained strong in Finland reaching 7.5% in 2006. Although securitization has been in practice for some years, it has not been until the last couple of years tha
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Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Market size 2
Forecasts 2
Key issues 3
Key market players 4
Table of Contents 5
Table of figures 6
Table of tables 7
Market Context 8
Country overview 8
Demographics data on a selection of major western European countries 10
Population 10
Economy 11
Housing market 16
Housing stock 16
House prices 18
Government housing intervention 19
Taxes, subsidies and housing schemes 19
Market data 20
Mortgage interest rates 20
Market size 21
Balances outstanding 21
Gross advances 23
Product lines 24
Market structure 24
The banking structure 24
Commercial banks (joint stock banks) 25
Foreign banks 25
Savings banks 25
Co-operative banks 25
Mortgage market structure 26
Major types of player 26
Funding 26
Distribution 27
Regulatory environment 28
Industry regulators 29
Suomen Pankki 29
Rahoitustarkastus 29
Industry associations 29
Suomen Pankkihdyistys 29
Housing Fund of Finland (ARA) 29
Suomen Kuluttajallitto 29
Credit bureaus 30
Regulatory issues and developments in the mortgage market 30
The birth of an integrated European mortgage market is still very far off 30
Basel II will mean a number of changes for lenders 30
National mortgage-related regulations 31
Key issues 32
Competitor and Product Overview 33
Top five mortgage lenders 33
Market share by balances outstanding 33
Product analysis 35
Market Forecasts 36
Forecasting gross advances 36
Datamonitor forecasts a slowdown for the Finnish mortgage market 36
Future prospects 38
Market attractiveness 38
Market inhibitors 39
APPENDIX 40
Tables relating to Chapter 2: Market Context 40
Definitions 41
Balances outstanding 41
CAGR 41
Fixed rate mortgage 41
Gross advances 42
Loan-to-value (LTV) 42
Mortgage intermediary 42
Remortgaging 42
Variable mortgage 42
Forecasting methodology 42
Research methodology 42
Further reading 43
European Mortgages 43
Ask the analyst 43
Datamonitor consulting 44
Disclaimer 44
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Table 1: Forecast of residential mortgage gross advances in the Finnish market , 2005-11f, (€m) 2
Table 2: Total population across major western European countries, 2002-06 10
Table 3: GDP at current rates across major western European countries, 2002-06, (€bn) 11
Table 4: GDP per capita at current rates across major western European countries, 2002-06, (€) 12
Table 5: GDP growth rates across major western European countries, 2002-06, (%) 13
Table 6: GDP composition by sector across major western European countries, 2006, (%) 14
Table 7: Inflation across major European countries, 2002-06, (%) 15
Table 8: Unemployment rates across major western European countries, 2002-06, (%) 16
Table 9: Residential mortgage balances outstanding as a percentage of GDP of selected European countries, 2006 23
Table 10: Market share of top five competitors in Finland in terms of balances outstanding, 2005-06, (€m) 34
Table 11: Forecast of residential mortgage gross advances in the Finnish market , 2005-11f 37
Table 12: Total dwelling stock in Finland, 2002-06, (000s) 40
Table 13: Average house price growth in Finland, 2002-06 40
Table 14: Typical mortgage interest rates in the Finnish residential market and the ECB base rate, Q3 2004-Q4 2006, (%) 40
Table 15: Residential mortgage balances outstanding in Finland, 2002-06, (€m) 41
Table 16: Residential mortgage gross advances in Finland, 2002-06, (€m) 41
Table 17: Residential mortgage net lending in Finland, 2002-06, (€m) 41

Figure 1: Mortgage gross advances have been growing rapidly in Finland, 2002-06 2
Figure 2: OP Bank has the largest market share of the residential mortgage market in Finland, 2005-06 4
Figure 3: A snapshot of Finland's key statistics, 2006 9
Figure 4: The dwelling stock in Finland reached 2.7 million in 2006 17
Figure 5: Around 58% of dwellings were owner-occupied in Finland in 2006 18
Figure 6: Average annual house price growth in Finland stood at 7.5% in 2006, 2002-06 19
Figure 7: Typical mortgage rates have been increasing in Finland, Q3 2004-Q4 2006 20
Figure 8: Total mortgage balances outstanding reached €54.9 billion at year-end 2006, 2002-06 21
Figure 9: Net lending fell to €6.8 billion in 2006, 2002-06 22
Figure 10: Mortgage gross advances have been growing rapidly in Finland, 2002-06 24
Figure 11: The four pillars of Finnish Banking, 2007 26
Figure 12: Regulatory overview of Finland, 2007 28
Figure 13: OP Bank has the largest market share of the residential mortgage market in Finland, 2005-06 33
Figure 14: The Finnish mortgage market is forecasted to reach €55.8 billion in 2007, 2005-11f 37
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